[Congressional Record Volume 166, Number 10 (Thursday, January 16, 2020)]
[Senate]
[Pages S269-S271]
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. 19-66 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Australia for defense 
     articles and services estimated to cost $1.50 billion. After 
     this letter is delivered to your office, we plan

[[Page S270]]

     to issue a news release to notify the public of this proposed 
     sale.
           Sincerely,
                                                Charles W. Hooper,
                                Lieutenant General, USA, Director.
       Enclosures.


                         Transmittal No. 19-66

     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 Australia.
       (ii) Total Estimated Value:
       Major Defense Equipment * $.50 billion.
       Other $1.00 billion.
       Total $1.50 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: The Government of 
     Australia has requested to buy long lead items, engineering 
     development activities, and other defense services to support 
     the Australian Surface Combatant Program, including the 
     modernization of three Hobart Class Destroyers, and 
     construction of the first three (of nine total) Hunter Class 
     Frigates.
       Major Defense Equipment (MDE):
       Three (3) Shipsets of the AEGIS Weapon System (AWS) in the 
     MK 6 Mod 1 configuration to support the Modernization of the 
     Hobart Class DDGs, including: AEGIS Combat System Support 
     Equipment (ACSSE); Weapon Data Recording Cabinet (WDRC) 
     equipment; Multi-Mission Signal Processor (MMSP-R) equipment; 
     Network, Processing and Storage (NPS) equipment; Consoles 
     Displays and Peripherals (CDP) equipment; Embedded Training 
     System (ETS); Kill Assessment System (KAS); and Shipboard 
     Gridlock System (SGS).
       Three (3) Shipsets of the AEGIS Weapon System (AWS) in the 
     MK 6 Mod I configuration to support the New Construction of 
     the Hunter Class FFGs, including AEGIS Combat System Support 
     Equipment (ACSSE); Electronic Equipment Fluid Cooler (EEFC) 
     equipment; and Network, Processing and Storage (NPS) 
     equipment; and Consoles Displays and Peripherals (CDP) 
     equipment; Shipboard Gridlock System (SGS); Embedded Training 
     System (ETS) and AN/SPQ-15 equipment.
       Three (3) shipsets of the MK 41 Vertical Launching Systems 
     (VLS) for installation on the Hunter Class Frigates;
       Three (3) shipsets (2 mounts per ship) of the Close-In 
     Weapons System (CIWS) for installation on the Hunter Class 
     Frigates;
       Two (2) Australia AEGIS Weapon System Computer Programs 
     (one for Hobart Class, one for Hunter Class), and associated 
     computer programs for AEGIS Combat System components for 
     installation on both the Hobart and Hunter Class ships;
       Six (6) shipsets of the Global Positioning System (GPS)--
     Based Positioning, Navigation and Timing Service (GPNTS) 
     Navigation Systems and associated Advanced Digital Antenna 
     Production (ADAP) antennas and support equipment for 
     installation on the Hobart and Hunter Class ships;
       Six (6) shipsets of upgraded Cooperative Engagement 
     Capability (CEC) equipment for installation on the Hobart and 
     Hunter Class ships;
       Six (6) shipsets of Command and Control Processor (C2P) 
     equipment for installation on the Hobart and Hunter Class 
     ships;
       Eight (8) shipsets of Multifunctional Information 
     Distribution System Joint Tactical Radio Set (MIDS JTRS) 
     terminals for installation on the Hobart and Hunter Class 
     ships.
       Non-MDE:
       Also included are:
       Three (3) shipsets of MK 34 Gun Weapon System (GWS) 
     modification equipment to include the Electro Optical Sight 
     System and changes supporting Naval Fires Planner and 
     associated TacLink Control System for installation on the 
     Hobart Class Destroyers;
       Three (3) shipsets of MK 34 Gun Weapon System components to 
     include the MK 160 Gun Computing System and the MK 20 Electro 
     Optical Sight System, and the Naval Fires Planner and 
     associated TacLink Control System for installation on the 
     Hunter Class Frigates;
       Three (3) shipsets of: Mode 5/S capable Identification, 
     Friend of Foe (IFF) Systems; Gigabit Ethernet Data 
     Multiplexing System (GEDMS); AN/WSN-7 Ring Laser Gyrocompass 
     Inertial Navigation Systems; WSN-9 Digital Hybrid Speed Log 
     systems; Common Data Link Management System (CDLMS); and 
     Global Command and Control System--Maritime (GCCS-M) systems 
     for installation on the Hunter Class Frigates;
       Six (6) shipsets of AN/SRQ-4 Hawklink and SQQ-89 Sonobuoy 
     processing equipment for installation on the Hobart and 
     Hunter Class ships;
       Defense services for development and integration of a 
     capability upgrade for the installed AEGIS Combat System on 
     the Hobart Class Destroyer, including Integrated Air and 
     Missile Defense capability and growth capability for 
     Ballistic Missile Defense;
       Development, integration and testing support for 
     installation of a AEGIS Combat System for installation on the 
     Hunter Class FFG, a Global Combat Ship Type 26 (BAE) 
     platform, including the integration of the indigenous CEAF AR 
     2 Phased Array Radar (CEA Industries) with the AEGIS Combat 
     System (including Cooperative Engagement Capability) and the 
     primary radar sensor and illuminator;
       Integration of selected Australian provided combat system 
     components including Undersea Warfare and Ship Self Defense 
     for installation on the Hobart and Hunter Class ships;
       Integration of the MH-60R helicopter into the AEGIS Combat 
     System for installation on the Hobart and Hunter Class ships;
       Procurement and delivery of installation support material, 
     special purpose test equipment, initial logistics outfitting, 
     spares and other ancillary equipment to support the 
     installation and integration of AEGIS Combat System equipment 
     in the Hunter and Hobart class ship platforms;
       Development of technical documentation to support both 
     programs; provision of logistics and other support services 
     to support the Hobart and Hunter Class ships;
       Procurement, staging, delivery and installation support for 
     AEGIS Combat System equipment for the Hobart and Hunter Class 
     ships;
       Provision of training support for curriculum development, 
     training tool development, front-end analysis, and crew 
     training for the Hobart and Hunter Class ships;
       U.S. Government and contractor representative engineering, 
     logistics, and technical support services; and other related 
     elements of logistics and program support for the Hobart and 
     Hunter Class ships.
       (iv) Military Department: Navy (AT-P-LFZ).
       (v) Prior Related Cases, if any: AT-P-LCQ, AT-P-GSU, and 
     AT-P-GSC.
       (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: January 14, 2020.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

