[Congressional Record Volume 163, Number 1 (Tuesday, January 3, 2017)]
[Senate]
[Pages S14-S18]
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. 16-40, 
     concerning the Department of the Air Force's proposed 
     Letter(s) of Offer and Acceptance to the Government of Kuwait 
     for defense articles and services estimated to cost $37 
     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.
       Enclosure.


                         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: Kuwait
       (ii) Total Estimated Value:
       Major Defense Equipment * $36 million.
       Other $1 million.
       Total $37 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Two hundred and fifty (250) Joint Direct Attack Munition 
     (JDAM). Tail Kits for 500-pound bombs
       Two hundred and fifty (250) JDAM Tail Kits for 1,000-pound 
     bombs
       Two hundred and fifty (250) JDAM Tail Kits for 2,000-pound 
     bombs
       Non-MDE includes: Two (2) 500-pound and two (2) 2,000-pound 
     load Build Trainers, spares, support equipment, repair and 
     return, and other associated logistical support.
       (iv) Military Department: Air Force, KU-D-YAC (A3).
       (v) Prior Related Cases if any: KU-D-YAB (A2), 15 Jun 2015 
     ($7.6M).
       (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: December 20, 
     2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

         Kuwait--Joint Direct Attack Munition (JDAM) Tail Kits

       The Government of Kuwait has requested a possible total 
     sale of seven hundred and fifty (750) JDAM Tail Kits (two 
     hundred and fifty
       (250) for 500-pound bombs, two hundred and fifty (250) kits 
     for 1,000-pound bombs, and two hundred and fifty (250) kits 
     for 2,000-pound bombs). Sale also includes two (2) 500-pounds 
     and two (2) 2,000-pounds JDAM Load Build Trainers spares, 
     support equipment, repair and return, and other associated 
     logistical support. The estimated cost is $37 million.
       This proposed sale contributes to the foreign policy and 
     national security of the United States by improving the 
     security of a Major Non-NATO Ally which continues to be an 
     important force for political stability and economic progress 
     in the Middle East. Kuwait plays a large role in U.S. efforts 
     to advance stability in the Middle East, providing basing, 
     access, and transit for U.S. forces in the region.
       This proposed sale improves Kuwait's capability to deter 
     regional threats and strengthens its homeland defense. Kuwait 
     will be able to absorb this additional equipment and support 
     into its armed forces.
       The proposed sale of this equipment and support does not 
     alter the basic military balance in the region.
       The proposed sale does not require the assignment of any 
     additional U.S. Government or contractor representatives to 
     Kuwait.
       The sole-source contractor is the original equipment 
     manufacturer, Boeing, Chicago, Illinois. There are no known 
     offset agreements proposed in connection with this potential 
     sale.
       There is no adverse impact on U.S. defense readiness as a 
     result of this proposed sale.


                         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. Joint Direct Attack Munition (JDAM) is a guidance tail 
     kit that converts unguided free-fall bombs into accurate, 
     adverse weather ``smart'' munitions. With the addition of a 
     new tail section that contains an inertial navigational 
     system and a global positioning system guidance control unit, 
     JDAM improves the accuracy of unguided, general-purpose bombs 
     in any weather condition. JDAM can be launched from very low 
     to very high altitudes in a dive, toss and loft, or in 
     straight and level flight with an on-axis or off-axis 
     delivery. JDAM enables multiple weapons to be directed 
     against single or multiple targets on a single pass. The JDAM 
     All Up Round and all of its components are UNCLASSIFIED; 
     technical data for JDAM is classified up to SECRET.
       2. If a technologically advanced adversary obtains 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures or

[[Page S15]]

     equivalent systems that might reduce weapon system 
     effectiveness or be used in the development of a system with 
     similar or advanced capabilities.
       3. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification. The benefits to be derived from 
     this sale, as outlined in the Policy Justification, outweigh 
     the potential damage that could result if the sensitive 
     technology were revealed to unauthorized persons.
       4. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of Kuwait.
                                  ____

                                                  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. 16-57, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Norway for defense 
     articles and services estimated to cost $1.75 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. 16-57

