[Congressional Record Volume 162, Number 133 (Tuesday, September 6, 2016)]
[Senate]
[Pages S5241-S5246]
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)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 16-29, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Qatar for defense 
     articles and services estimated to cost $124.02 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.


                         transmittal no. 16-29

     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 Qatar.
       (ii) Total Estimated Value:
       Major Defense Equipment* $0.02 million.

[[Page S5242]]

       Other $124.00 million.
       Total $124.02 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Eight (8) M2HB .50 Caliber Machine Guns.
       Non-MDE: Also included are Mk-V Fast Patrol Boats, Forward 
     Looking Infrared (FLIR) Systems, MLG 27mm Gun Systems, 27mm 
     ammunition, 27mm target practice ammunition, .50 Caliber 
     ammunition, support equipment, publications, technical 
     documentation, personnel training, U.S. Government and 
     contractor engineering, in-country support, technical and 
     logistics support services.
       (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 Attached 
     annex.
       (viii) Date Report Delivered to Congress: August 19, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

                      Qatar--Mk-V Fast Patrol Boat

       The Government of Qatar has requested:
       Major Defense Equipment (MDE):
       Eight (8) M2HB .50 Caliber Machine Guns
       Non-MDE: Also included are Mk-V Fast Patrol Boats, Forward 
     Looking Infrared (FLIR) Systems, MLG 27mm Gun Systems, 27mm 
     ammunition, 27mm target practice ammunition, .50 Caliber 
     ammunition, support equipment, publications, technical 
     documentation, personnel training, U.S. Government and 
     contractor engineering, in-country support, technical and 
     logistics support services.
       The total estimated value of MDE is $0.02 million. The 
     total estimated value is $124.02 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 friendly country. Qatar is an 
     important force for political stability and economic progress 
     in the Persian Gulf region. This proposed sale will provide 
     Qatar with military capabilities to protect its critical sea-
     based infrastructure and maritime security. Qatar will have 
     no difficulty absorbing this equipment into its armed forces.
       The proposed sale of this equipment, services, and support 
     will not alter the basic military balance in the region.
       The principal contractor will be United States Marine 
     Incorporated (USMI) in Gulfport, Mississippi. There are no 
     known offset agreements proposed in connection with this 
     potential sale.
       Implementation of this proposed sale will require multiple 
     trips by U.S. Government and contractor representatives to 
     participate in program and technical reviews, system 
     integration, as well as training and maintenance support in 
     country for a period of five (5) years.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         transmittal no. 16-29

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The Mk-V fast patrol boat is approximately twenty-eight 
     meters (28) long with an approximate beam of six (6) meters 
     powered by MTU diesel engines with a waterjet drive. It has a 
     top speed of forty-five (45) knots. The MK-V is outfitted 
     with a stern launch-able inflatable boat. The MK-V is 
     outfitted with unclassified commercial off-the-shelf 
     navigation to include magnetic compass, fluxgate compass, 
     gyro compass, Global Positioning System (GPS), electronic 
     chart plotter, anemometer, navigation radar, navigation 
     lights, navigation horn siren, and other electrical and non-
     electronic navigation aids. The MK-V utilizes commercial 
     communications to include high frequency (HF), and very high 
     frequency (VHF) communication radio systems, intercom system, 
     boat horn and blue strobe Jaw enforcement lights. The overall 
     classification level of the vessel is UNCLASSIFIED.
       2. A determination has been made that the Government of 
     Qatar 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 U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification.
       3. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Qatar.
                                  ____

                                                  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. 15-55, 
     concerning the Department of the Army's proposed Letter(s) of 
     Offer and Acceptance to the Government of Afghanistan for 
     defense articles and services estimated to cost $60 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.


                         Transmittal No. 15-55

     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 Afghanistan.
       (ii) Total Estimated Value:
       Major Defense Equipment* $ 30.0 million.
       Other $30.0 million.
       Total $60.0 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Four thousand, eight hundred and ninety-one (4,891) M16A4 
     5.56mm Rifles.
       Four hundred and eighty-five (485) M240B 7.62mm Machine 
     Guns.
       Eight hundred (800) M2 .50 caliber Machine Guns.
       Non-MDE: Also included with this request are M249 Light 
     Automatic Machine Guns; M110 7.62mm Sniper Rifles; MK-19 40mm 
     Grenade Launchers; MK-93 40mm Machine Gun Mounts; M3 Tripod 
     Machine Gun Mounts; Spare Barrels; spare and repair parts; 
     lot validation; publications and technical documentation; 
     personnel training and training equipment; Quality Assurance 
     Team; U.S. Government and contractor technical and logistics 
     support services; and other related elements of logistics and 
     program support.
       (iv) Military Department: Army (UBY).
       (v) Prior Related Cases. if any: FMS case B6-B-FAK-
     $138.8M--Nov 2007, FMS case E3-B-UAF--$39.0M--Aug 2008, FMS 
     case E6-B-UBN--$55.0M--Jul 2009, FMS case AF-B-UBI--$3.3M--
     Jan 2010, FMS case G5-B-UAG--$39.0M--Mar 2010, FMS case G5-B-
     UEQ--$11.0M--Nov 2010, FMS case G5-B-UEK-$152.5M--Nov 2010, 
     FMS case G6-B-UBD--$20.2M--Apr 2011, FMS case G6-B-UBI--
     $512.6M--May 2011, FMS case H5-B-UCN--$20.8M--Dec 2012, FMS 
     case H5-B-UES--$1.8M--Aug 2013, FMS case J3-B-UCJ--$50.9M--
     Mar 2015, FMS case J3-B-UDE--$2.7M--Apr 2015, FMS case J3-B-
     UEW--$5.66M--Sep 2015, FMS case J8-B-UAI--$21M--May 2015, FMS 
     case J8-B-UAN--$7.6M--Jul 2015, FMS case V3-B-UAP--$9M--Apr 
     2016.
       (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: None.
       (viii) Date Report Delivered to Congress: August 17, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

