[Congressional Record Volume 153, Number 91 (Thursday, June 7, 2007)]
[Senate]
[Page S7340]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BIDEN (for himself and Mr. Lugar):
  S. 1565. A bill to provide for the transfer of naval vessels to 
certain foreign recipients; to the Committee on Foreign Relations.
  Mr. BIDEN. Mr. President, today, Senator Lugar and I are introducing 
the Naval Vessel Transfer Act of 2007, a bill to permit the transfer of 
certain U.S. Navy vessels to particular foreign countries. All of the 
proposed ship transfer authorizations have been requested by the U.S. 
Navy, with the approval of the Office of Management and Budget.
  Pursuant to section 824(b) of the National Defense Authorization Act 
for Fiscal Year 1994, as amended, 10 U.S.C. 7307(a), a naval vessel 
that is in excess of 3,000 tons or that is less than 20 years of age 
may not be disposed of to another nation unless the disposition of that 
vessel is approved by law enacted after August 5, 1974. The bill we are 
introducing today would provide that required approval for eight 
transfers: two guided missile frigates and two minehunter coastal ships 
for Turkey; two minehunter coastal ships for Lithuania; and two 
minehunter coastal ships for Taiwan.
  The bill also contains provisions that are traditionally included in 
ship transfer bills, relating to transfer costs and repair and 
refurbishment of the ships, and exempting the value of a vessel 
transferred on a grant basis from the aggregate value of excess defense 
articles in a given fiscal year.
  The authority provided by this bill would expire 2 years after the 
date of enactment of the bill.
  Similar legislation was passed by the Senate last year, but was 
objected to in the House of Representatives because of concern 
regarding the proposal to transfer minehunter coastal ships. That issue 
was also raised by Members of the Senate Armed Services Committee, but 
members of that committee were persuaded by the Executive branch that 
the transfers would not degrade U.S. Navy capabilities. We invite 
interested colleagues to let us know if there is any residual concern 
among Members of the Senate, so that we can arrange for the Executive 
branch to brief members and determine if there is any objection to 
expeditious passage of this bill.
  Finally, the Department of Defense has provided the following 
information on this bill:

       This bill would authorize the President to grant transfer 
     five excess naval vessels to Turkey and Lithuania and to sell 
     three excess naval vessels to Taiwan and Turkey.
       These proposed transfers would improve the United States' 
     political and military relationships with close allies. They 
     would support strategic engagement goals and regional 
     security cooperation objectives. Active use of former naval 
     vessels by coalition forces in support of regional priorities 
     is more advantageous than retaining vessels in the Navy's 
     inactive fleet and disposing of them by scrapping or another 
     method.
       The United States would incur no costs in transferring 
     these naval vessels. The recipients would be responsible for 
     all costs associated with the transfers, including 
     maintenance, repairs, training, and fleet turnover costs.
       This bill does not alter the effect of the Toxic Substances 
     Control Act, or any other law, with regard to their 
     applicability to the transfer of ships by the United States 
     to foreign countries for military or humanitarian use. The 
     laws and regulations that apply today would apply in the same 
     manner if this bill were enacted.
       The Department of Defense estimates that the sale of these 
     vessels may net the United States $52.7 million in fiscal 
     year 2008.

  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no ojection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1565

       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 ``Naval Vessel Transfer Act of 
     2007''.

     SEC. 2. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                   RECIPIENTS.

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign recipients on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j), as follows:
       (1) Turkey.--To the Government of Turkey--
       (A) the OLIVER HAZARD PERRY class guided missile frigates 
     GEORGE PHILIP (FFG-12) and SIDES (FFG-14); and
       (B) the OSPREY class minehunter coastal ship BLACKHAWK 
     (MHC-58).
       (2) Lithuania.--To the Government of Lithuania, the OSPREY 
     class minehunter coastal ships CORMORANT (MHC-57) and 
     KINGFISHER (MHC-56).
       (b) Transfers by Sale.--The President is authorized to 
     transfer vessels to foreign recipients on a sale basis under 
     section 21 of the Arms Export Control Act (22 U.S.C. 2761), 
     as follows:
       (1) Taiwan.--To the Taipei Economic and Cultural 
     Representative Office of the United States (which is the 
     Taiwan instrumentality designated pursuant to section 10(a) 
     of the Taiwan Relations Act (22 U.S.C. 3309(a))), the OSPREY 
     class minehunter coastal ships ORIOLE (MHC-55) and FALCON 
     (MHC-59).
       (2) Turkey.--To the Government of Turkey, the OSPREY class 
     minehunter coastal ship SHRIKE (MHC-62).
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to a recipient on a grant basis pursuant to authority 
     provided by subsection (a) or (c) shall not be counted 
     against the aggregate value of excess defense articles 
     transferred in any fiscal year under section 516 of the 
     Foreign Assistance Act of 1961.
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient.
       (e) 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 
     this section, that the recipient 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 the 
     recipient performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (f) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 2-
     year period beginning on the date of the enactment of this 
     Act.
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