[Congressional Record Volume 164, Number 167 (Tuesday, October 9, 2018)]
[Senate]
[Pages S6719-S6730]
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. 18-16, 
     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 $404 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 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 arc not 
     available from U.S. stock or are considered lead-

[[Page S6720]]

     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. 18-33, 
     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--LH-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 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

[[Page S6721]]

     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 US 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. 18-29, 
     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. 18-32, 
     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 $105 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. 18-32

     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 million.
       Other $105 million.
       Total $105 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: Foreign Military 
     Sales Case NE-B-WHJ, implemented on December 29, 2016, was 
     below congressional notification threshold at $65.5 million 
     for the Recapitalization (RECAP) of the four (4) Netherlands 
     Patriot Fire Units. The Netherlands has requested the case be 
     amended to include the Launching Stations in the RECAP 
     program. This amendment will push the current case above the 
     notification threshold and thus requires notification of the 
     entire case.
       Major Defense Equipment (MDE): None.
       Non-MDE: RECAP of four (4) Patriot Fire Units to include 
     Radar Sets (RS). Radar Digital Processors (RDP), Engagement 
     Control

[[Page S6722]]

     Stations (ECS), Information and Coordination Central (ICC), 
     Modem Man Stations (MMS), Launching Stations, and Post 
     Deployment Build (PDB)-8 upgrades along with parts, tools, 
     technical and engineering assistance, support services, 
     testing, and other related elements of logistics and program 
     support, which will produce fire units at the Configuration 
     3+ capability.
       (iv) Military Department: Army (NE-B-WHJ).
       (v) Prior Related Cases, if any: NE-B-WFX, NE-B-WEC, NE-B-
     WGF.
       (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: September 5, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

           The Netherlands--Patriot Recapitalization (RECAP)

       The Netherlands has requested Recapitalization (RECAP) of 
     four (4) Netherlands Patriot Fire Units. RECAP includes Radar 
     Sets (RS), Radar Digital Processors (RDP), Engagement Control 
     Stations (ECS), Information and Coordination Central (ICC), 
     Modem Man Stations (MMS), Launching Stations, and Post 
     Deployment Build (PDB)-8 upgrades along with parts, tools, 
     technical and engineering assistance, support services, 
     testing, and other related elements of logistics and program 
     support, which will produce fire units at the Configuration 
     3+ capability. The total estimated program cost is $105 
     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 the 
     European region.
       This sale improves the Netherlands' capability to meet 
     current and future enemy threats. 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 upgraded equipment and 
     support into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       U.S. Government personnel will conduct the RECAP at 
     Letterkenny Army Depot. The purchaser typically requests 
     offsets. 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 the Netherlands.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-32

     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 CONFIDENTIAL 
     hardware components, SECRET tactical software and CRITICAL/
     SENSITIVE. Patriot ground support equipment and Patriot 
     missile hardware contain CONFIDENTIAL components and the 
     associated launcher hardware is UNCLASSIFIED. The services 
     requested represent significant technological advances for 
     the Netherlands. The Patriot Air Defense System continues to 
     hold a significant technology lead over other surface-to-air 
     missile systems around the world.
       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.
                                  ____

                                                  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. 18-38, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Japan for defense articles 
     and services estimated to cost $3.135 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. 18-38

  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* $1.961 billion.
       Other $1.174 billion.
       Total $3.135 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Nine (9) E-2D Advanced Hawkeye (AHE) Airborne Early Warning 
     and Control (AEW&C) Aircraft.
       Twenty eight (28) T56-A-427A Engines (18 installed and 10 
     spares).
       Twelve (12) Multifunction Information Distribution System/
     Joint Tactical Radio System (MIDS/JTRS) Terminals (9 
     installed and 3 spares).
       Ten (10) APY-9 Radars (9 installed and 1 spare).
       Eleven (11) AN/AYK-27 Integrated Navigation Control and 
     Display Systems (INCDS) (9 installed and 2 spares).
       Thirty (30) LN-251 Embedded Global Positioning Systems/
     Inertial Navigation Systems (EGIs) with Embedded Airborne 
     Selective Availability Anti-Spoofing Module (SAASM) Receiver 
     (18 installed and 12 spares).
       Non-MDE: Also included are aircraft ancillary equipment, 
     modifications, spare and repair parts, support equipment, 
     publications and technical documentation, software, personnel 
     training and training equipment, ferry services, U.S. 
     Government and contractor logistics, engineering, and 
     technical support services, and other related elements of 
     logistics and program support.
       (iv) Military Department: Navy (JA-P-SCW).
       (v) Prior Related Cases, if any: JA-P-SCJ, JA-P-SCL, JA-P-
     SCM and JA-P-SCQ.
       (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: September 7, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

    Japan--E-2D Advanced Hawkeye Airborne Early Warning and Control 
                                Aircraft

       The Government of Japan has requested to buy nine (9) E-2D 
     Advanced Hawkeye (AHE) Airborne Early Warning and Control 
     (AEW&C) aircraft, twenty-eight (28) T56-A-427A engines (18 
     installed and 10 spares), twelve (12) Multifunction 
     Information Distribution System/Joint Tactical Radio System 
     (MIDS/JTRS) terminals (9 installed and 3 spares), ten (10) 
     APY-9 Radars (9 installed and 1 spare), eleven (11) AN/AYK-27 
     Integrated Navigation Control and Display Systems (INCDS) (9 
     installed and 2 spares), thirty (30) LN-251 Embedded Global 
     Positioning Systems/Inertial Navigation Systems (EGIs) with 
     Embedded Airborne Selective Availability Anti-Spoofing Module 
     (SAASM) Receiver (18 installed and 12 spares), and twelve 
     (12) AN/ALQ-217 Electronic Support Measures (ESM, 9 installed 
     and 3 spares). Also included are: aircraft ancillary 
     equipment, modifications, spare and repair parts, support 
     equipment, publications and technical documentation, 
     software, personnel training and training equipment, ferry 
     services, U.S. Government and contractor logistics, 
     engineering, and technical support services, and other 
     related elements of logistics and program support. The total 
     estimated program cost is $3.135 billion.
       This proposed sale will support the foreign policy and 
     national security of the United States. Japan is one of the 
     major political and economic powers in East Asia and the 
     Western Pacific and is a key partner of the United States in 
     ensuring peace and stability in that region. It is vital to 
     U.S. national interests to assist Japan in developing and 
     maintaining a strong and effective self-defense capability.
       The proposed sale of E-2D AHE aircraft will improve Japan's 
     ability to effectively provide homeland defense utilizing an 
     AEW&C capability. Japan will use the E-2D AHE aircraft to 
     provide AEW&C situational awareness of air and naval activity 
     in the Pacific region and to augment its existing E-2C 
     Hawkeye AEW&C fleet. Japan will have no difficulty absorbing 
     these aircraft into its armed forces.
       The proposed sale of this equipment and support does not 
     alter the basic military balance in the region.
       The principal contractor will be Northrop Grumman 
     Corporation Aerospace Systems in Melbourne, Florida.
       There are no known offset agreements proposed in connection 
     with this potential sale. Any offset agreement will be 
     defined in negotiations between the Purchaser and the prime 
     contractor.
       Implementation of this proposed sale will not require any 
     additional U.S. Government or contractor personnel in Japan. 
     However, U.S. Government or contractor personnel in-country 
     visits will be required on a temporary basis in conjunction 
     with program technical and management oversight and support 
     requirements.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.

