[Congressional Record Volume 164, Number 66 (Tuesday, April 24, 2018)]
[Senate]
[Pages S2381-S2382]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        ARMS SALES NOTIFICATION

  Mr. CORKER. Mr. President, section 36(b) of the Arms Export Control 
Act requires that Congress receive prior notification of certain 
proposed arms sales as defined by that statute. Upon such notification, 
the Congress has 30 calendar days during which the sale may be 
reviewed. The provision stipulates that, in the Senate, the 
notification of proposed sales shall be sent to the chairman of the 
Senate Foreign Relations Committee.
  In keeping with the committee's intention to see that relevant 
information is available to the full Senate, I ask unanimous consent to 
have printed in the Record the notifications which have been received. 
If the cover letter references a classified annex, then such annex is 
available to all Senators in the office of the Foreign Relations 
Committee, room SD-423.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 18-14, 
     concerning the Air Force's proposed Letter(s) of Offer and 
     Acceptance to the Government of the Netherlands for defense 
     articles and services estimated to cost $110 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. 18-14

     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: The Government of the 
     Netherlands.
       (ii) Total Estimated Value:
       Major Defense Equipment * $0.5 million.
       Other $109.5 million.
       Total $110.0 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: The Government of 
     the Netherlands has requested to buy defense articles and 
     services in support of continuation of a Continental United 
     States (CONUS) based Royal Netherlands Air Force F-16 Formal 
     Training Unit.
       Major Defense Equipment (MDE):
       Up to twenty-seven (27) GBU-12 Inert Paveway IIs.
       Non-MDE: Also included are PGU-27 Inert training rounds, 
     Impulse Cartridges, MJU-7/B Flares, RR-188 Chaff, BDU-33/B 
     and BDU-50/B training munitions, fuel and air refueling 
     support, airlift services, base operating support, 
     facilities, publications and technical documentation, pilot 
     training, personnel training and training equipment, weapon 
     system and software support, U.S. Government and contractor 
     technical, engineering, and logistics personnel services, and 
     other related elements of logistics and program support.
       (iv) Military Department: Air Force (NE-D-NZW).
       (v) Prior Related Cases. if any: NE-D-NXZ-$149.3 million; 
     19 Sep 13.
       (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: None.
       (viii) Date Report Delivered to Congress: April 24, 2018.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

The Netherlands--F-16 Formal Training Unit at Tucson Air National Guard 
                          Base (ANGB), Arizona

       The Government of the Netherlands has requested to buy 
     defense articles and services in support of continuation of a 
     Continental United States (CONUS) based Royal Netherlands Air 
     Force F-16 Formal Training Unit, to include up to twenty-
     seven (27) GBU-12 Inert Paveway IIs. Also included are PGU-27 
     Inert training rounds, Impulse Cartridges, MJU-7/B Flares, 
     RR-188 Chaff, BDU-33/B and BDU-50/B training munitions, fuel 
     and air refueling support, airlift services, base operating 
     support, facilities, publications and technical 
     documentation, pilot training, personnel training and 
     training equipment, weapon system and software support, U.S. 
     Government and contractor technical, engineering, and 
     logistics personnel services, and other related elements of 
     logistics and program support. The estimated program value is 
     $110 million.
       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 is an important 
     force for political stability and economic progress in 
     Europe.
       This potential sale will continue to improve the Royal 
     Netherlands Air Force's (RNLAF) ability to develop mission-
     ready and experienced pilots to support its F-16 aircraft 
     inventory. The well-established pilot proficiency training 
     program at Tucson Air National Guard Base will train pilots 
     in F-16 operations, tactics, techniques, and procedures. This 
     training will enhance the RNLAF's ability to continue 
     contributions to Overseas Contingency Operations and to NATO 
     air policing operations, as well as, to possible future 
     coalitions operations. The Netherlands will have no 
     difficulty absorbing this training.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       There is no prime contractor involved in this proposed 
     sale. The Tucson Air National Guard will provide instruction, 
     flight operations, and maintenance support and facilities 
     with defense articles anticipated to come from U.S. stocks, 
     as needed. There are no known offset agreements proposed in 
     connection with this potential sale.

[[Page S2382]]

       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government personnel or 
     contractor representatives to the Netherlands.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.
                                  ____

                                                  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. 18-12, 
     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 $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,
                                               Gregory M. Kausner,
                                          (For Charles W. Hooper, 
                               Lieutenant General, USA, Director).
       Enclosures.