            Afghanistan--Individual and Crew Served Weapons

       The Government of Afghanistan has requested a possible sale 
     of:
       Major Defense Equipment (MDE):
       Four thousand, eight hundred and ninety-one (4,891) M16A4 
     5.56mm Rifles.
       Four hundred and eighty-five (485) M240B 7.62mm Machine 
     Guns.
       Eight hundred (800) M2 .50 caliber Machine Guns.
       Non-MDE: Also included with this request are M249 Light 
     Automatic Machine Guns; M110 7.62mm Sniper Rifles; MK-19 40mm 
     Grenade Launchers; MK-93 40mm Machine Gun Mounts; M3 Tripod 
     Machine Gun Mounts; Spare Barrels; spare and repair parts; 
     lot validation; publications and technical documentation; 
     personnel training and training equipment; Quality Assurance 
     Team; U.S. Government and contractor technical and logistics 
     support services; and other related elements of logistics and 
     program support. The estimated cost is $60 million.
       The proposed sale will enhance the foreign policy and 
     national security objectives of the United States by helping 
     to improve the security of a strategic partner by providing 
     weapons needed to maintain security and stability, as well as 
     to conduct offensive operations against an ongoing 
     insurgency. A stable and secure Afghanistan is vital to 
     regional stability. This proposed sale will also demonstrate 
     the U.S. commitment to Afghanistan's security.
       Afghanistan has an urgent requirement to increase its 
     stocks of crew-served weapons for ongoing counter-insurgency 
     operations and enduring threats to its national sovereignty. 
     These articles were determined to be necessary and are based 
     on Afghanistan's force structure and operational 
     requirements.
       The Afghan National Army (ANA) will use these weapons and 
     equipment in both offensive and defensive operations against 
     insurgents and terrorists within their borders. Without these 
     defense articles, the ANA will not have the military 
     capabilities that are necessary to maintain security and 
     stability. The ANA is thoroughly trained and prepared to use 
     the proposed defense articles. Afghanistan will have no 
     difficulty absorbing this equipment into its armed forces.
       While equipment for the ANA is typically purchased with 
     Title 10 Afghanistan Security Forces Fund (ASFF) 
     appropriations and implemented by DSCA through pseudo-FMS 
     cases, Afghanistan will use U.S. government grants to fund 
     and support this proposed purchase.
       The principal contractor for the M240B will be FN America, 
     Columbia, SC. The principal

[[Page S5243]]

     contractors for the M16A4, M2, and other weapons have not 
     been identified pending open competition and contract award. 
     Some items may be drawn from Army stocks to meet desired 
     delivery dates. There are no known offset agreements proposed 
     in connection with this potential sale.
       Implementation of this sale will require the assignment of 
     approximately eight (8) additional U.S. Government and 
     approximately six (6) contractor representatives to 
     Afghanistan for approximately 5-6 weeks in support of the 
     fielding, maintenance and personnel training.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.
                                  ____

                                                  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. 16-30, 
     concerning the Department of the Air Force's proposed Lead-
     Nation sale to the NATO Support and Procurement Agency (NSPA) 
     for defense articles and services estimated to cost $231 
     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.