[[Page S6723]]

  



                         Transmittal No. 18-38

  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 E-2D Advanced Hawkeye (AHE) Airborne Early Warning 
     and Control (AEW&C) provides detection and surveillance of 
     regional surface and aircraft platforms through the use of 
     the APY-9 radar, APX-122A Identification Friend or Foe (IFF), 
     and ALQ-217 Electronic Support Measures (ESM) systems. The E-
     2D AHE provides area surveillance and detection, air 
     intercept control, air traffic control, search and rescue 
     assistance, communication relay and automatic tactical data 
     exchange. The E-2D AHE is classified SECRET.
       2. The APY-9 radar is a mechanically rotated, 
     electronically scanned array, which utilizes Space Time 
     Adaptive Processing technology to provide 360-degree 
     detection and surveillance in high clutter environments. It 
     is able to provide simultaneous detection and surveillance of 
     surface and air units. The APY-9 radar is classified SECRET.
       3. The MIDS JTRS (5) terminal provides enhanced Link 16 
     functionality, namely Concurrent Multi-netting with four 
     channels (CMN-4) and Concurrent Contention Receive (CCR). 
     CMN-4 is a Link 16 enhancement that increases the terminal 
     capability from receiving only one Tactical Digital 
     Information Link-J (TADIL-J) message packing structure per 
     time slot to receive as many as four simultaneous message 
     packing structures per time slot, each transmitted on a 
     unique Link 16 net. The capability for current Link 16 
     terminals to receive only one TADIL-J message packing 
     structure per time slot imposes complex network design 
     constraints and prohibits network designers from making full 
     use of the Link 16 spectrum capacity. CMN-4 relaxes these 
     restrictions allowing for greater network planning 
     flexibility and achieves a fourfold increase in receive 
     message throughput for Link 16 terminals with this 
     capability. CMN-4 is backwards compatible with JTIDS and 
     MIDS-LVT, although legacy terminals would not be able to 
     experience the increased throughput. CCR described the Link 
     16 terminal's ability to receive multiple messages in the 
     same net within the same time slot. The MIDS-JTRS device 
     itself is CCI and is not classified. The COMSEC keying 
     material which is loaded into the device for IFF Mode 4/5 
     operations is classified SECRET.
       4. The APX-122A IFF Interrogator and APX-123A IFF 
     Transponder are identification systems designed for command 
     and control. They provide the ability to distinguish friendly 
     aircraft, vehicles, or forces, and to determine their bearing 
     and range from the Interrogator. These devices have embedded 
     COMSEC which contains SENSITIVE encryption algorithms and 
     keying material. The APX-122A IFF Interrogator and APX-123A 
     IFF Transponder devices themselves are CCI and are not 
     classified. The COMSEC keying material which is loaded into 
     the devices for IFF Mode 4/5 operations is classified SECRET.
       5. The ALQ-217 Electronic Support Measure (ESM) system is 
     used to detect, intercept, identify, locate, record, and/or 
     analyze sources of radiated electromagnetic energy to support 
     classification of unknown surface and airborne units. The 
     ALQ-217 is classified SECRET.
       6. The AN/AYK-27 Integrated Navigation Control and Display 
     System serves as the network manager and the human machine 
     interface for the E-2D navigation system. The AN/AYK-27 is an 
     UNCLASSIFIED system.
       7. The LN-251 Embedded Global Positioning Systems/Inertial 
     Navigation Systems (EGIs) with embedded airborne Selective 
     Availability Anti-Spoofing Module (SAASM) Receiver (ASR) 
     system provides position, navigation and timing information 
     to the E-2D via the Global Positioning Satellite system and 
     an inertial measuring unit. The LN-251 is UNCLASSIFIED.
       8. If a technologically advanced adversary obtained 
     knowledge of the specific hardware or software in the 
     proposed sale, the information could be used to develop 
     counter-measures which might reduce weapons system 
     effectiveness or be used in the development of a system with 
     similar or advanced capabilities.
       9. A Special Security Agreement (SSA) will be in place in 
     order to provide additional security requirements for 
     implementation by the Government of Japan to protect the 
     advanced capabilities this aircraft provides. This sale is 
     necessary in furtherance of the U.S. foreign policy and 
     national security objectives outlined in the Policy 
     Justification.
       10. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     Japan.
                                  ____

                                                  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. 18-34, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Republic of Korea for defense articles and 
     services estimated to cost $2.1 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. 18-34

     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: Republic of Korea.
       (ii) Total Estimated Value:
       Major Defense Equipment* $1.54 billion.
       Other $.56 billion.
       Total $2.10 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Six (6) P-8A Patrol Aircraft, which includes:
       Nine (9) Multifunctional Information Distribution System 
     Joint Tactical Radio System 5 (MIDS JTRS) (one (1) for each 
     aircraft, one (1) for the Tactical Operations Center, and two 
     (2) spares).
       Forty-two (42) AN/AAR-54 Missile Warning Sensors (six (6) 
     for each aircraft and six (6) spares).
       Fourteen (14) LN-251 with Embedded Global Positioning 
     Systems (GPS)/Inertial Navigations Systems (EGIs) (two (2) 
     for each aircraft and two (2) spares).
       Non-MDE includes: Commercial engines; Tactical Open Mission 
     Software (TOMS); Electro-Optical (EO) and Infrared (IR) MX-
     20HD; AN/AAQ-2(V)1 Acoustic System; AN/APY-10 Radar; ALQ-240 
     Electronic Support Measures; AN/ALE-47 Counter Measures 
     Dispensing System; support equipment; operation support 
     systems; maintenance trainer/classrooms; publications; 
     software, engineering, and logistics technical assistance; 
     foreign Liaison officer support, contractor engineering 
     technical services; repair and return; transportation; 
     aircraft ferry; and other associated training, logistics, 
     support equipment and services.
       (iv) Military Department: Navy (KS-P-SEJ).
       (v) Prior Related Cases, if any: N/A.
       (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 Annex 
     Attached.
       (viii) Date Report Delivered to Congress: September 13, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

       Korea-P-8A Aircraft and Associated Support
       The Republic of Korea (ROK) has requested to buy six (6) P-
     8A Patrol Aircraft, which includes: nine (9) Multifunctional 
     Information Distribution System Joint Tactical Radio Systems 
     5 (MIDS JTRS 5) (one (1) for each aircraft, one (1) for the 
     Tactical Operations Center (TOC) and two (2) as spares); 
     fourteen (14) LN-251 with Embedded Global Positioning Systems 
     (GPS)/Inertial Navigations Systems (EGIs) (two (2) for each 
     aircraft and two (2) as spares); and forty-two (42) AN/AAR-54 
     Missile Warning Sensors (six (6) for each aircraft and six 
     (6) as spares). Also included are commercial engines; 
     Tactical Open Mission Software (TOMS); Electro-Optical (EO) 
     and Infrared (IO)) MX-20HD; AN/AAQ-2(V)1 Acoustic System; AN/
     APY-10 Radar; ALQ-240 Electronic Support Measures; AN/ALE-47 
     Counter Measures Dispensing System; support equipment; 
     operation support systems; maintenance trainer/classrooms; 
     publications; software, engineering, and logistics technical 
     assistance; foreign liaison officer support; contractor 
     engineering technical services; repair and return; 
     transportation; aircraft ferry; and other associated 
     training, logistics, support equipment and services. The 
     total estimated program cost is $2.1 billion.
       The ROK is one of the closest allies in the INDOPACOM 
     Theater. The proposed sale will support U.S. foreign policy 
     and national security objectives by enhancing Korea's naval 
     capabilities to provide national defense and significantly 
     contribute to coalition operations.
       The ROK procured and has operated U.S.-produced P-3 
     Maritime Surveillance Aircraft (MSA) for over 25 years, 
     providing interoperability and critical capabilities to 
     coalition maritime operations. The ROK has maintained a close 
     MSA acquisition and sustainment relationship with the U.S. 
     Navy over that period. The proposed sale will allow the ROK 
     to modernize and sustain its MSA capability for the next 30 
     years. As a long-time P-3 operator, the ROK will have no 
     difficulty transitioning its MSA force to P-8A.
       The proposed sale of this equipment and support does not 
     alter the basic military balance in the region.
       The prime contractor will be The Boeing Company, Seattle, 
     WA. Additional contractors include: ASEC; Air Cruisers Co 
     LLC; Arnprior Aerospace, Canada; AVOX Zodiac Aerospace; BAE; 
     Canadian Commercial Corporation (CCC)/EMS; Compass; David 
     Clark; DLS or ViaSat, Carlsbad, CA; DRS; Exelis, McLean, VA; 
     GC Micro, Petaluma, CA; General Dynamics; General Electric, 
     UK; Harris; Joint Electronics; Lockheed Martin; Martin Baker; 
     Northrop Grumman Corp, Falls Church, VA; Pole Zero, 
     Cincinnati, OH; Raytheon, Waltham, MA; Raytheon, UK; Rockwell 
     Collins, Cedar Rapids, IA; Spirit

[[Page S6724]]