          Australia--Australia Surface Combatant (ASC) Program

       The Government of Australia has requested to buy long lead 
     items, engineering development activities, and other defense 
     services to support the Australian Surface Combatant Program, 
     including the modernization of three Hobart Class Destroyers, 
     and construction of the first three (of nine total) Hunter 
     Class Frigates which includes: three (3) Shipsets of the 
     AEGIS Weapon System (AWS) in the MK 6 Mod 1 configuration to 
     support the Modernization of the Hobart Class DDGs; three (3) 
     Shipsets of the AEGIS Weapon System (AWS) in the MK 6 Mod 1 
     configuration to support the New Construction of the Hunter 
     Class FFGs; three (3) shipsets of the MK 41 Vertical 
     Launching Systems (VLS) for installation on the Hunter Class 
     Frigates; three (3) shipsets (2 mounts per ship) of the 
     Close-In Weapons System (CIWS) for installation on the Hunter 
     Class Frigates; two (2) Australia AEGIS Weapon System 
     Computer Programs (one for Hobart Class, one for Hunter 
     Class), and associated computer programs for AEGIS Combat 
     System components for installation on both the Hobart and 
     Hunter Class ships; six (6) shipsets of the Global 
     Positioning System (GPS)--Based Positioning, Navigation and 
     Timing Service (GPNTS) Navigation Systems and associated 
     Advanced Digital Antenna Production (ADAP) antennas and 
     support equipment for installation on the Hobart and Hunter 
     Class ships; six (6) shipsets of upgraded Cooperative 
     Engagement Capability (CEC) equipment for installation on the 
     Hobart and Hunter Class ships; six (6) shipsets of Command 
     and Control Processor (C2P) equipment for installation on the 
     Hobart and Hunter Class ships; and eight (8) shipsets of 
     Multifunctional Information Distribution System Joint 
     Tactical Radio Set (MIDS JTRS) terminals for installation on 
     the Hobart and Hunter Class ships. Also included are: three 
     (3) shipsets of MK 34 Gun Weapon System (GWS) modification 
     equipment to include the Electro Optical Sight System and 
     changes supporting Naval Fires Planner and associated TacLink 
     Control System for installation on the Hobart Class 
     Destroyers; three (3) shipsets of MK 34 Gun Weapon System 
     components to include the MK 160 Gun Computing System and the 
     MK 20 Electro Optical Sight System, and the Naval Fires 
     Planner and associated TacLink Control System for 
     installation on the Hunter Class Frigates; three (3) shipsets 
     of: Mode 5/S capable Identification, Friend of Foe (IFF) 
     Systems; Gigabit Ethernet Data Multiplexing System (GEDMS); 
     AN/WSN-7 Ring Laser Gyrocompass Inertial Navigation Systems; 
     WSN-9 Digital Hybrid Speed Log systems; Common Data Link 
     Management System (CDLMS); and Global Command and Control 
     System-Maritime (GCCS-M) systems for installation on the 
     Hunter Class Frigates; six (6) shipsets of AN/SRQ-4 Hawklink 
     and SQQ-89 Sonobuoy processing equipment for installation on 
     the Hobart and Hunter Class ships; defense services for 
     development and integration of a capability upgrade for the 
     installed AEGIS Combat System on the Hobart Class Destroyer, 
     including Integrated Air and Missile Defense capability and 
     growth capability for Ballistic Missile Defense; development, 
     integration and testing support for installation of a AEGIS 
     Combat System for installation on the Hunter Class FFG, a 
     Global Combat Ship Type 26 (BAE) platform, including the 
     integration of the indigenous CEAF AR 2 Phased Array Radar 
     (CEA Industries) with the AEGIS Combat System (including 
     Cooperative Engagement Capability) and the primary radar 
     sensor and illuminator; integration of selected Australian 
     provided combat system components including Undersea Warfare 
     and Ship Self Defense for installation on the Hobart and 
     Hunter Class ships; integration of the MH-60R helicopter into 
     the AEGIS Combat System for installation on the Hobart and 
     Hunter Class ships; Procurement and delivery of