     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 Norway.
       (ii) Total Estimated Value:
       Major Defense Equipment * $1.40 billion.
       Other $ .35 billion.
       Total $1.75 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Five (5) P-8A Patrol Aircraft, each includes: Commercial 
     Engines, Tactical Open Mission Software (TOMS), Electro-
     Optical (EO) and Infrared (IO) MX-20HD, AN/AAQ-2(V)1 Acoustic 
     System, AN/APY-10 Radar, ALQ-240 Electronic Support Measures
       Eleven (11) Multifunctional Distribution System Joint 
     Tactical Radio Systems (MIDS JTRS)
       Eight (8) Guardian Laser Transmitter Assemblies (GLTA) for 
     the AN/AAQ-24(V)N
       Eight (8) System Processors for AN/AAQ-24(V)N
       Forty-two (42) AN/AAR-54 Missile Warning Sensors for the 
     AN/AAQ-24(V)N
       Fourteen (14) LN-251 with Embedded Global Positioning 
     Systems (GPS)/Inertial Navigations Systems (EGIs)
       Two thousand (2,000) AN/SSQ-125 Multi-Static Active 
     Coherent (MAC) Source Sonobuoys
       Non-MDE includes:
       Spares, spare engine, support equipment, operational 
     support systems for Tactical Operations Center and Mobile 
     Tactical Operations Center (ToC/MToC), training. maintenance 
     trainer/classrooms, publications, software, engineering and 
     logistics technical assistance, Foreign Liaison Officer 
     support, contractor engineering technical services, repair 
     and return, transportation, aircraft ferry, and other 
     associated training and support.
       (iv) Military Department: Navy (SAN).
       (v) Prior Related Cases, if any: This would be Norway's 
     fast purchase of the P-8A Patrol Aircraft. Norway has one 
     related P-8A case, NO-P-GEN, which provides P-8A study and 
     technical analysis support.
       (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: December 20, 
     2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

              Norway--P-8A Aircraft and Associated Support

       Norway has requested a possible sale of up to five (5) P-8A 
     Patrol Aircraft, each includes: Commercial Engines, Tactical 
     Open Mission Software (TOMS), Electro-Optical (EO) and 
     Infrared (IO) MX-20HD, AN/AAQ-2(V)1 Acoustic System, AN/APY-
     10 Radar, ALQ-240 Electronic Support Measures. Also included 
     are eleven (11) Multifunctional Distribution System Joint 
     Tactical Radio Systems (MIDS JTRS); eight (8) Guardian Laser 
     Transmitter Assemblies (GLTA) for the AN/AAQ-24(V)N; eight 
     (8) System Processors for AN/AAQ-24(V)N; forty-two (42) AN/
     AAR-54 Missile Warning Sensors for the AN/AAQ-24(V)N; 
     fourteen (14) LN-251 with Embedded Global Positioning Systems 
     (GPS)/Inertial Navigation Systems (EGIs); and two thousand 
     (2,000) AN/SSQ-125 Multi-Static Active Coherent (MAC) Source 
     Sonobouys; spares; spare engine; support equipment; 
     operational support systems; training; maintenance trainer/
     classrooms; publications; software; engineering and logistics 
     technical assistance; Foreign Liaison Officer support; 
     contractor engineering technical services; repair and return; 
     transportation; aircraft ferry; and other associated training 
     and support. The total estimated program cost is $1.75 
     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 NATO ally which has been, and 
     continues to be, an important force for political stability 
     throughout the world. The proposed sale will allow Norway to 
     maintain its Maritime Patrol Aircraft (MPA) capability 
     following retirement of its P-3C MPA. This sale will 
     strengthen collective NATO defense and enhance Norway's 
     regional and global allied contributions.
       Norway has procured and operated U.S. produced P-3 Orion 
     MPAs for over 40 years, providing critical capabilities to 
     NATO and coalition maritime operations. Norway has maintained 
     a close MPA acquisition and sustainment relationship with the 
     U.S. Navy over this period. The proposed sale will allow 
     Norway to recapitalize, modernize, and sustain its MPA 
     capability for the next 30 years. As a long-time P-3 
     operator, Norway will have no difficulty transitioning its 
     MPA force to the P-8A and absorbing these aircraft into its 
     armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The prime contractor involved in this sale is The Boeing 
     Company, Seattle, WA. Additional contractors include: Air 
     Cruisers Co, LLC; Arnprior Aerospace, Canada; AVOX Zodiac 
     Aerospace; BAE; Canadian Commercial Corporation (CCC)/EMS; 
     Compass David Clark; DLS/ViaSat, Carlsbad, CA; DRS; Exelis, 
     McLean, VA; GC Micro, Petaluma, CA; General Electric, UK; 
     Harris; Joint Electronics; Marlin Baker; Northrop Grumman 
     Corp, Falls Church, VA; Pole Zero, Cincinnati, OH; Raytheon, 
     Waltham, MA; Raytheon, UK; Rockwell Collins, Cedar Rapids, 
     IA; Spirit Aero, Wichita, KS; Symmetries Telephonies, 
     Farmingdale, NY; Terma, Arlington, VA; Viking; and WESCAM. 
     Norway does require an offset agreement.
       Any offset agreement will be defined in negotiations 
     between the purchaser and the prime contractor.
       Implementation of the proposed sale will require 
     approximately five (5) contractor personnel to support the 
     program in Norway.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         transmittal no. 16-57

