[Congressional Record Volume 164, Number 135 (Wednesday, August 15, 2018)]
[Senate]
[Pages S5611-S5614]
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. 18-33, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Latvia for defense articles 
     and services estimated to cost $200 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. 18-33

     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 Latvia
       (ii) Total Estimated Value:
       Major Defense Equipment* $85 million.
       Other $115 million.
       Total $200 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Four (4) UH-60M Black Hawk Helicopters in standard USG 
     configuration with designated unique equipment and Government 
     Furnished Equipment (GFE).
       Ten (10) T700-GE-701D Engines (8 installed and 2 spares).
       Ten (10) Embedded Global Positioning Systems/Inertial 
     Navigation Systems (8 installed and 2 spares).
       Non-MDE: Also included is one (1) Aviation Mission Planning 
     System, five (5) Talon Forward Looking Infrared Radar (FLIR) 
     (4 production and 1 spare), ten (10) AN/ARC-201D/E (8 
     production and 2 spares), ten (10) AN/ARC-231 radios (8 
     production and 2 spares), five (5) AN/APX-123A Identification 
     Friend or Foe (IFF) transponder (4 production and 1 spare), 
     five (5) AN/ARC-220 Radio (4 production and 1 spare), twenty 
     (20) AN/AVS-6 Helmet Mounted Night Vision Devices, aircraft 
     warranty, air worthiness support, spare and repair parts, 
     support equipment, communication equipment, publications and 
     technical documentation, personnel training and training 
     equipment, ground support equipment, site surveys, tool and 
     test equipment, U.S. Government and contractor technical and 
     logistics support services, and other related elements of 
     logistics and program support.
       (iv) Military Department: Army (LG-B-UDM).
       (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: August 3, 2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                 Latvia--UH-60M Black Hawk Helicopters

       The Government of Latvia has requested to buy four (4) UH-
     60M Black Hawk helicopters in standard USG configuration with 
     designated unique equipment and Government Furnished 
     Equipment (GFE), ten (10) T700-GE-701D engines (8 installed 
     and 2 spares), ten (10) Embedded Global Positioning Systems/
     Inertial Navigation Systems (8 installed and 2 spares). Also 
     included is one (1) Aviation Mission Planning System, five 
     (5) Talon Forward Looking Infrared Radar (FLIR) (4 production 
     and 1 spare), ten (10) AN/ARC-201D/E (8 production and 2 
     spares), ten (10) AN/ARC-231 radios (8 production and 2 
     spares), five (5) AN/APX-123A

[[Page S5612]]

     Identification Friend or Foe (IFF) transponder (4 production 
     and 1 spare), five (5) AN/ARC-220 Radio (4 production and 1 
     spare), twenty (20) AN/AVS-6 Helmet Mounted Night Vision 
     Devices, aircraft warranty, air worthiness support, spare and 
     repair parts, support equipment, communication equipment, 
     publications and technical documentation, personnel training 
     and training equipment, ground support equipment, site 
     surveys, tool and test equipment, U.S. Government and 
     contractor technical and logistics support services, and 
     other related elements of logistics and program support. The 
     estimated total case value is $200 million.
       This proposed sale will support the foreign policy and 
     national security of the United States by helping to improve 
     the security of a NATO ally. These UH-60 helicopters will 
     allow for interoperability with U.S. and NATO forces in rapid 
     response to a variety of missions, and quick positioning of 
     troops with minimal helicopter assets.
       The sale of these UH-60 helicopters to Latvia will 
     significantly increase its capability to provide troop lift, 
     border security, anti-terrorist, medical evacuation, search 
     and rescue, re-supply/external lift, and combat support in 
     all weather. Latvia intends to use these helicopters to 
     modernize its armed forces and expand its existing Army 
     architecture in its efforts to provide multi-mission support 
     in the region. Latvia will have no difficulty absorbing these 
     helicopters 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 Sikorsky Aircraft Company in 
     Stratford, Connecticut; and General Electric Aviation Company 
     (GEAC) in Lynn, Massachusetts. There are no known offset 
     agreements in connection with this potential sale.
       Implementation of this proposed sale may require the 
     assignment of an additional three U.S. Government and five 
     contractor representatives in country full-time to support 
     the delivery and training for approximately two-to-five 
     years.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-33

