[Congressional Record Volume 146, Number 97 (Monday, July 24, 2000)]
[House]
[Pages H6730-H6734]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              DEFENSE AND SECURITY ASSISTANCE ACT OF 2000

  Mr. BEREUTER. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 4919) to amend the Foreign Assistance Act of 1961 and the 
Arms

[[Page H6731]]

Control 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.
  The Clerk read as follows:

                               H.R. 4919

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Defense and Security 
     Assistance Act of 2000''.

                      TITLE I--SECURITY ASSISTANCE

     SEC. 101. ADDITIONS TO UNITED STATES WAR RESERVE STOCKPILES 
                   FOR ALLIES.

       Section 514(b)(2) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321h(b)(2)) is amended to read as follows:
       ``(2)(A) The value of such additions to stockpiles of 
     defense articles in foreign countries shall not exceed 
     $50,000,000 for fiscal year 2001.
       ``(B) Of the amount specified in subparagraph (A) for 
     fiscal year 2001, not more than $50,000,000 may be made 
     available for stockpiles in the Republic of Korea.''.

     SEC. 102. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE 
                   ARTICLES IN THE WAR RESERVE STOCKPILES FOR 
                   ALLIES TO ISRAEL.

       (a) Transfers to Israel.--
       (1) Authority.--Notwithstanding section 514 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
     authorized to transfer to Israel, in return for concessions 
     to be negotiated by the Secretary of Defense, with the 
     concurrence of the Secretary of State, any or all of the 
     items described in paragraph (2).
       (2) Items covered.--The items referred to in paragraph (1) 
     are munitions, equipment, and material such as armor, 
     artillery, automatic weapons ammunition, and missiles that--
       (A) are obsolete or surplus items;
       (B) are in the inventory of the Department of Defense;
       (C) are intended for use as reserve stocks for Israel; and
       (D) as of the date of enactment of this Act, are located in 
     a stockpile in Israel.
       (b) Concessions.--The value of concessions negotiated 
     pursuant to subsection (a) shall be at least equal to the 
     fair market value of the items transferred. The concessions 
     may include cash compensation, services, waiver of charges 
     otherwise payable by the United States, and other items of 
     value.
       (c) Advance Notification of Transfer.--Not less than 30 
     days before making a transfer under the authority of this 
     section, the President shall transmit to the Committee on 
     Foreign Relations of the Senate, and the Committee on 
     International Relations of the House of Representatives a 
     notification of the proposed transfer. The notification shall 
     identify the items to be transferred and the concessions to 
     be received.
       (d) Expiration of Authority.--No transfer may be made under 
     the authority of this section 3 years after the date of 
     enactment of this Act.

     SEC. 103. EXCESS DEFENSE ARTICLES FOR MONGOLIA.

       (a) Uses for Which Funds Are Available.--Notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)), during each of the fiscal years 2000 and 
     2001, 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 that Act to Mongolia.
       (b) Content of Congressional Notification.--Each 
     notification required to be submitted under section 516(f) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(f)) with 
     respect to a proposed transfer of a defense article described 
     in subsection (a) shall include an estimate of the amount of 
     funds to be expended under subsection (a) with respect to 
     that transfer.

     SEC. 104. SENSE OF CONGRESS RELATING TO MILITARY EQUIPMENT 
                   FOR THE PHILIPPINES.

       (a) In General.--It is the sense of Congress that the 
     United States Government should work with the Government of 
     the Republic of the Philippines to enable that Government to 
     procure military equipment that can be used to upgrade the 
     capabilities and to improve the quality of life of the armed 
     forces of the Philippines.
       (b) Military Equipment.--Military equipment described in 
     subsection (a) should include--
       (1) naval vessels, including amphibious landing crafts, for 
     patrol, search-and-rescue, and transport;
       (2) F-5 aircraft and other aircraft that can assist with 
     reconnaissance, search-and-rescue, and resupply;
       (3) attack, transport, and search-and-rescue helicopters; 
     and
       (4) vehicles and other personnel equipment.

     SEC. 105. ANNUAL MILITARY ASSISTANCE REPORT.

       Section 655(b)(3) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2415(b)(3)) is amended by inserting before the period 
     at the end the following: ``, including those defense 
     articles that were exported''.

