[Congressional Record Volume 162, Number 108 (Wednesday, July 6, 2016)]
[Senate]
[Pages S4815-S4818]
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.
     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)(5)(A) of the Arms Export Control Act (AECA), 
     as amended, we are forwarding Transmittal No. 0N-16. This 
     notification relates to enhancements or upgrades from the 
     level of sensitivity of technology or capability described

[[Page S4816]]

     in the Section 36(b)(1) AECA certification 15-53 of 04 August 
     2015.
           Sincerely,
                                                       J.W. Rixey,
                                      Vice Admiral, USN, Director.
       Enclosures.


                         Transmittal No. 0N-16

     Report of Enhancement or Upgrade of Sensitivity of Technology 
         or Capability (Sec. 36(b)(5)(A), AECA)
       (i) Purchaser: Government of Japan.
       (ii) Sec. 36(b)(l), AECA Transmittal No.: 15-53; Date: 04 
     August 2015; Military Department: Navy.
       (iii) Description: On 04 August 2015, Congress was notified 
     by Congressional Notification Transmittal Number 15-53, of 
     the possible sale under Section 36(b)(l) of the Arms Export 
     Control Act of the Navy's proposed Letter(s) of Offer and 
     Acceptance of the Government of Japan of two (2) ship sets of 
     the MK 7 AEGIS Weapon System, AN/SQQ-89A (v) 15J Underwater 
     Weapon System (UWS), and Cooperative Engagement Capability 
     (CEC). The total value of this sale is $1.5 billion. Major 
     Defense Equipment (MDE) constitutes $360 million of this 
     sale.
       This transmittal reports the addition of three (3) 
     Cooperative Engagement Capability (CEC) units as MDE. The 
     correct quantity of CEC units was not listed in the original 
     transmittal. Increasing the quantity of CEC units will not 
     result in a net increase in the value of MDE originally 
     notified. The total case value will remain $1.5 billion.
       (iv) Significance: This report is being provided because 
     three (3) CEC sets were not enumerated as Major Defense 
     Equipment in the original notification. The total quantity 
     being considered for purchase is five (5) sets consisting of 
     two (2) ship sets and three (3) shore sets. This equipment is 
     required for testing, calibration, and support of the two (2) 
     new AEGIS DDGs being added to Japan's fleet. This will afford 
     more flexibility and capability to counter regional threats 
     and continue to enhance stability in the region.
       (v) Justification: The ACS/IUWS/CEC support ship 
     construction for a new ship class of DDGs based upon a 
     modified Atago-class hull (Ship Class not yet named) and a 
     new propulsion system. This modernization effort will 
     increase the size of Japan's BMD-capable fleet to eight 
     vessels and enhance its Navy's ability to defend Japan and 
     the Western Pacific from regional ballistic missile threats.
       (vi) Date Report Delivered to Congress: July 1, 2016.
                                  ____

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     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)(5)(A) of the Arms Export Control Act (AECA), 
     as amended, we are forwarding Transmittal No. 0P-16. This 
     notification relates to enhancements or upgrades from the 
     level of sensitivity of technology or capability described in 
     the Section 36(b)(1) AECA certification 15-35 of 01 June 
     2015.
           Sincerely,
                                                       J.W. Rixey,
                                      Vice Admiral, USN, Director.
       Enclosures.


