Congressional Record, Volume 163 Issue 112 (Thursday, June 29, 2017)

[Congressional Record Volume 163, Number 112 (Thursday, June 29, 2017)]
[Senate]
[Pages S3849-S3854]
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. 16-68,
concerning the Department of the Navy's proposed Letter(s) of
Acceptance to the Taipei Economic and Cultural Representative
Office in the United States for defense articles and services
estimated to cost $175 million. After this letter is
delivered to our office, we plan to issue a news release to
notify the public of this proposed sale.
Sincerely,
J.W. Rixey,
Vice Admiral, USN, Director.

Transmittal No. 16-68

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: Taipei Economic and Cultural
Representative Office (TECRO) in the United States.
(ii) Total Estimated Value:
Major Defense Equipment * $100 million.
Other $75 million.
Total $175 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
One hundred sixty-eight (168) MK-54 Lightweight Torpedo
(LWT) Conversion Kits.
Non-MDE includes: Shipping containers, operator manuals and
technical documentation, U.S. Government and contractor
engineering, technical and logistics support services.
(iv) Military Department: Navy.
(v) Prior Related Cases, if any: FMS Cases TW-P-AJX and TW-
P-AKB.
(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: June 29, 2017.
* As defined in Section 47(6) of the Arms Export Control
Act.

[[Page S3850]]

policy justification

Taipei Economic and Cultural Representative Office (TECRO) in the
United States--MK-54 Lightweight Torpedo (LWT) Conversion Kits

TECRO has requested a possible sale of MK-54 Lightweight
Torpedo (LWT) Conversion Kits. This request provides the
recipient with MK-54 LWTs in support of their LWT program.
This sale will include LWT containers, torpedo support,
torpedo spare parts, publications, training, weapon system
support, engineering and technical assistance for the upgrade
and conversion of one hundred sixty eight (168) MK-46 Mod 5
Torpedoes to the MK-54 Lightweight Torpedo (LWT)
configuration. The total estimated program cost is $175
million.
This proposed sale is consistent with United States law and
policy, as expressed in Public Law 96-8.
This proposed sale serves U.S. national, economic and
security interests by supporting the recipient's continuing
efforts to modernize its armed forces and enhance its
defensive capabilities. The proposed sale will help improve
the security of the recipient and assist in maintaining
political stability, military balance and economic progress
in the region.
The proposed sale will improve the recipient's capability
in current and future defensive efforts. The recipient will
use the enhance capability as a deterrent to regional threats
and to strengthen homeland defense. The recipient 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 will be various contactors involved in this case.
There are no known offset agreements proposed in connection
with this potential sale.
It is estimated that during implementation of this proposed
sale, a number of U.S. Government and contractor
representatives will be assigned to the recipient or travel
there intermittently during the program.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 16-68

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 54 Lightweight Torpedo (LWT) has been in service
in the U.S. Navy (USN) since 2004. The version offered in
this sale is the MK54 Mod 0 of the system. The purchaser
currently does not have this weapon system in its inventory.
The proposed sale consists 168 MK-54 Mod 0 LWT conversion
kits, containers, spare and repair parts, weapon system
support and integration, personnel training, training
equipment, test equipment, U.S. Government and contractor
engineering, technical and logistical support services and
other related elements of logistical support.
a. Although the MK 54 Mod 0 LWT is considered state-of-the-
art-technology, there is no Critical Program Information
associated with the MK 54 Mod 0 LWT hardware, technical
documentation or software. The highest classification of the
hardware to be exported is SECRET. The highest classification
of the technical manual that will be exported is
CONFIDENTIAL. The technical manual is required for operation
of the MK 54 Mod 0 LWT. The highest classification of the
software to be exported is SECRET.
2. Loss of hardware, software, publications or other items
associated with the proposed sale to a technologically
advanced or competent adversary, poses the risk of the
destruction of the countermeasures or replication and/or
improvements to the adversary's Undersea Weapon Systems,
weakening U.S. defense capabilities.
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 which
might reduce weapon system effectiveness or be used in
development of a system with similar or advanced
capabilities.
4. A determination has been made that the recipient country
can provide substantially the same degree of protection for
the sensitive technology being released as the U.S.
Government. This sale is necessary in furtherance of the U.S.
foreign policy and national security objectives in the Policy
justification.
5. All defense articles and services listed in this
transmittal have been authorized for release and export to
the government of Taipei Economic and Cultural Representative
Office (IECRO) in the United States.
____

