[Congressional Record Volume 142, Number 100 (Tuesday, July 9, 1996)]
[House]
[Pages H7122-H7124]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 FOREIGN ASSISTANCE ACT OF 1961 AND ARMS EXPORT CONTROL ACT AMENDMENTS

  Mr. GILMAN. Mr. Speaker, I ask unanimous consent to take from the 
Speaker's table 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, with Senate amendments thereto, and concur in 
the Senate amendments.
  The Clerk read the title of the bill.
  The Clerk read the Senate amendments, as follows:

       Senate amendments:
       Page 2, in the table of contents relating to Chapter 1, 
     strike out ``And'' and insert: ``and''
       Page 2, in the table of contents relating to Chapter 4, 
     after ``4--'' insert: ``International''
       Page 2, in the table of contents, strike out:

``Sec. 148. Certification thresholds.''

     and insert:

``Sec. 148. Annual military assistance report.''

       Page 2, in the table of contents relating to section 152 
     strike out ``arms export control act'' and insert: ``Arms 
     Export Control Act''
       Page 3, in the table of contents relating to section 154 
     after ``under'' insert: ``the''
       Page 3, in the table of contents, after the line relating 
     to section 154 insert:

``Sec. 155. Publication of arms sales certifications.''
``Sec. 156. Release of information.''
``Sec. 157. Repeal of termination of provisions of the Nuclear 
              Proliferation Prevention Act of 1994; Presidential 
              determinations.''

       Page 4, lines 24 and 25, strike out ``the second''
       Page 4, line 25, after ``25'' insert: , ``as added by 
     section 112(b) of Public law 99-83''
       Page 5, line 20, strike out ``new paragraph''
       Page 9, after ``Transfers.--'' insert: ``(1)''
       Page 10, line 1, strike out ``(1)'' and insert: ``(A)''
       Page 10, line 3, strike out ``(2)'' and insert: ``(B)''
       Page 10, line 6, strike out ``(3)'' and insert: ``(C)''
       Page 10, line 9, strike out ``(4)'' and insert: ``(D)''
       Page 10, line 17, strike out ``(5)'' and insert: ``(E)''
       Page 10, line 24, strike out ``(6)'' and insert: 
     ``(F)'' Page 11, after line 2, insert:
       ``(2) Accordingly, for the four-year period beginning on 
     October 1, 1996, the President shall ensure that excess 
     defense articles offered to Greece and Turkey under this 
     section will be made available consistent with the manner in 
     which the President made available such excess defense 
     articles during the four-year period that began on October 1, 
     1992, pursuant to section 573(e) of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     1990.''
       Page 12, line 11, strike out ``part II'' and insert: ``this 
     part''
       Page 13, line 5, strike out ``15'' and insert: ``30''
       Page 16, line 4, after ``1961,'' insert: ``as added by this 
     Act,''
       Page 18, line 17, after ``2761'' insert: ``(a)(1)(C)''
       Page 21, line 4, after ``4--'' insert: ``INTERNATIONAL''
       Page 21, line 15, strike out ``new subparagraph''
       Page 24, line 7, strike out ``2394'' and insert: ``2394-1''
       Page 25, line 2, strike out ``2394'' and insert: ``2394-1''
       Page 32, line 8, strike out ``out the''
       Page 32, line 11, strike out ``in lieu thereof''
       Page 35, line 10, strike out ``(a)'' and insert: ``(A)''
       Page 37, strike out all after line 18, over to and 
     including line 21 on page 38
       Page 38, after line 21, insert:

     ``SEC. 148. ANNUAL MILITARY ASSISTANCE REPORT.

       ``Section 655 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2415) is amended to read as follows:

     ``SEC. 655. ANNUAL MILITARY ASSISTANCE REPORT.