     Aero. Wichita, KS; Symmetries Telephonics, Farmingdale, NY; 
     Terma, Arlington, VA; Viking; and WESCAM.
       The purchaser typically requests offsets. There are no 
     known offset agreements proposed in connection with this 
     potential sale. Any offset agreement will be defined in 
     negotiations between the Purchaser and the prime contractor.
       Implementation of this proposed sale will require 
     approximately three (3) U.S. government personnel and ten 
     (10) contractor personnel to support the program in country.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-34

     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 P-8A aircraft is a militarized version of the Boeing 
     737-800 Next Generation (NG) commercial aircraft. The P-8A is 
     replacing the P-3C as the Navy's long-range Anti-Submarine 
     Warfare (ASW), Anti-Surface Warfare (ASuW), Intelligence, 
     Surveillance and Reconnaissance (ISR) aircraft. The overall 
     highest classification of the P-8A weapon system is SECRET. 
     The P-8A mission systems hardware is largely UNCLASSIFIED, 
     while individual software elements (mission systems, 
     acoustics, ESM, EWSP, etc.) are classified up to SECRET.
       2. P-8A mission systems include:
       a. Tactical Open Mission Software (TOMS). TOMS functions 
     include environment planning, tactical aids, weapons planning 
     aids, and data correlation. TOMS includes an algorithm for 
     track fusion which automatically correlates tracks produced 
     by on board and off board sensors.
       b. Electro-Optical (EO) and Infrared (IR) MX-20HD. The EO/
     IR system processes visible EO and IR spectrum to detect and 
     image objects.
       c. AN/AAQ-2(V)1 Acoustic System. The Acoustic sensor system 
     is integrated within the mission system as the primary sensor 
     or the aircraft ASW missions. The system has multi-static 
     active coherent (MAC) 64 sonobuoy processing capability and 
     acoustic sensor prediction tools.
       d. AN/APY-10 Radar. The aircraft radar is a direct 
     derivative of the legacy AN/APS-137(V) installed in the P-3C. 
     The radar capabilities include GPS Selective Availability 
     Anti-Spoofing Module (SAASM), SAR and ISAR imagery 
     resolutions, and periscope detection mode.
       e. ALQ-240 Electronic Support Measures (ESM). This system 
     provides real time capability for the automatic detection, 
     location, measurement, and analysis of RF-signals and modes. 
     Real time results are compared with a library of known 
     emitters to perform emitter classification.
       f. Electronic Warfare Self Protection (EWSP). The P-8A 
     aircraft EWSP consists of the ALQ-213 Electronic Warfare 
     Management System (EWMS), AN/AAR-54 Missile Warning Sensors 
     and AN/ALE-47 Countermeasures Dispensing System (CMDS). The 
     EWSP includes threat information. Technical data and 
     documentation to be provided are UNCLASSIFIED.
       g. Multifunctional Information Distribution System-Joint 
     Tactical Radio System 5 (MIDS JTRS 5) is an advanced 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 vice, among air, ground, 
     and sea elements. The MIDS JTRS 5 terminal hardware, 
     publications, performance specifications, operational 
     capability, parameters, vulnerabilities to countermeasures, 
     and software documentation are classified CONFIDENTIAL. The 
     classified information to be provided consists of that which 
     is necessary for the operation, maintenance, and repair 
     (through intermediate level) of the data link terminal, 
     installed systems, and related software.
       h. The Embedded Global Positioning System (EGI)-Inertial 
     Navigation System (INS)/LN-25I is a sensor that combines 
     Global Positioning System (GPS) and inertial sensor inputs to 
     provide accurate location information for navigation and 
     targeting. The EGI-INS/LN-251 is UNCLASSIFIED. The GPS 
     cryptovariable keys needed for highest GPS accuracy are 
     classified up to SECRET.
       3. If a technologically advanced adversary were to obtain 
     access of the P-8A specific hardware and software elements, 
     systems could be reverse engineering to discover USN 
     capabilities and tactics. The consequences of the loss of 
     this technology, to a technologically advanced or competent 
     adversary, could result in the development of countermeasures 
     or equivalent systems, which could reduce system 
     effectiveness or be used in the development of a system with 
     similar advanced capabilities.
       4. A determination has been made that the recipient 
     government can provide substantially the same degree of 
     protection for the 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 
     the Republic of Korea.
                                  ____

                                                  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. 18-35, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Republic of Korea for defense articles and 
     services estimated to cost $501 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. 18-35

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(l) of the Arms Export Control Act, as 
         amended
       (1) Prospective Purchaser: Republic of Korea.
       (ii) Total Estimated Value:
       Major Defense Equipment * $365 million.
       Other $136 million.
       Total $501 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Sixty-four (64) Patriot Advanced Capability-3 (PAC-3) 
     Missile Segment Enhancement (MSE) Missiles.
       Non-MDE: Also included are two (2) PAC-MSE Test Missiles, 
     range and test programs, publications and technical 
     documentations, training equipment, spare parts, personnel 
     training, U.S. Government and contractor technical, 
     engineering, and logistics support services, and other 
     related elements of logistics and program support.
       (iv) Military Department: Army (KS-B-ZGT).
       (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 Annex 
     Attached.
       (viii) Date Report Delivered to Congress: September 13, 
     2018.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

 Korea--Patriot Advanced Capability-3 (PAC-3) Miss Segment Enhancement 
                             (MSE) Missiles

       The Republic of Korea (ROK) has requested to buy sixty four 
     (64) Patriot Advanced Capability-3 (PAC-3) Missile Segment 
     Enhancement (MSE) Missiles. Also included are two (2) PAC-MSE 
     Test Missiles, range and test programs, publications and 
     technical documentations, training equipment, spare parts, 
     personnel training, U.S. Government and contractor technical, 
     engineering, and logistics support services, and other 
     related elements of logistics and program support. The total 
     estimated program cost is $501 million.
       The ROK is one of the closest allies in the INDOPACOM 
     Theater. The proposed sale will support U.S. foreign policy 
     and national security objectives by meeting Korea's 
     legitimate security and defense needs.
       The ROK will use the Patriot missile system to improve its 
     missile defense capability, defend its territorial integrity 
     and deter threats to regional stability. The proposed sale 
     will increase the defensive capabilities of the ROK Military 
     to guard against hostile aggression and shield the allies who 
     train and operate within South Korea's borders. The ROK 
     should have no difficulty absorbing this system into its 
     armed forces.
       The proposed sale of this equipment and support does not 
     alter the basic military balance in the region.
       The prime contractor will be Lockheed-Martin, Dallas, 
     Texas. There are no known offset agreements expected to be 
     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 the Republic of Korea.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-35

     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. The Patriot Advanced 
     Capability-3 (PAC-3) Missile Segment Enhancement (MSE) 
     hardware is classified CONFIDENTIAL and the associated 
     launcher hardware is UNCLASSIFIED. With the incorporation of 
     the PAC-3 MSE missiles, the Patriot system will continue to 
     hold a significant technology lead over other surface-to-air 
     missile systems in the world.
       2. The PAC-3 MSE 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.
       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.

[[Page S6725]]

  

       4. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures that 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       5. A determination has been made that the recipient 
     government can provide substantially the same degree of 
     protection for the technology being released as the U.S. 
     Government. This sale supports the U.S. foreign policy and 
     national security objectives as outlined in the Policy 
     Justification.
       6. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the ROK.
                                  ____

                                                  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. 18-05, 
     concerning the U.S. Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Egypt for defense articles 
     and services estimated to cost $99 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. 18-05

  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 Egypt.
       (ii) Total Estimated Value:
       Major Defense Equipment* $0 million.
       Other $99 million.
       Total $99 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Forty-six thousand (46,000) 120MM Target Practice--Tracer 
     (M831A1) and 120MM Target Practice, Cone Stabilized, 
     Discarding Sabot--(M865) Rounds.
       Ten thousand (10,000) 120MM 4th-Generation Kinetic Energy-
     Tungsten (KE-W) A4 Armor-Piercing Fin-Stabilized Discarding 
     Sabot with Tracer (APFSDS-T) Rounds.
       Non-MDE: Also included are four thousand five hundred 
     (4,500) 120MM Insensitive Munitions High Explosive with 
     Tracer (IM HE-T) tank rounds, field implementation, testing 
     inspections, spares and repair parts, support and test 
     equipment, field support publications and technical data, 
     U.S. government and contractor engineering and logistics 
     support services, personnel training and training equipment, 
     quality assurance team support services, preparation of 
     ammunition for shipment, ammunition delivery, component 
     improvement program and repair, other associated equipment 
     and support, and other related elements of logistical and 
     program support.
       (iv) Military Department: Army (EG-B-VHH, EG-B-NGB, EG-B-
     VGS).
       (v) Prior Related Cases, if any: EG-B-VAX, EG-B-NFP, EG-B-
     NFX, EG-B-UWB.
       (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: September 17, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                        Egypt--120MM Tank Rounds