     SEC. 106. REQUIREMENTS RELATING TO COUNTRY EXEMPTIONS FOR 
                   LICENSING OF DEFENSE ITEMS FOR EXPORT TO 
                   FOREIGN COUNTRIES.

       (a) Requirements of Exemption.--Section 38 of the Arms 
     Export Control Act (22 U.S.C. 2778) is amended by adding at 
     the end the following:
       ``(j) Requirements Relating to Country Exemptions for 
     Licensing of Defense Items for Export to Foreign Countries.--
       ``(1) Requirement for bilateral agreement.--
       ``(A) In general.--The President may utilize the regulatory 
     or other authority pursuant to this Act to exempt a foreign 
     country from the licensing requirements of this Act with 
     respect to exports of defense items only if the United States 
     Government has concluded an agreement described in paragraph 
     (2) with the foreign country that is legally-binding as a 
     matter of domestic and international law on both the United 
     States and that country.
       ``(B) Exception.--The requirement to conclude a bilateral 
     agreement in accordance with subparagraph (A) shall not apply 
     with respect to an exemption for Canada from the licensing 
     requirements of this Act for the export of defense items.
       ``(2) Requirements of bilateral agreement.--A bilateral 
     agreement referred to paragraph (1)--
       ``(A) shall, at a minimum, require the foreign country, as 
     necessary, to revise its policies and practices, and 
     promulgate or enact necessary modifications to its laws and 
     regulations to establish an export control regime that is at 
     least comparable to United States law, regulation, and policy 
     regarding--
       ``(i) handling of all United States-origin defense items 
     exported to the foreign country, including prior written 
     United States Government approval for any reexports to third 
     countries;
       ``(ii) end-use and retransfer control commitments, 
     including securing binding end-use and retransfer control 
     commitments from all end-users, including such documentation 
     as is needed in order to ensure compliance and enforcement 
     with respect to such United States-origin defense items;
       ``(iii) establishment of a procedure comparable to a 
     `watchlist' (if such a watchlist does not exist) and full 
     cooperation with United States Government law enforcement and 
     intelligence agencies to allow for sharing of export and 
     import documentation and background information on foreign 
     businesses and individuals employed by or otherwise connected 
     to those businesses; and
       ``(iv) establishment of a list of controlled defense items 
     to ensure coverage of those items to be exported under the 
     exemption; and
       ``(B) should, at a minimum, require the foreign country, as 
     necessary, to revise its policies and practices, and 
     promulgate or enact necessary modifications to its laws and 
     regulations to establish an export control regime that is at 
     least comparable to United States law, regulation, and policy 
     regarding--
       ``(i) controls on the export of tangible or intangible 
     technology, including via fax, phone, and electronic media;
       ``(ii) appropriate controls on unclassified information 
     exported to foreign nationals;
       ``(iii) controls on arms trafficking and brokering; and
       ``(iv) violations and penalties of export control laws.
       ``(3) Advance notification.--Not less than 30 days before 
     authorizing an exemption for a foreign country from the 
     licensing requirements of this Act for the export of defense 
     items, the President shall transmit to the Committee on 
     International Relations of the House of Representatives and 
     the Committee on Foreign Relations of the Senate a 
     notification that--
       ``(A) the United States has entered into a bilateral 
     agreement with that foreign country satisfying all 
     requirements set forth in paragraph (2);
       ``(B) the foreign country has promulgated or enacted all 
     necessary modifications to its laws and regulations to comply 
     with its obligations under the bilateral agreement with the 
     United States; and
       ``(C) confirms that the appropriate congressional 
     committees will continue to receive notifications pursuant to 
     the authorities, procedures, and practices of section 36 of 
     this Act for defense exports to a foreign country to which 
     that section would apply and without regard to any form of 
     defense export licensing exemption otherwise available for 
     that country.
       ``(4) Definitions.--In this section:
       ``(A) Defense item.--The term `defense item' means defense 
     articles, defense services, and related technical data.
       ``(B) Appropriate congressional committees.--The term 
     `appropriate congressional committees' means--
       ``(i) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       ``(ii) the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate.''.
       (b) Notification of Exemption.--Section 38(f) of the Arms 
     Export Control Act (22 U.S.C. 2778(f)) is amended--
       (1) by inserting ``(1)'' after ``(f)''; and
       (2) by adding at the end the following:
       ``(2) The President may not authorize an exemption for a 
     foreign country from the licensing requirements of this Act 
     for the export of defense items under subsection (j) or any 
     other provision of this Act until 45 days after the date on 
     which the President has transmitted to the Committee on 
     International Relations of the House of Representatives and 
     the Committee on Foreign Relations of the Senate a 
     notification that includes--

