Congressional Record, Volume 164 Issue 34 (Monday, February 26, 2018)

[Congressional Record Volume 164, Number 34 (Monday, February 26, 2018)]
[Senate]
[Pages S1213-S1218]
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

[[Page S1214]]

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. 17-78,
concerning the Air Force's proposed Letter(s) of Offer and
Acceptance to the Government of Kuwait for defense articles
and services estimated to cost $259 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,

Gregory M. Kausner

(For Charles W. Hooper,
Lieutenant General, USA, Director).
Enclosures.

Transmittal No. 17-78

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* $0 million.
Other $259 million.
Total $259 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE): None.
Non-MDE: Four (4) King Air 350ER ISR aircraft with enhanced
PT6A-67A engines and one (1) engine spare; four (4) AN/AAQ-35
WESCAM MX-15HDi Electro-Optical & Infrared Imaging Sensor
Turret; four (4) Selex Seaspray 7500E Active Electronically
Scanned Array Radars (AESA); AN/AAR-47 Missile Warning
Systems (MWS); AN/ALE-47 Countermeasure Dispenser Systems;
secure communications, cryptographic, and precision
navigation equipment; Identification Friend or Foe (IFF)
Systems; aircraft modification and integration for ISR
mission systems; facility design and construction; ground
data processing systems and support equipment; spares and
repair parts; support and test equipment; simulators,
training and training equipment; publications and technical
documentation; U.S. Government and contractor engineering,
technical and logistics support services; and other related
elements of logistical and program support. Additionally, one
of the four aircraft will be further modified to accommodate
VIP/senior leadership personnel for transport and Med Evac
capability or command and control, and other related elements
of logistical support.
(iv) Military Department: Air Force (KU-D-SAB).
(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: February 21,
2018.
*As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Kuwait--Intelligence, Surveillance, and Reconnaissance King Air 350ER

The Government of Kuwait has requested a possible sale of
four (4) King Air 350ER Intelligence, Surveillance, and
Reconnaissance (ISR) aircraft with enhanced PT6A-67A engines
and one (1) engine spare; four (4) AN/AAQ-35 WESCAM MX-15HDi
Electro-Optical & Infrared Imaging Sensor Turret; four (4)
Selex Seaspray 7500E Active Electronically Scanned Array
Radars (AESA); AN/AAR-47 Missile Warning Systems (MWS); AN/
ALE-47 Countermeasure Dispenser Systems; secure
communications, cryptographic, and precision navigation
equipment; Identification Friend or Foe (IFF) Systems;
aircraft modification and integration for ISR mission
systems; facility design and construction; ground data
processing systems and support equipment; spares and repair
parts; support and test equipment; simulators, training and
training equipment; publications and technical documentation;
U.S. Government and contractor engineering, technical and
logistics support services; and other related elements of
logistical and program support. Additionally, one of the four
aircraft will be further modified to accommodate VIP/senior
leadership personnel for transport and Med Evac capability or
command and control, and other related elements of logistical
support. The estimated total case value is $259 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. 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.
The proposed sale will enable Kuwait to gather its own
airborne ISR data. This capability will improve Kuwait's
situational awareness, armed forces posture, and armed forces
capability to respond to threats. Enhancing Kuwait's Command,
Control, Communications, Computers, & Intelligence (C4I)
capability will result in the potential for greater burden
sharing. The proposed sale of items and services will
establish Kuwait's first dedicated airborne ISR fleet. The
King Air 350ER ISR is part of the Kuwaiti Air Force's rapid
expansion and modernization efforts, and is a priority for
Kuwait and the United States. 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 contractor will be Sierra Nevada Corporation,
Hagerstown, MD. There are no known offset agreements proposed
in connection with this potential sale.
Implementation of this proposed sale will not require the
long term assignment of any additional U.S. Government
representatives to Kuwait. There will be U.S. contractor
field representatives relocating to Kuwait in order provide
day-to-day maintenance and logistics support.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 17-78

