[Congressional Record Volume 165, Number 87 (Thursday, May 23, 2019)]
[Senate]
[Pages S3095-S3096]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


                        ARMS SALES NOTIFICATION

  Mr. RISCH. 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. James E. Risch,
     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. 19-32 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Canada for defense articles 
     and services estimated to cost $387 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. 19-32

     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: Government of Canada.
       (ii) Total Estimated Value:
       Major Defense Equipment * $288 million.
       Other $99 million.
       Total $387 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Four hundred twenty-five (425) MK 54 Lightweight Torpedo 
     Conversion Kits.
       Non-MDE: Also included are torpedo containers, Recoverable 
     Exercise Torpedoes (REXTORP) with containers, Fleet Exercise 
     Section (FES) and fuel tanks, air launch accessories for 
     fixed wing, torpedo spare parts, training, publications, 
     support and test equipment, U.S. Government and contractor 
     engineering, technical, and logistics support services, and 
     other related elements of logistics and program support.
       (iv) Military Department: Navy (CN-P-AMP).
       (v) Prior Related Cases, if any: CN-P-APR.
       (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: MAY 16, 2019.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

                  Canada--MK 54 Lightweight Torpedoes

       The Government of Canada has requested to buy four hundred 
     twenty-five (425) MK 54 lightweight torpedo conversion kits. 
     Also included are torpedo containers, Recoverable Exercise 
     Torpedoes (REXTORP) with containers, Fleet Exercise Section 
     (FES) and fuel tanks, air launch accessories for fixed wing, 
     torpedo spare parts, training, publications, support and test 
     equipment, U.S. Government and contractor engineering, 
     technical, and logistics support services, and other related 
     elements of logistics and program support. The total 
     estimated program cost is $387 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

[[Page S3096]]

     contributor to military, peacekeeping and humanitarian 
     operations around the world.
       Canada intends to upgrade its current inventory of MK 46 
     torpedoes to the MK 54 with the purchase of these kits. The 
     MK 54 torpedo is designed to be easily upgraded from the 
     existing MK 46 torpedo. Canada plans to utilize MK 54 
     Lightweight Torpedoes on its Royal Canadian Navy's Halifax 
     class ships, the Royal Canadian Air Force's CP-140 Aurora 
     Aircraft, and the CH-148 Maritime Helicopters. 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 for the MK 54 Torpedo is Raytheon 
     Integrated Defense Systems, Portsmouth, Rhode Island. The 
     Government of Canada is expected to negotiate an offset 
     agreement with Raytheon, 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 not require the 
     assignment of additional U.S. Government or contractor 
     representatives to Canada. However, it is anticipated that 
     engineering and technical support services provided by the 
     U.S. Government may be required on an interim basis for 
     training and technical assistance.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 19-32

     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 MK 54 Torpedo is a conventional torpedo that can be 
     launched from surface ships, and rotary and fixed wing 
     aircraft. The MK 54 is an upgrade to the MK 46 Torpedo. The 
     upgrade to the MK 54 entails replacement of the torpedo's 
     sonar and guidance and control systems with modern 
     technology. The new guidance and control system uses a 
     mixture of commercial-off-the-shelf and custom-built 
     electronics. The warhead, fuel tank and propulsion system 
     from the MK 46 torpedo are re-used in the MK 54 configuration 
     with minor modifications. There is no sensitive technology in 
     the MK 54 or its support and test equipment. The assembled MK 
     54 torpedo and several of its individual components are 
     classified CONFIDENTIAL. The MK 54 operational software is 
     classified as SECRET. Canada has not requested nor will it be 
     provided with the source code for the MK 54 operational 
     software.
       2. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures or 
     equivalent systems which 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 Canada 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 
     Canada.

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