                         Transmittal No. 0P-16

     Report of Enhancement or Upgrade of Sensitivity of Technology 
         or Capability (Sec. 36(b)(5)(A), AECA)
       (i) Purchaser: Government of Japan.
       (ii) Sec. 36(b)(l), AECA Transmittal No.: 15-35; Date: 01 
     June 2015; Military Department: Navy.
       (iii) Description: On 01 June 2015, Congress was notified 
     by Congressional Notification Transmittal Number 15-35, of 
     the possible sale under Section 36(b)(l) of the Arms Export 
     Control Act of four (4) E-2D Advanced Hawkeye (AHE) Airborne 
     Early Warning and Control (AEW&C) aircraft, ten (10) T56-A-
     427A engines (8 installed and 2 spares), eight (8) 
     Multifunction Information Distribution System Low Volume 
     Terminals (MIDS-LVT), four (4) APY-9 Radars, four (4) AN/AYK-
     27 Integrated Navigation Channels and Display Systems, ten 
     (10) LN-251 Embedded Global Positioning Systems/Inertial 
     Navigation Systems (EGIs) with embedded airborne Selective 
     Availability Anti-Spoofing Module (SAASM) Receiver (ASR), and 
     six (6) AN/ALQ-217 Electronic Support Measures, 
     modifications, spare and repair parts, support equipment, 
     publications and technical documentation, personnel training 
     and training equipment, ferry services, aerial refueling 
     support, U.S. Government and contractor logistics, 
     engineering, and technical support services, and other 
     related elements of logistics and program support. The value 
     of Major Defense Equipment (MDE) on the case was $361 
     million. The total case value was $1.5 billion.
       This transmittal reports the inclusion of one (1) E-2D 
     Weapon Systems Trainer. While the value of the trainer was 
     included in the original notification, it was not identified 
     as MDE at that time. The cost of the trainer is $50,904,612. 
     The value of MDE on the notification is therefore revised to 
     $412 million. The total estimated value remains $1.5 billion.
       (iv) Significance: This notification is being provided as 
     the E-2D Weapon Systems Trainer was not enumerated as Major 
     Defense Equipment in the original notification. This 
     equipment provides the Japan Air Self Defense Force with the 
     capability to train Weapon System Officers on the mission 
     systems of the E-2D in a simulated environment.
       (v) Justification: (U) This proposed sale will contribute 
     to the foreign policy and national security of the United 
     States. Japan is one of the major political and economic 
     powers in East Asia and the Western Pacific and a key partner 
     of the United States in ensuring peace and stability in that 
     region. It is vital to the U.S. national interest to assist 
     Japan in developing and maintaining a strong and ready self-
     defense capability. This proposed sale is consistent with 
     U.S. foreign policy and national security objectives and the 
     1960 Treaty of Mutual Cooperation and Security.
       (vi) Date Report Delivered to Congress: July 1, 2016.
                                  ____

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(5)(A) of the Arms Export Control Act, as 
     amended, we are forwarding'Transmittal No. 0R-16. This 
     notification relates to enhancements or upgrades from the 
     level of sensitivity of technology or capability described in 
     the Section 36(b)(l) AECA certification 16-26 of 24 March 
     2016.
           Sincerely,
                                                       J.W. Rixey,
                                      Vice Admiral, USN, Director.
       Enclosure.


                         Transmittal No. 0R-16

     Report of Enhancement or Upgrade of Sensitivity of Technology 
         or Capability (Sec. 36(b)(5)(A), AECA)
       (i) Purchaser: United Kingdom (UK).
       (ii) Sec. 36(b)(l), AECA Transmittal No.: 16-26; Date: 
     March 24, 2016; Military Department: U.S. Navy.
       (iii) Description: On March 24, 2016, Congress was 
     notified, by Congressional certification transmittal number 
     16-26, of the possible sale under Section 36(b)(l) of the 
     Arms Export Control Act of nine (9) P-8A Patrol Aircraft, 
     which includes: Tactical Open Mission Software (TOMS), 
     Elector-Optical (EO) and Infrared (IR) MX-20HD, AN/AAQ-2(V)1 
     Acoustic System, AN/APY-10 Radar and ALQ-240 Electronic 
     Support Measures (ESM). Also included were twelve (12) 
     Multifunctional Information Distribution System (MIDS) Joint 
     Tactical Radio Systems (JTRS), twelve (12) Guardian Laser 
     Transmitter Assemblies (GLTA) for AN/AAQ-24(V)N, twelve (12) 
     Systems Processors for AN/AAQ-24(V)N, twelve (12) Missile 
     Weapons Sensors for the AN/AAR-54 (for AN/AAQ-24(V)N) and 
     nine (9) LN-251 with Embedded Global Positioning Systems/
     Inertial Navigations System (EGis). The total estimated major 
     defense equipment (MDE) cost is $1.8 billion. The total 
     estimated program cost is $3.2 billion.
       This transmittal reports the addition of: Two (2) 
     Multifunctional Information Distribution System (MIDS) Joint 
     Tactical Radio Systems (JTRS), sixty (60) Missile Weapons 
     Sensors for the AN/AAR-54 (as part of the AN/AAQ-24(V)N), and 
     eleven (11) LN-25ls with Embedded Global Positioning Systems/
     Inertial Navigations Systems (EGis). There is no increase in 
     the total MDE cost or total estimated program cost.
       (iv) Significance: The original notification incorrectly 
     identified the number of units required to support the UK P-
     8A program. Fourteen (14) MIDS JTRS units are required to 
     ensure adequate spares. Seventy-two (72) missile warning 
     sensors are required as each of the twelve (12) AAQ-24(V)N 
     systems consist of six (6) sensors. A total of twenty (20) 
     EGis are required, as each complete system includes two (2) 
     EGis for a total of eighteen (18); also now inCluded is a 
     full total system spare set of two (2) additional EGis.
       (v) Justification: This proposed sale will allow the UK to 
     reestablish its Maritime Surveillance Aircraft (MSA) 
     capability that it divested when it cancelled the Nimrod MRA4 
     Maritime Patrol Aircraft (MPA) program.
       The corrected number of units of equipment are required to 
     support the UK P-8A program.
       (vi) Date Report Delivered to Congress: July 1, 2016.
                                  ____