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. King Air 350ER is an Intelligence, Surveillance, and
Reconnaissance (ISR) aircraft, a specifically modified
B350ER, capable of operating in austere environments while
providing real-time ISR. It is equipped with an integrated
electro-optical and infrared (EO/IR) which gives it a day/
night ISR capability. Additionally, the aircraft will have a
signal intercept system capable of searching, direction
finding (geo-locating), collection, and on-board analysis of
simple signals of interest in the very high frequency (VHF)
and ultra-high frequency (UHF) broadcast bands. It will also
have synthetic aperture radar (SAR) to provide spot and strip
ground mapping along with ground moving target indicator
(GMTI) modes. It will also have onboard workstations that
will control the intercept system and EO/IR system. The
system will provide voice and data communication with
personnel on the ground to share collected data. Aircraft
hardware and software are UNCLASSIFIED; technical data and
documentation to be provided are UNCLASSIFIED.
2. Small Tactical Terminal (STT) KOR-24A is a two-channel
radio for Link 16 networks and tactical wideband UHF or
legacy VHF/UHF systems. The Link 16 command, control,
communications, and intelligence (C3I) system incorporating
high-capacity, jam-resistant, digital communication links for
exchange of near real-time tactical information, including
both data and voice, among air, ground, and sea elements.
Hardware is UNCLASSIFIED. Technical data and documentation to
be provided is UNCLASSIFIED.
3. AN/AAQ-35 WESCAM MX-15HDi Electro-Optical & Infrared
Imaging Sensor Turret is a gyro-stabilized, multi-spectral,
multi-field of view EO/IR system. The system provides color
daylight TV and nighttime IR video with a laser range finder
and laser pointer through use of an externally mounted turret
sensor unit and internally mounted sensor control. Video
imagery is displayed in the aircraft real time and may be
recorded for subsequent ground analysis. Hardware is
UNCLASSIFIED. Technical data and documentation to be provided
are UNCLASSIFIED.
4. Selex Seaspray 7500E is a multi-mode radar combines a
state-of-the-art Active Electronically Scanned Array (AESA)
with Commercial Off-The-Shelf (COTS) processor. It provides
strip and spotlight SAR imaging and ground moving target
indicator (GMTI) capability for all-weather and wide range
surveillance. Hardware is UNCLASSIFIED. Technical data and
documentation to be provided is UNCLASSIFIED.
5. AAR-47 Missile Warning Systems is a small, lightweight,
passive, electro-optic, threat warning device used to detect
surface-to-air missiles and automatically provide
countermeasures, as well as audio and visual-sector warning
messages to the aircrew. Hardware is UNCLASSIFIED. Software
is SECRET. Technical data and documentation to be provided
are UNCLASSIFIED.
6. ALE-47 Countermeasure Dispenser Systems (CMDS) provides
an integrated threat-adaptive, computer controlled capability
for dispensing chaff, flares, and active radio frequency
expendables. The AN/ALE 47 uses threat data received over the
aircraft interfaces to assess the threat situation and
determine a response. Expendable routines tailored to the
immediate aircraft and threat environment may be dispensed
using one of four operational modes. Hardware is
UNCLASSIFIED. Software is SECRET. Technical data and
documentation to be provided are UNCLASSIFIED.
7. AN/APX-119 Identification Friend or Foe combined
transponder interrogator system is UNCLASSIFIED unless Mode
IV or V operational evaluator parameters, which are SECRET,
are loaded into the equipment.
8. This sale will involve the release of sensitive and or
classified cryptographic elements for secure communications
radios,

[[Page S1215]]

cryptographic equipment, and precision navigation equipment.
The hardware is UNCLASSIFIED, except where systems are loaded
with cryptographic software, which is classified up to
SECRET.
9. If a technologically advanced adversary were to obtain
knowledge of specific hardware, the information could be used
to develop countermeasures which might reduce weapons system
effectiveness or be used in the development of a system with
similar or advanced capabilities.
10. A determination has been made that Kuwait can provide
substantially the same degree of protection for sensitive
technology being released as the U.S. Government. This
proposed sustainment program is necessary to the furtherance
of the U.S. foreign policy and national security objectives
outlined in the policy justification.
11. All defense articles and services listed on 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. 17-56,
concerning the Navy's proposed Letter(s) of Offer and
Acceptance to the Government of Kuwait for defense articles
and services estimated to cost $100 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,
Charles W. Hooper,
Lieutenant General, USA, Director.
Enclosures.

