[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.

                          ____________________