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     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. 16-33, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Republic of Korea for defense 
     articles and services estimated to cost $65 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,
                                                       J.W. Rixey,
                                       Vice Admiral, USN Director.
       Enclosures.


                          policy justification

  Republic of Korea--SM-2 Block IIIB Standard Missiles and Containers

       The Republic of Korea has requested a possible sale of:

[[Page S4817]]

       Major Defense Equipment (MOE):
       Seventeen (17) SM-2 Block IIIB Standard Missiles.
       Seventeen (17) SM-2 Missile Containers.
       Non-MDE:
       This request also includes the following Non-MDE: personnel 
     training and training equipment, publications and technical 
     data, U.S. Government and contractor technical assistance, 
     and other related logistics support.
       The total estimated value ofMDE is $60 million. The total 
     overall estimated value is $65 million.
       The Republic of Korea (ROK) is one of the major political 
     and economic powers in East Asia and the Western Pacific and 
     a key partner of the United States in ensuring peace and 
     stability in that region. It is vita] to U.S. national 
     interests to assist our Korean ally in developing and 
     maintain a strong and ready self-defense capability.
       The ROK Navy (ROKN) intends to use the SM-2 Block IIIB 
     Standard missiles to supplement its existing SM-2 Block IIIA/
     IIIB inventory. The proposed sale will provide a defensive 
     capability while enhancing interoperability with U.S. and 
     other allied forces. The Republic of Korea will have no 
     difficulty absorbing these additional missiles into its armed 
     forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractor will be the Raytheon Electronic 
     Systems Company in Tucson, Arizona. There are no known offset 
     agreements proposed in connection with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives to the Republic of Korea. However, U.S. 
     Government or contractor personnel in-country visits will be 
     required on a temporary basis in conjunction with program 
     technical oversight and support requirements.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         transmittal no. 16-33

     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. The SM-2 Block IIIB Standard Missile consists of a 
     Guidance Unit, Dual Thrust Rocket Motor, Steering Control 
     Unit, and Telemeter with omni-directional antenna. The 
     proposed sale will result in the transfer of sensitive 
     technology and information as well as classified and 
     unclassified defense equipment and technical data. The 
     hardware and installed software is classified SECRET. 
     Training documentation is classified CONFIDENTIAL. Shipboard 
     operational/tactical employment is generally CONFIDENTIAL, 
     but includes some SECRET data. The all-up round Standard 
     missiles are classified CONFIDENTIAL. Certain operating 
     frequencies and performance characteristics are classified 
     SECRET.
       2. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be-used to develop countermeasures which 
     might reduce system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       3. A determination has been made that the Republic of Korea 
     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.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Republic of Korea.
                                  ____

