[Congressional Record Volume 164, Number 38 (Monday, March 5, 2018)]
[Senate]
[Pages S1336-S1337]
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)(I) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-79, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Japan for defense articles 
     and services estimated to cost $45 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. 17-79

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Government of Japan.
       (ii) Total Estimated Value:
       Major Defense Equipment * $40 million.
       Other $5 million.
       Total $45 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Twenty-four (24) MK 15 Phalanx Close-in Weapon System 
     (CIWS) Block IB Baseline 1 to MK 15 Phalanx Block IB Baseline 
     2 Conversion Kits.
       Non-MDE: Also included is support equipment, spare parts, 
     publications, software and associated support, and logistical 
     support services, and other related elements of logistical 
     and program support.
       (iv) Military Department: Navy (JA-P-NBE).
       (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: March 2, 2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

Japan--MK 15 Phalanx Close-in Weapon System (CIWS) Block IB Baseline 2 
                            Conversion Kits

       The Government of Japan has requested to buy twenty-four 
     (24) MK 15 Phalanx Close-in Weapon System (CIWS) Block IB 
     Baseline 1 to MK 15 Phalanx Block IB Baseline 2 conversion 
     kits. Also included is support equipment, spare parts, 
     publications, software and associated support, and logistical 
     support services, and other related elements of logistical 
     and program support. The estimated total case value is $45 
     million.
       This proposed sale will contribute to the foreign policy 
     and national security of the United States by improving the 
     security of a major ally that has been, and continues to be, 
     a force for political stability and economic progress in the 
     Asia-Pacific region.
       The proposed sale will improve Japan's capability in 
     current and future defensive efforts. Japan will use the 
     enhanced capability as a deterrent to regional threats and to 
     strengthen homeland defense.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractor will be Raytheon Missile Systems, 
     Tucson, AZ. There are no known offset agreements proposed in 
     connection with this potential sale.
       Implementation of this proposed sale will not require the 
     permanent assignment of additional U.S. Government or 
     contractor representatives in Japan.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-79

     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 CIWS Block IB Baseline 2 represents an increase in 
     threat acquisition and firepower accuracy over previous Block 
     1 Baseline configurations. The Baseline 2 variant includes a 
     radar improvement upgrade and an electro-optical sensor to 
     improve weapon system performance against low-observable, 
     sea-skimming threats, and provides improved capability to 
     concentrate hard-kill ordnance in a tighter pattern on the 
     threat. The CIWS mount and spare hardware are UNCLASSIFIED. 
     The radar improvement/upgrade is the most sensitive portion 
     of the Baseline 2 configuration.
       2. The CIWS Block 1B Baseline 2 systems and upgrade kits 
     will result in the transfer of a highly accurate close-in 
     engagement technology and ship self-defense capability. The 
     equipment, hardware, and the majority of documentation are 
     UNCLASSIFIED. The embedded software and operational 
     performance are classified CONFIDENTIAL. The seeker/electro-
     optical control section and the target detector are 
     UNCLASSIFIED, but

[[Page S1337]]

     contain a sensitive state-of-the-art technology. Technical 
     Manuals used to support the operation and provisioning of 
     organizational-level maintenance are CONFIDENTIAL. The 
     technical and operational data identified above is classified 
     to protect vulnerabilities, design and performance 
     parameters, and similar critical information.
       3. 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.
       4. A determination has been made that Japan 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.
       5. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of Japan.

                          ____________________