                         Transmittal No. 16-30

     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: NATO Support and Procurement 
     Agency (NSPA) as Lead Nation for potential subsequent 
     retransfer to Belgium, Czech Republic, Denmark, Greece, 
     Netherlands, Norway, Portugal, and Spain in accordance with 
     Section 3(d)(4)(C)(ii)
       (ii) Total Estimated Value:
       Major Defense Equipment* $151 million.
       Other $80 million.
       Total $231 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Five hundred (500) Joint Direct Attack Munition (JDAM) 
     Guidance Kits, KMU-556 F/B.
       Forty (40) JDAM Guidance Kits, KMU-557 F/B.
       One thousand five hundred (1,500) JDAM Guidance Kits, KMU-
     572 F/B.
       One thousand (1,000) MAU 210 E/B Computer Control Groups 
     for 1,000-lb. Enhanced Paveway IIs.
       Three hundred (300) MAU 210 E/B Computer Control Groups for 
     GBU-49s.
       One thousand twenty-five (1,025) MAU 169 L/B Computer 
     Control Groups for GBU-12s.
       One thousand and three hundred fifty (1,350) Joint 
     Programmable Fuzes, FMU-152 A/B.
       Sixty (60) Bomb Fin Assembly and Airfoil Group 650-MXU K/B 
     for GBU-12s.
       One thousand twenty-five (1,025) Bomb Fin Assembly and 
     Airfoil Group, MXU-650 K/B AFG for GBU-12s.
       Non-MDE: This request also includes the following Non-MDE: 
     Detector Sensing Unit (DSU)-38A/B Laser sensors, DSU-330/B 
     proximity sensors, Wireless Paveway Avionics Kit (WIPAK) 
     interfaces for Enhanced Paveway TI bombs, FMU-139C/B 
     electronic bomb fuzes, repair and return services, 
     transportation, engineering services, and other support 
     services.
       (iv) Military Department: Air Force (YAA).
       (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 Attached 
     annex.
       (viii) Date Report Delivered to Congress: August 9, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

    NATO Support and Procurement Agency--Precision Guided Munitions

       NATO Support and Procurement Agency as Lead Nation has 
     requested a possible sale of precision guided munitions for 
     subsequent retransfer to Belgium, Czech Republic, Denmark, 
     Greece, Netherlands, Norway, Portugal, and Spain. Included 
     are: five hundred (500) Joint Direct Attack Munition (JDAM) 
     Guidance Kits, KMU-556 F/B; forty (40) JDAM Guidance Kits, 
     KMU-557 F/B; one thousand five hundred (1,500) JDAM Guidance 
     Kits, KMU-572 F/B; one thousand (1,000) MAU 210 E/B Computer 
     Control Groups for 1,000-lb. Enhanced Paveway IIs; three 
     hundred (300) MAU 210 E/B Computer Control Groups for GBU-
     49s; one thousand twenty-five (1,025) MAU 169 L/B Computer 
     Control Groups for GBU-12s; one thousand three hundred fifty 
     (1,350) Joint Programmable Fuzes, FMU-152 A/B; sixty (60) 
     Bomb Fin Assembly and Airfoil Group 650-MXU K/B for GBU-12s; 
     one thousand twenty-five (1,025) Bomb Fin Assembly and 
     Airfoil Group, MXU-650 K/B AFG for GBU-12s. It also includes 
     Detector Sensing Unit (DSU)-38A/B Laser sensors; DSU-33D/B 
     proximity sensors; Wireless Paveway Avionics Kit (WIPAK) 
     interfaces for Enhanced Paveway II bombs; FMU-139C/B 
     electronic bomb fuzes; repair and return services; 
     transportation; engineering services; and other support 
     services. The estimated value is $231 million.
       The proposed sale improves NATO members' capability to meet 
     current and future ground threats with precision. They will 
     use the enhanced capacity as a deterrent to regional threats, 
     and to increase interoperability within contingency 
     operations. Many of the purchasing nations already have 
     precision-guided munitions in their inventories and will have 
     no difficulty absorbing these additional munitions.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The prime contractors for production are the Boeing 
     Corporation of St Louis, Missouri, and Raytheon Missile 
     Systems of 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 NATO.
       There is no adverse impact on U.S. defense readiness as a 
     result of this proposed sale.


