[Congressional Record Volume 160, Number 150 (Wednesday, December 10, 2014)]
[House]
[Pages H9017-H9019]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NAVAL VESSEL TRANSFER ACT OF 2013
Mr. ROYCE. Mr. Speaker, I move to suspend the rules and pass the bill
(S. 1683) to provide for the transfer of naval vessels to certain
foreign recipients, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 1683
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this Act, the term ``appropriate congressional
committees'' means--
(1) the Committee on Foreign Relations of the Senate; and
(2) the Committee on Foreign Affairs of the House of
Representatives.
TITLE I--TRANSFER OF EXCESS UNITED STATES NAVAL VESSELS
SEC. 101. SHORT TITLE.
This title may be cited as the ``Naval Vessel Transfer Act
of 2013''.
SEC. 102. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN
RECIPIENTS.
(a) Transfers by Grant to Mexico.--The President is
authorized to transfer to the Government of Mexico the OLIVER
HAZARD PERRY class guided missile frigates USS CURTS (FFG-38)
and USS MCCLUSKY (FFG-41) on a grant basis under section 516
of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
(b) Transfer by Sale to the Taipei Economic and Cultural
Representative Office in the United States.--The President is
authorized to transfer the OLIVER HAZARD PERRY class guided
missile frigates USS TAYLOR (FFG-50), USS GARY (FFG-51), USS
CARR (FFG-52), and USS ELROD (FFG-55) 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 (22 U.S.C.
3309(a))) on a sale basis under section 21 of the Arms Export
Control Act (22 U.S.C. 2761).
(c) Alternative Transfer Authority.--Notwithstanding the
authority provided in subsections (a) and (b) and to transfer
specific vessels to specific countries, the President is
authorized to transfer any vessel named in this title to any
country named in this section, subject to the same conditions
that would apply for such country under this section, such
that the total number of vessels transferred to such country
does not exceed the total number of vessels authorized for
transfer to such country by this section.
(d) Grants Not Counted in Annual Total of Transferred
Excess Defense Articles.--The value of a vessel transferred
to another country on a grant basis pursuant to authority
provided by subsection (a) 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 (22 U.S.C. 2321j).
(e) 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 notwithstanding
section 516(e) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j(e)).
(f) 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
that recipient, performed at a shipyard located in the United
States.
(g) Expiration of Authority.--The authority to transfer a
vessel under this section shall expire at the end of the 3-
year period beginning on the date of the enactment of this
Act.
TITLE II--ADDITIONAL PROVISIONS
SEC. 201. ENHANCED CONGRESSIONAL OVERSIGHT OF ARMS SALES,
INCLUDING TO THE MIDDLE EAST.
Section 36 of the Arms Export Control Act (22 U.S.C. 2776)
is amended by adding at the end the following new subsection:
``(i) Prior Notification of Shipment of Arms.--At least 30
days prior to a shipment of defense articles subject to the
requirements of subsection (b) at the joint request of the
Chairman and Ranking Member of the Committee on Foreign
Relations of the Senate or the Committee on Foreign Affairs
of the House of Representatives, the President shall provide
notification of such pending shipment, in unclassified form,
with a classified annex as necessary, to the Committee on
Foreign Relations of the Senate and the Committee on Foreign
Affairs of the House of Representatives.''.
SEC. 202. INCREASE IN ANNUAL LIMITATION ON TRANSFER OF EXCESS
DEFENSE ARTICLES.
Section 516(g)(1) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j(g)(1)) is amended by striking ``$425,000,000''
and inserting ``$500,000,000''.
SEC. 203. INTEGRATED AIR AND MISSILE DEFENSE PROGRAMS AT
TRAINING LOCATIONS IN SOUTHWEST ASIA.
Section 544(c) of the Foreign Assistance Act of 1961 (22
U.S.C. 2347c(c)) is amended by adding at the end the
following new paragraph:
``(4) The President shall report to the appropriate
congressional committees (as defined in section 656(e))
annually on the activities undertaken in the programs
authorized under this subsection.''.
SEC. 204. LICENSING OF CERTAIN COMMERCE-CONTROLLED ITEMS.