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     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. 16-39, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Chile for defense 
     articles and services estimated to cost $140.1 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. 16-39

     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 Chile.
       (ii) Total Estimated Value:
       Major Defense Equipment* $73.2 million.
       Other $66.9 million.
       Total $140.1 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Thirty-thirty (33) Evolved Seasparrow Missiles (ESSMs).
       Six (6) Evolved Seasparrow Telemetry Missiles.
       Three (3) MK41 Vertical Launching Systems (VLS), tactical 
     version, baseline VII.
       Non-MDE: This request also includes the following Non-MDE: 
     Five (5) ESSM Shipping Containers, Five (5) MK-73 Continuous 
     Wave illumination Transmitters, Ten (10) MK25 Quad Pack 
     Containers, One (1) Inertial Missile Initializer Power Supply 
     (IMIPS), canisters, spare and repair parts, support and test 
     equipment, publications and technical documentation, 
     personnel training, U.S. Government and contractor 
     engineering, technical and logistics support services, 
     technical assistance, installation and integration oversight 
     support, logistics, program management, packaging and 
     transportation.
       (iv) Military Dcpm1ment: Navy.
       (v) Prior Related Cases, if any: CI-P-AFO, P&A data.
       (vi) Sales Commission. Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Annex 
     attached.
       (viii) Date Report Delivered to Congress: July 1, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

               Chile--Evolved Seasparrow Missiles (ESSMs)

       The Government of Chile has requested a possible sale of:
       Major Defense Equipment (MDE):
       Thirty-three (33) Evolved Seasparrow Missiles (ESSMs).
       Six (6) Evolved Seasparrow Telemetry Missiles.
       Three (3) MK 41 Vertical Launching Systems (VLS), tactical 
     version, baseline VII.
       Non-MDE: This request also includes the following Non-MDE: 
     Ten (10) MK25 Quad Pack Canisters; Five (5) ESSM Shipping 
     Containers; Five (5) MK-73 Continuous Wave Illumination 
     Transmitters, One (1) Inertial Missile Initializer Power 
     Supply (IMIPS); spare and repair parts, support and test 
     equipment, publications and technical documentation, 
     personnel training, U.S. Government and contractor 
     engineering, technical and logistics support services, 
     technical assistance, installation and integration oversight 
     support, logistics, program management, packaging and 
     transportation.
       The total estimated value of MDE is $73.2 million. The 
     total overall estimated value is $140.1 million.
       This proposed sale will contribute to the foreign policy 
     and national security of the United States by increasing 
     Chile's ability to contribute to regional security and 
     promoting interoperability with the U.S. forces. The sale 
     will provide upgraded air defense capabilities on Chile's 
     type 23 frigates. The proposed sale improves Chile's 
     capability to deter regional threats and strengthen its 
     homeland defense. Chile will have no difficulty absorbing 
     this equipment into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The prime contractors will be Raytheon Missile Systems, 
     Tucson, Arizona, BAE Systems, Aberdeen, South Dakota, and 
     Lockheed Martin, Bethesda, MD. There are no known offset 
     agreements proposed in connection with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives to Chile.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-39

     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:
       l. The sale of Evolved Seasparrow missiles (ESSM) under 
     this proposed FMS case will result in the transfer of 
     classified missile equipment to Chile. Both classified and 
     unclassified defense equipment and technical data will be 
     transferred. The missile includes the guidance section, 
     warhead section, transition section, propulsion section, 
     control section and Thrust Vector Control (TVC), of which the 
     guidance section and transition section are classified 
     CONFIDENTIAL. Standard missile documentation to be provided 
     under this FMS case will include:
       a. Parametric documents classified CONFIDENTIAL.
       b. Missile Handling/Maintenance Procedures.
       c. General Performance Data classified CONFIDENTIAL
       d. Firing Guidance classified CONFIDENTIAL.
       e. Dynamics Information classified CONFIDENTIAL.
       2. The MK 41 Vertical Launching Systems (VLS) is a fixed, 
     vertical, multi-missile launching system with the capability 
     to store and launch multiple missile variants depending on 
     the warfighting mission. MK 41 VLS is a modular, below-deck 
     configuration with each module consisting of 8 missile cells 
     with an associated gas management and deluge system. The 
     highest classification of the hardware to be exported is 
     UNCLASSIFIED. The highest classification of the technical 
     documentation to be exported is UNCLASSIFIED. The highest 
     classification of software to be exported is CONFIDENTIAL.