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. 16-69,
concerning the Department of the Navy's proposed Letter(s) of
Acceptance to the Taipei Economic and Cultural Representative
Office in the United States for defense articles and services
estimated to cost $250 million. After this letter is
delivered to our office, we plan to issue a news release to
notify the public of this proposed sale.
Sincerely,
J. W. Rixey
Vice Admiral, USN, Director.

TRANSMITTAL NO. 16-69

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: Taipei Economic and Cultural
Representative Office (TECRO) in the United States.
(ii) Total Estimated Value:
Major Defense Equipment* $150 million.
Other $100 million.
Total $250 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
Forty-six (46) MK 48 Mod 6AT Heavyweight Torpedoes (HWT).
Non-MDE includes: Shipping containers, operator manuals and
technical documentation, U.S. Government and contractor
engineering, 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 Notification Delivered to Congress: June 29,
2017.
As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO) in the
United States--MK 48 Mod 6AT Heavyweight Torpedo (HWT)

Taiwan has requested a possible sale of forty-six (46) MK
48 Mod 6AT Heavyweight Torpedoes (HWT). This sale will
include HWT containers, torpedo support, torpedo spare parts,
publications, training, weapon system support, engineering
and technical assistance. The total estimated program cost is
$250 million.
This proposed sale is consistent with United States law and
policy, as expressed in Public Law 96-8.
This proposed sale serves U.S. national, economic and
security interests by supporting the recipient's continuing
efforts to modernize its armed forces and enhance its
defensive capabilities. The proposed sale will help improve
the security of the recipient and assist in maintaining
political stability, military balance and economic progress
in the region.
The proposed sale will improve the recipient's capability
in current and future defensive efforts. The recipient will
use the enhanced capability as a deterrent to regional
threats and to strengthen homeland defense. The recipient
will have no difficulty absorbing this equipment into its
armed forces.
There are no prime contractors associated with this case as
all materials will be procured from U.S. Navy stocks. There
are no known offset agreements proposed in connection with
this potential sale.
It is estimated that during implementation of this this
proposed sale a number of U.S. Government and contractor
representatives will be assigned to the recipient or travel
there intermittently during the program.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

TRANSMITTAL NO. 16-69

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 48 Heavy Weight Torpedo (HWT) has been in service
in the U.S. Navy (USN) since 1972. This sale furnishes the MK
48 Mod 6 Advanced Technology (AT) version of the system. The
purchaser currently does not have this weapon system in its
inventory. The proposed sale consists of 46 HWTs, containers,
spare and repair parts, weapons system support and
integration, personnel training, training equipment, test
equipment, U.S. Government and contractor engineering,
technical and logistics support services and other related
elements of logistical support
a. There is no Critical Program Information associated with
the MK 48 Mod 6AT HWT hardware, technical documentation or
software. The highest classification of the hardware to be
exported is SECRET. The highest classification of the
technical manual that will be exported is CONFIDENTIAL. The
technical manual is required for operation of the MK 48 Mod
6AT HWT. The highest classification of the software to be
exported is SECRET. The MK 48 Mod 6AT HWT meets Anti-
Tampering requirements.
2. If a technologically advanced adversary were to obtain
knowledge of the specific hardware and software elements, the
information could be used to develop countermeasures which
might reduce weapon system effectiveness or be used in
development of a system with similar or advanced
capabilities.
3. A determination has been made that the recipient country
can provide substantially

