[Congressional Record Volume 156, Number 104 (Wednesday, July 14, 2010)]
[Senate]
[Pages S5853-S5854]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LUGAR:
  S. 3581. A bill to implement certain defense trade treaties; to the 
Committee on Foreign Relations.
  Mr. LUGAR. Mr. President, I rise today to introduce the Defense Trade 
Treaty Implementation Act of 2010.
  The purpose of this bill is to provide authority to implement two 
treaties on defense trade cooperation currently pending before the 
Senate--one with the United Kingdom and one with Australia. These 
treaties would facilitate defense cooperation with two close allies by 
eliminating licensing requirements for certain categories of defense 
articles.
  I have long supported the objectives of these treaties. Indeed, in 
2003--before the treaties were negotiated--I introduced legislation 
that would have provided the President the authority to waive licensing 
requirements for similar defense trade with the United Kingdom and 
Australia.
  Subsequently, the Bush administration negotiated these treaties, and 
they were submitted to the Senate in 2007. To date, the Senate has not 
been able to act on the treaties, in significant part because of 
confusion and uncertainty about how they would be implemented and 
enforced in U.S. law.
  This legislation would address the problem by providing clear 
legislative authority under the Arms Export Control Act to implement 
and enforce the treaties. In particular, it would provide authority to 
exempt from licensing requirements under the Arms Export Control Act 
exports of defense articles made in connection with the treaties.

[[Page S5854]]

It would provide authority for the President to issue regulations 
pursuant to the Arms Export Control Act to implement and enforce the 
treaties. It would provide authority to allow violations or abuses of 
the treaty to be prosecuted under enforcement provisions of the Arms 
Export Control Act. It would provide for notification to the Congress 
of significant exports of defense articles made pursuant to the 
treaties.
  Previous efforts by both the Bush and Obama administrations to 
develop a viable approach for implementing and enforcing the treaties 
without new legislation have been unsuccessful to date, and have 
created unfortunate delays in bringing these treaties into force. I 
believe that this legislation will put the implementation and 
enforcement of the treaties on a far sounder and more certain footing, 
and eliminate the confusion that has led to these delays.
  I look forward to working with other members and with the 
administration on this legislation. It is my hope that passage of this 
legislation, together with a resolution of advice and consent to the 
treaties containing appropriate protections for the Senate's role in 
overseeing arms exports and approving significant future changes to the 
treaty regime, may allow the treaties to enter into force this year.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3581

       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 Trade Treaty 
     Implementation Act of 2010''.

     SEC. 2. EXEMPTION FROM REQUIREMENTS FOR BILATERAL AGREEMENTS.

       Section 38(j)(1) of the Arms Export Control Act (22 U.S.C. 
     2778(j)(1)) is amended--
       (1) in the subparagraph heading for subparagraph (B), by 
     inserting ``for canada'' after ``Exception''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Exception for defense trade cooperation treaties.--
     The requirement to conclude a bilateral agreement in 
     accordance with subparagraph (A) shall not apply with respect 
     to an exemption from the licensing requirements of this Act 
     for the export of defense items to give effect to any of the 
     following defense trade cooperation treaties, provided that 
     the treaty has entered into force pursuant to Article II, 
     Section 2, clause 2 of the Constitution of the United States:
       ``(i) The Treaty Between the Government of the United 
     States of America and the Government of the United Kingdom of 
     Great Britain and Northern Ireland Concerning Defense Trade 
     Cooperation, done at Washington and London June 21 and 26, 
     2007 (and any implementing arrangement thereto).
       ``(ii) The Treaty Between the Government of the United 
     States of America and the Government of Australia Concerning 
     Defense Trade Cooperation, done at Sydney September 23, 2007 
     (and any implementing arrangement thereto).''.

     SEC. 3. ENFORCEMENT.