     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 P-8A aircraft is a militarized version of the Boeing 
     737-800 Next Generation (NG) commercial aircraft. The P-8A is 
     replacing the P-3C as the Navy's long-range antisubmarine 
     warfare (ASW), anti-surface warfare (ASuW), intelligence, 
     surveillance and reconnaissance (ISR) aircraft capable of 
     broad-area, maritime, and littoral operations. The overall 
     highest classification of the P-8A weapon system is SECRET. 
     The P-8A mission systems hardware is largely unclassified, 
     while individual software elements (mission systems, 
     acoustics, ESM, etc.) are classified up to SECRET.
       2. P-8A mission systems include:
       a. Tactical Open Mission Software (TOMS). TOMS functions 
     include environment planning, tactical aids, weapons planning 
     aids, and data correlation. TOMS includes an algorithm for 
     track fusion which automatically correlates tracks produced 
     by on board and off board sensors.
       b. Electra-Optical (EO) and Infrared (IR) MX-20HD. The EO/
     IR system processes visible EO and IR spectrum to detect and 
     image objects.
       c. AN/AQQ-2(V)1 Acoustic System. The Acoustic sensor system 
     is integrated within the mission system as the primary sensor 
     for the aircraft ASW missions. The system has multi-static 
     active coherent (MAC) 64 sonobuoy processing capability and 
     acoustic sensor prediction tools.
       d. AN/APY-10 Radar. The aircraft radar is a direct 
     derivative of the legacy AN/APS-137(V) installed in the P-3C. 
     The radar capabilities include GPS selective availability 
     anti-spoofing, SAR and ISAR imagery resolutions, and 
     periscope detection mode.
       e. ALQ-240 Electronic Support Measures (ESM). This system 
     provides real time capability for the automatic detection, 
     location, measurement, and analysis of RF-signals and modes. 
     Real time results are compared with a library of known 
     emitters to perform emitter classification and specific 
     emitter identification (SEI).
       f. Electronic Warfare Self Protection (EWSP). The aircraft 
     EWSP consists of the ALQ-213 Electronic Warfare Management 
     System (EWMS), ALE-47 Countermeasures Dispensing System 
     (CMDS), and the AN/AAQ-24 Directional Infrared Countermeasure 
     (DIRCM)/AAR-54 Missile Warning Sensors (MWS). The EWSP 
     includes threat information.
       3. If a technologically advanced adversary was to obtain 
     access of the P-SA specific hardware and software elements, 
     systems could be reverse engineered to discover USN 
     capabilities and tactics. The consequences of the loss of 
     this technology, to a technologically advanced or competent 
     adversary, could result in the development of countermeasures 
     or equivalent systems, which could reduce system 
     effectiveness or be used in the development of a system with 
     similar advanced capabilities.
       4. A determination has been made that the recipient 
     government can provide substantially the same degree of 
     protection, for the