Section 38 of the Arms Export Control Act (22 U.S.C. 2778)
is amended by adding at the end the following new subsection:
``(k) Licensing of Certain Commerce-Controlled Items.--
``(1) In general.--A license or other approval from the
Department of State granted in accordance with this section
may also authorize the export of items subject to the Export
Administration Regulations if such items are to be used in or
with defense articles controlled on the United States
Munitions List.
``(2) Other requirements.--The following requirements shall
apply with respect to a license or other approval to
authorize the export of items subject to the Export
Administration Regulations under paragraph (1):
``(A) Separate approval from the Department of Commerce
shall not be required for such items if such items are
approved for export under a Department of State license or
other approval.
``(B) Such items subject to the Export Administration
Regulations that are exported pursuant to a Department of
State license or other approval would remain under the
jurisdiction of the Department of Commerce with respect to
any subsequent transactions.
``(C) The inclusion of the term `subject to the EAR' or any
similar term on a Department of State license or approval
shall not affect the jurisdiction with respect to such items.
``(3) Definition.--In this subsection, the term `Export
Administration Regulations' means--
``(A) the Export Administration Regulations as maintained
and amended under the authority of the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.); or
``(B) any successor regulations.''.
SEC. 205. AMENDMENTS RELATING TO REMOVAL OF MAJOR DEFENSE
EQUIPMENT FROM UNITED STATES MUNITIONS LIST.
(a) Requirements for Removal of Major Defense Equipment
From United States Munitions List.--Section 38(f) of the Arms
Export Control Act (22 U.S.C. 2778(f)) is amended by adding
at the end the following:
``(5)(A) Except as provided in subparagraph (B), the
President shall take such actions as may be necessary to
require that, at the time of export or reexport of any major
defense equipment listed on the 600 series of the Commerce
Control List contained in Supplement No. 1 to part 774 of
subtitle B of title 15, Code of Federal Regulations, the
major defense equipment will not be subsequently modified so
as to transform such major defense equipment into a defense
article.
``(B) The President may authorize the transformation of any
major defense equipment described in subparagraph (A) into a
defense article if the President--
``(i) determines that such transformation is appropriate
and in the national interests of the United States; and
``(ii) provides notice of such transformation to the
chairman of the Committee on Foreign Affairs of the House of
Representatives and the chairman of the Committee on Foreign
Relations of the Senate consistent with the notification
requirements of section 36(b)(5)(A) of this Act.
``(C) In this paragraph, the term `defense article' means
an item designated by the President pursuant to subsection
(a)(1).''.
(b) Notification and Reporting Requirements for Major
Defense Equipment Removed From United States Munitions
List.--Section 38(f) of the Arms Export Control Act (22
U.S.C. 2778(f)), as amended by this section, is further
amended by adding at the end the following:
``(6) The President shall ensure that any major defense
equipment that is listed on the 600 series of the Commerce
Control List contained in Supplement No. 1 to part 774 of
subtitle B of title 15, Code of Federal Regulations, shall
continue to be subject to the notification and reporting
requirements of the following provisions of law:
``(A) Section 516(f) of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j(f)).
``(B) Section 655 of the Foreign Assistance Act of 1961 (22
U.S.C. 2415).
``(C) Section 3(d)(3)(A) of this Act.
``(D) Section 25 of this Act.
``(E) Section 36(b), (c), and (d) of this Act.''.
[[Page H9018]]
SEC. 206. AMENDMENT TO DEFINITION OF ``SECURITY ASSISTANCE''
UNDER THE FOREIGN ASSISTANCE ACT OF 1961.
Section 502B(d) of the Foreign Assistance Act of 1961 (22
U.S.C. 2304(d)) is amended--
(1) in paragraph (1), by striking ``and'' at the end; and
(2) by amending paragraph (2)(C) to read as follows:
``(C) any license in effect with respect to the export to
or for the armed forces, police, intelligence, or other
internal security forces of a foreign country of--
``(i) defense articles or defense services under section 38
of the Armed Export Control Act (22 U.S.C. 2778); or
``(ii) items listed under the 600 series of the Commerce
Control List contained in Supplement No. 1 to part 774 of
subtitle B of title 15, Code of Federal Regulations;''.