       (a) Criminal Violations.--Section 38(c) of such Act is 
     amended by striking ``this section or section 39, or any rule 
     or regulation issued under either section'' and inserting 
     ``this section, section 39, a treaty referred to in 
     subsection (j)(1)(C), or any rule or regulation issued under 
     this section or section 39, including any rule or regulation 
     issued under this section to implement or enforce a treaty 
     referred to in subsection (j)(1)(C) or an implementing 
     arrangement pursuant to such treaty''.
       (b) Enforcement Powers of President.--Section 38(e) of such 
     Act is amended by striking ``defense services,'' and 
     inserting ``defense services, including defense articles and 
     defense services exported or imported pursuant to a treaty 
     referred to in subsection (j)(1)(C),''.
       (c) Notification Regarding Exemptions From Licensing 
     Requirements.--Section 38(f) of such Act is amended by adding 
     at the end the following new paragraph:
       ``(4) Paragraph (2) shall not apply with respect to an 
     exemption under subsection (j)(1)(A) to give effect to a 
     treaty referred to in subsection (j)(1)(C) (and any 
     implementing arrangements to such treaty), provided that the 
     President promulgates regulations to implement and enforce 
     such treaty under this section and section 39.''.

     SEC. 4. CONGRESSIONAL NOTIFICATION.

       (a) Eligibility for Defense Articles or Defense Articles.--
     Section 3(d)(3)(A) of such Act (22 U.S.C. 2753(d)(3)(A)) is 
     amended by inserting after ``approved under section 38 of 
     this Act'' the following: ``or has been exempted from the 
     licensing requirements of this Act pursuant to section 38(j) 
     of this Act''.
       (b) Presidential Certifications.--
       (1) Export licenses.--Section 36(c) of such Act (22 U.S.C. 
     2776(c)) is amended by adding at the end the following new 
     paragraph:
       ``(6) An export pursuant to a treaty referred to in section 
     38(j)(1)(C) of this Act to which the provisions of paragraph 
     (1) would apply absent an exemption granted under section 
     38(j)(1) of this Act shall not take place until 15 days after 
     the President has submitted a certification with respect to 
     such export in a similar manner, and containing comparable 
     information, as required under paragraph (1).''.
       (2) Commercial technical assistance or manufacturing 
     licensing agreements.--Section 36(d) of such Act (22 U.S.C. 
     2776(d)) is amended by adding at the end the following new 
     paragraph:
       ``(6) An export pursuant to a treaty referred to in section 
     38(j)(1)(C) of this Act to which the provisions of paragraph 
     (1) would apply absent an exemption granted under section 
     38(j)(1) of this Act shall not take place until 15 days after 
     the President has submitted a certification with respect to 
     such export in a similar manner, and containing comparable 
     information, as required under paragraph (1).''.

     SEC. 5. IMPLEMENTING REGULATIONS.

       The President is authorized to issue regulations pursuant 
     to the Arms Export Control Act (22 U.S.C. 2751 et seq.) to 
     implement and enforce the Treaty Between the Government of 
     the United States of America and the Government of the United 
     Kingdom of Great Britain and Northern Ireland Concerning 
     Defense Trade Cooperation, done at Washington and London June 
     21 and 26, 2007 (and any implementing arrangement thereto), 
     and the Treaty Between the Government of the United States of 
     America and the Government of Australia Concerning Defense 
     Trade Cooperation, done at Sydney September 23, 2007 (and any 
     implementing arrangement thereto), consistent with other 
     applicable provisions of the Arms Export Control Act, as 
     amended by this Act, and with the terms of any resolution of 
     advice and consent adopted by the Senate with respect to 
     either treaty.

     SEC. 6. RULE OF CONSTRUCTION.

       Nothing in this Act, or in the Treaty Between the 
     Government of the United States of America and the Government 
     of the United Kingdom of Great Britain and Northern Ireland 
     Concerning Defense Trade Cooperation, done at Washington and 
     London on June 21 and 26, 2007 (and any implementing 
     arrangement thereto), or in the Treaty Between the Government 
     of the United States of America and the Government of 
     Australia Concerning Defense Trade Cooperation, done at 
     Sydney, September 23, 2007 (and any implementing arrangement 
     thereto), or in any regulation issued to implement either 
     treaty, shall be construed to modify or supersede any 
     provision of law or regulation other than the Arms Export 
     Control Act (22 U.S.C. 2751 et seq.), as amended by this Act, 
     and regulations issued pursuant to such Act.
                                 ______