[[Page S16]]

     technology being released as the U.S. Government Support of 
     the P-8A Patrol Aircraft to the Government of the Norway is 
     necessary in the furtherance of U.S. foreign policy and 
     national security objectives.
       5. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Norway.
                                  ____

                                                  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. 16-71, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Philippines for 
     defense articles and services estimated to cost $25 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. 16-71

     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 the Philippines
       (ii) Total Estimated Value:
       Major Defense Equipment * $20 million.
       Other $5 million.
       TOTAL $25 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Two (2) AN/SPS-77 Sea Giraffe 3D Air Search Radars.
       Non-Major Defense Equipment (MDE): Support services, 
     including installation services, operator training, system 
     operational testing, and documentation.
       (iv) Military Department: Navy (LFK).
       (v) Prior Related Cases, if any:
       PI-P-SBV--$4.7M, Excess Defense Article (EDA) transfer of 
     ex-USCG cutter Hamilton, now PF-15, BRP Gregorio Del Pilar.
       PI-P-SBW--$15.1M, EDA transfer of ex-USCG cutter Dallas, 
     PF-16, now BRP Ramon Alcaraz.
       (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: December 12, 
     2016.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

      The Philippines--AN/SPS-77 Sea Giraffe 3D Air Search Radars

       The Government of the Philippines has requested a possible 
     sale of two (2) AN/SPS-77 Sea Giraffe 3D Air Search Radars, 
     support services, including installation services, operator 
     training, system operational testing, and documentation. The 
     total estimated program cost is $25 million.
       The Philippines seeks to increase its Maritime Domain 
     Awareness (MDA) capabilities in order to improve monitoring 
     of its vast territorial seas and Exclusive Economic Zones 
     (EEZ). An effective Philippine MDA capability strengthens its 
     self-defense capabilities and supports regional stability and 
     U.S. national interests. This sale is consistent with U.S. 
     regional objectives and will further enhance interoperability 
     with the U.S. Navy, build upon a longstanding cooperative 
     effort with the United States, and provide an enhanced 
     capability with a valued partner in a geographic region of 
     critical importance to the U.S. government.
       The AN/SPS-77 Air Search Radars will be used to provide an 
     enhanced ability to detect and track air contacts. The radars 
     will be installed on two Hamilton-class cutters acquired 
     through the Excess Defense Articles (EDA) program. The 
     Philippines 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 contractor will be VSE and Saab. 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 U.S. or contractor representatives to the 
     Philippines. U.S. contractors, under U.S. government 
     oversight, will be in the Philippines for installation and 
     associated support of this new radar on these Philippine Navy 
     ships.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         transmittal no. 16-71

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

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. A completely assembled AN/SPS-77 radar, which is a 
     commercial product that is outfitted on USN LCS class ships, 
     will be tailored for release to the Philippine Navy under 
     this program. The operating characteristics and capability of 
     this system as it will be delivered to the Philippines Navy 
     will be UNCLASSIFIED.
       2. AN/SPS-77 operation and maintenance documentation, 
     software, and support is UNCLASSIFIED.
       3. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures that 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       4. A determination has been made that the Philippines can 
     provide substantially the same degree of protection for the 
     sensitive technology being released as the U.S. Government. 
     This sale is necessary in furtherance of the U.S. foreign 
     policy and national security objectives outlined in the 
     Policy Justification.
       5. All defense articles and services listed in this 
     transmittal are have been authorized for release and export 
     to the Government of the Philippines.
                                  ____

                                                  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. 16-66, 
     concerning the Department of the Army's proposed Letter(s) of 
     Offer and Acceptance to the Government of Kuwait for defense 
     articles and services estimated to cost $1.7 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,
                                                       James Worm,
                                           Acting Deputy Director.
                    (For J.W. Rixey, Vice Admiral, USN, Director).
       Enclosures.