[[Page S4818]]

  

       3. The proposed sale of ESSM under this FMS case will 
     result in the transfer of sensitive technological information 
     and or restricted information contained in the missile 
     guidance section. Certain operating frequencies and 
     performance characteristics are classified SECRET because 
     they could be used to develop tactics and/or countermeasures 
     to reduce or defeat missile effectiveness.
       4. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, 
     primarily performance characteristics, engagement algorithms, 
     and transmitter specific frequencies, the information could 
     be used to develop countermeasures that might reduce weapon 
     system effectiveness.
       5. A determination has been made that the recipient country 
     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.
       6. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     Chile.
                                  ____

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     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. 16-40, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Israel for defense 
     articles and services estimated to cost $300 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. 16-40

     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 Israel.
       (ii) Total Estimated Value:
       Major Defense Equipment *--$55 million.
       Other--$245 million.
       Total--$300 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Twelve (12) T-700 GE 401C engines (ten (10) installed and 
     two (2) spares)
       Non-MDE:
       This request also includes the following non MDE items: 
     eight (8) AN/APN-194(V) Radar Altimeters, eight (8) AN/APN-
     217A Doppler Radar Navigation Sets, eight (8) AN/ARN-151 (V)2 
     Global Positioning Systems, eight (8) AN/APX-100(V) 
     Identification Friend or Foe (IFF) Transponder Sets, eight 
     (8) OA-8697 A/ARD Direction Finding Groups, eight (8) AN/ARN-
     118(V) NAV Receivers, eight (8) AN/ARN-146 On Top Position 
     Indicators, sixteen (16) 1P-1544A/ASQ-200 Horizontal 
     Situation Video Displays (HSVD), eight (8) AN/ARC-174A (V)2 
     HF Radios, sixteen (16) AN/ARC182(V) UHF/UHF Radios, eight 
     (8) PIN 70600-81010-011 Communication System Controllers, 
     eight (8) GAU-16 50 Caliber Machine Guns, eight (8) M-60D/M-
     240 Machine Guns, eight (8) Internal Auxiliary Fuel Tanks, 
     sixteen (16) External Auxiliary Fuel Tanks, and eight (8) C-
     11822/AWQ Controllers, Armament System. Also included are 
     spares and repair parts, support and test equipment, 
     communication equipment, ferry support, publications and 
     technical documentation, U.S. Government and contractor 
     engineering, technical and logistics support services, and 
     other related elements of logistical and program support.
       (iv) Military Department: Navy.
       (v) Prior Related Cases, if any: None.
       (vi) Sales Commission, Fee. etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Annex 
     attached.
       (vii) Date Report Delivered to Congress: July 5, 2016.
       *as defined in Section 47(6) of the Arms Export Control 
     Act.


