[Congressional Record Volume 143, Number 100 (Tuesday, July 15, 1997)]
[House]
[Pages H5213-H5214]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                 AUTHORIZING TRANSFER OF NAVAL VESSELS

  Mr. GILMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 2035) to authorize the transfer of naval vessels to certain 
foreign countries, as amended.
  The Clerk read as follows:

                               H.R. 2035

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

     SECTION 1. AUTHORITY TO TRANSFER NAVAL VESSELS.

       (a) Brazil.--The Secretary of the Navy is authorized to 
     transfer to the Government of Brazil the ``HUNLEY'' class 
     submarine tender HOLLAND (AS 32).
       (b) Chile.--The Secretary of the Navy is authorized to 
     transfer to the Government of Chile the ``KAISER'' class 
     oiler ISHERWOOD (T-AO 191).
       (c) Egypt.--The Secretary of the Navy is authorized to 
     transfer to the Government of Egypt the ``KNOX'' class 
     frigates PAUL (FF 1080), MILLER (FF 1091), JESSE L. BROWN 
     (FFT 1089), and MOINESTER (FFT 1097), and the ``OLIVER HAZARD 
     PERRY'' class frigates FAHRION (FFG 22) and LEWIS B. PULLER 
     (FFG 23).
       (d) Israel.--The Secretary of the Navy is authorized to 
     transfer to the Government of Israel the ``NEWPORT'' class 
     tank landing ship PEORIA (LST 1183).
       (e) Malaysia.--The Secretary of the Navy is authorized to 
     transfer to the Government of Malaysia the ``NEWPORT'' class 
     tank landing ship BARBOUR COUNTY (LST 1195).
       (f) Mexico.--The Secretary of the Navy is authorized to 
     transfer to the Government of Mexico the ``KNOX'' class 
     frigate ROARK (FF 1053).
       (g) 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 ``KNOX'' class frigates WHIPPLE (FF 
     1062) and DOWNES (FF1070).
       (h) Thailand.--The Secretary of the Navy is authorized to 
     transfer to the Government of Thailand the ``NEWPORT'' class 
     tank landing ship SCHENECTADY (LST 1185).
       (i) Form of Transfers.--Each transfer authorized by this 
     section 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. 2. SENSE OF THE CONGRESS REGARDING TRANSFER OF NAVAL 
                   VESSELS AND INTERNATIONAL COOPERATION WITH THE 
                   REPUBLIC OF THE PHILIPPINES

       (a) Findings.--The Congress makes the following findings:
       (1) The United States and the Republic of the Philippines 
     have a long tradition of international cooperation and mutual 
     support.
       (2) The United States strongly desires to continue mutual 
     cooperation as a partner in matters of international security 
     and scientific research.
       (3) The President and the Department of Defense possess 
     assets which can contribute positively to international 
     security and scientific research.
       (b) Sense of the Congress.--It is the sense of the Congress 
     that the President should use the authority under section 21 
     of the Arms Export Control Act (22 U.S.C. 2761) to transfer 
     on a sales basis, subject to vessel availability, to the 
     Republic of the Philippines, not more than one ``STALWART'' 
     or ``VICTORIOUS'' class ocean surveillance ship (T-AGOS).

     SEC. 3. COSTS OF TRANSFERS.

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

     SEC. 4. EXPIRATION OF AUTHORITY.

       The authority granted by section 1 shall expire at the end 
     of the 2-year period beginning on the date of the enactment 
     of this Act.