                         Transmittal No. 16-30

     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 Joint Direct Attack Munition (JDAM) is a guidance 
     kit that converts existing unguided free-fall bombs into 
     precision-guided ``smart'' munitions. By adding a new tail 
     section containing Inertial Navigation System (INS)/Global 
     Positioning System (GPS) guidance to existing inventories of 
     BLU-109, BLU-111, and BLU-117, or MK-84 and MK-82 bombs, the 
     cost effective JDAM provides highly accurate weapon delivery 
     in any ``flyable'' weather. The INS, using updates from the 
     GPS, helps guide the bomb to the target via the use of 
     movable tail fins. The bomb is fitted with the MXU-650 
     airfoil and the MAU-169 L/B Computer Control Group (CCG) or 
     the MAU-210 E/B to guide to its laser-designated target. The 
     JDAM All Up Round (AUR) and all of its components are 
     UNCLASSIFIED; technical data for JDAM are classified up to 
     SECRET. Weapon accuracy is dependent on target coordinates 
     and present position as entered into the guidance control 
     unit. After weapon release, movable tail fins guide the 
     weapon to the target coordinates.
       2. The KMU-556 F/B, KMU-557 F/B and the KMU-572 F/B are the 
     tail kits for the GBU-31. They contain a GPS Receiver Card 
     with Selective Availability Anti-Spoofing Module (SAASM). 
     Information revealing SAASM implementation details such as 
     number or length of keying variables, circuit diagrams, 
     specific quantitative measures, functions, and capabilities 
     is classified SECRET.
       3. The DSU-38A/B Laser Sensor uses both GPS-aided inertial 
     navigations and/or Laser guidance to execute threat targets. 
     The Laser sensor enhances standard JDAM's reactive target 
     capability by allowing rapid prosecution of fixed targets 
     with large initial target location errors (TLE). The DSU-38A/
     B Laser sensor also provides the additional capability to 
     engage mobile targets moving up to 70 mph. The DSU-38 Laser 
     sensor is a strap down (non-gimbaled) sensor that attaches to 
     the Mk-82 or BLU-111 bomb body in the forward fuze well. The 
     addition of the DSU-38 Laser sensor combined with additional 
     cabling and mounting hardware turns a standard GBU-38 JDAM 
     into a GBU-54 Laser JDAM. Information revealing target 
     designation tactics and associated aircraft maneuvers, the 
     probability of destroying specific/peculiar targets, 
     vulnerabilities regarding countermeasures and the 
     electromagnetic environment is classified SECRET. Information 
     revealing the probability of destroying common/unspecified 
     targets, the number of simultaneous lasers the laser seeker 
     head can discriminate, and data on the radar/infrared 
     frequency is classified CONFIDENTIAL.
       4. The FMU-152 fuze is a Multi-Delay, Multi-Arm and 
     Proximity Sensor compatible with General Purpose Blast, 
     Fragmentation and Hardened-Target Penetrator Warheads. It is 
     cockpit selectable in-flight (prior to release) when used 
     with JDAMS weapons. It can interface with the following 
     weapons: GBU-10, GBU-12, GBU-15, GBU-16, GBU-24, GBU-27, GBU-
     28, GBU-31, GBU-32, GBU-38, and AGM-130.
       5. If a technologically advanced adversary obtained 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures which 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       6. A determination has been made that NSPA and the 
     participating countries 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.
       7. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     NATO, Belgium, Czech Republic, Denmark, Greece, Netherlands, 
     Norway, Portugal, and Spain.

[[Page S5244]]

     
                                  ____
                                                  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. 16-32, 
     concerning the Department of the Army's proposed Letter(s) of 
     Offer and Acceptance for the Kingdom of Saudi Arabia for 
     defense articles and services estimated to cost $1.15 
     billion. 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.


                         TRANSMITTAL NO. 16-32

     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: The Kingdom of Saudi Arabia.
       (ii) Total Estimated Value:
       Major Defense Equipment* $0.15 billion.
       Other $1.00 billion.
       Total $1.15 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under consideration for Purchase:
       Major Defense Equipment (MDE):
       One hundred fifty-three (153) MI Al/A2 Abrams Tank 
     structures for conversion to one hundred thirty-three (133) 
     MI A2S Saudi Abrams configured Main Battle Tanks and twenty 
     (20) battle damage replacements for the existing fleet.
       One hundred fifty-three (153) M2 .50 Caliber Machine Guns.
       Two hundred sixty-six (266) 7.62mm M240 Machine Guns.
       One hundred fifty-three (153) M250 Smoke Grenade Launchers.
       Twenty (20) M88 A1/A2 Heavy Equipment Recovery Combat 
     Utility Lift Evacuation System (HERCULES) Armored Recovery 
     Vehicle (ARV) Structures for conversion to twenty (20) M88 
     A1/A2 HERCULES ARVs.
       One hundred sixty-nine (169) AN/VAS-5 Driver Vision 
     Enhancer--Abrams (DVE-A).
       One hundred thirty-three (133) AN/PVS-7B Night Vision 
     Devices.
       Four thousand two hundred fifty-six (4,256) Rounds M865 
     Training Ammunition.
       Two thousand three hundred ninety-four (2,394) Rounds 
     M831A1 Training Ammunition.
       Non-MDE: This request also includes the following Non-MDE: 
     M1 Al/A2 Tank and M88A1/A2 ARV overhaul, conversion and 
     refurbishment services; Special Tools and Test Equipment; 
     Basic Issue Items; Program Management Support; Verification 
     Testing; System Technical Support; Advanced Gunnery Training 
     System (AGTS); Deployable Advanced Gunnery Training System 
     (DAGTS); Transportation; Binoculars; Camouflage Netting; 
     spare and repair parts; communications equipment; personnel 
     training and training equipment; tool and test equipment; 
     repair and return; publications and technical documentation; 
     Quality Assurance Team (QAT); U.S. Government and contractor 
     engineering, technical and logistics support services; and 
     other related elements of logistics and program support.
       (iv) Military Department: Army (SR-B-VTF).
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (v) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Annex 
     attached.
       (vii) Prior Related Case. if any:
       SR-B-VKZ, Implemented 27 Nov 06, TCV: 3,220,367,024
       SR-B-VTC, Implemented 08 Dec 14, TCV: 1,887,611,823
       (viii) Date Report Delivered to Congress: August 8, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