     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 UH-60M aircraft is a medium lift four bladed 
     aircraft which includes two T-700-GE 701D Engines. The 
     aircraft has four Multifunction Display (MFD), which provides 
     aircraft system, flight, mission, and communication 
     management systems. The instrumentation panel includes four 
     Multifunction Displays (MFDs), two Pilot and Co-Pilot Flight 
     Director Panels, and two Data Concentrator Units (DCUs). The 
     Navigation System will have Embedded GPS/INS (EGIs), and two 
     Advanced Flight Control Computer Systems (AFCC), which 
     provide 4 axis aircraft control.
       2. The H764-G EGI provides GPS and INS capabilities to the 
     aircraft. The EGI will include Selective Availability Anti-
     Spoofing Module (SAASM) for secure GPS PPS if required. The 
     EGI contains sensitive technology.
       3. The AN/ARC-231, Very High Frequency/Ultra High Frequency 
     (VHF/UHF), Line-of- Sight (LOS) Radio with frequency agile 
     modes, Electronic counter-countermeasures (ECCM), UHF 
     Satellite Communications (SATCOM), Demand Assigned Multiple 
     Access (DAMA), Integrated Waveform (IW), Air Traffic Control 
     (ATC) channel spacing is operator selectable in 5, 8.33, 
     12.5, and 25kHz steps. The antennas associated with this 
     radio contain sensitive technology.
       4. The AN/APX-123A, Identification Friend or Foe (IFF) 
     Transponder, is a space diversity transponder and is 
     installed on various military platforms. When installed in 
     conjunction with platform antennas and the Remote Control 
     Unit (or other appropriate control unit), the transponder 
     provides identification, altitude, and surveillance reporting 
     in response to interrogations from airborne, ground-based, 
     and/or surface interrogators. This item contains sensitive 
     technology.
       5. The AN/ARC-201D/E, Single Channel Ground to Air Radio 
     System (SINCGARS), is a tactical airborne radio subsystem 
     that provides secure, anti-jam voice and data communication. 
     The integration of COMSEC and the Data Rate Adapter (DRA) 
     combines three Line Replaceable Units into one and reduces 
     overall weight of the aircraft.
       6. The AN/ARN-149, Automatic Direction Finder (ADF) 
     Receiver, is a low frequency radio that provides automatic 
     compass bearing on any radio signal within the frequency 
     range of 100 to 2199.5 kHz as well as navigation where a 
     commercial AM broadcast signal is the only available 
     navigation aid.
       7. The AN/ARN-153, Tactical Airborne Navigation (TACAN) 
     System, is a full featured navigational system that supports 
     four modes of operation: receive mode; transmit receive mode; 
     air-to-air receive mode; and air-to-air transmit-receive 
     mode. The TACAN provides a minimum 500-watt transmit 
     capability with selecting range ratios of 30:1 or 4:1 which 
     is accomplished through the automatic gain control (AGC) 
     enable/disable switch, the 1553 bus, or the RNAV (ARINC) 
     input bus.
       8. The AN/ARN-147, Very High Frequency (VHF) Omni Ranging/
     Instrument Landing System Receiver, that provides internal 
     MIL-STD-1553B capability and is MIL-E-5400 class II 
     qualified. It meets international operability requirements by 
     providing 50-kHz channel spacing for 160-VOR and 40-
     localizer/glideslope channels.
       9. The TALON Forward Looking Infrared Radar (TALON FLIR) is 
     a compact multi-sensor thermal imaging system utilized for 
     personnel recovery. Search and rescue missions are supported 
     with the thermal imaging, daylight camera, and laser 
     rangefinder payloads. Includes Joystick Control Unit (JCU).
       10. AN/ARC-220, High Frequency (HF) Radio multifunctional, 
     fully Digital Signal Processing (DSP) high frequency radio 
     for rotary wing applications. Provides embedded Automatic 
     Link Establishment (ALE), serial tone data modem, text 
     messaging, GPS position reporting and anti-jam (ECCM) 
     functions is Embedded ECCM and data modem.
       11. EBC-406 (Emergency Locator Transmitter) is loaded with 
     country unique codes (at delivery in country) that aid in the 
     recovery of a down aircraft/personnel with a loud beeping 
     tone and flashing LED. The ELT transmits on 406.028 MHz, the 
     civil 121.5 MHz, and the military 243.0 MHz emergency 
     frequencies.
       12. AN/AVS-6 (Helmet mounted Night Vision Goggles) is a 
     lightweight, binocular, night vision imaging system developed 
     by the U.S. Army specifically for helicopter flying. The 
     system can be mounted to a variety of aviator helmets, 
     including the SPH-4B, HGU-56P, HGU-55/P, HGU-55/G, HGU-26/P 
     and Alpha. A 25mm eye relief eyepieces easily accommodate 
     eyeglasses. Low-profile battery pack improves aviator head 
     mobility and increases battery life. Other features include 
     flip-up/flop-down capability, simple binocular attachment, 
     individual interpupillary adjustment, tilt, vertical and 
     fore-aft adjustments to fit all aviators.
       13. 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.
       14. A determination has been made that Latvia 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.
       15. All defense articles and services listed on this 
     transmittal are authorized for release and export to the 
     Government of Latvia.
                                  ____