       ``(a) Report Required.--Not later than February 1 of each 
     year, the President shall transmit to the Congress an annual 
     report for the fiscal year ending the previous September 30.
       ``(b) Information Relating to Military Assistance and 
     Military Exports.--Each such report shall show the aggregate 
     dollar value and quantity of defense articles (including 
     excess defense articles), defense services, and international 
     military education and training authorized by the United 
     States, excluding that which is pursuant to activities 
     reportable under title V of the National Security Act of 
     1947, to each foreign country and international 
     organization. The report shall specify, by category, 
     whether such defense articles--
       ``(1) were furnished by grant under chapter 2 or chapter 5 
     of part II of this Act or under any other authority of law or 
     by sale under chapter 2 of the Arms Export Control Act; or
       ``(2) were licensed for export under section 38 of the Arms 
     Export Control Act.
       ``(c) Information Relating to Military Imports.--Each such 
     report shall also include the total amount of military items 
     manufactured outside the United States that were imported 
     into the United States during the fiscal year covered by the 
     report. For each country of origin of the report shall show 
     the type of item being imported and the total amount of the 
     items.''.
       Page 38, line 24, strike out ``as amended by this Act,''
       Page 39, line 1 strike out ``further''
       Page 49, line 16, after ``UNDER'' insert: ``THE''
       Page 49, after line 21, insert:

     SEC. 155. PUBLICATION OF ARMS SALES CERTIFICATIONS.

       Section 36 of the Arms Export Control Act (22 U.S.C. 2776) 
     is amended by adding at the end the following new subsection:
       ``(e) The President shall cause to be published in the 
     Federal Register, upon transmittal to the Speaker of the 
     House of Representatives and to the chairman of the Committee 
     on Foreign Relations of the Senate, the full unclassified 
     text of each numbered certification submitted pursuant to 
     subsection (b) and each notification of a proposed commercial 
     sale submitted under subsection (c).''.

     SEC. 156. RELEASE OF INFORMATION.

       Section 38(e) of the Arms Export Control Act (22 U.S.C. 
     2778(e)) is amended by inserting in the first sentence before 
     the period at the end the following: ``, except that the 
     names of the countries and the types and quantities of 
     defense articles for which licenses are issued under this 
     section shall not be withheld from public disclosure unless 
     the President determines that the release of such information 
     would be contrary to the national interest''.

     SEC. 157. REPEAL OF TERMINATION OF PROVISIONS OF THE NUCLEAR 
                   PROLIFERATION PREVENTION ACT OF 1994; 
                   PRESIDENTIAL DETERMINATIONS.

       ``(a) Repeal.--Part D of the Nuclear Proliferation 
     Prevention Act of 1994 (part D of title VIII of the Foreign 
     Relations Authorization Act, Fiscal Years 1994 and 1995; 
     Public Law 103-236; 108 Stat. 525) is hereby repealed.
       ``(b) Judicial Review.--Section 824 of the Nuclear 
     Proliferation Prevention Act of 1994 (22 U.S.C. 3201 note) is 
     amended--
       ``(1) in subsection (c), by striking ``in writing after 
     opportunity for a hearing on the record'';
       ``(2) by striking subsection (e); and
       ``(3) by redesignating subsections (f) through (k) as 
     subsections (e) through (j), respectively.

  Mr. GILMAN (during the reading). Mr. Speaker, I ask unanimous consent 
that the Senate amendments be considered as read and printed in the 
Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  The SPEAKER pro tempore. Is there objection to the original request 
of the gentleman from New York?
  Mr. HAMILTON. Mr. Speaker, reserving the right to object, I do not 
intend to object but I would like to yield to the chairman from an 
explanation of the bill.

[[Page H7123]]