[[Page S3851]]

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 in the Policy justification.
4. All defense articles and services listed in this
transmittal have been authorized for release and export to
Taipei Economic and Cultural Representative Office (TECRO) in
the United States.
____

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. 16-67,
concerning the Department of the Navy's proposed Letter(s) of
Acceptance to the Taipei Economic and Cultural Representative
Office in the United States for defense articles and services
estimated to cost $125 million. After this letter is
delivered to our office, we plan to issue a news release to
notify the public of this proposed sale.
Sincerely,
J.W. Rixey,
Vice Admiral, USN, Director.

TRANSMITTAL NO. 16-67

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: Taipei Economic and Cultural
Representative Office (TECRO) in the United States
(ii) Total Estimated Value:
Major Defense Equipment $100 million.
Other $25 million.
TOTAL $125 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
Sixteen (16) Standard Missile-2 (SM-2) Block IIIA All-Up
Rounds (AUR) Forty-seven (47) MK 93 MOD 1 SM-2 Block IIIA
Guidance Sections (GSs).
Five (5) MK 45 MOD 14 SM-2 Block IIIA Target Detecting
Device (TDDs) Shrouds.
Non-MDE includes: Seventeen (17) MK 11 MOD6 SM-2 Block IIIA
Autopilot Battery Units (APBUs) maneuverability upgrades on
the GSs, sixty-nine (69) section containers and sixteen (16)
AUR containers, operator manuals and technical documentation,
U.S. Government and contractor engineering, technical and
logistics support services.
(iv) Military Department: Navy (LHT).
(v) Prior Related Cases if any: FMS Cases TW-P-LGQ.
(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: June 29, 2017.
*As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO) in the
United States--SM-2 Block IIIA Standard Missiles and Components

TECRO has requested a possible sale of sixteen (16)
Standard Missile-2 (SM-2) Block IIIA All-Up Rounds (AUR),
forty-seven (47) MK 93 MOD 1 SM-2 Block IIIA Guidance
Sections (GSs), and five (5) MK 45 MOD 14 SM-2 Block IIIA
Target Detecting Devices (TDDs) Shrouds. This request also
includes Seventeen (17) MK 11 MOD6 SM-2 Block IIIA Autopilot
Battery Units (APBUs) maneuverability upgrades on the GSs,
sixty-nine (69) section containers and sixteen (16) AUR
containers, operator manuals and technical documentation,
U.S. Government and contractor engineering, technical and
logistics support services. The total estimated program cost
is $125 million.
This proposed sale is consistent with United States law and
policy, as expressed in Public Law 96-8.
This proposed sale serves U.S. national, economic and
security interests by supporting the recipient's continuing
efforts to modernize its armed forces and enhance its
defensive capabilities. The proposed sale will help improve
the security of the recipient and assist in maintaining
political stability, military balance and economic progress
in the region.
The proposed sale will improve the recipient's capability
in current and future defensive efforts. The recipient will
use the enhanced capability as a deterrent to regional
threats and to strengthen homeland defense. The SM-2 Block
IIIA missiles and components proposed in this purchase will
be used to supplement existing inventories of SM-2 Block
IIIAs to be used for self-defense against air and cruise
missile threats onboard their destroyer-class surface ships.
The recipient will have no difficulty absorbing this
equipment into its armed forces.
The proposed sale of this equipment and support will not
alter the military balance in the region.
The prime contractor will be Raytheon Missiles Systems
Company of Tucson, Arizona. There are no known offset
agreements proposed in connection with this potential sale.
It is estimated that during implementation of this proposed
sale, a number of U.S. Government and contractor
representatives will be assigned to the recipient or travel
there intermittently during the program.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 16-67