                         Transmittal No. 18-12

     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 * $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):
       Three thousand five hundred (3,500) M1156 Precision Guided 
     Kit (PGK).
       Non-MDE: Also included are six (6) PGK settable trainers; 
     two (2) PGK cut away models; one hundred (100) M76 PGK fuze 
     wrenches; ten (10) Extended Length Artillery Projectile 
     Extractors (ELAPEs); PGK technical data and publications; 
     U.S. Government engineering and technical support services; 
     and other related elements of logistics and program support.
       (iv) Military Department: Army (NE-B-WKA).
       (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: April 24, 2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                Netherlands--M1156 Precision Guided Kits

       The Netherlands has requested to buy three thousand five 
     hundred (3,500) M1156 Precision Guided Kits. Also included 
     are six (6) PGK settable trainers; two (2) PGK cut away 
     models; one hundred (100) M76 PGK fuze wrenches; ten (10) 
     Extended Length Artillery Projectile Extractors (ELAPEs); PGK 
     technical data and publications; U.S. Government engineering 
     and technical support services; and other related elements of 
     logistics and program support. The estimated total cost is 
     $70 million.
       This proposed sale will support the foreign policy and 
     national security objectives of the United States by helping 
     to improve the security of the Netherlands which is an 
     important force for political stability and economic progress 
     in Europe. It is important to the U.S. national interests to 
     assist the Netherlands to develop and maintain a strong and 
     ready self-defense capability. The Netherlands has been a 
     consistent coalition partner supporting the United States in 
     various coalition combat operations to include counter-ISIS, 
     Stabilization Force in Iraq, and Afghanistan.
       The proposed sale of PGK will provide a precision guided 
     capability to 155mm artillery projectiles and improve 
     Netherlands's capability to meet current and future enemy 
     threats. The Netherlands will use the enhanced capability to 
     strengthen its homeland defenses, deter regional threats, and 
     provide direct support to coalition and security cooperation 
     efforts. The Netherlands will have no difficulty absorbing 
     this equipment into its armed forces.
       The proposed sale of this equipment will not impact the 
     basic military balance in the region.
       The principal contractor will be Orbital ATK. There are no 
     known offset agreements proposed in connection with this 
     potential sale. The purchaser typically requests offsets. Any 
     offset agreement will be defined in negotiations between the 
     purchaser and the contractor.
       Implementation of this sale will not require the assignment 
     of any additional U.S. 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. 18-12

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

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The M1156 Precision Guidance Kit (PGK) is a Global 
     Positioning System (GPS) Precise Positioning Service (PPS) 
     guided 155mm artillery projectile fuze. This effort includes 
     the qualification of PGK on the Assegai M1711 Insensitive 
     High Explosive (IHE) Base Bleed (BB) projectile with modular 
     charges DM92 Charge 6 and PGK on the Assegai M1712 IHE Boat 
     Tail (BT) projectile with modular charges DM92 Charges 5 and 
     6, both fired from the Netherlands' PzH 2000 self-propelled 
     howitzer.
       2. The M1156 utilizes the Enhanced Portable Electronic Fuze 
     Setter (EPEFS) to set the PGK and the Portable Electronic 
     Fire Control System (PEFCS) both purchased previously under a 
     previous Excalibur FMS case. The PEFCS contain an Improved 
     Platform Integration Kit (MK) to load GPS coordinates. Both 
     the PGK and PEFCS contain the Selective Availability Anti-
     Spoofing Module (SAASM). The PGK has 90% commonality with the 
     Army's XM395 Accelerated Precision Mortar Initiative (APMI). 
     The PGK (the end-item) is unclassified. Transfer of the PGK 
     may reveal information up to SECRET.
       3. The M1156 utilizes the Army's M782 Multi-Option for 
     Artillery (MOFA) Proximity Height of Burst (HOB) Technology. 
     The HOB sensor is comprised of components with technologies 
     deemed as state of the art, requiring specialized production 
     skills. The sensitive/critical technology is primarily in the 
     design, development, production and manufacturing of the 
     components (integrated circuits and assembly), and the 
     integration methodology required to integrate those 
     components onto an assembly to process embedded (the 
     software-algorithm-working parameters). The HOB technology is 
     classified SECRET.
       4. Disclosure of this technology could result in an 
     adversary developing countermeasures, thus lessening the 
     effect of the projectile. Disclosure of test data, 
     countermeasures, vulnerability/susceptibility analyses and 
     threat definition could all aid reverse engineering and could 
     be used by an adversary for possible use against U.S. and 
     Coalition forces. Compromise could jeopardize the U.S. forces 
     inventory through jammer development by adversaries. The risk 
     of compromise has been accessed as moderate. Risk is reduced 
     for fuze/munitions if adequately controlled and protected in 
     storage and on the battlefield. Risk is mitigated by the 
     prevention of disclosure of sensitive classified information 
     (the know-how, software, and associated documentation).
       5. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures which 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       6. A determination has been made that the Netherlands can 
     provide 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.
       7. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Netherlands.

                          ____________________