SEC. 207. AMENDMENTS TO DEFINITIONS OF ``DEFENSE ARTICLE''
AND ``DEFENSE SERVICE'' UNDER THE ARMS EXPORT
CONTROL ACT.
Section 47 of the Arms Export Control Act (22 U.S.C. 2794)
is amended--
(1) in the matter preceding subparagraph (A) of paragraph
(3), by striking ``includes'' and inserting ``means, with
respect to a sale or transfer by the United States under the
authority of this Act or any other foreign assistance or
sales program of the United States''; and
(2) in paragraph (4), by striking ``includes'' and
inserting ``means, with respect to a sale or transfer by the
United States under the authority of this Act or any other
foreign assistance or sales program of the United States,''.
SEC. 208. TECHNICAL AMENDMENTS.
(a) In General.--The Arms Export Control Act (22 U.S.C.
2751 et seq.) is amended--
(1) in sections 3(a), 3(d)(1), 3(d)(3)(A), 3(e), 5(c), 6,
21(g), 36(a), 36(b)(1), 36(b)(5)(C), 36(c)(1), 36(f),
38(f)(1), 40(f)(1), 40(g)(2)(B), 101(b), and 102(a)(2), by
striking ``the Speaker of the House of Representatives and''
each place it appears and inserting ``the Speaker of the
House of Representatives, the Committee on Foreign Affairs of
the House of Representatives, and'';
(2) in section 21(i)(1) by inserting after ``the Speaker of
the House of Representatives'' the following ``, the
Committees on Foreign Affairs and Armed Services of the House
of Representatives,'';
(3) in sections 25(e), 38(f)(2), 38(j)(3), and 38(j)(4)(B),
by striking ``International Relations'' each place it appears
and inserting ``Foreign Affairs'';
(4) in sections 27(f) and 62(a), by inserting after ``the
Speaker of the House of Representatives,'' each place it
appears the following: ``the Committee on Foreign Affairs of
the House of Representatives,''; and
(5) in section 73(e)(2), by striking ``the Committee on
National Security and the Committee on International
Relations of the House of Representatives'' and inserting
``the Committee on Armed Services and the Committee on
Foreign Affairs of the House of Representatives''.
(b) Other Technical Amendments.--
(1) Arms export control act.--The Arms Export Control Act
(22 U.S.C. 2751 et seq.), as amended by subsection (a), is
further amended--
(A) in section 38--
(i) in subsection (b)(1), by redesignating the second
subparagraph (B) (as added by section 1255(b) of the Foreign
Relations Authorization Act, Fiscal Years 1988 and 1989
(Public Law 100-204; 101 Stat. 1431)) as subparagraph (C);
(ii) in subsection (g)(1)(A)--
(I) in clause (xi), by striking ``; or'' and inserting ``,
or''; and
(II) in clause (xii)--
(aa) by striking ``section'' and inserting ``sections'';
and
(bb) by striking ``(18 U.S.C. 175b)'' and inserting ``(18
U.S.C. 175c)''; and
(iii) in subsection (j)(2), in the matter preceding
subparagraph (A), by inserting ``in'' after ``to''; and
(B) in section 47(2), in the matter preceding subparagraph
(A), by striking ``sec. 21(a),,'' and inserting ``section
21(a),''.
(2) Foreign assistance act of 1961.--Section 502B of the
Foreign Assistance Act of 1961 (22 U.S.C. 2304) is amended--
(A) in subsection (b), by striking ``Wherever applicable, a
description'' and inserting ``Wherever applicable, such
report shall include a description''; and
(B) in subsection (d)(2)(B), by striking ``credits'' and
inserting ``credits)''.
SEC. 209. APPLICATION OF CERTAIN PROVISIONS OF EXPORT
ADMINISTRATION ACT OF 1979.
(a) Protection of Information.--Section 12(c) of the Export
Administration Act of 1979 (50 U.S.C. App. 2411(c)) has been
in effect from August 20, 2001, and continues in effect on
and after the date of the enactment of this Act, pursuant to
the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.) and notwithstanding section 20 of the Export
Administration Act of 1979 (50 U.S.C. App. 2419). Section
12(c)(1) of the Export Administration Act of 1979 is a
statute covered by section 552(b)(3) of title 5, United
States Code.