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

Annex Item No. vii

(vii) Sensitivity of Technology:
1. A completely assembled STANDARD Missile-2 (SM-2) Block
IIIA with or without a conventional warhead, whether a
tactical or inert (training) configuration, is classified
CONFIDENTIAL. Missile component hardware includes: Guidance
Section (classified CONFIDENTIAL), Target Detection Device
(classified CONFIDENTIAL), Warhead (UNCLASSIFIED), Rocket
Motor (UNCLASSIFIED), Steering Control Section
(UNCLASSIFIED), Safe and Arming Device (UNCLASSIFIED), and
Autopilot Battery Unit (classified CONFIDENTIAL).
2. SM-2 operator and maintenance documentation is
considered CONFIDENTIAL. Shipboard operation/firing guidance
is considered CONFIDENTIAL. Pre-firing missile assembly/
pedigree information is UNCLASSIFIED.
3. If a technologically advanced adversary were to obtain
knowledge of the specific hardware and software elements, the
information could be used to develop countermeasures that
might reduce weapon system effectiveness or be used in the
development of a system with similar or advanced
capabilities.
4. A determination has been made that recipient can provide
substantially the same degree of protection for the sensitive
technology being released as the U.S. Government. This sale
is necessary in furtherance of the U.S. foreign policy and
national security objectives outlined in the Policy
Justification.
5. All defense articles and services listed in this
transmittal have been authorized for release and export to
the Taipei Economic and Cultural Representative Office
(TECRO) in the United States.
____

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. 16-73,
concerning the Department of the Air Force proposed Letter(s)
of Acceptance to the Taipei Economic and Cultural
Representative Office in the United States for defense
articles and services estimated to cost $185.5 million. After
this letter is delivered to our 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. 16-73

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: Taipei Economic and Cultural
Representative Office (TECRO) in the United States.
(ii) Total Estimated Value:
Major Defense Equipment* $83.5 million.
Other $102.0 million.
Total $185.5 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
Fifty-six (56) AGM-154C Joint Standoff Weapons (JSOWs).
Non-MDE includes: JSOW integration, captive flight
vehicles, dummy training missiles, missile containers, spare
and repair parts, support and test equipment, Joint Mission
Planning System updates, publications and technical
documentation, personnel training and training equipment,
U.S. Government and contractor engineering, technical and
logistics support services, and other related elements of
logistical and program support.
(iv) Military Department: Air Force (QBZ).
(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: June 29, 2017.
*As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO) in the
United States--AGM-154C Joint Standoff Weapon (JSOW) Missiles

TECRO requested a possible sale of fifty-six (56) AGM-154C
JSOW Air-to-Ground Missiles. This request also includes: JSOW
integration, captive flight vehicles, dummy training
missiles, missile containers, spare and repair parts, support
and test equipment, Joint Mission Planning System updates,
publications and technical documentation, personnel training
and training

[[Page S3852]]

equipment, U.S. Government and contractor engineering,
technical and logistics support services, and other related
elements of logistical and program support. The total
estimated program cost is $185.5 million.
This proposed sale is consistent with U.S. law and policy
as expressed in Public Law 96-8.
This proposed sale serves U.S. national, economic, and
security interests by supporting the recipient's continuing
efforts to modernize its armed forces and to maintain a
credible defensive capability. The proposed sale will help
improve the security of the recipient and assist in
maintaining political stability, military balance, and
economic progress in the region.
The proposed sale will improve the recipient's capability
in current and future defensive efforts. The recipient will
use the enhanced capability as a deterrent to regional
threats and to strengthen homeland defense. The recipient
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.
Currently, market research is being conducted to determine
the viability of a qualified contractor in accordance with
Federal Acquisition Regulations. The purchaser typically
requests offsets, but any offsets will be determined between
the purchaser and the contractor.
Implementation of this proposed sale will not require the
assignment of any additional U.S. Government or contractor
representatives outside the United States.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 16-73