       The Government of Egypt has requested to buy forty-six 
     thousand (46,000) 120MM Target Practice--Tracer (M831A1) and 
     120MM Target Practice, Cone Stabilized, Discarding Sabot--
     (M865) rounds and ten thousand (10,000) 120MM 4th-Generation 
     Kinetic Energy-Tungsten (KE-W) A4 Armor-Piercing Fin-
     Stabilized Discarding Sabot with Tracer (APFSDS-T) rounds. 
     Also included are four thousand five hundred (4,500) 120MM 
     Insensitive Munitions High Explosive with Tracer (IM HE-T) 
     tank rounds, field implementation, testing inspections, 
     spares and repair parts, support and test equipment, field 
     support publications and technical data, U.S. government and 
     contractor engineering and logistics support services, 
     personnel training and training equipment, quality assurance 
     team support services, preparation of ammunition for 
     shipment, ammunition delivery, component improvement program 
     and repair, other associated equipment and support, and other 
     related elements of logistical and program support. The 
     estimated cost is $99 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 that continues to 
     be an important strategic partner in the Middle East.
       The proposed sale will improve Egypt's capability to meet 
     current and future threats and provide greater security for 
     its critical infrastructure. Egypt will use the 120MM IM HE-T 
     cartridges to maintain a strategic munitions inventory for 
     its M1A1 tank fleet and in support of operations against 
     militants affiliated with the Islamic State of Iraq and Syria 
     in the Sinai. They will use the target practice rounds to 
     train M1A1 crews in proper crew procedures in a training 
     environment using munitions that cost a fraction of tactical 
     rounds and have nearly zero explosive or penetrating 
     capability. Egypt has been producing this type of ammunition 
     under an existing coproduction agreement for approximately 15 
     years. Egypt intends to use the APFSDS-T rounds to replace 
     older model 120MM KE-W, KE-W Al, and KE-W A2 ammunition to 
     maintain a strategic munitions inventory for its M1A1 tank 
     fleet. Egypt will have no difficulty absorbing these 
     munitions into its armed forces.
       The proposed sale of the munition and support will not 
     alter the basic military balance in the region.
       The prime contractor involved in this program is General 
     Dynamics Ordnance and Tactical Systems, St. Petersburg, FL. 
     There are no known offset agreements proposed in connection 
     with this potential sale.
       Implementation of this proposed sale will involve multiple 
     trips to Egypt involving up to six (6) U.S. Government and 
     contractor representatives over a period of up to 5 years.
       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. 18-36, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of the United Kingdom for 
     defense articles and services estimated to cost $90 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. 18-36

     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 United 
     Kingdom.
       (ii) Total Estimated Value:
       Major Defense Equipment *$80 million.
       Other $10 million.
       Total $90 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Three (3) SEAL Delivery Vehicles (SDV) MK 11 Shallow Water 
     Combat Submersibles (SWCS).
       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 logistics and program support.
       (iv) Military Department: Navy (UK-P-SAO).
       (v) Prior Related Cases, if any: (Predecessor SDV MK 8 Mod 
     1) UK-P-MVJ, UK-P-BQO, UK-P-BSM, UK-P-BSP, UK-P-LIP, UK-P-
     GXV, UK-P-MVY, UK-P-GYY, UK-P-BTN, UK-P-BTM, UK-P-TGJ, and 
     UK-P-FBL.
       (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: September 19, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

United Kingdom--SEAL Delivery Vehicle (SDV) MK 11 Shallow Water Combat 
                          Submersibles (SWCS)

       The Government of the United Kingdom (UK) has requested to 
     buy three (3) SEAL Delivery Vehicles (SDV) MK 11 Shallow 
     Water Combat Submersibles (SWCS). 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 logistics and program 
     support. The total estimated program cost is $90 million.
       This proposed sale will support U.S. 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 partner on critical foreign 
     policy and defense issues.
       The proposed sale of the SDV MK 11 SWCS will continue UK's 
     maritime partnership, interoperability, and regional security 
     capability. The UK has a proven track record of successfully 
     deploying predecessor system. The UK will have no difficulty 
     absorbing this system 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 Teledyne Brown Engineering, 
     Inc. (TBE), Huntsville,

[[Page S6726]]

     Alabama. There are no known offset agreements expected to be 
     proposed in connection with this potential sale.
       Implementation of this proposed sale will require multiple 
     trips by USG and contractor representatives to participate in 
     program and technical reviews, plus training and maintenance 
     support in country as required.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-36

     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 SEAL Delivery Vehicle (SDV) MK 11 Shallow Water 
     Combat Submersibles (SWCS) is a free-flooding combat 
     submersible mobility platform suitable for transporting and 
     deploying forces and their payload for a variety of missions. 
     The SDV MK 11 SWCS will provide increased volume, allowing 
     for increased payload and personnel-carrying capacity. 
     Additionally, performance in range, speed, maneuverability, 
     and organic sensor capabilities will be enhanced over the 
     existing SDV MK 8 Mod 1. The highest classification of the 
     hardware in the proposed sale is SECRET. The highest 
     classification of the technical documentation in the proposed 
     sale is SECRET. The highest classification of the software to 
     be exported is SECRET.
       2. If a technologically advanced adversary obtains 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures or 
     equivalent systems that might reduce weapon 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 
     United Kingdom can provide substantially the same degree of 
     protection for the sensitive technology being released as the 
     U.S. Government. This proposed sale 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 in this 
     transmittal are authorized for release and export to the 
     Government of the United Kingdom.
                                  ____

                                                  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. 18-37, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of the United Kingdom for 
     defense articles and services estimated to cost $75 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. 18-37

     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 United 
     Kingdom.
       (ii) Total Estimated Value:
       Major Defense Equipment* $57 million.
       Other $18 million.
       Total $75 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE): Fifty (50) MK 15 Phalanx 
     Close-In Weapon System (CIWS) Block IB Baseline 2 Upgrade 
     Kits.
       Non-MDE: Also included are support equipment, test 
     equipment, initial spare parts, technical documentation, 
     training, and engineering technical assistance, and other 
     related elements of logistics and program support.
       (iv) Military Department: Navy (UK-P-LWD).
       (v) Prior Related Cases, if any: UK-P-BRB, UK-P-FBH, UK-P-
     FBR, UK-P-GAH, UK-P JZO, UK-P-KAX, UK-P-KPM, UK-P-KPQ, UK-P-
     LFK, UK-P-LGP, UK-P-LHD, and UK-P-LHO.
       (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: September 19, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

         United Kingdom--Phalanx Baseline 2 Radar Upgrade Kits

       The Government of the United Kingdom (UK) has requested to 
     buy fifty (50) MK 15 Phalanx Close-in Weapon System (CIWS) 
     Block IB Baseline 2 Upgrade Kits. Also included are support 
     equipment, test equipment, initial spare parts, technical 
     documentation, training, and engineering technical 
     assistance, and other related elements of logistics and 
     program support. The total estimated program cost is $75 
     million.
       This proposed sale will support U.S. 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 partner on critical foreign 
     policy and defense issues.
       The proposed sale of the Phalanx Baseline 2 Radar Upgrade 
     Kits will be used for close-in ship self-defense against air 
     and surface threats onboard the UK's naval combatants and 
     auxiliaries. The UK, which already has earlier versions of 
     the MK 15 Phalanx in its inventory, will have no difficulty 
     absorbing these upgrades 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 prime 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 require multiple 
     trips by U.S. Government and contractor representatives to 
     participate in program and technical reviews, plus training 
     and maintenance support in country as required.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-37