[[Page H6732]]

       ``(A) a description of the scope of the exemption, 
     including a detailed summary of the defense articles, defense 
     services, and related technical data proposed to be exported 
     under the exemption; and
       ``(B) a determination by the Attorney General that the 
     bilateral agreement requires sufficient documentation 
     relating to the export of United States defense articles, 
     defense services, and related technical data under an 
     exemption which will be compiled and maintained in order to 
     facilitate law enforcement efforts to detect, prevent, and 
     prosecute criminal violations of any provision of this Act, 
     including the efforts on the part of countries and factions 
     engaged in international terrorism to illicitly acquire 
     sophisticated United States weaponry.''.
       (c) Notification Relating to Export of Commercial 
     Communications Satellite.--Section 36(c)(1) of the Arms 
     Export Control Act (22 U.S.C. 2776(c)(1)) is amended in the 
     first sentence by inserting at the end before the period the 
     following: ``, except that a certification shall not be 
     required in the case of an application for a license for 
     export of a commercial communications satellite designated on 
     the United States Munitions List for launch from, and by 
     nationals of, the United States, or the territory of a member 
     country of the North Atlantic Treaty Organization (NATO), the 
     Russian Federation, Ukraine, Australia, Japan, or New 
     Zealand''.

     SEC. 107. REPORT ON GOVERNMENT-TO-GOVERNMENT ARMS SALES END-
                   USE MONITORING PROGRAM.

       Not later than 90 days after the date of the enactment of 
     this Act, the President shall prepare and transmit to the 
     Committee on International Relations and the Committee on 
     Foreign Relations of the Senate a report that contains a 
     summary of the status of the efforts of the Defense Security 
     Cooperation Agency to implement the End-Use Monitoring 
     Enhancement Plan relating to government-to-government 
     transfers of defense articles, defense services, and related 
     technologies.

     SEC. 108. WAIVER OF CERTAIN COSTS.

       Notwithstanding any other provision of law, the President 
     may waive the requirement to impose an appropriate charge for 
     a proportionate amount of any nonrecurring costs of research, 
     development, and production under section 21(e)(1)(B) of the 
     Arms Export Control Act (22 U.S.C. 2761(e)(1)(B)) for the 
     November 1999 sale of 5 UH-60L helicopters to the Republic of 
     Colombia in support of counternarcotics activities.

                  TITLE II--TRANSFERS OF NAVAL VESSELS

     SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Brazil.--The President is authorized to transfer to the 
     Government of Brazil the ``THOMASTON'' class dock landing 
     ships ALAMO (LSD 33) and HERMITAGE (LSD 34) and the 
     ``GARCIA'' class frigates BRADLEY (FF 1041), DAVIDSON (FF 
     1045), SAMPLE (FF 1048), and ALBERT DAVID (FF 1050). Such 
     transfers shall be on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
       (b) Chile.--The President is authorized to transfer to the 
     Government of the Chile the ``OLIVER HAZARD PERRY'' class 
     guided missile frigates WADSWORTH (FFG 9) and ESTOCIN (FFG 
     15). Such transfers shall be on a combined lease-sale basis 
     under sections 61 and 21 of the Arms Export Control Act (22 
     U.S.C. 2796, 2761).
       (c) Greece.--The President is authorized to transfer to the 
     Government of Greece the ``KNOX'' class frigates VREELAND (FF 
     1068) and TRIPPE (FF 1075). Such transfers shall be on a 
     grant basis under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j).
       (d) Turkey.--The President is authorized to transfer to the 
     Government of Turkey the `OLIVER HAZARD PERRY` class guided 
     missile frigates JOHN A MOORE (FFG 19) and FLATLEY (FFG 21). 
     Such transfers shall be on a combined lease-sale basis under 
     sections 61 and 21 of the Arms Export Control Act (22 U.S.C. 
     2796, 2761).