   Kingdom of Saudi Arabia--M1A2S Saudi Abrams Main Battle Tanks and 
   M88A1/A2: Heavy Equipment Recovery Combat Utility Lift Evacuation 
           System (HERCULES) Armored Recovery Vehicles (ARV)

       The Kingdom of Saudi Arabia has requested a possible sale 
     of up to one hundred fifty-three (153) M1A1/A2 Tank 
     structures for conversion to one hundred thirty-three (133) 
     M1A2S Saudi Abrams configured Main Battle Tanks and twenty 
     (20) battle damage replacements for their existing fleet; one 
     hundred fifty-three (153) M2 .50 Caliber Machine Guns; two 
     hundred sixty-six (266) 7.62mm M240 Machine Guns; one hundred 
     thirty-three (153) M250 Smoke Grenade Launchers; twenty (20) 
     M88A1/A2 Heavy Equipment Recovery Combat Utility Lift 
     Evacuation System (HERCULES) Armored Recovery Vehicle (ARV) 
     Structures for conversion to twenty (20) M88A1/A2 HERCULES 
     ARVs; one hundred sixty-nine (169) AN/VAS-5 Driver Vision 
     Enhancer-Abrams (DVE-A); one hundred thirty-three (133) AN/
     PVS-7B Night Vision Devices; four thousand two hundred fifty-
     six (4,256) Rounds M865 Training Ammunition; and two thousand 
     three hundred ninety-four (2,394) Rounds M831A1 Training 
     Ammunition. Also included are M1A1/A2 Tank and M88A1/A2 ARV 
     overhaul, conversion and refurbishment service; Special Tools 
     and Test Equipment; Basic Issue Items; Program Management 
     Support; Verification Testing; System Technical Support; 
     Advanced Gunnery Training System (AGTS); Deployable Advanced 
     Gunnery Training System (DAGTS); Transportation, Binoculars, 
     Camouflage Netting; spare and repair parts; communications 
     equipment; personnel training and training equipment; tool 
     and test equipment; repair and return; publications and 
     technical documentation; Quality Assurance Team (QAT); U.S. 
     Government and contractor engineering, technical and 
     logistics support services; and other related elements of 
     logistics and program support. The total estimated value is 
     $1.15 billion.
       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 a leading contributor of 
     political stability and economic progress in the Middle East. 
     This sale will increase the Royal Saudi Land Force's (RSLF) 
     interoperability with U.S. forces and conveys U.S. commitment 
     to Saudi Arabia's security and armed forces modernization.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The proposed sale will improve Saudi Arabia's capability to 
     meet current and future threats and provide greater security 
     for its critical infrastructure. The addition of these tanks 
     and recovery vehicles to the RSLF's inventory will enhance 
     Saudi Arabia's ability to support its soldiers in the field 
     and to defend the Kingdom's borders. Saudi Arabia will have 
     no difficulty absorbing these vehicles into its armed forces.
       The principal contractor will be General Dynamics Land 
     Systems (GDLS), Sterling Heights, Michigan. There are no 
     known offset agreements in connection with this potential 
     sale.
       Implementation of this sale will not require the assignment 
     of any additional U.S. Government or contractor 
     representatives to Saudi Arabia. Support teams will travel to 
     the country on a temporary basis.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-32