                          Policy Justification

    Israel--Excess SH-60F Sea-Hawk Helicopter equipment and support

       The Government of Israel has requested to procure twelve 
     (12) T-700 GE 401C engines (ten (10) installed and two (2) 
     spares), eight (8) AN/APN-194(V) Radar Altimeters; eight (8) 
     AN/APN-217A Doppler Radar Navigation Sets; eight (8) AN/ARN-
     151 (V)2 Global Positioning Systems; eight (8) AN/APX-100(V) 
     Identification Friend or Foe (IFF) Transponder Sets; eight 
     (8) OA-8697 A/ARD Direction Finding Groups; eight (8) AN/ARN-
     118(V) NAV Receivers; eight (8) AN/ARN-146 On Top Position 
     Indicators; sixteen (16) IP-1544A/ASQ-200 Horizontal 
     Situation Video Displays (HSVD); eight (8) AN/ARC-174A (V)2 
     HF Radios; sixteen (16) AN/ARC182(V) UHF/UHF Radios; eight 
     (8) PIN 70600-81010-011 Communication System Controllers; 
     eight (8) GAU-16 50 Caliber Machine Guns; eight (8) M-60D/M-
     240 Machine Guns; eight (8) Internal Auxiliary Fuel Tanks; 
     sixteen (16) External Auxiliary Fuel Tanks; and eight (8) C-
     11822/AWQ Controllers, Armament System. Also included are 
     spares and repair parts, support and test equipment, 
     communication equipment, ferry support, publications and 
     technical documentation, U.S. Government and contractor 
     engineering, technical and logistics support services, and 
     other related elements of logistical and program support. The 
     estimated cost is $300 million.
       This proposed sale will contribute to the foreign policy 
     and national security of the United States by helping to 
     improve the security of a strategic regional partner, which 
     has been, and continues to be, an important force for 
     political stability and economic progress in the Middle East.
       Israel has been approved to receive eight (8) SH-60F Sea 
     Hawk Helicopters via the Excess Defense Articles (EDA) 
     Program under a separate notification. That separate 
     notification included only the SH-60 airframes, thus this 
     transmittal includes all the major components and customer-
     unique requirements requested to supplement the EDA grant 
     transfer.
       Israel has purchased four new frigates to secure the 
     Leviathan Natural Gas Field. The SH-60F helicopters will be 
     used onboard these new frigates to patrol and protect these 
     gas fields as well as other areas under threat.
       The proposed sale will improve Israel's capability to meet 
     current and future threats. The SH-60F Sea-Hawk Helicopters 
     along with the parts, systems, and support enumerated in this 
     notification will provide the capability to perform troop/
     transport deployment, communications relay, gunfire support, 
     and search and rescue. Secondary missions include vertical 
     replenishment, combat search and rescue, and humanitarian 
     missions. Israel will use the enhanced capability as a 
     deterrent to regional threats and to strengthen its homeland 
     defense. Israel will have no difficulty absorbing this 
     equipment into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractors will be Science and Engineering 
     Services, LLC, Huntsville, Alabama, and General Electric (GE) 
     of Lynn, Massachusetts. There are no known offset agreements 
     proposed in connection with this potential sale.
       Implementation of this proposed sale will require the 
     assignment of additional U.S. Government and/or contractor 
     representatives to Israel.


                         Transmittal No. 16-40

     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. The U.S. Navy primarily employed the SH-60F as an 
     aircraft carrier based anti-submarine warfare aircraft and a 
     search and rescue support aircraft during carrier flight 
     operations. Unless otherwise noted below, SH-60F hardware and 
     support equipment, test equipment and maintenance spares are 
     UNCLASSIFIED.
       2. Global Positioning System (GPS)/Precise Positioning 
     Service (PPS)/Selective Availability Anti-spoofing Module 
     (SAASM). The GPS/PPS/SAASM provides a Space-based Global 
     Navigation Satellite System (GNSS) that provides reliable 
     location and time information in all weather at all times and 
     anywhere on or near the Earth when the signal is unobstructed 
     line of site to four or more GPS satellites.
       3. The AN/ARC-182-electronic counter-countermeasures (ECCM) 
     Radio is a combined Very High Frequency (VHF)/Ultra High 
     Frequency (UHF) military communications system designed for 
     all types of fixed-wing aircraft and helicopters. Small and 
     light enough to be especially attractive for installation in 
     the lighter aircraft classes, it covers the frequency bands 
     from 30 to 88 MHz in FM, 116 to 156 MHz in AM, 156 to 174 MHz 
     in FM and for the UHF band 225 to 400 MHz in both AM and FM 
     modes. Additionally, a receiver-only facility covering the 
     band 108 to 116 MHz is provided for navigation purposes. 
     Channel spacing throughout the range is at 25 KHz intervals.
       4. The AN/ARC-174A (V)2 HF Radio provides capability to 
     transmit and receive on Upper Sideband (USB), Lower Sideband 
     (LSB), and Amplitude Modulation (AM).
       5. A determination has been made that Government of Israel 
     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.
       6. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     Israel.

                          ____________________