     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 MK15 Phalanx Close-in Weapon System (CIWS) consists 
     of a rapid-fire, computer-controlled radar and gun system 
     mounted on a turret designed to defeat anti-ship missiles; 
     small surface craft; low, slow aircraft; rockets; and 
     mortars. The weapon system automatically carries out search, 
     detection, target threat evaluation, tracking, firing, and 
     kill loop fire control that uses advanced radar and computer 
     technology to locate, identify, and direct a system of armor 
     piercing projectiles to the target. The Phalanx Block IB 
     Baseline 2 Radar Upgrade Kits converts the system's radar 
     from an analog to digital suite, significantly improving 
     obsolescence of hardware. Some performance in range, speed, 
     maneuverability, and organic sensor capabilities will be 
     enhanced over the existing UK Phalanx system. These kits will 
     allow for the UK to upgrade its current Block IB Baseline 1 
     systems via approved in-country Depot-Level Maintenance 
     Facility (DLMF) capability. The highest classification of the 
     hardware in the proposed sale is SECRET. The highest 
     classification of the technical documentation in the proposed 
     sale is SECRET. The highest classification of the operational 
     software to be exported is SECRET.
       2. If a technologically advanced adversary obtains 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures or 
     equivalent systems that might reduce weapon 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 
     United Kingdom can provide substantially the same degree of 
     protection for the sensitive technology being released as the 
     U.S. Government. This proposed sale 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 in this 
     transmittal are authorized for release and export to the 
     Government of the United Kingdom.
                                  ____

                                                  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. 18-09, 
     concerning the Air Force's proposed Letter(s) of Offer and 
     Acceptance to the Taipei Economic and Cultural Representative 
     Office in the United States (TECRO) for defense articles and 
     services estimated to cost $330 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. 18-09

     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: Taipei Economic and Cultural 
     Representative Office in the United States (TECRO).
       (ii) Total Estimated Value:
       Major Defense Equipment * $0.0 million.
       Other $330.0 million.
       Total $330.0 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE): None.
       Non-MDE: Foreign Military Sales Order (FMSO) II to provide 
     funds for blanket order requisitions, under a Cooperative 
     Logistics Supply Support Arrangement for stock replenishment 
     supply of standard spare parts,

[[Page S6727]]

     and repair/replace of spare parts in support of the F-16, C-
     130, F-5, Indigenous Defense Fighter (IDF), all other 
     aircraft systems and subsystems, and other related elements 
     of logistics and program support.
       (iv) Military Department: Air Force (TW-D-KDT).
       (v) Prior Related Cases. if any: TW-D-KDS, TW-D-KDR.
       (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: September 24, 
     2018.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.
                                  ____

                                                  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. 18-22, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Bahrain for defense articles 
     and services estimated to cost $300 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. 18-22

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 Bahrain
       (ii) Total Estimated Value:
       Major Defense Equipment * $295 million.
       Other $5 million.
       TOTAL $300 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       One hundred twenty (120) Guided Multiple Launch Rocket 
     System (GMLRS) M31
       Unitary Rocket Pods (Six (6) rockets per pod for a total of 
     seven hundred twenty
       (720) One hundred ten (110) Army Tactical Missiles System 
     (ATACMS) M57 T2K Unitary Missiles.
       Non-MDE:
       Also included are publications, personnel training and 
     training equipment, software development, U.S. Government and 
     contractor engineering, technical and logistics support 
     services; and other related elements of logistical and 
     program support.
       (iv) Military Department: Army (BA-B-UKF).
       (v) Prior Related Cases, if any: BA-B-UIW (GMLRS); BA-B-UJK 
     (ATACMS).
       (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: September 28, 
     2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.

                          POLICY JUSTIFICATION

 Bahrain--M31 Guided Multiple Launch Rocket System (GMLRS) Unitary and 
       Army Tactical Mission System (ATACMS) T2K Unitary Missile

       The Kingdom of Bahrain has requested to buy one hundred 
     twenty (120) Guided Multiple Launch Rocket System (GMLRS) M31 
     Unitary Rocket Pods (six (6) rockets per pod for a total of 
     seven hundred twenty (720); and one hundred ten (110) Army 
     Tactical Missiles System (ATACMS) M57 T2K Unitary missiles. 
     Also included are publications, personnel training and 
     training equipment, software development, U.S. Government and 
     contractor engineering, technical and logistics support 
     services; and other related elements of logistical and 
     program support. The overall total estimated value is $300 
     million.
       This proposed sale will enhance the foreign policy and 
     national security objectives of the United States by helping 
     to improve the security of a Major Non-NATO Ally that has 
     been, and continues to be an important force for political 
     stability and economic progress in the Middle East. The 
     proposed sale of the M31 GMLRS Unitary Rocket Pods and ATACMS 
     T2K Unitary Missile will improve Bahrain's capability to meet 
     current and future threats and provide greater security for 
     its critical oil and natural gas infrastructure, and 
     significant national events. Bahrain will use the enhanced 
     capabilities to strengthen its homeland defense and deter 
     regional threats. Bahrain will have no difficulty absorbing 
     these rocket pods 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 Lockheed Martin Missile and 
     Fire Control in Grand Prairie, TX. 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. or contractor 
     representatives in Bahrain.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-22

     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 GMLRS M31 Unitary is the Army's primary munition for 
     units fielding the High Mobility Artillery Rocket Systems 
     (HIMARS) and Multiple Launcher Rocket Systems (MLRS) M270A1 
     Rocket and Missile Launcher platforms. The M31 Unitary is a 
     solid propellant artillery rocket that uses Global 
     Positioning System (GPS)-aided inertial guidance to 
     accurately and quickly deliver a single high-explosive blast 
     fragmentation warhead onto point targets at ranges from 15-70 
     kilometers. The rockets are fired from a launch pod container 
     that also serves as the storage and transportation container 
     for the rockets. Each rocket pod holds six (6) total rockets.
       2. The GMLRS Unitary employs a multi-mode fuze consisting 
     of an Electronic Safe and Arm Fuze (ESAF) and a Frequency-
     Modulating Continuous Wave--Directional Doppler Ranging 
     (FMCW-DDR) height of burst sensor. The weapon has three 
     fuzing modes point detonating, post-impact time delay, and 
     proximity height of burst--which are all accomplished 
     automatically via a launcher/fire control system electrical 
     interface prior to launch. The height of burst sensor is not 
     integrated with the fuze, but provides fire pulse input and 
     interfaces with a mechanical fuze.
       3. GMLRS hardware and operational software are 
     UNCLASSIFIED. System performance characteristics are 
     classified CONFIDENTIAL. Components of the GMLRS system are 
     considered highly resistant to reverse engineering and the 
     impact of loss or diversion of the end item hardware would 
     have minimum adverse impact.
       4. The M57 ATACMS Unitary is a conventional, semi-ballistic 
     missile which utilizes a 500-lb high explosive unitary 
     warhead. It has a range of 70-270km and increased accuracy 
     and lethality due to a GPS/PPS-aided guidance system. The 
     ATACMS T2K is an upgraded missile variant which redesigned 
     previous variants' components to compensate for obsolescence 
     issues and lowered per-unit cost. Critical technologies on 
     the M57 include the GPS antenna, laser-ring gyroscopes 
     production processes involved in the Inertial Measurement 
     Unit (IMU), and lithium thermal batteries used in missile 
     guidance and control. ATACMS missile hardware and operational 
     software are UNCLASSIFIED. Data table and mission critical 
     data generator special applications software are classified 
     CONFIDENTIAL. Performance and accuracy/lethality data are 
     classified up to the SECRET level. System response time and 
     trajectory data are classified CONFIDENTIAL.
       5. The Army's FMCW-DDR height of burst technology is 
     comprised of components and software requiring special 
     production skills and is deemed state of the art. The 
     sensitive aspects of the technology reside primarily the 
     design, development, production, and manufacturing data for 
     the related components (integrated circuits and flex cable 
     assembly) and in the methodology required to integrate those 
     components onto the flex cable assembly to process embedded 
     data (the software, algorithm, and operating parameters). The 
     sole technology aspect of the FMCW-DDR present in the M31 
     proximity height of burst sensor is the signal processing 
     algorithm (i.e. processing techniques) modified specifically 
     for use in the M31. The disclosure of know-how, software, and 
     other associated documentation for this sensitive technology 
     is not authorized under this sale.
       6. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures that 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       7. A determination has been made that Bahrain can provide 
     substantially the same degree of protection of this 
     technology as the U.S. Government. This proposed sale is 
     necessary in furtherance of the U.S. foreign policy and 
     national security objectives outlined in the Policy 
     Justification. Moreover, the benefits to be derived from this 
     sale, as outlined in the Policy Justification, outweigh the 
     potential damage that could result if the sensitive 
     technology were revealed to unauthorized persons.
       8. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of Bahrain.
                                  ____

                                                  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. 18-42, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Canada for defense articles 
     and services estimated to cost $300 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.