                         Transmittal No. 16-66

     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 Kuwait.
       (ii) Total Estimated Value:
       Major Defense Equipment $ .04 billion.
       Other $1.66 billion.
       Total $1.70 billion.
       (iii) Description and Quantity or Ouantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Two hundred and forty
       (240) .50 Cal M2A1 Machine Guns.
       Four hundred and eighty
       (480) 7.62mm M240 Machine Guns.
       Two hundred and forty
       (240) AN/VRC-92E SINCGARS Radios.
       One thousand and eight five (1,085) AN/PVS-7B Night Vision 
     Goggles.
       Non-MDE includes:
       Incorporation of cooling system/thermal management systems; 
     Common Remotely Operated Weapons Station (CROWS) II--Low 
     Profile Stabilized Weapon Stations; special armor; 120mm gun 
     tubes; 2nd generation Forward Looking Infrared (FLIR) sights; 
     embedded diagnostics; gunner's primary sights; Counter Sniper 
     and Anti-Materiel Mount (CSAMM) hardware; upgrade/maintenance 
     of engines and transmissions; depot level support; training 
     devices; spare and repair parts; support equipment; tools and 
     test equipment; technical data and publications; personnel 
     training and training equipment; U.S. Government and 
     contractor engineering, technical, and logistics support 
     services, and other related elements of logistics support.
       (iv) Military Department: Army (UXA)
       (v) Prior Related Cases, if any:
       FMS Case KU-B-JAT (9 July 1993, $1.9 billion).
       FMS Case KU-B-UKO (20 July 2001, $44.3 million).
       FMS Case KU-B-UKN (23 July 2001, $42 million).
       FMS Case KU-B-ULB (19 May 2006, $36.8 million).
       FMS Case KU-B-ULX (20 July 2011, $34.8 million).
       (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: December 12, 
     2016.
       * as defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

 Government of Kuwait--Recapitalization of 218 M1A2 Tanks and Related 
                         Equipment and Support

       The Government of Kuwait has requested a possible sale in 
     support of its recapitalization of 218 M1A2 tanks, to include 
     two hundred and forty (240) .50 Cal M2A1 machine guns; four 
     hundred and eighty (480) 7.62mm M240 machine guns; two 
     hundred and forty (240) AN/VRC-92E SINCGARS radios; and one 
     thousand and eight five (1,085) AN/PVS-7B Night Vision 
     Goggles. Also included is the incorporation of cooling 
     system/thermal management systems; Common Remotely Operated 
     Weapons Station (CROWS) II--Low Profile Stabilized Weapon 
     Stations; special

[[Page S17]]

     armor; 120mm gun tubes; 2nd generation Forward Looking 
     Infrared (FLIR) sights; embedded diagnostics; gunner's 
     primary sights; Counter Sniper and Anti-Materiel Mount 
     (CSAMM) hardware; upgrade/maintenance of engines and 
     transmissions; depot level support; training devices; spare 
     and repair parts; support equipment; tools and test 
     equipment; technical data and publications; personnel 
     training and training equipment; U.S. Government and 
     contractor engineering, technical, and logistics support 
     services, and other related elements of logistics support. 
     Total estimated program cost is $1.7 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 friendly country which has been and 
     continues to be an important force for political stability 
     and economic progress in the Middle East.
       Kuwait intends to use this equipment to recapitalize its 
     fleet of M1A2 full track tanks in order to modernize and 
     extend the service of the tanks. Kuwait 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 involved in this program are: 
     General Dynamics Land Systems, Sterling Heights, MI; Joint 
     Services Manufacturing Center (JSMC), Lima, OH; Konsberg 
     Defense Systems, Alexandria, VA, and Johnstown, PA; Raytheon, 
     McKinney, TX; Meggitt Defense Systems, Irvine, CA; Palomar, 
     Carlsbad, CA; Northrop Grumman, West Falls Church, VA; DRS 
     Technologies, Arlington, VA; Lockheed Martin, Bethesda, MD; 
     Honeywell, Morristown, NJ; Miltope, Hope Hull, AL. There are 
     no known offset agreements proposed in connect with this 
     potential sale.
       Implementation of this proposed sale is estimated to 
     require five to seven contractors and twenty-five to thirty 
     U.S. Government representatives to Kuwait.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         TRANSMITTAL NO. 16-66