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 AGM-154C Joint Standoff Weapon (JSOW) is a low
observable, 1,000 lb. class, inertial navigation and global
positioning satellite guided family of air-to-ground glide
weapons. JSOW consists of a common airframe and avionics that
provides for a modular payload assembly to attack stationary
and moving massed flight-armored and armored vehicle columns,
surface-to-air, soft to hard, relocatable, and fixed targets.
JSOW provides combat forces with an all-weather, day/night/
multiple kills per pass, launch and leave, and standoff
capability.
2. The highest classification of the hardware to be
exported is SECRET. The highest classification of the
technical documentation to be exported is SECRET, but no
radar cross-section and infrared signature data nor U.S.-only
tactics or tactical doctrine will be disclosed. The highest
classification of the software to be exported is SECRET;
however, no software source code will be disclosed. All
reprogramming of missile microprocessor memories must be
accomplished by U.S. Government personnel or U.S. Government
approved contractors.
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. 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.
5. All defense articles and services listed in this
transmittal are authorized for release and export to the
Taipei Economic and Cultural Representative Office (TECRO) in
the United States.
____

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. 16-75,
concerning the Department of the Air Force proposed Letter(s)
of Acceptance to the Taipei Economic and Cultural
Representative Office in the United States for defense
articles and services estimated to cost $400 million. After
this letter is delivered to our 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. 16-75

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: Taipei Economic and Cultural
Representative Office (TECRO) in the United States.
(ii) Total Estimated Value:
Major Defense Equipment (MDE)* $0 million.
Other $400 million.
Total $400 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Non-MDE includes: Follow-on sustainment package for the
Surveillance Radar Program (SRP) that includes contractor
logistics support (sustainment); engineering services and
technical updates to address equipment obsolescence;
transportation and material costs associated with contractor
repair and return services; spare and repair parts; support
and test equipment; publications and technical documentation
personnel training and training equipment; U.S. Government
and contractor engineering; technical and logistics support
services; and other related elements of logistical and
program support.
(iv) Military Department: Air Force (QAP).
(v) Prior Related Cases, if any: TW-D-DAH--$831 million--27
Oct 2004; TW-D-QAI--$370 million--25 May 2012.
(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: June 29, 2017.
* As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO)
in the United States--Surveillance Radar Program (SRP)
Operation and Maintenance Support
TECRO requested a possible sale of SRP Operations and
Maintenance follow-on sustainment package that includes,
contractor logistics support (sustainment); engineering
services and technical updates to address equipment
obsolescence; transportation and material costs associated
with contractor repair and return services; spare and repair
parts; support and test equipment; publications and technical
documentation personnel training and training equipment; U.S.
Government and contractor engineering; technical and
logistics support services; and other related elements of
logistical and program support. The total estimated program
cost is $400 million.
This proposed sale is consistent with United States law and
policy as expressed in Public Law 96-8.
This proposed sale contributes to the foreign policy and
national security of the United States by helping to improve
the security and defensive capability of the recipient, which
has been and continues to be an important force for political
stability, military balance, and economic progress in the
region.
The proposed sale improves the recipient's capability to
provide early warning against current and future airborne
threats. The SRP is a key component to the recipient's
Command, Control, Communications, Computers, Intelligence
Surveillance and Reconnaissance architecture. It will use the
requested updates and sustainment as a defensive deterrent to
regional threats and to strengthen its homeland defense. This
potential sale will not introduce new capabilities, but will
continue a similar sustainment package to one currently in
place.
The proposed sale of this equipment and support will not
alter the basic military balance in the region.
Currently, market research is being conducted to determine
the viability of a qualified contractor in accordance with
Federal Acquisition Regulations. The purchaser typically
requests offsets, but any offsets will be determined between
the purchaser and the contractor.
Implementation of this proposed sale will not require the
assignment of any additional U.S. Government or contractor
representatives outside the United States.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 16-75