     SEC. 202. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON 
                   VALUE OF TRANSFERRED EXCESS DEFENSE ARTICLES.

       In the case of the transfer of a naval vessel authorized 
     under section 201 of this Act to be transferred on a grant 
     basis under section 516 of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j), the value of the vessel transferred shall 
     not be included for purposes of subsection (g) of that 
     section in the aggregate value of excess defense articles 
     transferred to countries under that section in any fiscal 
     year.

     SEC. 203. COSTS OF TRANSFERS.

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

     SEC. 204. CONDITIONS RELATING TO COMBINED LEASE-SALE 
                   TRANSFERS.

       A transfer of a vessel on a combined lease-sale basis 
     authorized by section 201 shall be made in accordance with 
     the following requirements:
       (1) The President may initially transfer the vessel by 
     lease, with lease payments suspended for the term of the 
     lease, if the country entering into the lease for the vessel 
     simultaneously enters into a foreign military sales agreement 
     for the transfer of title to the vessel.
       (2) The President may not deliver to the purchasing country 
     title to the vessel until the purchase price of the vessel 
     under such a foreign military sales agreement is paid in 
     full.
       (3) Upon payment of the purchase price in full under such a 
     sales agreement and delivery of title to the recipient 
     country, the President shall terminate the lease.
       (4) If the purchasing country fails to make full payment of 
     the purchase price in accordance with the sales agreement--
       (A) the sales agreement shall be immediately terminated;
       (B) the suspension of lease payments under the lease shall 
     be vacated; and
       (C) the United States shall be entitled to retain all funds 
     received on or before the date of the termination under the 
     sales agreement, up to the amount of lease payments due and 
     payable under the lease and all other costs required by the 
     lease to be paid to that date.
       (5) If a sales agreement is terminated pursuant to 
     paragraph (4), the United States shall not be required to pay 
     any interest to the recipient country on any amount paid to 
     the United States by the recipient country under the sales 
     agreement and not retained by the United States under the 
     lease.

     SEC. 205. FUNDING OF CERTAIN COSTS OF TRANSFERS.

       There is authorized to be appropriated to the Defense 
     Vessels Transfer Program Account such funds as may be 
     necessary to cover the costs (as defined in section 502 of 
     the Congressional Budget Act of 1974 (2 U.S.C. 661a)) of the 
     lease-sale transfers authorized by section 201. Funds 
     appropriated pursuant to the authorization of appropriations 
     under preceding sentence for the purpose described in such 
     sentence may not be available for any other purpose.

     SEC. 206. REPAIR AND REFURBISHMENT IN UNITED STATES 
                   SHIPYARDS.

       To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     section 201, 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.

     SEC. 207. SENSE OF CONGRESS REGARDING TRANSFER OF NAVAL 
                   VESSELS ON A GRANT BASIS.

       It is the sense of Congress that naval vessels authorized 
     under section 201 of this Act to be transferred to foreign 
     countries on a grant basis under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j) should be so 
     transferred only if the United States receives appropriate 
     benefits from such countries for transferring the vessel on a 
     grant basis.

     SEC. 208. EXPIRATION OF AUTHORITY.

       The authority granted by section 201 of this Act shall 
     expire 2 years after the date of enactment of this Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Nebraska (Mr. Bereuter) and the gentleman from California (Mr. Sherman) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).


                             General Leave

  Mr. BEREUTER. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks on H.R. 4919.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Nebraska?
  There was no objection.
  Mr. BEREUTER. Madam Speaker, I yield myself such time as I may 
consume.
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Madam Speaker, this Member rises in support of H.R. 
4919, the Defense and Security Assistance Act of 2000.
  This legislation modifies authorities with respect to the provision 
of security assistance under the Foreign Assistance Act of 1961 and the 
Arms Export Control Act. It is authored by the distinguished chairman 
of the Committee on International Relations, the gentleman from New 
York (Mr. Gilman), who was unavoidably detained and could not be here 
today for this legislation.
  Most of the provisions have been requested by the administration. 
Specifically, these provisions address the transfer of excess defense 
articles, notification requirements for arms sales and authorities to 
provide for the stockpiling of defense articles in foreign countries. 
The bill also includes an important bipartisan provision to address the 
administration's initiative regarding exemptions for defense export 
licenses to foreign countries.
  This Member wishes to thank the ranking member of the Committee on 
International Relations, the gentleman from Connecticut (Mr. 
Gejdenson), for his cooperation on these provisions, as well as the NGO 
community for their hard work.