  Mr. GILMAN. Mr. Speaker, will the gentleman yield?
  Mr. HAMILTON. I yield to the gentleman from New York.
  Mr. GILMAN. Mr. Speaker, I appreciate the gentleman yielding to me to 
express my strong support of H.R. 3121 to amend the Foreign Assistance 
Act of 1961 and the Arms Export Control Act, as amended by the Senate, 
and to urge that the House pass this bill and send it on to the 
President for his signature.
  This legislation represents the first comprehensive revision of the 
basic authorities of U.S. security assistance programs in over 10 
years. It will improve the way in which the President conducts security 
assistance programs. It is long overdue.
  I want to express my appreciation to the ranking Democratic member, 
the gentleman from Indiana [Mr. Hamilton], for his long-standing 
support for this legislation. As we both know, we have endeavored over 
the years on many legislative fronts to enact these provisions and it 
is gratifying that we finally have a bill that will become public law.
  I also want to thank the chairman of the Senate Foreign Relations 
Committee and the ranking minority members for shepherding this measure 
through the Foreign Relations Committee and then the Senate floor. I 
would particularly like to commend two of their staff, Chris Walker and 
Diana Ohlbaum, for their good work.
  On April 16, 1996, the House approved H.R. 3121 by voice vote. The 
Senate passed the measure on June 27, 1996 by voice vote, following 
consideration by the Senate Foreign Relations Committee on June 26, 
1996.
  The Senate amendments entail seven substantive modifications to the 
bill, all but two in the form of additional executive branch reporting 
requirements on military assistance and sales. I support the increased 
congressional reporting requirements and public disclosure provided by 
the Senate amendments, as they will help to improve the transparency of 
arm transfers and aid the Congress' oversight role with regard to such 
transfers.
  I do recognize however that these additional reporting requirements 
place increased burdens upon the executive branch and therefore the 
benefits of the new reporting requirements must justify the costs they 
impose. I believe that the Senate amendments meet this test. I 
therefore urge my colleagues to approve this bill with the Senate 
amendments.
  I do want to indicate that the Department of Defense has expressed 
reservations about the utility and costs of complying with the 
reporting requirement established by section 148 of the bill. DOD 
interprets the language as requiring a report on defense articles and 
services authorized to foreign governments and international 
organizations for any purpose and under any authority of law.
  I want to assure DOD that the purpose of the reporting requirement in 
section 148, as negotiated with the Senate and as suggested by the 
title of the section ``Annual Military Assistance Report,'' is to 
obtain a report which details defense articles and defense services 
provided for military assistance purposes. I would like to make clear 
that I would support efforts subsequent to enactment of this bill to 
modify the provision to ensure the language of the provision squares 
with the its intent as agreed to by its authors, should that be 
necessary.
  In addition to the new reporting requirements, the Senate made two 
additional modifications. The first would renew for another 4-year 
period the current law requirement that the President, when offering 
excess defense articles on a grant basis to Greece and Turkey do so in 
accordance with the 7-to-10 ratio. This same requirement as included in 
the fiscal year 1997 foreign operations appropriations bill passed by 
the House on June 11, 1996.
  The second modification to the bill was to add a provision to the 
bill which permanently extends the Nuclear Proliferation Prevention Act 
of 1994 thereby ensuring that this important law remains in place as a 
much needed part of our sanctions regime.
  The purpose of title I of this bill is to amend authorities under the 
Foreign Assistance Act [FAA] of 1961, as amended, and the Arms Export 
Control Act [AECA] 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 efforts to amend and update these important authorities.
  On June 8, 1993, the House of Representatives passed H.R. 1561, the 
American Overseas Interests 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 of Representatives agreed to the conference report on 
H.R. 1561 by a vote of 226 to 172. The conference report did not 
include provisions from division C of the House-passed bill.
  This legislation, H.R. 3121, continues the effort by the Committee on 
International Relations to amend the FAA and AECA 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 and 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 responsibilities as an authorizing 
committee. Specifically, this legislation codifies in permanent law 
authorizing language which has been too long carried on annual 
appropriation measures. In that regard, I would like to express my 
appreciation to the chairman of the Subcommittee on Foreign Operations, 
Export Financing and Related Programs, Committee on Appropriations, the 
Congressman from Alabama, Mr. Callahan, for his cooperation in working 
with the Committee on International Relations to ensure that 
authorizing provisions contained in this bill were not included in the 
fiscal year 1997 House-passed foreign operations measure. I would 
particularly like to single out Bill Inglee of Chairman Callahan's 
staff for his help and cooperation.
  Title I of this bill is organized by chapter as follows:
  Chapter 1 modifies applicable provisions on terms and criteria of 
financing assistance, including drawdown authorities and a rewrite of 
the excess defense article authority.
  Chapter 2 modifies terms of assistance for the international military 
education and training [IMET] program and includes language limiting 
Indonesia to E-IMET assistance.
  Chapter 3 clarifies current law authorities under which Antiterrorism 
assistance is provided.
  Chapter 4 modifies authorities under which assistance for 
international narcotics is provided.
  Chapter 5 deals with general provisions regarding military assistance 
including approval of third-country transfers, standardization of 
congressional review procedures for arms sales, definitions, arms sales 
certification thresholds, designation of major non-NATO allies, end-use 
monitoring, and other miscellaneous issues.
  The purpose of title II of this bill is to authorize the transfer of 
naval vessels to certain foreign countries pursuant to the 
administration's request of January 29, 1996.
  Legislation authorizing the proposed transfer of these ships is 
required by section 7307(b)(1) of Title 10, United States Code, which 
provides in relevant part that ``a naval vessel in excess of 3,000 tons 
or less than 20 years of age may not be sold, leased, granted * * * or 
otherwise disposed of to another nation unless the disposition of that 
vessel is approved by law * * *.'' Each naval vessel proposed for 
transfer under this legislation displaces in excess of 3,000 tons and/
or is less than 20 years of age and therefore the Committee must act.
  Title II of this bill authorizes the transfer of 10 naval vessels--8 
sales, 1 lease, 1 grant--to the following countries:
  To the Government of Egypt: One Oliver Hazard Perry class frigate 
Gallery (FFG 26); sale, $47.2 million.
  To the Government of Mexico: Two Knox class frigates: Stein (FF 1065) 
and Marvin Shields (FF 1066); sale, $5.9 million.
  To the Government of New Zealand: One Stalwart class ocean 
surveillance