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 purchaser currently owns an Early Warning Radar
(EWR) that serves as a critical element to its Command,
Control, Communications, Computers, Intelligence,
Surveillance, and Reconnaissance (C4ISR) infrastructure. The
radars provide a robust capability to detect, acquire, and
track theater ballistic missiles, air breathing targets, and
cruise missile threats. The system is able to operate in
severe clutter and jamming environments amid high levels of
background radio frequency interference. The follow on
sustainment package requested will not introduce new
capabilities.
2. The highest classification of the hardware to be
exported is UNCLASSIFIED. The highest classification of the
technical documentation to be exported is SECRET. There are
technical manuals as well as Engineering Change Proposals,
drawings, and specifications required as part of the
sustainment updates. Components requiring depot level
maintenance will be shipped to the U.S. for servicing. The
highest level of software to be exported 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 which
might reduce weapon system effectiveness or be used in the
development of a system with similar or advanced
capabilities.

[[Page S3853]]

4. 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.
5. All defense articles and services listed in this
transmittal are authorized for release and export to the
Taipei Economic and Cultural Representative Office (TECRO) in
the United States.
____

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. 16-74,
concerning the Department of the Air Force proposed Letter(s)
of Acceptance to the Taipei Economic and Cultural
Representative Office in the United States for defense
articles and services estimated to cost $147.5 million. After
this letter is delivered to our office, we plan to issue a
news release to notify the public of this proposed sale.
Sincerely,
J.W. Rixley,
Vice Admiral, USN, Director.

Transmittal No. 16-74

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: Taipei Economic and Cultural
Representative Office (TECRO) in the United States
(ii) Total Estimated Value:
Major Defense Equipment* $47.5 million.
Other $100.0 million.
Total $147.5 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE):
Fifty (50) AGM-88B High-Speed Anti-Radiation Missiles
(HARMs).
Ten (10) AGM-88B Training HARMs.
Non-MDE includes: HARM integration, LAU-118A Launchers,
missile containers, spare and repair parts, support and test
equipment, Joint Mission Planning System update, publications
and technical documentation, personnel training and training
equipment, U.S. Government and contractor engineering,
technical and logistics support services, and other related
elements of logistical and program support.
(iv) Military Department: Air Force (QBZ).
(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: June 29, 2017.
* As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO) in the
United States--AGM-88B High-Speed Anti-Radiation Missiles (HARM)

TECRO requested a possible sale of fifty (50) AGM-88B HARMs
and ten (10) AGM-88B Training HARMs. This request also
includes: HARM integration, LAU-118A Launchers, missile
containers, spare and repair parts, support and test
equipment, Joint Mission Planning System update, publications
and technical documentation, personnel training and training
equipment, U.S. Government and contractor engineering,
technical and logistics support services, and other related
elements of logistical and program support. The total
estimated program cost is $147.5 million.
This proposed sale is consistent with U.S. law and policy
as expressed in Public Law 96-8.
This proposed sale serves U.S. national, economic, and
security interests by supporting the recipient's continuing
efforts to modernize its armed forces and to maintain a
credible defensive capability. The proposed sale will help
improve the security of the recipient and assist in
maintaining political stability, military balance, and
economic progress in the region.
The proposed sale will improve the recipient's capability
in current and future defensive efforts. The recipient will
use the enhanced capability as a deterrent to regional
threats and to strengthen homeland defense. The recipient
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.
Currently, market research is being conducted to determine
the viability of a qualified contractor in accordance with
Federal Acquisition Regulations. The purchaser typically
requests offsets, but any offsets will be determined between
the purchaser and the contractor.
Implementation of this proposed sale will not require the
assignment of any additional U.S. Government or contractor
representatives outside the United States.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 16-74