     SEC. 5. 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 Act, 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 (Mr. Petri). Pursuant to the rule, the 
gentleman from New York [Mr. Gilman] and the gentleman from Indiana 
[Mr. Hamilton] each will control 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, this legislation provides for the transfer 
by sale of certain surplus naval vessels. It would authorize the 
transfer of 14 vessels, in all, to 8 countries: Brazil, Chile, Egypt, 
Israel, Malaysia, Mexico, Thailand, and Taiwan.
  This legislation was approved unanimously by our Committee on 
International Relations on June 25.
  I would like to underscore that none of these proposed transfers is a 
grant. As a result of these sales, our Treasury will be receiving 
$162.6 million. These 14 ships involve 5 classes: 7 Knox class 
frigates, 3 Newport class tank landing ships, 2 Perry class guided 
missile frigates, 1 Hunley class submarine tender and 1 Kaiser class 
oiler.
  It is important to note that our Navy expects that by proceeding with 
these sales, our Nation will realize an additional $195 million for 
training, for supplies, for support, and for repair services.
  I would also like to note to my colleagues that the proposed 
legislation includes language similar to that included in prior ship 
transfer legislation requiring the Secretary of the Navy to the maximum 
extent feasible to require that any repair or reactivation work be done 
in the United States in our own shipyards. It is my understanding from 
the Navy that each of the recipient countries have agreed to that 
proviso with respect to these proposed transfers.
  Finally, I understand that our Navy strongly supports the transfer of 
these vessels to advance the valuable cooperative relationships that we 
have developed with each of these nation's navies. Accordingly, I urge 
my colleagues to support this legislation.
  Mr. HAMILTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in support of H.R. 2035. I want to extend my 
commendation and congratulations to the chairman for bringing what I 
consider to be an excellent bill before the House.

                              {time}  1315

  I believe because of the gentleman's leadership and the work of the 
Committee on International Relations the Congress, over a period of 
months, has been able to effect an important change in ship transfer 
policy.
  Now the clear emphasis, as the gentleman from New York has said, in 
U.S. policy today is on the sale of naval vessels instead of grants. 
All 14 naval vessels in this package are sales, and the bill will 
result in $162.6 million in revenues to the United States Treasury. The 
United States Navy will also save money not spent on storage or 
scrapping costs. Work in the U.S. shipyards prior to ship transfer will 
result in an additional $190 million in contracts for American workers. 
Now this package also benefits U.S. foreign policy and U.S. defense 
policy through enhanced navy-to-navy ties and improved 
interoperability.
  So, Mr. Speaker, I think the bill has positive benefits for the 
United States

[[Page H5214]]

Navy, positive benefits for U.S. shipyards, positive benefits for the 
United States Treasury, and positive benefits for U.S. foreign policy. 
I urge its adoption.
  Mr. Speaker, I yield 2 minutes to the distinguished gentleman from 
Guam [Mr. Underwood].
  Mr. UNDERWOOD. Mr. Speaker, I thank the ranking member for yielding, 
and, Mr. Speaker, I wish to engage the distinguished chairman of the 
Committee on International Relations in a colloquy.
  Mr. GILMAN. Mr. Speaker, if the gentleman will yield, I will be 
pleased to engage in a colloquy with the gentleman from Guam.
  Mr. UNDERWOOD. Mr. Speaker, in section 5 of H.R. 2035 concerning the 
repair and refurbishment of vessels in U.S. shipyards, the Secretary of 
the Navy is compelled to require to the maximum extent possible as a 
condition of transfer of a vessel to a foreign country that the country 
have repair or refurbishment of that vessel performed at a shipyard 
located in the United States.
  Is it the gentleman's intention that in this provision territories, 
including a place that the gentleman from New York lived in for a 
while, Guam, is included in the definition of the United States?
  Mr. GILMAN. Mr. Speaker, will the gentleman yield?
  Mr. UNDERWOOD. I yield to the gentleman from New York.
  Mr. GILMAN. The answer is, yes, the committee intends that the 
territories be included in a definition of the United States for 
purposes of this provision.
  Mr. UNDERWOOD. Mr. Speaker, I thank the gentleman from New York for 
this clarification, and both him and the ranking member for their hard 
work on this issue. This will serve to clarify the legislation, and, 
hopefully, we will not have to do this again in future legislation 
regarding naval vessels and that this could be an important item for 
the people of Guam in particular, since the ship repair facility has 
recently closed down and has become privatized.
  Mr. HAMILTON. Mr. Speaker, I yield back the balance of my time.
  Mr. GILMAN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Petri). 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. 2035, as amended.
  The question was taken.
  Mr. GILMAN. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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