                                                  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. 18-16, 
     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 $40.4 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. 18-16

     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* $24.1 million.
       Other $16.3 million.
       Total $40.4 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       One thousand twenty (1,020) Mk-82 500 lb. bombs
       One thousand two (1,002) Mk-83 1000 lb. bombs
       Six hundred (600) Mk-84 2000 lb. bombs
       Non-MDE: also included in the sale are general purpose bomb 
     components and fuzes, support and test equipment, 
     publications and technical documentation, personnel training 
     and training equipment, transportation, facilities and 
     construction, U.S. Government and contractor technical and 
     logistics support services, and other related elements of 
     logistic and program support.
       (iv) Military Department: Air Force (KU-D-AAC).
       (v) Prior Related Cases, if any: KU-P-AAY (Navy/1992)--
     $22M.
       (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: August 2, 2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                           Kuwait--Munitions

       The Government of Kuwait has requested to buy one thousand 
     twenty (1,020) Mk-82 500

[[Page S5613]]

     lb. bombs, one thousand two (1,002) Mk-83 1000 lb. bombs and 
     six hundred (600) Mk-84 2000 lb. bombs. Also included in the 
     sale are general purpose bomb components and fuzes, support 
     and test equipment, publications and technical documentation, 
     personnel training and training equipment, transportation, 
     facilities and construction, U.S. Government and contractor 
     technical and logistics support services, and other related 
     elements of logistic and program support. The estimated cost 
     is $40.4 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 regional partner which is an 
     important force for political stability and economic 
     progress.
       The proposed sale will improve Kuwait's capability to meet 
     current and future threats within the region. Kuwait intends 
     to use these munitions with its current fleet of F/A-18 
     aircraft. Kuwait will have no difficulty absorbing these 
     munitions and support into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The U.S. Air Force will award contracts when necessary to 
     provide the defense articles ordered if items ordered are not 
     available from U.S. stock or are considered lead-time away. 
     There are no known offset agreements proposed in connection 
     with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of additional U.S. Government or contractor 
     representatives to Kuwait.
       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. 18-29, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Mexico for defense articles 
     and services estimated to cost $41.6 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. 18-29

     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 Mexico.
       (ii) Total Estimated Value:
       Major Defense Equipment * $14.0 million.
       Other $27.6 million.
       Total $41.6 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Six (6) Evolved Seasparrow Tactical Missiles (ESSM).
       Two (2) Evolved Seasparrow Telemetry Missiles.
       Non-MDE: Also included are one (1) MK56 VLS launcher (8-
     cell), eight (8) MK30 canisters, eight (8) MK783 shipping 
     containers, spare and repair parts, support and test 
     equipment, publications and technical documentation, 
     training, USG/Contractor technical and engineering support 
     services, and technical assistance.
       (iv) Military Department: Navy.
       (v) Prior Related Cases, if any:
       MX-P-AAG (57mm and 25mm ammunition).
       MX-P-AAN (Rolling Airframe Missile).
       MX-P-AAO (Harpoon Block II Missile).
       MX-P-AAS (MK54 Torpedo).
       MX-P-SAA (MH-60R Helicopter and support).
       (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: August 8, 2018.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

                  Mexico--Evolved Seasparrow Missiles

       The Government of Mexico has requested to buy six (6) 
     Evolved Seasparrow tactical missiles (ESSM) and two (2) 
     Evolved Seasparrow telemetry missiles. Also included are one 
     (1) MK56 VLS launcher (8-cell), eight (8) MK30 canisters, 
     eight (8) MK783 shipping containers, spare and repair parts, 
     support and test equipment, publications and technical 
     documentation, training, USG/Contractor technical and 
     engineering support services, and technical assistance. The 
     total estimated value is $41 million.
       This proposed sale will support the foreign policy and 
     national security of the United States by helping to improve 
     the security of a strategic regional partner. The sale of 
     these shipboard systems to Mexico will significantly increase 
     and strengthen Mexico's maritime capabilities. Mexico intends 
     to use these defense articles and services to modernize its 
     armed forces and expand its existing naval and maritime 
     support of national security requirements.
       Mexico intends to use the weapons systems on its Sigma 
     10514 Class ship. The systems will provide enhanced 
     capabilities in effective defense of critical sea lanes. The 
     proposed sale of these systems and support services will 
     increase the Mexican Navy's maritime partnership potential 
     and align its capabilities with existing regional navies. 
     Mexico has not purchased these systems previously. Mexico 
     will have no difficulty integrating 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 Raytheon Missile Systems, 
     Tucson, Arizona. There are no known offset agreements in 
     connection with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government and/or 
     contractor representatives to Mexico.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-29