Transmittal No. 17-56

Policy Justification

Government of Kuwait--Fast Patrol Boats

The Government of Kuwait has requested to purchase fifteen
(15) fast patrol boats outfitted with thirty-six (36) .50
caliber machine guns (thirty (30) installed, two (2) per boat
and six (6) spares). This request also includes support
equipment, 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 estimated total case
value is $100 million.
This proposed sale will contribute to the foreign and
national security of the United States by improving the
security of a friendly country. Kuwait plays a key role in
U.S. efforts to advance stability in the Middle East,
providing basing, access, and transit of U.S. forces in the
region.
Kuwait intends to use the boats for patrol, interdiction,
and maritime protection. These boats will help Kuwait develop
and maintain a strong and ready self-defense capability.
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 prime contractor will be Kvichak (a Vigor Company),
Kent, Washington. 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 plus training
and maintenance support in country, on a temporary basis, for
a period of twenty-four (24) months. It will also require
three (3) contractor representatives to reside in country for
a period of two (2) years to support this program.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

transmittal no. 17-56

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 following components and technical documentation for
the program are classified as listed below:
a. The Browning M2 .50 caliber machine gun is an automatic,
recoil operated, air-cooled machine gun which has been
modified for shipboard use. Its classification level is
UNCLASSIFIED.
b. The Fast Patrol Boat is a 13.6 meter (45-foot) utility
boat used by the United States Coast Guard as a Response Boat
Medium (RB-M). The boats are built by Kvichak Marine
Industries of Kent, Washington and Marinette Marine
Corporation of Marinette, Wisconsin. While primarily designed
as a Search and Rescue (SAR) asset the RB-M is also used to
perform Recreational Boating Safety (RBS), Marine
Environmental Protection (MEP), Enforcement of Laws and
Treaties (ELT), Ports, Waterways, and Coastal Security (PWCS)
and Defense Operations (DO), including those traditional
missions associated with Border Protection. The RB-M is
powered by two MTU Detroit Diesel turbocharged Series 60
engines (825 hp) and two Rolls-Royce FF-Series waterjets with
a top speed of 42.5 knots and a range of 250nm. The RB-Ms
classification level is UNCLASSIFIED.
2. All defense articles and services listed in this
transmittal are authorized for release and export to the
Government of the 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. 17-66,
concerning the Army's proposed Letter(s) of Offer and
Acceptance to the Government of the Netherlands for defense
articles and services estimated to cost $1.191 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,
Charles W. Hooper,
Lieutenant General USA, Director.
Enclosures.

Transmittal No. 17-66

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 the Netherlands.
(ii) Total Estimated Value:
Major Defense Equipment * $829 million.
Other $362 million.
Total $1.191 billion.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase: The Government of
the Netherlands has requested the possible sale of items and
services to support the upgrade/remanufacture of twenty-eight
(28) AH-64D Block II Apache Attack Helicopters to the AH-64E
configuration.
Major Defense Equipment (MDE):
Fifty-one (51) T700-GE-701D Engines (42 remanufactured
engines to be installed and 9 spares).
Seventeen (17) AN/APG-78 Fire Control Radars and
Subcomponents.
Twenty-eight (28) AN/ASQ-170 Modernized Target Acquisition
and Designation Sights (MTADS)/AN/AAR-11 Modernized Pilot
Night Vision Sensors (PNVS).
Twenty-eight (28) AN/APR-48B Modernized Radar Frequency
Interferometers (MRFI). Seventy (70) Embedded Global
Positioning System/Inertial Navigation Systems (EGI) plus
Multi-Mode Receiver (56 installed, 14 spares).
Non-MDE: Non-MDE items and services to support the upgrade/
remanufacturing of the existing AH-64D Block II Apache Attack
Helicopters to AH-64E configuration, training devices,
helmets, simulators, generators, transportation, wheeled
vehicles and organization equipment, 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 and program support.
(iv) Military Department: Army (NE-B-WJW).
(v) Prior Related Cases, if any: NE-B-VXC, NE-B-WDP, NE-B-
WES, NE-B-WBW, NE-B-WHD, NE-B-WGC.
(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: February 20,
2018.
*As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Netherlands--AH-64E Remanufactured Apache Attack Helicopters