[[Page S6728]]

  

       Enclosures.


                         Transmittal No. 18-42

     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 Canada.
       (ii) Total Estimated Value:
       Major Defense Equipment* $0 million.
       Other $300 million.
       Total $300 million.
       (iii) Description and Quantity, or Quantities of Articles 
     or Services under Consideration for Purchase: Canadian Manned 
     Airborne, Intelligence, Surveillance and Reconnaissance (C/
     MAISR) Platform.
       Major Defense Equipment (MDE):
       None.
       Non-MDE: Three (3) King Air 350ER (extended range) aircraft 
     with customer unique post-modifications for Intelligence. 
     Surveillance and Reconnaissance (ISR) operations; three (3) 
     WESCAM MX-15D Electro-Optical & Infrared Imaging Sensors; 
     three (3) AN/AAR-47B(V)2 Missile and Laser Warning System 
     (MWS); three (3) AN/ALE-47 Countermeasure Dispenser Systems 
     (CMDS); three (3) VORTEX Dual RF Ku LOS 
     Transceivers; three (3) COMSEC Modules (KGV-135A); two (2) 
     APM-424(V)5 Transponder Test Sets; five (5) KIV-77 Mode 4/5 
     crypto applique computers for IFF; three (3) AN/APX-119 IFF 
     Digital Civil and Military Transponders; six (6) ARC-210 
     Multi-mode Voice and Data Transceivers; three (3) KG-250X 
     NSA-Certified Type 1 Inline Network Encryptors (INE); 
     technical data; mission equipment, communication and 
     navigation equipment, special tools and test equipment, 
     ground support equipment, airframe and engine spare parts, 
     publications, MWO/ECPs, technical assistance, repair and 
     return, training; and transportation of aircraft, and other 
     related elements of logistics and program support.
       (iv) Military Department: Army (CN-B-UBC).
       (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: October 3, 2018.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

  Canada--King Air 350ER ISR Aircraft (Manned Airborne, Intelligence, 
           Surveillance and Reconnaissance (MAISR) Platform)

       The Government of Canada has requested to buy three (3) 
     King Air 350ER (extended range) aircraft with customer unique 
     post-modifications for Intelligence, Surveillance and 
     Reconnaissance (ISR) operations; three (3) WESCAM MX-15D 
     Electro-Optical & Infrared Imaging Sensors; three (3) AN/AAR-
     47B(V)2 Missile and Laser Warning System (MWS); three (3) AN/
     ALE-47 Countermeasure Dispenser Systems (CMDS); three (3) 
     VORTEX Dual RF Ku LOS Transceivers; three (3) 
     COMSEC Modules (KGV-135A); two (2) APM-424(V)5 Transponder 
     Test Sets; five (5) KIV-77 Mode \4/5\ crypto applique 
     computers for IFF; three (3) AN/APX-119 IFF Digital Civil and 
     Military Transponders; six (6) ARC-210 Multi-mode Voice and 
     Data Transceivers; three (3) KG-250X NSA-Certified Type 1 
     Inline Network Encryptors (INE); technical data; mission 
     equipment, communication and navigation equipment, special 
     tools and test equipment, ground support equipment, airframe 
     and engine spare parts, publications, MWO/ECPs, technical 
     assistance, repair and return, training; and transportation 
     of aircraft, and other related elements of logistics and 
     program support. Total estimated program cost is $300 
     million.
       This proposed sale will support the foreign policy and 
     national security objectives of the United States by helping 
     to improve the military capability of Canada, a NATO ally 
     that is an important force for ensuring political stability 
     and economic progress and a contributor to military, 
     peacekeeping and humanitarian operations around the world.
       The proposed sale improves Canada's capability to meet 
     current and future threats; strengthen its homeland defense 
     and the combined defense of North America; and support 
     coalition partners overseas. This proposed sale will improve 
     interoperability with U.S. forces and other regional allies. 
     Canada 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 Beechcraft (Textron 
     Aviation), Wichita, Kansas. The Government of Canada is 
     expected to negotiate an offset agreement with Beechcraft. in 
     accordance with Canada's Industrial and Technological 
     Benefits (ITB) Policy, before signing the Letter of Offer and 
     Acceptance (LOA).
       Implementation of this proposed sale will require the 
     assignment of contractor representatives to Canada on an 
     intermittent basis over two years to provide in service 
     contractor support.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-42

     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 King Air 350ER (extended range) fixed-wing aircraft 
     has been identified as Non-SME (Significant Military 
     Equipment). It is a pressurized, twin-engine turboprop 
     commercial aircraft configured as a cantilever low-wing 
     monoplane with a T-tail and aft ventral fin. It has 
     retractable tricycle landing gear with dual wheels on each 
     main unit. The 350 series incorporates a 34-inch stretch of 
     the King Air 300 fuselage and has one additional window per 
     side. The wingspan has been increased by 3 feet over that of 
     the model 300, and 24-inch graphite composite winglets have 
     been added to the wingtips to reduce drag at higher angles of 
     attack as in takeoff and climb out. The 350ER will feature 
     the enhanced PT6A-67A engines and a Rockwell-Collins Proline 
     Fusion cockpit. This aircraft (before modification) is 
     generally offered to the public with no special restrictions.
       2. Mission equipment:
       a. The WESCAM MX-15D Electro-Optical & Infrared Imaging 
     Sensor is a small Multi-Sensor, Multi-Spectral Imaging System 
     with Inertial Measurement Unit (IMU) and Embedded with Global 
     Positioning Systems (GPS) Standard Positioning Service (SPS). 
     The WESCAM MX-15 camera system contains an LN-200 IMU 
     manufactured by Northrop Grumman in the U.S., which is 
     captured under (Missile Technology Control Regime) MTCR 
     Annex, Category II--Item 9.A.6. The IMU is also ITAR 
     controlled under USML Category XII(d), and in Canada it is 
     controlled under Canada's Export Control List (ECL) under 6-
     9.A.6. WESCAM MX-15 is embedded with GPS SPS. SPS is a three-
     dimensional position and time determination capability 
     provided to a user equipped with a minimum capability GPS SPS 
     receiver in accordance with GPS national policy. Options 
     requested include: high definition (HD) IR sensor, laser spot 
     tracker (LST), electro-optic narrow (EON) spotter with short-
     wave infrared (SWIR) imager, image blending function 
     combining imagery from the IR sensor and the EO sensor 
     (daylight or low-light) into a single image, and a hand 
     controller for remote control. A bore sight module required 
     to field calibrate the laser designator/rangefinder beam will 
     be provided as ground support equipment.
       b. The AN/AAR-47B(V)2 Missile and Laser Warning System 
     (MWS) is designed to protect helicopters and ``low-slow'' 
     aircraft from infrared homing missiles. It passively detects 
     attacking missiles while minimizing false alarms. When an 
     attacking missile is detected, the AN/AAR-47B(V)2 displays a 
     threat quadrant alert, sounds a warning tone to the aircrew, 
     and can be configured to automatically actuate an installed 
     countermeasures dispenser. In addition to the missile warning 
     capability of the original AN/AAR-47B, the -(V)2 incorporates 
     laser detecting and warning capability. The version offered 
     includes the Smart Dispense capability. The AN/AAR-47B(V)2 
     hardware highest classification is UNCLASSIFIED. The AN/AAR-
     47B(V)2 is Significant Military Equipment.
       c. The AN/ALE-47 Countermeasure Dispenser System (CMDS) 
     provides an integrated, threat-adaptive, reprogrammable, 
     computer controlled capability for dispensing expendable 
     decoys. These include chaff, flares, Radio Frequency (RF) 
     expendables and others. The AN/ALE-47 system enhances 
     aircraft survivability in sophisticated threat environments. 
     The system is designed to provide the capability of automatic 
     or pilot commanded response, and works alone or in 
     coordination with other countermeasures defensive systems to 
     defeat Air Interceptor (AI), Anti-Aircraft Artillery (AAA), 
     and Surface-to-Air Missiles (SAMs). The AN/ALE-47 is 
     Significant Military Equipment.
       d. The VORTEX  Dual RF Ku LOS Transceiver 
     provides real-time, full-motion video and other data for 
     situational awareness, targeting, Battle Damage Assessment 
     (BDA), surveillance, relay, and other situations where eyes-
     on-target are required. VORTEX  can transmit and 
     receive analog and/or digital data simultaneously. 
     VORTEX  is interoperable with ROVER , 
     CDL, virtually all UAVs, targeting pods and other waveforms. 
     VORTEX  can simultaneously transmit common data to 
     multiple platforms using two different channels in one or two 
     different bands. VORTEX is able to receive on two 
     different channels in one or two different bands from a 
     single source. This band and channel diversity provides link 
     redundancy, better reception and resiliency to platform 
     shading, multipath interference, line-of-sight blockages and 
     RF interference. VORTEX is STANAG 7085 certified.
       e. The KGV-135A is a high-speed, general purpose encryptor/
     decryptor module. It is used for wide-band data encryption 
     embedded into high performance systems such as the 
     VORTEX. It has increased bandwidth and COMSEC 
     operating modes in a compact multi-chip module. The KGV-135 
     operates at speeds of 2 Kbps to 700 Mbps and uses standard 
     interface logic levels and key protocols. It is an NSA-
     certified INFOSEC product.
       f. The APM-424(V)5 Transponder Test Set is used to test the 
     transponder and interrogator performance of the AN/APX-119 
     IFF Digital Civil and Military Transponder. The 
     Transponder Test Modes are 1,2,3/A, C, S (EHS/ELS), 4, and 
     Mode 5 (Level 1 and 2). The Interrogator Test Modes are 1, 
     2, 3/A, C, S, 4, Mode 5, TCAS, ETCAS (Level 1 and 2). The 
     APM-424(V)5 supports the KIV-77 Mode 4/5 crypto applique 
     computer for IFF.