     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 sale of Evolved Seasparrow missiles (ESSM) under 
     this FMS case will result in the transfer of classified 
     missile equipment to Mexico. Both classified and unclassified 
     defense equipment and technical data will be transferred. The 
     missile includes the guidance section, warhead section, 
     transition section, propulsion section, control section and 
     Thrust Vector Control (TVC) of which the guidance section and 
     transition section are classified CONFIDENTIAL. Standard 
     missile documentation to be provided under this FMS case will 
     include:
       a. Parametric documents (CONFIDENTIAL)
       b. Missile Handling/Maintenance Procedures (UNCLASSIFIED)
       c. General Performance Data (CONFIDENTIAL)
       d. Firing Guidance (CONFIDENTIAL)
       e. Dynamics Information (Confidential)
       2. The sale of the Evolved Seasparrow Missiles (ESSM) under 
     this FMS case will result in the transfer of sensitive 
     technological information and/or restricted information 
     contained in the missile guidance section. Certain operating 
     frequencies and performance characteristics are classified 
     SECRET because it could be used to develop tactics and/or 
     countermeasures to reduce or defeat the missile 
     effectiveness.
       3. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, 
     primarily performance characteristics, engagement algorithms, 
     and transmitter specific frequencies, the information could 
     be used to develop countermeasures that might reduce weapon 
     system effectiveness.
       4. A determination has been made that the recipient country 
     can provide substantially the same degree of protection for 
     the sensitive technology being released as the U.S. 
     Government. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification.
       5. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     Mexico.
                                  ____

                                                  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. 18-27, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of the Netherlands for defense 
     articles and services estimated to cost $169 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. 18-27

     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 * $122 million.
       Other $47 million.
       Total $169 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       One hundred six (106) MK 54 Lightweight Torpedo Conversion 
     Kits.
       Non-MDE: Also included are torpedo containers, Recoverable 
     Exercise Torpedoes (REXTORP) with containers; Fleet Exercise 
     Section (FES) and fuel tanks; air launch accessories for 
     rotary wing aircraft; torpedo launcher interface cabinets; 
     ground handling equipment; torpedo spare parts; training; 
     publications; support and test equipment;

[[Page S5614]]

     U.S. Government and contractor engineering, technical, and 
     logistics support services; and other related elements of 
     logistics and program support.
       (iv) Military Department: Navy (NE-P-LHP).
       (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: None.
       (viii) Date Report Delivered to Congress: July 31, 2018.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

              The Netherlands--MK 54 Lightweight Torpedoes

       The Netherlands requests to buy one hundred six (106) MK 54 
     conversion kits. Also included are torpedo containers, 
     Recoverable Exercise Torpedoes (REXTORP) with containers; 
     Fleet Exercise Section (FES) and fuel tanks; air launch 
     accessories for rotary wing aircraft; torpedo launcher 
     interface cabinets; ground handling equipment; torpedo spare 
     parts; training; publications; support and test equipment; 
     U.S. Government and contractor engineering, technical, and 
     logistics support services; and other related elements of 
     logistics and program support. The estimated program value is 
     $169 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.
       The Royal Netherlands Navy intends to upgrade its current 
     MK 46 torpedoes to the MK 54 with the purchase of these kits. 
     The Netherlands will have no difficulty absorbing the MK 54 
     torpedoes.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractor will be Raytheon Integrated 
     Defense System, Portsmouth, Rhode Island. There are no known 
     offset agreements proposed in connection with this potential 
     sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives to Netherlands; however, U.S. Government 
     Engineering and Technical Services may be required on an 
     interim basis for installations and integration.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-27

     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 54 Torpedo is a conventional torpedo that can be 
     launched from surface ships, helicopters, and fixed wing 
     aircraft. The MK 54 is an upgrade to the MK 46 Torpedo, which 
     is currently in-service in Netherlands. The upgrade to the MK 
     54 entails replacement of the torpedo's sonar and guidance 
     and control systems with modem technology. The new guidance 
     and control system uses a mixture of commercial-off-the-shelf 
     and custom-built electronics. The warhead, fuel tank and 
     propulsion system from the MK 46 torpedo are re-used in the 
     MK 54 configuration with minor modifications. There is no 
     sensitive technology in the MK 54 or its support and test 
     equipment. The assembled MK 54 torpedo and several of its 
     individual components are classified CONFIDENTIAL. The MK 54 
     operational software is classified as SECRET. Netherlands 
     will not be provided with the source code for the MK 54 
     operational software.
       2. 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.
       3. A determination has been made that the Government of the 
     Netherlands 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.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Netherlands.

                          ____________________