The Government of the Netherlands has requested the
possible sale of items and services to support the upgrade/
remanufacture of twenty-eight (28) AH-64D Block II Apache
Attack Helicopters to the AH-64E configuration to include
upgrading fifty-one (51) remaining T700-GE-701C Engines to
T700-GE-701D (42 engines to be installed, 9 spares),

[[Page S1216]]

seventeen (17) AN/APG-78 Fire Control Radar (FCR) and
subcomponents, twenty-eight (28) AN/ASQ-170 Modernized Target
Acquisition and Designation Sights (MTADS)/AN/AAR-11
Modernized Pilot Night Vision Sensors (PNVS), twenty-eight
(28) AN/APR-48B Modernized Radar Frequency Interferometers
(MRFI), and seventy (70) Embedded Global Positioning System/
Inertial Navigation Systems (EGI) plus Multi-Mode Receiver.
Non-MDE items and services to support the upgrade/
remanufacturing of the existing AH-64D Block II Apache Attack
Helicopters to AH-64E configuration, training devices,
helmets, simulators, generators, transportation, wheeled
vehicles and organization equipment, 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 and program support. The estimated total case value
is $1.191 billion.
This proposed sale will support the foreign policy and
national security objectives of the United States by
improving the security of a NATO ally which has been, and
continues to be, an important force for political stability
and economic progress in Europe. It is vital to U.S. national
interests to assist the Netherlands to develop and maintain a
strong and ready self-defense capability.
The proposed sale of the AH-64E remanufacture will improve
the Netherlands' capability to meet current and future
threats of enemy. The Netherlands will use the enhanced
capability to strengthen its homeland defense and deter
regional threats, and provide direct support to coalition and
security cooperation efforts. The Netherlands will have no
difficulty absorbing this aircraft upgrade 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 are Boeing Company, St. Louis, MO
and Lockheed Martin, Bethesda, MD. The purchaser typically
requests offsets. Any offset agreement will be defined in
negotiations 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 to the Netherlands.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 17-66

