[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

     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* $2.6 million.
       Other $97.4 million.
       Total $100.0 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: The Government of 
     Kuwait has requested the possible sale of fifteen (15) 13.6 
     meter Fast Patrol Boats.
       Major Defense Equipment (MDE): Thirty-six (36) .50 Caliber 
     Machine Guns (thirty (30) installed, two (2) per boat and six 
     (6) spares).
       Non-MDE: This request includes fifteen (15) 13.6 meter Fast 
     Patrol Boats outfitted with support equipment, and 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: Navy (KU-P-SBK).
       (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

                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

[[Page S1218]]

     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.

                          ____________________