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. AGM-88B High-Speed Anti-Radiation Missile (HARM) is a
supersonic air-to-surface missile designed to seek and
destroy enemy radar-equipped air defense systems. HARM has a
proportional guidance system that hones in on enemy radar
emissions through a fixed antenna and seeker head in the
missile nose. The missile consists of four sections; guidance
section, warhead, control section, and rocket motor.
2. The highest classification of the hardware to be
exported is SECRET. The highest classification of the
technical documentation to be exported is SECRET, but no
radar cross-section and infrared signature data nor U.S.-only
tactics or tactical doctrine will be disclosed. The highest
classification of the software to be exported is SECRET;
however, no software source code will be disclosed. All
reprogramming of missile microprocessor memories must be
accomplished by U.S. Government personnel or U.S. Government
approved contractors.
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 which
might reduce weapon system effectiveness or be used in the
development of a system with similar or advanced
capabilities.
4. 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. A determination has been made that the
recipient country can provide substantially the same degree
of protection for the sensitive technology being released as
the U.S. Government. This sale is necessary in furtherance of
the U.S. foreign policy and national security objectives
outlined in the Policy Justification and in accordance with
the Taiwan Relations Act.
5. All defense articles and services listed in this
transmittal are authorized for release and export to the
Taipei Economic and Cultural Representative Office (TECRO) in
the United States.
____

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. 16-70,
concerning the Department of the Navy proposed Letter(s) of
Acceptance to the Taipei Economic and Cultural Representative
Office in the United States for defense articles and services
estimated to cost $80 million. After this letter is delivered
to our office, we plan to issue a news release to notify the
public of this proposed sale.
Sincerely,
J.W. Rixley,
Vice Admiral, USN, Director.

Transmittal No. 16-70

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO)
in the United States--AN/SLO-32(V)3 Upgrade
TECRO has requested a possible sale to upgrade the AN/SLQ-
32(V)3 Electronic Warfare Systems in support of four
(4) ex-KIDD Class (now KEELUNG Class) destroyers. This sale
will include AN/SLQ-32(V)3 upgrade hardware, software,
support equipment and parts, publications, training,
engineering and technical assistance. The total estimated
program cost is $80 million.
This proposed sale is consistent with United States law and
policy, as expressed in Public Law 96-8.
This proposed sale serves U.S. national, economic and
security interests by supporting the recipient's continuing
efforts to

[[Page S3854]]

modernize its armed forces and enhance its defensive
capabilities. The proposed sale will help improve the
security of the recipient and assist in maintaining political
stability, military balance and economic progress in the
region.
The proposed sale will improve the recipient's capability
in current and future defensive efforts. The recipient will
use the enhanced capability as a deterrent to regional
threats and to strengthen homeland defense. The proposed sale
will improve operational readiness and enhance the electronic
warfare capability onboard the ex-KIDD Class destroyers. The
recipient will have no difficulty in absorbing this equipment
into its armed forces.
The proposed sale will not alter the basic military balance
in the region.
The prime contractor will be Raytheon Missiles Systems
Company of Tucson, Arizona. There are no known offset
agreements proposed in connection with this potential sale.
It is estimated that during implementation of this proposed
sale, a number of U.S. Government and contractor
representatives will be assigned to the recipient or travel
there intermittently during the program.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 16-70

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 AN/SLQ-32(V)3 is an electronic warfare system
providing shipboard identification and cataloguing of the
electronic signature of missiles and aircraft. The system
consists of sensors and computers which process electronic
signals within parameters established in a threat library.
The customer currently has an earlier version of this
equipment in inventory.
a. The AN/SLQ-32(V)3 upgrade consists of hardware,
technical documentation, and software. The highest
classification of the hardware to be exported is SECRET. The
highest classification of software to be exported is SECRET.
2. If a technologically advanced adversary were to obtain
knowledge of the specific hardware and software elements, the
information could be used to develop countermeasures which
might reduce weapon system effectiveness or be used in
development of a system with similar or advanced
capabilities.
3. A determination has been made that the recipient country
can provide substantially the same degree of protection for
the sensitive technology being released as the U.S.
Government. This sale is necessary in furtherance of the U.S.
foreign policy and national security objectives in the Policy
justification.
4. All defense articles and services listed in this
transmittal have been authorized for release and export to
the Government of Taipei Economic and Cultural Representative
Office (TECRO) in the United States.

____________________