(b) Termination Date.--Subsection (a) terminates at the end
of the 4-year period beginning on the date of the enactment
of this Act.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
California (Mr. Royce) and the gentleman from California (Mr. Vargas)
each will control 20 minutes.
The Chair recognizes the gentleman from California (Mr. Royce).
General Leave
Mr. ROYCE. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days to revise and extend their remarks and to
include extraneous materials on the bill under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from California?
There was no objection.
Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, first of all, I will include in the Record a letter
signed by myself and Mr. Engel to the Secretary of State.
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, December 10, 2014.
Hon. John F. Kerry,
Secretary of State, Department of State, Washington, DC.
Dear Mr. Secretary: Today the House of Representatives will
pass and send to the President S. 1683, a bill that bolsters
allies Taiwan and Mexico with the transfer of U.S. Navy
frigates and makes other changes to the law to enhance our
security assistance to foreign partners.
As you may know, section 201 of this legislation would
amend section 36 of the Arms Export Control Act to require
the President to notify Congress 30 days before shipments of
certain defense articles if jointly requested to do so by the
Chairman and Ranking Member of the House Committee on Foreign
Affairs or the Senate Committee on Foreign Relations. It is
our understanding that the Department may be concerned that
this new congressional notification requirement could pose an
undue burden on the administration of United States arms
transfers.
However, given the comprehensive exchange of information
between the Department and the Committee during the
congressional review process on U.S. arms sales, we would
expect to invoke section 201 only in rare circumstances. For
example, a similar authority in section 36(b)(1), providing
for a request by the same committees of additional and highly
detailed information from the President on a pending Foreign
Military Sale, has been used only once in the last seven
years.
Likewise, we expect that the current protocols governing
the notification of arms sales, a process by which sensitive
national security and foreign policy questions are addressed
informally before a notification is formally submitted for
congressional review, will remain the preeminent means by
which the Committee conducts oversight over United States
arms transfer policy.
We look forward to continuing to work with you on these
important matters in the 114th Congress.
Sincerely,
Edward R. Royce,
Chairman.
Eliot L. Engel,
Ranking Member.
Mr. ROYCE. Mr. Speaker, I rise in strong support of this legislation,
S. 1683. It would allow the United States to transfer certain
decommissioned naval vessels to Taiwan and Mexico. It also makes some
technical amendments to U.S. export control laws.
Let me say that I appreciate the broad bipartisan support that the
contents of this measure already received because this April, the House
passed the underlying bill, H.R. 3470, of which I am the author, the
companion legislation to this bill. Mr. Eliot Engel and I were the
cosponsors.
I am pleased that this important legislation supporting the defense
of our Taiwanese allies has now been passed by the other body. With
passage by the House, it will make its way to the President's desk.
On April 10, 1979, the Taiwan Relations Act was established to govern
America's relationship with the Republic of China-Taiwan. For 35 years,
the act has helped maintain peace and security across the Taiwan Strait
and across the Asia-Pacific region.
During this time, Taiwan has undergone a monumental transformation.
It has gone from grinding poverty and political repression to the
vibrant multiparty democracy that it is today. Taiwan's economy has
evolved. It is now our 10th top trading partner.
As chairman, I led two bipartisan delegations to Taipei, Kaohsiung,
and Tainan to examine Taiwan's economy and defense capabilities.
Today's legislation is the product of the committee's bipartisan effort
to prioritize the U.S.-Taiwan relationship.
This legislation authorizes the President to send four Perry class
guided missile frigates to Taiwan. These are ships that are greatly
needed to augment Taiwan's defense capability. I
[[Page H9019]]
have seen firsthand the World War II-era submarines--I was on one of
them--and the 50-year-old fighter jets that form the core of Taiwan's
military.
Congress has made it clear to the administration that it wants more
defense sales and more transfers like this to Taiwan, including
transfers to support the modernization of its combat aircraft and its
submarine fleet. These four guided missile cruisers would bolster
Taiwan's defense to ensure that peace in the Taiwan Strait continues to
benefit not just Taiwan, but the entire region.