[[Page H6733]]

  In addition, this bill authorizes the transfer of two Naval vessels 
to Chile and provides authority to the President to convert existing 
leases for 10 ships which have already been transferred to Brazil, 
Greece, and Turkey.
  This Member is pleased to note that this body has successfully 
enacted into law, over the past 4 years, each of our bills addressing 
security assistance matters. It is the hope of this Member that the 
legislative branch is able to continue this record with approval of 
this measure, H.R. 4919.
  Madam Speaker, I reserve the balance of my time.
  Mr. SHERMAN. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, I rise in support of H.R. 4919, in order to assist the 
committee. This bill is an annual authorization for certain activities 
related to the U.S. assistance for national defense of our friends and 
allies overseas. The bill authorizes the President to transfer obsolete 
U.S. ships to friendly countries either through grants or sale/lease 
arrangements to support their legitimate defense needs. These ships 
have reached or exceeded their service life and would cost considerable 
amount for the U.S. to refurbish them or scrap them.

                              {time}  1445

  Transferring most of these ships will serve our foreign policy 
interests. The bill authorized transfer of obsolete U.S. defense 
equipment and other articles to the stockpiles of South Korea and 
Israel. These transfers directly support the U.S. plans for the defense 
of Korea as well as increasing the capacity and readiness of the South 
Korean and Israeli forces to defend themselves.
  Madam Speaker, I believe the bill was quite well summarized by the 
gentleman from Nebraska. I should point out that I will personally have 
some concerns with title II of the bill, in particular subsection D of 
section 201 of the act, which as I may have mentioned is part of title 
II. But to facilitate the work of this House and of the committee, I 
stand in support of H.R. 4919.
  Madam Speaker, seeing no requests for time, I yield back the balance 
of my time.
  Mr. BEREUTER. Madam Speaker, I yield myself such time as I may 
consume.
  Madam Speaker, in closing I want to recognize the fact this 
legislation includes two important priorities of this Member as the 
chairman of the Subcommittee on Asia and the Pacific. The first is 
section 103 which relates to excess defense articles to be provided to 
Mongolia.
  Additionally, there is a sense of the Congress expressed in section 
104 related to our work with the Republic of the Philippines with 
respect to the procurement of military equipment, and I am pleased to 
see those provisions included.
  Madam Speaker, I urge support of the resolution.
  Mr. GILMAN. Madam Speaker, this bill modifies authorities with 
respect to the provision of security assistance under the Foreign 
Assistance Act of 1961 and the Arms Export Control Act. Most of the 
provisions have been requested by the administration. Specifically, 
these provisions address the transfer of excess defense articles, 
notification requirements for arms sales and authorities to provide for 
the stockpiling of defense articles in foreign countries. The bill also 
includes an important bipartisan provision to address the 
administration's initiative regarding exemptions for defense export 
licensing to foreign countries. I want to thank the ranking Democrat 
member for his cooperation on this provision as well as the NGO 
community for their hard work.
  The provision in question here goes to the heart of our jurisdiction 
and role as an authorizing committee. For the past year and a half the 
administration fought internally to resolve the question of whether we 
should provide exemptions from licensing for defense exports to foreign 
countries. The State Department fought the exemption all the way up to 
the President. They opposed it at the deputies level. They opposed it 
at the principals level. They opposed it until the President sided with 
the Department of Defense and overruled them. Now the State Department 
is putting on its game face and saying the administration is all one 
big happy family. That's their story and they are sticking to it.
  Now it is time for the Congress to have its say. As most of you know, 
I have not been an enthusiastic supporter of new International Traffic 
in Arm Regulations [ITAR] exemptions. I believe that the Arms Export 
Control Act [AECA] provides the appropriate structure under which the 
United States should continue to advance our foreign policy, national 
security and non-proliferation interests. Moreover, it is absolutely 
clear that State Department regulations and practice in implementing 
U.S. munitions laws, including the AECA, have long provided for 
individual, case-by-case licenses for defense exports.
  Further, it is my view that any decision to extend exemptions should 
only be made when the recipient countries have in place an export 
control system comparable to that in the United States. This means that 