[[Page H7124]]

ship: Tenacious (T-AGOS 17); sale, $7.7 million.
  To the Government of Portugal: One Stalwart class ocean surveillance 
ship: Audacious (T-AGOS 11); grant, $13.7 million.
  To Taiwan (the Taipai Economic and Cultural Representative Office in 
the United States): Three Knox class frigates: Aylwin (FF 1081), 
Pharris (FF 1094), and Valdez (FF 1096); sale, $8.2 million. One 
Newport class tank landing ship: Newport (LST 1179); lease, no rent 
lease.
  To the Government of Thailand: One Knox class frigate: Ouellet (FF 
1077); sale, $2.7 million.
  According to the Department of Defense, the Chief of Naval Operations 
has certified that these naval vessels are not essential to the defense 
of the United States.
  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 costs 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 the transfers will be charged to 
the foreign recipients.
  Through the sale of these naval vessels, this legislation generates 
$71.7 million in revenue for the U.S. Treasury. In addition, through 
repair and reactivation work, service contracts, ammunition sales, and 
savings generated from avoidance of storage/deactivation costs, the 
Navy estimates this legislation generates an additional $525 million in 
revenue for the U.S. Treasury and private U.S. firms.
  Accordingly, I commend this bill to the Members of the House and ask 
for their support for its final step in the legislative process prior 
to sending it to the President.
  Mr. HAMILTON. Mr. Speaker, continuing my reservation of objection, I 
want to join the distinguished chairman of the House Committee on 
International Relations in expressing appreciation to Senators Helms 
and Pell and Sarbanes for their work in moving this bill forward.

                              {time}  1415

  I also want to thank the chairman, the gentleman from New York [Mr. 
Gilman], for his outstanding leadership on this bill. It is a good 
bill. It makes improvements in the current law, as the chairman has 
said. It is supported by the administration. It is a bipartisan bill.
  Mr. BROWNBACK. Mr. Speaker, let me begin by congratulating Chairman 
Gilman for the hard work he and his staff have done in reforming the 
defense and security assistance provisions incorporated in H.R. 3121.
  H.R. 3121 represents a commonsense approach to advancing our foreign 
policy goals of promoting global stability, 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 a national security interest determination that the 
President will have to invoke in order to provide a no-cost lease for 
excess defense articles.
  H.R. 3121 also requires the Pentagon to evaluate whether excess 
defense articles should be transferred on a grant basis or on a sales 
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?
  This is a good bill and I am glad that this body has adopted it.
  Mr. Speaker, I withdraw my reservation of objection.
  The SPEAKER pro tempore (Mr. Shaw). Is there objection to the 
original request of the gentleman from New York?
  There was no objection.
  A motion to reconsider was laid on the table.

                          ____________________