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. The AH-64E Apache Attack Helicopter weapon system
contains communications and target identification equipment,
navigation equipment, aircraft survivability equipment,
displays, and sensors. The airframe itself does not contain
sensitive technology; however, the pertinent equipment listed
below will either be installed on the aircraft or included in
the sale:
a. The AN/APG-78 Fire Control Radar (FCR) is an active,
low-probability of intercept, millimeter-wave radar, combined
with a passive AN/APR-48B Modernized Radar Frequency
Interferometer (M-RFI) mounted on top of the helicopter mast.
The FCR Ground Targeting Mode detects, locates, classifies
and prioritizes stationary or moving armored vehicles, tanks
and mobile air defense systems as well as hovering
helicopters, helicopters, and fixed wing aircraft in normal
flight. The M-RFI detects threat radar emissions and
determines the type of radar and mode of operation. The FCR
data and M-RFI data are fused for maximum synergism. If
desired, the radar data can be used to refer targets to the
regular electro-optical Modernized Target Acquisition and
Designation Sight (MTADS), permitting additional visual/
infrared imagery and control of weapons, including the semi-
active laser version of the HELLFIRE II missile. Critical
system information is stored in the FCR in the form of
mission executable code, target detection, classification
algorithms and coded threat parametrics. This information is
provided in a form that cannot be extracted by the foreign
user via anti-tamper provisions built into the system. The
content of these items is classified SECRET. The M-RFI is a
passive radar detection and direction finding system, which
utilizes a detachable User Data Module (UDM) on the RFI
processor, which contains the Radio Frequency threat library.
The UDM, which is a hardware assemblage, is classified
CONFIDENTIAL when programmed with threat parameters, threat
priorities and/or techniques derived from U.S. intelligence
information.
b. The AN/ASQ-170 Modernized Target Acquisition and
Designation Sight/AN/AAQ-11 Pilot Night Vision Sensor (MTADS/
PNVS) provides day, night, and limited adverse weather target
information, as well as night navigation capabilities. The
PNVS provides thermal imaging that permits map-of-the-earth
flight to, from, and within the battle area, while TADS
provides the co-pilot gunner with search, detection,
recognition, and designation by means of Direct View Optics
(DVO), EI\2\ television, and Forward Looking Infrared (FLIR)
sighting systems that may be used singularly or in
combinations. Hardware is UNCLASSIFIED. Technical manuals for
authorized maintenance levels are UNCLASSIFIED.
c. The AN/APR-48B Modernized Radar Frequency Interferometer
(M-RFI) is an updated version of the passive radar detection
and direction finding system. It utilizes a detachable UDM on
the M-RFI processor, which contains the Radar Frequency (RF)
threat library. The UDM, which is a hardware assemblage item,
is classified CONFIDENTIAL when programmed with threat
parametrics, threat priorities and/or techniques derived from
U.S. intelligence information. Hardware becomes CLASSIFIED
when populated with threat parametric data.
d. KIV-77 A common IFF Applique Crypto Computer that
provides information assurance for the IFF interrogators and
transponders using Modes 4 and 5. The hardware is classified
UNCLASSIFIED. This item is CCI and SENSITIVE. Releasable
technical manuals for operation and maintenance are
classified FOUO.
e. The Embedded Global Positioning System/Inertial
Navigation System plus Multi- Mode Receiver (EGI+MMR) EGI GEM
V 3.3 W/SAASM PN: 3424 9950-R004-XXX Software Security Core
PN: CP34211974-003 (CP34211903-002), GCORE 3 ver 3 SAASM with
MMR. The aircraft has two EGIs which use internal
accelerometers, rate gyro measurements, and external sensor
measurements to estimate the aircraft state, provides
aircraft flight and position data to aircraft systems. The
EGI is a velocity-aided, strap down, ring laser gyro based
inertial unit. The EGI unit houses a 12-channel (GEM 5) GPS
receiver. The receiver is capable of operating in either non-
encrypted (C/A code) or encrypted (P/Y code). The Group User
Variable (GUV) is the normal encryption key used when
operating in the P/Y code mode. The GUV key is loaded into
the EGI using an ANACD-10 or equivalent device. When keyed,
the GPS receiver will automatically use anti-spoof/jam
capabilities when they are in use. The EGI will retain the
key through power on/off/on cycles. Because of safeguards
built into the EGI, it is not considered classified when
keyed. Integrated within the EGI is an Inertial Measurement
Unit (IMU) with processing functions for performing the
inertial navigation computations, GPS card, receiver
management, and Kalman filter estimates to support all
aircraft and weapon systems position and navigation
computations. Each EGI also houses a Multi-Mode Receiver
(MMR). The MMR is incorporated to provide for reception of
ground based NAVAID signals for instrument aided flight.
Provides IMC/IFR integration and certification of improved
Embedded Global Positioning System and Inertial (EGI) unit
with attached MMR, with specific cockpit instrumentation that
allows Apaches to operate within the worldwide IFR route
structure. Also includes integration of the Common Army
Aviation Map (CAAM), Area Navigation (RNAV), Digital
Aeronautical Flight Information File (DAFIF) and Global Air
Traffic Management (GATM) compliance.
2. If a technologically advanced adversary were to obtain
knowledge of specific hardware, the information could be used
to develop countermeasures which might reduce weapons system
effectiveness or be used in the development of a system with
similar or advanced capabilities.
3. A determination has been made that the Netherlands can
provide substantially the same degree of protection for
sensitive technology being released as the U.S. Government.
This proposed sustainment program is necessary to the
furtherance of the U.S. foreign policy and national security
objectives outlined in the policy justification.
4. All defense articles and services listed on this
transmittal are authorized for release and export to the
Government of the Netherlands.
____

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, 18-01,
concerning the Army's proposed Letter(s) of Offer and
Acceptance to the Government of Sweden for defense articles
and services estimated to cost $3.2 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,
Gregory M. Kausner
(For Charles W. Hooper,
Lieutenant General, USA, Director).
Enclosures.

Transmittal No. 18-01

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 Sweden.
(ii) Total Estimated Value:
Major Defense Equipment* $2.3 billion.
Other $.9 billion.
Total $3.2 billion.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase: Four (4) Patriot
Configuration-3+ Modernized Fire Units consisting of:
Major Defense Equipment (MDE):
Four (4) AN/MPQ-65 Radar Sets.
Four (4) AN/MSQ-132 Engagement Control Stations.
Nine (9) Antenna Mast Groups.