[[Page S6729]]

       g. The KIV-77 Mode 4/5 crypto applique computer for IFF is 
     Type 1 certified by the National Security Agency and provides 
     information assurance for both legacy Mode 4 and new Mode 5 
     IFF equipment. The KIV-77 is used to store the classified 
     keys and is also used with the APM-424(V)5 Transponder Test 
     Set to support flight-line testing of the AN/APX-119 IFF 
     Digital Civil and Military Transponder.
       h. The AIN/APX-119, Identification Friend or Foe (IFF) 
     Digital Civil and Military Transponder, is a small 
     transponder installed on more than 50 different military 
     platforms for the U.S. Department of Defense and multiple 
     international users. This transponder enables aircraft to 
     operate seamlessly throughout international, civil, and 
     military airspace, meeting all IFF and ATC requirements. When 
     installed in conjunction with platform antennas and the RCU 
     (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. The transponder provides operational 
     capabilities for Mark XII Identification Friend or Foe (IFF) 
     capabilities of Modes 1, 2, 3/A, C and 4&5 and Mode S (levels 
     1, 2, and 3 capable). Additionally, the AN/APX-119 also 
     provides automated ID, position and latitude of the aircraft, 
     and is compatible with the Traffic Alert and Collision 
     Avoidance System (TCAS) II equipment. The AN/APX-119 is 
     designed to provide military aircraft with a secure combat 
     identification capability to help reduce fratricide and 
     enhance battlespace awareness, while providing safe access to 
     civilian airspace. The AN/APX-119 is Significant Military 
     Equipment.
       i. The AN/ARC-210 Gen 5 is a secure communication system 
     that provides Line-of-Sight (LOS) communications and Beyond 
     Line-of-Sight (BLOS) satellite communications (SATCOM), as 
     well Voice and data communications capabilities. In addition 
     to Satellite Communications, the AN/ARC-231(V)(C) provides 
     Secure/Electronic Counter-Counter Measures (ECCM) 
     communications in the following waveform, The Single Channel 
     Ground and Airborne System (SINCGARS) and the HAVE QUICK (HQ) 
     I and II. The AN/ARC-210 functions by transmitting and 
     receiving the Radio Frequency (RF) in the 30 MHz-941 MHz 
     range. The Receiver Transmitter provides communication in 
     Frequency Modulation (FM), Very High Frequency--Amplitude 
     Modulation Air Traffic Control Band (VHF AM ATC), Very High 
     Frequency--Frequency Modulation Public Service & Maritime 
     Band, Ultra High Frequency--Amplitude Modulation (UHF AM) 
     HAVEQUICK/Ground-Air Band, Ultra high Frequency Satellite 
     (UHF SATCOM) Band and Ultra High Frequency--Frequency 
     Modulation (UHF FM) Public Service Band. The ARC-210 is used 
     on over 180 platforms worldwide for the transfer of networked 
     or point-to-point data, voice and imagery. The ARC-210 
     military airborne transceivers provides an embedded, fully 
     programmable INFOSEC capability under the National Security 
     Agency's (NSA) Cryptographic Modernization Initiative. The 
     ARC-210 is Significant Military Equipment.
       j. The KG-250X NSA-Certified Type 1 Inline Network 
     Encryptor (INE) provides high-speed HAIPE IP network 
     encryption for advanced network security for coalition allies 
     and Department of Homeland Security. It is MIL-STD-810G 
     Rugged for Tactical and Mobile Applications. It is 
     particularly useful at high altitudes to deliver reliable 
     network encryption, (200 Mbps Aggregate), for airborne 
     missions. The KG-250X is remotely rekeyable from a physically 
     secure location with HAIPE-to-HAIPE over-the-air/net keying. 
     The KGV-250X also improves performance over high-latency 
     links with embedded TCP/IP acceleration and is software 
     upgradeable. The KG-250X is NSA certified for TS/SCI and 
     below.
       k. The Technical Data to support the operations, 
     maintenance, and Training for all aircraft communications, 
     ASE, COMSEC, and ISR related equipment will be detailed 
     enough (e.g., minimum Level II Engineering drawings) to allow 
     support contractors and operators to independently conduct 
     all ILS activities, implement obsolescence management, and 
     support required Airworthiness activities. All aircraft 
     operations and maintenance manuals are available to the 
     public and have no ITAR restrictions. Technical Data for the 
     mission equipment outlined above will be provided only to the 
     level required to support operation, maintenance, and 
     training. Maintenance is limited to the level required to 
     provide immediate diagnostics and replacement or limited 
     repair. No Technical Data or intellectual property sufficient 
     in detail to support depot repair operations will be 
     provided. The Technical Data for the mission equipment is 
     Significant Military Equipment.
       3. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures that 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       4. A determination has been made that Canada can provide 
     substantially the same degree of protection of this 
     technology as the U.S. Government. This proposed sale is 
     necessary in furtherance of the U.S. foreign policy and 
     national security objectives outlined in the Policy 
     Justification. Moreover, the benefits to be derived from this 
     sale, as outlined in the Policy Justification, outweigh the 
     potential damage that could result if the sensitive 
     technology were revealed to unauthorized persons.
       5. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of Canada.
                                  ____

                                                  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. 18-41, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Iraq for defense articles and 
     services estimated to cost $82.50 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. 18-41

     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 Iraq.
       (ii) Total Estimated Value:
       Major Defense Equipment * $00.20 million.
       Other $82.30 million.
       Total $82.50 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: Five (5) Armed 
     Bell 407GX Helicopters configured with the following 
     equipment:
       Major Defense Equipment (MDE):
       Five (5) M240 7.62mm Machine Guns.
       Non-MDE: Also included are five (5) RF-7850A Secure 
     Communications Radios, five (5) AN/AAR-60 MILDS Automatic 
     Plume Detectors, five (5) AN/ALE-47 Airborne Countermeasure 
     Dispensing Systems, five (5) M3P .50 Caliber Machine Guns, 
     five (5) M260 Rocket Launchers (APKWS Configuration), five 
     (5) MX-15Di EO/IR Sensors, five (5) GAU-19 .50 Caliber 
     Machine Guns, five (5) Pathfinder Mission Management Systems, 
     five (5) ARES Weapon Management Systems, five (5) Mission 
     Configurable Armament Systems (MCAS), night vision compatible 
     lighting systems, aircraft intercommunications systems (ICS), 
     cockpit and seat armor kits, and bifurcated exhaust infrared 
     suppressor systems, operating manuals, spare parts, 
     maintenance and operator training for radio systems, 
     technical and logistics support services, and other related 
     elements of logistical and program support.
       (iv) Military Department: Army (IQ-B-AEA).
       (v) Prior Related Cases, if any: IQ-B-VPN.
       (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: October 3, 2018.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                   Iraq--Armed Bell 407GX Helicopters