such exemptions shall only be provided if a country has provided 
assurances in a legally binding fashion that details how such a country 
will enact export control procedures that sufficiently conform to those 
of the United States and has drafted, promulgated and enacted necessary 
modifications to its laws and regulations.
  I have applied this rationale in fashioning section 108 of this bill. 
We require a legally binding bilateral agreement. We list the overall 
requirements of what should be in the bilateral agreement but require 
only that certain of those requirements be certified. We then require a 
separate notification detailing the scope of the proposed exemption. 
This is a reasonable compromise on this issue. It allows the 
administration to proceed with exemptions but requires that it is done 
in a fashion that does not undercut our current practices and policies 
and preserves the rationale and logic of the AECA. Now the Department 
of Defense and some in the defense industry would tell you that real 
problems would emerge if this language is agreed to. They argue that no 
country will ever agree to modify their export control laws and 
practices to protect U.S. defense exports as we do in the United 
States.
  That is not exactly correct. Let me explain. Everyone should 
understand that section 108 requires nothing more than what the 
Pentagon has already said it is willing to do. They agree there should 
be bilateral agreement. They agree it should be legally binding. The 
agree there should be end-use and retransfer assurances. They agree 
that there should be harmonization of export control lists and 
penalties for violations. They agree that this initiative should only 
be applied to countries that adopt and demonstrate export controls and 
technology security systems that are comparable in scope and 
effectiveness to those of the United States.
  What they don't agree with is that we, the Congress, should codify 
the requirements. I disagree with that position and believe that this 
provision protects what is embodied in the AECA. The administration 
argues that the scope of this exemption should not be troubling. They 
argue that it applies only to unclassified exports. Let's consider that 
for a moment. Let's be sure that everyone understands this point.
  Last year the Office of Defense Trade Controls processed over 45,000 
licenses; 45,058 to be exact. Guess how many of those involved 
classified exports. 258. That's right. That means that 99.995 percent 
of the license amounting to over $25 billion were for unclassified 
exports.
  Now let's consider what kind of weapons systems are deemed 
unclassified. One example is an armored personnel carrier [APC]. This 
is a good example because a couple of years ago Canada transferred 
United States-provided APCs to Iran. Guess how we provided them to 
Canada. Under an exemption. That's why, in part, the State Department 
yanked their exemption and Canada is still trying to get it back. 
Another example. F-16s. Unclassified except for the technology 
incorporated in the nose cone. And my personal favorite. Super cobra 
attack helicopters. Under the exemption that administration could 
transfer any of these weapons systems to a foreign country.
  That is why we need countries to agree to control our defense exports 
like we do. We don't want defense items provided under an exemption to 
wind up in the hands of our enemies. I would also like to note that the 
Justice Department has raised its concerns about the effect of the 
exemption on its efforts to ensure that it will not impede the ability 
of the law enforcement community to detect, prevent and prosecute 
criminal violations of the AECA. Further they have concerns that the 
exemption may facilitate efforts on the part of countries and factions 
engaged in international terrorism to illicitly acquire sophisticated 
U.S. weaponry.
  Accordingly, this provision requires a determination by the Attorney 
General that any bilateral agreement negotiated between the United 
States and a foreign country include sufficient documentation on 
defense items provided under the exemption so that our law enforcement 
agencies can ensure compliance and enforcement with our laws. In 
addition this bill authorizes the transfer of two naval vessels to 
Chile and provides authority to the President to convert existing 
leases for 10 ships which have already been transferred to Brazil, 
Greece, and Turkey. I am pleased to

[[Page H6734]]

note that we have successfully enacted into law over the past 4 years 
each of our bills addressing security assistance matters. I hope we are 
able to continue our record with this measure.
  Mr. BEREUTER. Madam Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mrs. Biggert). The question is on the motion 
offered by the gentleman from Nebraska (Mr. Bereuter) that the House 
suspend the rules and pass the bill, H.R. 4919.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________