[[Page S1217]]

Twelve (12) M903 Launching Stations.
One hundred (100) Patriot MIM-104E Guidance Enhanced
Missile Tactical Ballistic Missile (GEM-T) Missiles.
Two hundred (200) Patriot Advanced Capability-3 (PAC-3)
Missile Segment Enhancement (MSE) Missiles.
Four (4) Electrical Power Plants (EPP) III.
Non-MDE includes: Also included with this request are
communications equipment, tools and test equipment, range and
test programs, support equipment to include associated
vehicles, prime movers, generators, publications and
technical documentation, training equipment, spare and repair
parts, personnel training, Technical Assistance Field Team
(TAFT), U.S. Government and contractor technical,
engineering, and logistics support services, Systems
Integration and Checkout (SICO), field office support, and
other related elements of logistics and program support.
(iv) Military Department: Army.
(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: February 20,
2018.
*As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Sweden--Patriot Configuration-3+ Modernized Fire Units

The Government of Sweden has requested to buy four (4)
Patriot Configuration-3+ Modernized Fire Units consisting of:
four (4) AN/MPQ-65 radar sets, four (4) AN/MSQ-132 engagement
control stations, nine (9) antenna mast groups, twelve (12)
M903 launching stations, one hundred (100) Patriot MIM-104E
Guidance Enhanced Missile-TBM (GEM-T) missiles, two hundred
(200) Patriot Advanced Capabilty-3 (PAC-3) Missile Segment
Enhancement (MSE) missiles, and four (4) Electrical Power
Plants (EPP) III. Also included with this request are
communications equipment, tools and test equipment, range and
test programs, support equipment to include associated
vehicles, prime movers, generators, publications and
technical documentation, training equipment, spare and repair
parts, personnel training, Technical Assistance Field Team
(TAFT), U.S. Government and contractor technical,
engineering, and logistics support services, Systems
Integration and Checkout (SICO), field office support, and
other related elements of logistics and program support. The
total estimated program cost is $3.2 billion.
This proposed sale will support the foreign policy and
national security objectives of the United States by helping
to improve the security of a strategic partner which has
been, and continues to be, an important force for political
stability and economic progress within the Baltic Sea region
and across Europe.
The proposed sale of the Patriot missile system will
improve Sweden's missile defense capability. Sweden will use
the Patriot system to defend its territorial integrity and
promote regional stability. The proposed sale will increase
the defensive capabilities of the Swedish military and
support interoperability with U.S. and NATO forces. Sweden
will have no difficulty absorbing this equipment into its
armed forces.
The proposed sale of this equipment and support will not
alter the basic military balance in the region.
The prime contractors will be Raytheon Corporation in
Andover, Massachusetts, and Lockheed-Martin in Dallas, Texas.
There are no known offset agreements proposed in connection
with this potential sale.
Implementation of this proposed sale will require
approximately 24 U.S. Government and 32 contractor
representatives to travel to Sweden for an extended period
for equipment de-processing/fielding, system checkout,
training, and technical and logistics support.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 18-01

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 Patriot Air Defense System contains classified
CONFIDENTIAL hardware components, SECRET tactical software
and CRITICAL/SENSITIVE technology. Patriot ground support
equipment and Patriot missile hardware contain CONFIDENTIAL
components and the associated launcher hardware is
UNCLASSIFIED. The items requested represent significant
technological advances for Sweden Patriot. The Patriot Air
Defense System continues to hold a significant technology
lead over other surface-to-air missile systems in the world.
2. The Patriot sensitive/critical technology is primarily
in the area of design and production know-how and primarily
inherent in the design, development and/or manufacturing data
related to certain components. The list of components is
classified CONFIDENTIAL.
3. Information on system performance capabilities,
effectiveness, survivability, missile seeker capabilities,
select software/software documentation and test data are
classified up to and including SECRET.
4. If a technologically advanced adversary were to obtain
knowledge of the hardware and software elements, the
information could be used to develop countermeasures or
equivalent systems which might reduce system effectiveness or
be used in the development of a system with similar or
advanced capabilities.
5. A determination has been made that Sweden can provide
substantially the same degree of protection for the sensitive
technology being released as the U.S. Government. This sale
is necessary in furtherance of the U.S. foreign policy and
national security objectives outlined in the Policy
Justification.
6. All defense articles and services listed in this
transmittal have been authorized for release and export to
Sweden.
____

