[Congressional Record Volume 162, Number 88 (Monday, June 6, 2016)]
[Senate]
[Pages S3408-S3409]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
ARMS SALES NOTIFICATION
Mr. CORKER. Mr. President, section 36(b) of the Arms Export Control
Act requires that Congress receive prior notification of certain
proposed arms sales as defined by that statute. Upon such notification,
the Congress has 30 calendar days during which the sale may be
reviewed. The provision stipulates that, in the Senate, the
notification of proposed sales shall be sent to the chairman of the
Senate Foreign Relations Committee.
In keeping with the committee's intention to see that relevant
information is available to the full Senate, I ask unanimous consent to
have printed in the Record the notifications which have been received.
If the cover letter references a classified annex, then such annex is
available to all Senators in the office of the Foreign Relations
Committee, room SD-423.
There being no objection, the material was ordered to be printed in
the Record, as follows:
Defense Security
Cooperation Agency,
Arlington, VA 22202-5408
Hon. Bob Corker,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: Pursuant to the reporting requirements
of Section 36(b)(1) of the Arms Export Control Act, as
amended, we are forwarding herewith Transmittal No. 16-17,
concerning the Department of the Navy's proposed Letter(s) of
Offer and Acceptance to the Government of Australia for
defense articles and services estimated to cost $301 million.
After this letter is delivered to your office, we plan to
issue a news release to notify the public of this proposed
sale.
Sincerely,
Jennifer Zakriski,
(For J.W. Rixey, Vice Admiral,
USN, Director.)
Enclosures:
Transmittal No. 16-17
Notice of Proposed Issuance of Letter of Offer Pursuant to
Section 36(b)(1) of the Arms Export Control Act, as
amended
(i) Prospective Purchaser: Government of Australia.
(ii) Total Estimated Value:
Major Defense Equipment* $216 million
Other $85 million
Total $301 million
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
Up to eighty (80) STANDARD Missile, SM-2 Block IIIB
Vertical Launching Tactical All-Up Rounds, RIM-66M-09.
Up to fifteen (15) MK 97 SM-2 Block IIIB Guidance Sections
(GSs).
Non-MDE: This request also includes the following Non-MDE:
MK 13 MOD 0 Vertical Launching System Canisters, operator
manuals and technical documentation, U.S. Government and
contractor engineering, technical and logistics support
services.
(iv) Military Department: Navy (AMM).
(v) Prior Related Cases, if any: AT-P-AYR-28 JUL 10-
$39,499,569, AT-P-LCY-30 APR 05-$221,521,728, AT-P-GSQ-22 APR
11-$58,842,285
(vi)
(vii) Sales Commission, Fee. etc. Paid, Offered, or Agreed
to be Paid: None.
(viii) Sensitivity of Technology Contained in the Defense
Article or Defense Services Proposed to be Sold: See Annex
attached.
(ix) Date Report Delivered to Congress: May 27, 2016.
*As defined in Section 47(6) of the Arms Export Control
Act.
POLICY JUSTIFICATION
Australia-SM-2 Block IIIB STANDARD Missiles
The Government of Australia requested a possible sale of:
Major Defense Equipment (MDE):
Up to eighty (80) STANDARD Missile, SM-2 Block IIIB
Vertical Launching Tactical All-Up Rounds, RIM-66M-09.
Up to fifteen (15) MK 97 SM-2 Block IIIB Guidance Sections
(GSs).
This request also includes the following Non-MDE: MK 13 MOD
0 Vertical Launching System Canisters, operator manuals and
technical documentation, U.S. Government and contractor
engineering, technical and logistics support services.
The total estimated value of MDE is $216 million. The total
overall estimated value is $301 million.
Australia is one of the major political and economic powers
in Southeast Asia, a key democratic partner of the United
States in ensuring regional peace and stability, a close
coalition ally in major/lesser regional contingency
operations, and a close cooperative and international
exchange agreement partner. It is vital to U.S. national
interests that Australia develops and maintains a strong and
ready self-defense capability. This sale is consistent with
U.S. regional objectives.
The SM-2 Block IIIB missiles proposed in this purchase will
be used for anti-air warfare test firings during Combat
Systems Ship Qualification Trials for the Royal Australian
Navy's three new Air Warfare Destroyers (AWD) currently under
construction). The SM-2 Block IIIB missiles, combined with
the Aegis combat systems in the AWDs, will provide
significantly enhanced area defense capabilities over
critical South East Asian air-and-sea-lines of communication.
Australia has already integrated the SM-2 Block IIIA into its
Perry-class FFGs and recently upgraded its Intermediate-Level
Maintenance Depot at Defense Establishment Orchard Hills with
new guided missile test equipment capable of maintaining the
SM-2 All-Up Round. Australia will have no difficulty
absorbing these new missiles.
The proposed sale of this equipment and support will not
alter the basic military balance in the region.
The principal contractors will be Raytheon Missile Systems
Company, Tucson, Arizona; Raytheon Company, Camden, Arkansas;
and BAE of Minneapolis and Aberdeen, South Dakota. There are
no known offset agreements proposed in connection with this
potential sale.
Implementation of this sale will not require the assignment
of any U.S. or contractor representatives to Australia.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.
Transmittal No. 16-17
Notice of Proposed Issuance of Letter of Offer Pursuant to
Section 36(b)(1) of the Arms Export Control Act
Annex Item No. vii
(vii) Sensitivity of Technology:
1. A completely assembled STANDARD Missile-2 (SM-2) Block
IIIB with or without a conventional warhead, whether a
tactical, telemetry or inert (training) configuration, is
classified CONFIDENTIAL. Missile component hardware includes:
Guidance Section (classified CONFIDENTIAL), Target Detection
Device (classified CONFIDENTIAL), Warhead (UNCLASSIFIED),
Rocket Motor (UNCLASSIFIED), Steering Control Section
(UNCLASSIFIED), Safe and Arming Device (UNCLASSIFIED),
Autopilot Battery Unit (classified CONFIDENTIAL), and if
telemetry missiles, AN/DKT-71 Telemeters (UNCLASSIFIED).
[[Page S3409]]
2. SM-2 operator and maintenance documentation is usually
CONFIDENTIAL. Shipboard operation/firing guidance is
generally CONFIDENTIAL. Pre-firing missile assembly/pedigree
information is UNCLASSIFIED.
3. If a technologically advanced adversary were to obtain
knowledge of the specific hardware and software elements, the
information could be used to develop countermeasures that
might reduce weapon system effectiveness or be used in the
development of a system with similar or advanced
capabilities.
4. A determination has been made that Australia can provide
substantially the same degree of protection for the sensitive
technology being released as the U.S. Government. This sale
is necessary in furtherance of the U.S. foreign policy and
national security objectives outlined in the Policy
Justification.
5. All defense articles and services listed in this
transmittal have been authorized for release and export to
the Government of Australia.
____________________