       The Government of Iraq has requested to buy five (5) Armed 
     Bell 407GX helicopters configured with five (5) M240 7.62mm 
     Machine Guns. Also included are five (5) RF-7850A Secure 
     Communications Radios, five (5) AN/AAR-60 MILDS Automatic 
     Plume Detectors, five (5) AN/ALE-47 Airborne Countermeasure 
     Dispensing Systems, five (5) M3P .50 Caliber Machine Guns, 
     five (5) M260 Rocket Launchers (APKWS Configuration), five 
     (5) MX-15Di EO/IR Sensors, five (5) GAU-19 .50 Caliber 
     Machine Guns, five (5) Pathfinder Mission Management Systems, 
     five (5) ARES Weapon Management Systems, five (5) Mission 
     Configurable Armament Systems (MCAS), night vision compatible 
     lighting systems, aircraft intercommunications systems (ICS), 
     cockpit and seat armor kits, and bifurcated exhaust infrared 
     suppressor systems, operating manuals, spare parts, 
     maintenance and operator training for radio systems, 
     technical and logistics support services, and other related 
     elements of logistical and program support. The total 
     estimated program cost is $82.5 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 partner. The addition of five 
     Bell 407GX helicopters will help compensate for the combat 
     loss of seven IA407 helicopters in recent years and increase 
     the Iraqi Security Forces' combat effectiveness against ISIS 
     and other terrorist elements in Iraq. The 407GX variant--an 
     upgrade from the current IA407 configuration--includes 
     Advanced Precision Kill Weapon System (APKWS) launchers. 
     Providing Iraq with this capability supports U.S. security 
     goals by furthering the Iraqi Army Aviation Command's ability 
     to counter terrorism and protect critical infrastructure. 
     Iraq 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 contractors will be Bell, Fort Worth, TX; L3 
     WESCAM, Burlington, Ontario, Canada; Dillon, Scottsdale, AZ;

[[Page S6730]]

     Tekfusion Global, Williamsburg, VA; Harris, Melbourne, FL; 
     and Fulcrum Concepts, Mattaponi, VA. There are no known 
     offset agreements associated with this proposed sale.
       Implementation of this proposed sale will require 
     approximately 17 contractor representatives to travel to Iraq 
     in support of this effort. The GOI desires Contractor 
     Logistics Support (CLS) presence in country.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 18-41

     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 Bell 407GX Multi-Role 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 be either installed on the aircraft or included in 
     the sale:
       a. The Harris Falcon III RF-7850A Secure Communication 
     Radio is a Multi-Channel Airborne Networking Radio that 
     offers multi-channel and multiband capabilities. It 
     integrates into a wide variety of platforms to support 
     multiple missions, waveforms and modes of operation and 
     provides two wideband channels. The Harris Multi-channel 
     Airborne Radio extends battlefield networks Beyond-Line-Of-
     Sight through tactical VHF/UHF networks to provide extended 
     range and secure air-to-air and air-to-ground communications. 
     The Harris Falcon III hardware is a commercial variant radio 
     and the highest level of information that would be released 
     in support of this transfer is at the UNCLASSIFIED level.
       b. The AN/AAR-60 MILDS Automatic Plume Detector is a 
     Missile Launch Detection System (MILDS)/Airborne Missile 
     Protection System (AMPS) or AMPS-M and is based on the off-
     the-shelf product MILDS AN/AAR-60 UV-Sensor Units and 
     features a MILDS Control and Display Unit (MCDU), an Inertial 
     Measurement Unit (IMU) and Smart Dispensers (SD). The MILDS 
     AMPS represents a complete Missile Protection System and will 
     be used for stand alone installation and operation of an 
     integrated missile warning and Counter Measures dispensing in 
     helicopters. The highest level of information release in 
     support of this transfer is at the UNCLASSIFIED level.
       c. The M3P .50 Cal machine gun is a fully automatic .50 Cal 
     (12.7x99mm NATO) machine gun specifically designed to be 
     axially or coaxially mounted in pod or open-air gun 
     configurations for airborne, land or sea weapon system 
     applications. The M3P is a world exclusivity by FN Herstal 
     and offers high firing rate for short time on target: 1,025 
      75 RPM. The highest level of information release 
     in support of this transfer is at the UNCLASSIFIED level.
       d. The M260 Rocket Launcher with APKWS capability is a 
     seven tube rocket launcher with a remote fuze setting 
     function. Once the target is located, single or multiple 
     pairs of the Hydra 70 APKWS folding-fin rockets can be 
     launched toward the target when a predetermined time signal 
     is sent to the electronic time fuze. The highest level of 
     information release in support of this transfer is at the 
     UNCLASSIFIED level.
       e. The M240 is a general-purpose machine gun that uses 7.62 
     mm NATO ammunition. It can be mounted on a bipod, tripod, 
     aircraft, or vehicle. The M240 is a belt-fed, air-cooled, 
     gas-operated, fully automatic machine gun that fires from the 
     open bolt position. The highest level of information release 
     in support of this transfer is at the UNCLASSIFIED level.
       f. The MX-15Di EO/IR sensor is a multi-sensor imaging/
     lasing that can provide medium-altitude; Covert Intelligence, 
     Surveillance & Reconnaissance (ISR), Armed Reconnaissance, 
     CSAR and Target Designation missions. MX-15Di has HD imaging 
     resolution from Electro- Optical (EO) and Infrared (IR) 
     cameras, Short-wave IR imaging, Laser rangefinder/designator 
     3 laser illuminator. The highest level of information release 
     in support of this transfer is at the UNCLASSIFIED level.
       g. The GAU-19 machine is a low-cost weapon system that is 
     designed to accept standard NATO .50 caliber M9-linked 
     ammunition with a rate of fire of 1300 rounds per minute. The 
     weapon provides highly effective firepower against area 
     suppression and point targets, as well as being ideally 
     suited for utility, scout and attack helicopters. The highest 
     level of information release in support of this transfer is 
     at the UNCLASSIFIED level.
       h. The Pathfinder Mission Management System (MMS) is a 
     modular customizable system that provides command and control 
     of onboard navigation, communication, and peripheral 
     electronic equipment. During target engagements, locations 
     and range to target is passed from Pathfinder to the weapons 
     management system. The highest level of information release 
     in support of this transfer is at the UNCLASSIFIED level.
       i. The ARES Weapons Management System (WMS) is a modular 
     weapons management system that uses the aircraft's EO/IR 
     monitor as the WMS interface using a touchscreen graphical 
     user interface (GUI). The system is fully integrated with the 
     MX-15Di sensors critical EO/IR functions that can be 
     controlled through the user interface. The system provides 
     aircraft steering commands and targeting overlays to guide 
     the pilot into the proper launch constraints by consolidating 
     mission execution tasks. The highest level of information 
     release in support of this transfer is at the UNCLASSIFIED 
     level.
       j. The Mission Configurable Armament System (MCAS) is a 
     plank type weapons mounting system. The MCAS was developed as 
     a lightweight, high strength, multi-purpose, multi-airframe 
     weapons platform utilizing up to 6 weapon stations. The 
     highest level of information release in support of this 
     transfer is at the UNCLASSIFIED level.
       k. The AN/ALE-47 is a software reprogrammable dispenser for 
     chaff and flares. It provides for either automatic or aircrew 
     commanded response dispense capabilities. Specific dispense 
     routines are sensitive and are specifically withheld from 
     Iraq. The export version uses a country unique ``look-up 
     decision tree'' for determining dispense routines. This 
     software when loaded into the AN/ALE-47 is classified 
     CONFIDENTIAL. Increased risk of exploitation is significantly 
     reduced given that the software is in executable form only 
     (i.e. binary code) and the actual dispense routines can be 
     gained through visual observation, which is true for all 
     coalition platforms flying in Iraq.
       2. If a technologically advanced adversary obtained 
     knowledge of the specific hardware or software in the 
     proposed sale, the information could be used to develop 
     counter-measures 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 recipient 
     government can provide substantially the same degree of 
     protection for the technology being released as the U.S. 
     Government. This sale supports the U.S. foreign policy and 
     national security objectives as outlined in the Policy 
     Justification.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Iraq.

                          ____________________