     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. This sale will involve the release of sensitive 
     technology to Saudi Arabia. The M1A2S Main Battle Tank (MBT) 
     is an analog/digital hybrid system comprising the best 
     features of the M1A1 and M1A2 SEP v2 tanks, while limiting 
     component obsolescence challenges. This configuration is 
     unique to Saudi Arabia. It is armed with the M256 120mm 
     smooth bore gun and has an improved fire control system with 
     range of effective fire in excess of 4 km. Secondary armament 
     of the M1A2S consists of a coaxial 7.62mm machine gun, 
     another 7.62mm machine gun mounted over the gunner's hatch, 
     and a 12.7mm machine gun mounted over commander's hatch. The 
     vehicle is operated by a crew of four, including a tank 
     commander, gunner, loader, and a driver. The M88A1/A2 Heavy 
     Equipment Recovery Combat Utility Lift Evacuation System 
     (HERCULES) Armored Recovery Vehicle (ARV) is a full-tracked 
     armored vehicle used to perform battlefield recovery missions 
     including towing, hoisting, and winching. It is fully capable 
     of recovery support for Abrams series tanks and future heavy 
     combat vehicles.
       a. M1A2S Thermal Imaging System (TIS). The TIS is a second 
     generation Forward Looking Infrared Radar (FLIR) system and 
     constitutes a target acquisition system which, when operated 
     with other tank systems, gives the tank crew a substantial 
     advantage over the potential threat. The TIS provides the 
     M1A2S crew with the ability to effectively aim and fire the 
     tank main armament system under a broad range of adverse 
     battlefield conditions. The hardware itself is UNCLASSIFIED. 
     The engineering design and manufacturing data associated with 
     the detector and infrared (IR) optics and coatings are 
     considered sensitive. The technical data package is 
     UNCLASSIFIED with the exception of the specifications for the 
     target acquisition range which are CONFIDENTIAL.
       b. Special Armor. The major components of special armor are 
     fabricated in sealed modules and in serialized removable sub-
     assemblies. Special armor vulnerability data for both 
     chemical and kinetic energy rounds are classified SECRET. 
     Engineering design and manufacturing data related to special 
     armor are also classified SECRET.
       c. M256 120mm Gun and Ammunition System. It is composed of 
     a 120mm smoothbore gun, ``long rod'' Armor Piercing Fin 
     Stabilized Discarding Sabot (APFSDS) kinetic warheads; and 
     combustible cartridge case ammunition. The suite is 
     UNCLASSIFIED.
       d. Advanced Gas Turbine (AGT) 1500 Gas Turbine Propulsion 
     System. The use of a gas turbine propulsion system in the 
     M1A2S is a unique application of armored vehicle power pack 
     technology. The hardware is composed of the AGT-1500 engine 
     and transmission, and is UNCLASSIFIED. Manufacturing 
     processes associated with the production of turbine blades, 
     recuperator, bearings and shafts, and hydrostatic pump and 
     motor, are proprietary and therefore are commercially 
     competition sensitive.
       e. Compartmentation. A major survivability feature of the 
     Abrams Tank is the compartmentation of fuel and ammunition. 
     Compartmentation is the positive separation of the crew and 
     critical components from

[[Page S5245]]

     combustible materials. In the event that the fuel or 
     ammunition is ignited or deteriorated by an incoming threat 
     round, the crew is fully protected. As demonstrated during 
     the Abram Live Fire tests, compartmentation significantly 
     enhances crew survivability and substantially reduces the 
     likelihood of the tank being immobilized by an ammunition 
     explosion and fire. Sensitive information includes the 
     performance of the ammunition compartments as well as the 
     compartment design parameters.
       f. The Driver's Vision Enhancer-Abrams (DVE-A), AN/AS-5. 
     The AN/AS-5 is an un-cooled thermal imaging system developed 
     for use while driving Combat Vehicles (CVs) and Tactical 
     Wheeled Vehicles (TWVs). It allows for tactical vehicle 
     movement in support of operational missions in all 
     environmental conditions (day/night and all weather) and 
     provides enhanced driving capability during limited 
     visibility conditions (darkness, smoke, dust, fog, etc.). The 
     DVE program provides night vision targeting capabilities for 
     armored vehicles and long-range night vision reconnaissance 
     capability to the warfighter. The highest level of 
     classification is CONFIDENTIAL for hardware and software.
       g. AN/PVS-7B Night Vision Devices (NVD). These devices are 
     man-portable NVDs which incorporate image intensification 
     technology. This technology is contained in a sealed 
     intensifier tube that is serialized and removable. 
     Engineering and manufacturing data related to the image 
     intensification tube sub-components are classified 
     CONFIDENTIAL. All data related to vulnerabilities and 
     weaknesses are classified SECRET.
       2. Software, hardware, and other classified or sensitive 
     data are reviewed prior to release to protect system 
     vulnerabilities, design data, and performance parameters. 
     Some end-item hardware, software, and other data identified 
     above are classified at the CONFIDENTIAL and SECRET level. 
     Potential compromise of these systems is controlled through 
     the management of the basic software programs of highly 
     sensitive systems and software-controlled weapons systems on 
     a case-by-case bases.
       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 or 
     equivalent systems which 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 Saudi Arabia can 
     provide 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 Kingdom of Saudi Arabia.
                                  ____

                                                  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. 16-50, 
     concerning the Department of the Air Force's proposed 
     Letter(s) of Offer and Acceptance to the Government of 
     Argentina 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,
                                                      J. W. Rixey,
                                      Vice Admiral, USN, Director.
       Enclosures.