In addition to supporting Taiwan, this legislation also authorizes
the transfer of excess decommissioned naval vessels to Mexico. Mr.
Vargas and I recently returned from Mexico City, and transfers such as
these help to support the priorities of the U.S. Navy while
strengthening the capability of allies and our close partners to meet
our shared maritime security objectives.
Finally, the bill includes a provision requested by the Department of
Commerce to ensure that our export control regime will continue to
protect sensitive information related to export licensing. In
particular, it clarifies that the business confidentiality protections
of the lapsed Export Administration Act remain in effect under another
provision of the law and will continue to protect information related
to export licensing.
This provision will both protect U.S. national security and the
competitiveness of American exporters while providing time for Congress
and the executive branch to modernize the statutory basis for our
export control regime.
While I am disappointed that this measure does not include a
provision from the House bill that would have expedited U.S. arms sales
to close allies, the committee will continue to promote improvements to
the foreign military sales process in the next Congress.
Finally, the bill will also clarify that certain business
confidentiality protections of the Export Administration Act will
continue to protect the information related to export licensing.
Mr. Speaker, I reserve the balance of my time.
Mr. VARGAS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in strong support of S. 1683, the Naval Vessel
Transfer Act. This bill includes many of the provisions in H.R. 3470,
which the House passed on April 7 and sent to the other body.
I would like to thank Chairman Royce for the bipartisan manner in
which the original House bill was drafted, considered by the committee,
and passed by the House. With today's action on S. 1683, we finish our
work on this important legislation.
In the Taiwan Relations Act, the United States made a commitment to
support Taiwan's defensive capability. To that end, this bill
authorizes the President to transfer up to four surplus U.S. naval
vessels to Taiwan. In light of China's increasingly aggressive actions
in the Pacific region, it is more important than ever to bolster
Taiwan's security.
This bill also authorizes a transfer of two surplus naval vessels to
Mexico, a critical defense partner of the United States. These vessels
will strengthen Mexico's ability to function effectively with the U.S.
Navy in joint operations.
Finally, the bill strengthens congressional review of the licensing
and shipment of U.S. defense exports. These provisions are necessary in
light of the significant regulatory changes now being implemented by
the Departments of State, Commerce, and Defense.
The President's Export Control Reform initiative will modernize our
system of regulating trade and defense and dual-use items, and
appropriate congressional review must continue to be an integral part
of the system.
Mr. Speaker, I urge my colleagues to join me in voting for S. 1683 so
we can send this legislation to the President for signature into law.
I reserve the balance of my time.
Mr. ROYCE. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, earlier this year, the Foreign Affairs Committee held a
hearing examining the promises that were made under the Taiwan
Relations Act. That was signed 35 years ago, and there are few pieces
of legislation related to foreign policy that have been as
consequential as Congress stepping in with this act 35 years ago.
It is the steadfast support of the United States Congress that has
helped Taiwan become what it is today: a thriving, modern society that
strongly respects human rights, the rule of law, and free markets.
Passage of this act is a step towards keeping the promises that we made
to Taiwan 35 years ago in that Taiwan Relations Act, and I urge my
colleagues to support this important legislation.
I reserve the balance of my time.
Mr. VARGAS. In closing, Mr. Speaker, as was said, this bill
authorizes a transfer of naval vessels to Taiwan and Mexico, two good
friends and partners of the United States. It also makes changes to
regulating armed transfers and strengthens congressional oversight of
the system.
I would once again like to thank Chairman Royce for working with us
in a bipartisan manner on this important legislation. I would also like
to say that as a freshman Member who may not be serving again on the
committee that it was a real honor to serve under the chairman. He in
fact acts very bipartisan.
He is a real leader in this country, and I am very proud that he is a
Californian. It has been an honor, sir, to serve with you.
Mr. Speaker, I yield back the balance of my time.
Mr. ROYCE. Mr. Speaker, I would say likewise to Mr. Vargas for his
service on the committee.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from California (Mr. Royce) that the House suspend the rules
and pass the bill, S. 1683.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________