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. 17-75,
concerning the Navy's proposed Letter(s) of Offer and
Acceptance to the Government of Finland for defense articles
and services estimated to cost $70 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,
Charles W. Hooper,
Lieutenant General, USA, Director.
Enclosures.

Transmittal No. 17-75

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: Government of Finland.
(ii) Total Estimated Value:
Major Defense Equipment * $60 million.
Other $10 million.
Total $70 million.
(iii) Description and Quantity or Quantities of Articles or
Services under Consideration for Purchase:
Major Defense Equipment (MDE): Four (4) MK 41 Baseline VII
Strike-Length Vertical Launching Systems.
Non-MDE: Also included are spares, handling equipment, test
equipment, operator manuals and technical documentation, U.S.
Government and contractor engineering, training, technical,
and logistical support services, and other related elements
of logistical support.
(iv) Military Department: Navy (FI-P-LBN).
(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: February 20,
2018.
*As defined in Section 47(6) of the Arms Export Control
Act.

POLICY JUSTIFICATION

Finland--Mk 41 Vertical Launching Systems

The Government of Finland has requested a possible sale of
four (4) Mk 41 Baseline VII Strike-Length Vertical Launching
Systems. Also included are spares, handling equipment, test
equipment, operator manuals and technical documentation, U.S.
Government and contractor engineering, training, technical,
and logistical support services, and other related elements
of logistical support. The estimated total case value is $70
million.
This proposed sale will support the foreign policy and
national security objectives of the United States by
improving the security of a partner nation that has been, and
continues to be, an important force for political stability
and economic progress in Europe.
Finland intends to use the vertical launching systems on
four new construction corvettes that will make up the Finnish
Navy's Squadron 2020. The vertical launching systems will
enable Finland to acquire missiles that will significantly
enhance the Finnish Navy's area defense capabilities over
critical air-and-sea-lines of trade and communication. The
proposed sale of the Mk 41 will increase the Finnish Navy's
maritime partnership, interoperability, and regional security
capability. Finland has not purchased the Mk 41 previously,
but will have no difficulty incorporating this capability
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 Lockheed Martin
Corporation, Bethesda, MD. The purchaser typically requests
offsets. Any offset agreement will be defined in negotiations
between the purchaser and the contractor.
Implementation of this proposed sale will require up to 12
U.S. Government personnel and up to five contractor
representatives to travel to Finland providing support over a
period of ten years.
There will be no adverse impact on U.S. defense readiness
as a result of this proposed sale.

Transmittal No. 17-75

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 Mk 41 Vertical Launching System (VLS) is a fixed,
vertical, multi-missile

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launching system with the capability to store and launch
multiple missile variants depending on the warfighting
mission, including the Evolved Sea Sparrow Missile (ESSM) and
Standard Missile 2 (SM-2). This proposed sale would provide
tactical VLS capability for the ESSM. Mk 41 VLS is a modular
below-deck configuration with each module consisting of 8
missile cells with an associated gas management and deluge
system. The highest classification of the hardware in the
proposed sale is UNCLASSIFIED. The highest classification of
the technical documentation in the proposed sale is
UNCLASSIFIED. The highest classification of the software to
be exported is CONFIDENTIAL.
2. If a technologically advanced adversary were to obtain
knowledge of specific hardware, the information could be used
to develop countermeasures which might reduce weapons system
effectiveness or be used in the development of a system with
similar or advanced capabilities.
3. A determination has been made that Finland can provide
substantially the same degree of protection for sensitive
technology being released as the U.S. Government. This
proposed sustainment program is necessary to the furtherance
of the U.S. foreign policy and national security objectives
outlined in the policy justification.
4. All defense articles and services listed on this
transmittal are authorized for release and export to the
Government of Finland.

____________________