                         Transmittal No. 16-50

     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 Argentina.
       (ii) Total Estimated Value:
       Major Defense Equipment* $196 million.
       Other $104 million.
       Total $300 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Twenty-four (24) T-6C+ Texan trainer aircraft.
       Non-Major Defense Equipment (MDE): This request includes 
     the following Non-MDE: Spare engines, initial spare parts, 
     support equipment, communications equipment, studies and 
     surveys, contract logistics support and technical services, 
     aircraft technical publications, aircraft ferry and support, 
     life support equipment, initial maintenance training, initial 
     pilot training, follow-on training, alternate mission 
     equipment, Air Force Materiel Command services and travel, 
     unclassified minor modifications and engineering change 
     proposals, ground-based training system, operational flight 
     trainer (OFT) and OFT spare parts.
       (iv) Military Department: Air Force (AR-D-SAI).
       (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 Attached 
     annex.
       (viii) Date Report Delivered to Congress: July 29, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                    Argentina--T-6C+ Texan aircraft

       The Government of Argentina has requested a possible sale 
     of twenty-four (24) T-6C+ Texan trainer aircraft, spare 
     engines, initial spare parts, support equipment, 
     communications equipment, studies and surveys, contract 
     logistics support and technical services, aircraft technical 
     publications, aircraft ferry and support, life support 
     equipment, initial maintenance training, initial pilot 
     training, follow-on training, alternate mission equipment, 
     Air Force Materiel Command services and travel, unclassified 
     minor modifications and engineering change proposals, ground-
     based training system, operational flight trainer (OFT) and 
     OFT spare parts. The estimated value 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 major non-NATO ally. This potential 
     sale will provide additional opportunities for bilateral 
     engagements and further strengthen the bilateral relationship 
     between the United States and Argentina.
       The Argentine military has embarked on an ambitious path 
     toward modernizing its military materiel. The proposed sale 
     will revitalize Argentina's capability to train its pilots 
     and fulfill border control missions, especially along its 
     porous northern border.
       The Argentine Air Force (AAF) will use the enhanced 
     capability to redevelop a professional pilot corps and as a 
     deterrent to illicit activity. The AAF is very experienced 
     working with the Pratt & Whitney FT6 family of engines which 
     they currently have on their T-34, King Air, and Cessna 
     Caravan aircraft. Given the logistical commonalities with the 
     aircraft already in its fleet, the AAF will be able to 
     support and field the new T-60+s.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The prime contractor will be Beechcraft Defense Company, 
     LLC, of Wichita, Kansas. The purchaser requested offsets. At 
     this time, agreements are undetermined and will be cefined in 
     negotiations between the purchaser and contractor.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives to Argentina. The AAF plan is to initially 
     train a cadre of mechanics in in the United States, then a 
     larger group in country via military training teams.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-50

     Notice of Proposed Issuance of Latter of Offer Pursuant to 
         Section 36(bXI) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The T-6C+ is a single engine turboprop trainer aircraft 
     modified with an embedded virtual weapons training, 
     simulation, and no-drop scoring capability, and is 
     UNCLASSIFIED. The simulation and scoring capability is 
     primarily designed to teach air-to-ground operations. The T-
     6C+ also includes the capability to carry mounted external 
     fuel tanks and employ lightweight training weapons.
       2. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Argentina.
                                  ____

                                                  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. 16-27, 
     concerning the Department of the Air Force's proposed 
     Letter(s) of Offer and Acceptance to the United Arab Emirates 
     for defense articles and services estimated to cost $785 
     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. 16-27

     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: United Arab Emirates.
       (ii) Total Estimated Value:
       Major Defense Equipment* $740 million.
       Other $45 million.
       Total $785 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Seven thousand seven hundred (7,700) GBU-10 guidance kits.
       Seven thousand seven hundred (7,700) Mk-84/BLU-117 bombs.

[[Page S5246]]

       Five thousand nine hundred forty (5,940) GBU-12 guidance 
     kits.
       Five thousand nine hundred forty (5,940) Mk-82/BLU-111 
     bombs.
       Five hundred (500) GBU-31V1 guidance kits.
       Five hundred (500) Mk-84/BLU-117 bombs.
       Five hundred (500) GBU-31V3 guidance kits.
       Five hundred (500) BLU-109 bombs.
       Fourteen thousand six hundred forty (14,640) FMU-152 fuzes.
       Non-MDE: Also included is munitions support. The estimated 
     value of this possible sale is $785 million,
       (iv) Military Department: USAF (AAD, A02).
       (v) Prior Related Cases, if any: SAA-$113,853,132-AUG 00, 
     YAB-$156,304,329-AUG 02, YAC-$874,241,603-MAR 08, AAC-
     $13,467,991-JUN 11, AAD-$11,827,867-JAN 15, AAE-$130,000,000-
     OCT 15, AAF-$310,000,000-JAN 16
       (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 Attached 
     Annex.
       (viii) Date Report Delivered to Congress: July 15, 2016.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

