[Congressional Record Volume 165, Number 129 (Tuesday, July 30, 2019)]
[Senate]
[Pages S5187-S5188]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        ARMS SALES NOTIFICATION

  Mr. RISCH. Madam 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)(l) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 19-35 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Canada for defense articles 
     and services estimated to cost $44 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. 19-35

     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 *$38 million.
       Other $6 million.
       Total $44 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       One hundred fifty-two (152) MIDS JTRS (5) with Remote Power 
     Supply.
       Non-MDE: Also included are spare cables and MIDS batteries; 
     Link-16 mobile racks; diagnostic support tools; technical 
     documentation; training and engineering technical support; 
     and other related elements of logistics and program support.
       (iv) Military Department: Navy (CN-P-LKT).
       (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: July 29, 2019.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

 Canada--Multifunctional Information Distribution System (MIDS)--Joint 
                    Tactical Radio System (JTRS)(5)

       The Government of Canada has requested to buy one hundred 
     fifty-two (152) MIDS JTRS (5) with Remote Power Supply. Also 
     included are spare cables and MIDS batteries; Link-16 mobile 
     racks; diagnostic support tools; technical documentation; 
     training and engineering technical support; and other related 
     elements of logistics and program support. The total 
     estimated program cost is $44 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.
       Canada intends to upgrade its current inventory of CF-18 
     Aircraft, CC-130J, and the Royal Canadian Air Force's Ground 
     Stations with the purchase of these MIDS JTRS (5) terminals 
     to be fully interoperable with U.S. and allied forces to 
     support and compliment joint operations in a net-enabled 
     environment; have modernized electronic protection and 
     secure, jam-resistant wave forms; and be capable of improved 
     Link-16 message exchange and information fidelity including 
     support to advanced weapon employment. 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 contractors for MIDS JTRS are Viasat, 
     Incorporated, headquartered in Carlsbad, CA and Data Link 
     Solutions, headquartered in Cedar Rapids, IA. The Government 
     of Canada is expected to negotiate an offset agreement with 
     the principal contractor(s), in accordance with Canada's 
     Industrial and Technological Benefits (ITB) Policy, before 
     signing the Letter of Offer and Acceptance (LOA), but details 
     are not known at this time.
       Implementation of this proposed sale will not require the 
     assignment of additional U.S.

[[Page S5188]]

     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. 19-35

     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 Multifunctional Information Distribution System 
     (MIDS) Joint Tactical Radio (JTRS) is a software defined 
     radio. The MIDS JTRS Programmable Secure Information Security 
     Architecture Module (PSISAM) is Critical Program Information 
     (CPI). The PSISAM is embedded in a MIDS JTRS Shop Replaceable 
     Unit (SRU) and contains the information security hardware and 
     cryptographic keys necessary to operate the terminal. MIDS 
     JTRS contains embedded COMSEC and is capable of processing up 
     to TOP SECRET information. Each MIDS JTRS contains an 
     embedded SRU that is UNCLASSIFIED Controlled Cryptographic 
     Information (CCI). Un-keyed terminals and de-energized 
     terminals are UNCLASSIFIED CCI. When a terminal is operating 
     on the host platform it is classified up to the level of data 
     being transmitted.
       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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