[Congressional Record Volume 165, Number 129 (Tuesday, July 30, 2019)]
[Senate]
[Page 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)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 19-40 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Egypt for defense articles 
     and services estimated to cost $554 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 N0. 19-40

     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 $554 million.
       Total $554 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: Foreign Military 
     Sales (FMS) case EG-P-GKB, implemented in September 2018, was 
     below congressional notification threshold at $45 million ($0 
     in MDE) and provided for material and labor services in 
     support of Oliver Hazard Perry Class Frigates (FFG-7), Fast 
     Missile Craft (FMC), Mine Hunter Coastal (MHC) ships, Coastal 
     Mine Hunter (CMH) ships, and 25 Meter and 28 Meter Fast 
     Patrol Craft (FPC). Egypt has requested the case be amended 
     to continue providing the same support on the basic case. 
     This amendment will push the current case above the non-MDE 
     or services congressional notification threshold and thus 
     requires notification of the entire case.
       Major Defense Equipment (MDE): None.
       Non-MDE: Provides for material and labor services in 
     support of Oliver Hazard Perry Class Frigates (FFG-7 class 
     ships), Fast Missile Craft (FMC), Mine Hunter Coastal (MHC) 
     ships, Coastal Mine Hunter (CMH) ships, and 25 Meter and 28 
     Meter Fast Patrol Craft (FPC).
       (iv) Military Department: Navy (EG-P-GKB).
       (v) Prior Related Cases, if any: None.
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii)  Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: None.
       (viii) Date Report Delivered to Congress: July 29, 2019.
       * As defined in Section 47(6) of the Arms Export Control 
     Act.


                          Policy Justification

               Egypt--Follow on Technical Support (FOTS)

       The Government of Egypt has requested a possible sale of 
     Follow on Technical Support (FOTS) that provides for material 
     and labor services in support of Oliver Hazard Perry Class 
     Frigates (FFG-7) class ships), Fast Missile Craft (FMC), Mine 
     Hunter Coastal (MHC) ships, Coastal Mine Hunter (CMH) ships, 
     and 25 Meter and 28 Meter Fast Patrol Craft (FPC). The 
     estimated cost is $554 million.
       This proposed sale will support the foreign policy and 
     national security of the United States by helping to provide 
     a strategic partner with critical support for multiple type 
     ships responsible for Egypt's maritime security. The proposed 
     sale is essential to maintain Egypt's national security, 
     regional stability, and the free flow of worldwide commerce 
     via the Suez Canal.
       Egypt intends to use this technical maintenance and service 
     support to ensure the Egyptian Navy is operationally capable 
     of providing coastal defense and security. The proposed sale 
     will increase the Egyptian Navy's material and operational 
     readiness. Egypt will have no difficulties absorbing this 
     support into its armed forces.
       The proposed sale will not alter the basic military balance 
     in the region.
       The prime contractor for Engineering Services Support will 
     be VSE Corporation and U.S. Government activities will 
     provide FOTS for Egypt. There are no known offset agreements 
     proposed in connection with this potential sale.
       Implementation of this proposed sale will require periodic 
     trips to Egypt involving U.S. Government and contractor 
     representatives for technical reviews, support, and oversight 
     for approximately five years.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposal sale.

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