       United Arab Emirates--Munitions, Sustainment, and Support

       The Government of the United Arab Emirates (UAE) requests 
     approval to procure seven thousand seven hundred (7,700) GBU-
     10 guidance kits with seven thousand seven hundred (7,700) 
     Mk-84/BLU-117 bombs, five thousand nine hundred forty (5,940) 
     GBU-12 guidance kits with five thousand nine hundred forty 
     (5,940) Mk-82/BLU-111 bombs, five hundred (500) GBU-3IVI 
     guidance kits with five hundred (500) Mk-84/BLU-117 bombs, 
     five hundred (500) GBU-31V3 guidance kits with five hundred 
     (500) BLU-109 bombs, and fourteen thousand six hundred forty 
     (14,640) FMU-152 fuzes. This sale also includes nonMDE 
     munitions items. The total estimated value of MDE is $740 
     million. The overall total estimated value is $785 million.
       This proposed sale contributes to the foreign policy and 
     national security of the United States by helping the UAE 
     remain an active member of the OPERATION INHERENT RESOLVE 
     (OIR) coalition working to defeat the Islamic State in Iraq 
     and the Levant (ISIL). These munitions will sustain the UAE's 
     efforts and support a key partner that remains an important 
     force for political stability and economic progress in the 
     Middle East.
       The proposed sale provides the UAE additional precision 
     guided munitions to meet current and future threats. The UAE 
     continues to provide host-nation support of vital U.S. forces 
     stationed at Al Dhafra Air Base and plays a vital role in 
     supporting U.S. regional interests. The UAE was a valued 
     partner and active participant in OPERATION IRAQI FREEDOM 
     (OIF), OPERATION ENDURING FREEDOM (OEF), OPERATION UNIFIED 
     PROTECTOR (OUP), and now is a valued partner in OIR coalition 
     operations.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The UAE will have no difficulties absorbing these munitions 
     into its inventory.
       The munitions will be sourced through procurement and the 
     contractor determined during contract negotiations. There are 
     no known offset agreements proposed in connection with this 
     potential sale.
       There are no additional U.S. Government or contractor 
     representatives anticipated to be stationed in the UAE as a 
     result of this potential sale.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.
                                  ____

                                                  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. 16-47, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Japan for defense 
     articles and services estimated to cost $821 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. 16-47

     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 Japan.
       (ii) Total Estimated Value:
       Major Defense Equipment* $685 million.
       Other $136 million.
       Total $821 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Up to two hundred forty-six (246) Standard Missiles (SM-2), 
     Block IIIB Vertical Launching Tactical All-Up Rounds, RIM-
     66M-09.
       Non-MDE: This request also includes the following Non-MDE: 
     MK 13 MOD 0 Vertical Launching System Canisters, operator 
     manuals, U.S. Government and contractor engineering, 
     technical and logistics support services.
       (iv) Military Department: Navy (ATA and ASZ).
       (v) Prior Related Cases, if any: JA-P -ARH-MAR 11, 
     $32,149,836; JA-P-AQO-FEB 08, $36,133,478; JA-P-AQE--AUG 06, 
     $25,932,921; JA-P-AQF-AUG 06, $32,030,680; JA-P-ANW-SEP05, 
     $46,147,937;JA-P-ANX-SEP05, $30,207,196; JA-P-APS-SEP 05, 
     $24,923,134; JA-P-APT-NOV 04, $25,041,269; JA-P-APU 09NOV 04, 
     $18,297,591; JA-P-APV-NOV 04, $13,328,470; JA-P-APG-JUL 03, 
     $26,545,311; JA-P-APP-JUL 03, $15,581,478.
       (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 15, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act,


                          POLICY JUSTIFICATION

                Japan--SM-2 Block IIIB Standard Missiles

       The Government of Japan has requested a possible sale of up 
     to two hundred forty-six (246) Standard Missile (SM-2), Block 
     IIIB Vertical Launching Tactical All-Up Rounds, RIM-66M-09. 
     This request also includes 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 Major Defense Equipment (MDE) is $685 million. The 
     total overall estimated value is $821 million.
       Japan is one of the major political and economic powers in 
     East Asia and the Western Pacific, a key democratic partner 
     of the United States in ensuring regional peace and 
     stability, a close coalition ally in regional contingency 
     operations, and a close cooperative and international 
     exchange agreement partner. It is vital to U.S. national 
     interests that Japan develops and maintains a strong and 
     ready self-defense capability. This transaction is consistent 
     with U.S. foreign policy and national security objectives and 
     the 1960 Treaty of Mutual Cooperation and Security.
       These SM-2 Block IIIB missiles will be used for anti-air 
     warfare at sea. Japan currently fields four Kongo-class and 
     two Atago-class destroyers, all of which are equipped with 
     the Aegis Combat system and SM-2 Block IIIA/IIIB missiles. 
     Japan is also building two new Aegis-equipped destroyers 
     based on a modified Atago-class hull. The SM-2 Block IIIB 
     missiles proposed in this sale will be used on these two 
     future destroyers as well as supplementing Japan's missile 
     inventory. Combined with the Aegis combat system, the SM-2 
     Block IIIB provides significantly enhanced area defense 
     capabilities over critical East Asian and Western Pacific 
     air-and sea-lines of communication. Japan has two 
     Intermediate-Level Maintenance Facilities capable of 
     maintaining the SM-2 Block IIIB and will have no difficulty 
     absorbing these new 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 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 Japan.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.

                          ____________________