  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. Components considered to contain sensitive technology in 
     the proposed sale are as follows:
       a. M1A2 Thermal Imaging System (TIS)--The TIS 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 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 target acquisition range which is 
     CONFIDENTIAL and hardening data is classified up to SECRET. 
     The consequences of such compromise would increase potential 
     enemy capabilities to neutralize effectiveness of the tank 
     main armament system by denying the crew ability to acquire 
     targets.
       b. Special Armor--Major components of special armor are 
     fabricated in sealed modules and in serialized removable 
     subassemblies. 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. The consequences of such 
     compromise of classified information would be the capability 
     to neutralize or defeat the armor. The sale or transfer of 
     armor modules are done on a government-to-government basis. 
     This serves to minimize, but not eliminate, the danger of 
     compromise.
       c. 120mm Gun--the gun is composed of a 120mm smoothbore gun 
     (cannon) manufactured at Watervliet Arsenal; ``long rod'' 
     APFSDS warheads; and combustible cartridge case ammunition. 
     There may be a need to procure/produce new gun cannon tubes 
     from Watervliet Arsenal. New cannons inducted at Anniston 
     Army Depot would be inspected according to established 
     criteria and shipped to Lima Army Tank Plant for tank upgrade 
     process. Gun production and technology are generally known. 
     Disclosure of gun production and technology specific to the 
     120mm (advance materials and tolerances) would degrade the 
     advantage.
       d. AGT-1500 Gas Turbine Propulsion System--The use of a gas 
     turbine propulsion system in the M1A2 is a unique application 
     of armored vehicle power pack technology. The hardware is 
     composed of the AGT-1500 engine and transmission and is not 
     UNCLASSIFIED. Manufacturing processes associated with the 
     production of turbine blades, recuperator, bearings and 
     shafts, and hydrostatic pump and motor are propriety and 
     therefore commercially competition sensitive. Unauthorized 
     release and exploitation of sensitive propulsion information 
     would adversely impact U.S. commercial interests. Acquisition 
     of production data by a potential enemy could enhance its 
     ability to design and produce gas turbine engine propulsion 
     system with application to land vehicles.
       e. Compartmentation--A major survivability feature of the 
     MI tank is the compartmentation of fuel and ammunition. 
     Compartmentation is the positive separation of the crew and 
     critical components from combustible materials such that in 
     the event that the fuel or ammunition is ignited or 
     deteriorated by an incoming threat round, the crew is fully 
     protected. Sensitive information includes the performance of 
     the ammunition compartments as well as the compartment design 
     parameters. The design of the compartments cannot be 
     protected, however the guidelines, parametric inductions and 
     test data used to develop the compartments do not have to be 
     disclosed to permit a sale.
       f. Common Remotely Operated Weapons Station--Low Profile 
     (CROWS-LP)--The CROWS-LP (M153A2E1) is a commanders' weapon 
     station. It allows for under armor operation of weapons--
     M2HB, M2A1, M250B, and M240. The CROWS-LP is an updated 
     version of the M153A2 CROWS that is approximately 10 inches 
     shorter; the CROWS-LP M153A2E1 increases visibility over the 
     weapon station. The fire control system of the CROWS-LP 
     allows the ``first-burst'' on target capability from 
     stationary and moving platforms. The CROWS-LP ingratiates a 
     day camera (VIM-C), thermal camera (TIM 1500), and laser 
     range finder (STORM/STORM-PI). Engineering design and 
     manufacturing data would provide potential enemy with the 
     means to increase small arms fire control from under armor. 
     The consequences of this would be improved enemy equipment in 
     the field and decrease technological fire control advantages.
       2. The Ml tank will include the following communications 
     suite: Defense Advanced Global Positioning System (GPS) 
     Receiver (DAGR); AN/VAS-5 Driver's Vision Enhancer (DVE) and 
     Rear View Sensor System (RVSS); and Single Channel Ground and 
     Airborne Radio System (SINCGARS).
       a. Defense Advanced Global Positioning System (GPS) 
     Receiver (DAGR)--DAGR is a lightweight (less than two pounds) 
     hand-held or host platform-mounted, dual frequency, Selective 
     Availability Anti-Spoofing Module (SAASM) based, Precise 
     Positioning Service (PPS) device. The DAGR provides real-time 
     positioning, velocity (ground speed), navigation, and timing 
     (PVNT) information, in standalone (dismounted) and mounted 
     (ground facilities, sea, air, and land vehicles) 
     configurations. The DAGR can support missions involving land-
     based war-fighting and non-war fighting operations. The DAGR 
     can also be used as a secondary or supplemental aid to 
     aviation-based missions which involve operations in low-
     dynamic aircraft, and as an aid to navigation in water-borne 
     operations. DAGR AN/PSN-13(A) is fitted with the Selective 
     Availability Anti-Spoofing Module (SAASM) 3.7 and can accept 
     cryptographic keys for increased PVNT accuracy and protection 
     from intentional false or spoofed satellite signals. The AN/
     PSN-13(A) DAGR does not output classified information. If a 
     technology advanced adversary were to obtain knowledge of the 
     specific hardware and software elements, the information 
     could be used to identify ways of countering the detection 
     capabilities of the DAGR or improve the performance of their 
     GPS receivers; however, information available for the SAASM 
     would not be obtainable. SAASM is a tamper-resistant security 
     module. The remaining hardware used in the DAGR is considered 
     mature and available in other industrial nation's comparable 
     performance thresholds.
       b. Drivers Vision Enhancer (DVE) AN/VAS-5 and Rear View 
     Sensor System (RVSS)--The AN/VAS-5 and RVSS are un-cooled 
     thermal imaging systems developed for use while driving 
     Combat Vehicles and Tactical Wheeled Vehicles. DVE and RVSS 
     allow for tactical vehicle movement in support of operational 
     missions in all environment 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. Engineering 
     design and manufacturing data would provide a potential enemy 
     with the means to upgrade the quality of efficiency of 
     thermal devices production. The consequences of this would be 
     improved enemy equipment of the field. Technical information 
     regarding DVE and RVSS, including UNCLASSIFIED information, 
     should generally not be considered for release.
       The highest level of information that must be disclosed for 
     production, operation or sale of the end item is 
     UNCLASSIFIED/FOR OFFICIAL USE ONLY.
       c. Single Channel Ground and Airborne Radio System 
     (SINCGARS)--The AN/VRC-92E and RT-1702 SINCGARS provides war-
     fighting commanders and troops with a highly reliable, 
     secure, easily maintained Combat Net Radio (CNR) that has 
     both voice and data handling capability in support of command 
     and control operations. SINCGARS, with the Internet 
     Controller, provides the communications link for the 
     digitized force. SINCGARS is a radio fielded to tactical 
     field elements. It facilitates the transmission of voice and/
     or data information, which allows for the conducting of a 
     myriad of missions across the operational continuum. SINCGARS 
     is available for the dismounted soldier, ground and aviation 
     platforms. Training will vary for the radio (RT-1702) and 
     spare and repair parts for the RT-1702 model are not 
     supported by the Standard Army Supply Systems. There is 
     sensitive or restricted information contained in the AN/

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     VRC-92E or software. There would be adverse consequences of 
     the AN/VRC-92E and software were to be lost to a technically 
     advanced adversary. If a technology advances adversary were 
     to obtain knowledge of the specific hardware and software 
     elements, the information could be used to identify ways of 
     countering the Electronic Counter-Counter Measures (ECCM). 
     The hardware used in the AN/VRC-92E and RT-1702 is considered 
     mature.
       3. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification. Moreover, the benefits to be 
     derived from this sale, as outlined in the Policy 
     Justification, outweigh the potential damage that could 
     result if the sensitive technology were revealed to 
     unauthorized persons.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Kuwait.

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