[[Page S271]]

     installation support material, special purpose test 
     equipment, initial logistics outfitting, spares and other 
     ancillary equipment to support the installation and 
     integration of AEGIS Combat System equipment in the Hunter 
     and Hobart class ship platforms; development of technical 
     documentation to support both programs; provision of 
     logistics and other support services to support the Hobart 
     and Hunter Class ships; procurement, staging, delivery and 
     installation support for AEGIS Combat System equipment for 
     the Hobart and Hunter Class ships; provision of training 
     support for curriculum development, training tool 
     development, front-end analysis, and crew training for the 
     Hobart and Hunter Class ships; U.S. Government and contractor 
     representative engineering, logistics, and technical support 
     services; and other related elements of logistics and program 
     support for the Hobart and Hunter Class ships. The total 
     estimated cost is $1.50 billion.
       This proposed sale will support the foreign policy and 
     national security objectives of the United States. Australia 
     is one of our most important allies in the Western Pacific. 
     The strategic location of this political and economic power 
     contributes significantly to ensuring peace and economic 
     stability in the region.
       The proposed sale will enhance Australia's Surface 
     Combatant capability by modernizing their existing three 
     AEGIS capable Hobart Class Destroyers with the latest 
     technology and capability, and delivering the first three (of 
     nine) AEGIS capable Hunter Class Future Frigates. This sale 
     enhances Australia's self-defense capability, while 
     significantly improving interoperability with U.S. Navy AEGIS 
     combatants in the region. By deploying a surface combatant 
     fleet that will incorporate Cooperative Engagement Capability 
     (CEC), Australia will significantly improve network-centric 
     warfare capability for US forces operating in the region. 
     Australia 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.
       There are a significant number of companies under contract 
     with the U.S. Navy that will provide components and systems 
     as well as engineering services during the execution of this 
     effort, with a significant portion of the effort to be 
     performed by Lockheed Martin, Rotary and Mission Systems, 
     Moorestown, NJ. There are no known offset agreements proposed 
     in connection with this potential sale.
       Implementation of this proposed sale will require travel of 
     U.S. Government and/or contractor representatives to 
     Australia on a temporary basis for program support and 
     management oversight. No extended (long-term) visits to 
     Australia will be required as part of this effort.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 19-66

     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. This sale involves the procurement of long lead material 
     and services to support the Australian Surface Combatant 
     Program. The AEGIS Combat System (ACS) to be procured to 
     support the modernization of the Hobart Class Destroyers is a 
     multi-mission combat system providing Integrated Air and 
     Missile Defense (IAMD) and a growth path to Ballistic Missile 
     Defense (BMD) capability, derived from USN AEGIS Weapon 
     System Baseline 9 capability. In addition to shipboard AEGIS 
     equipment, this proposed sale will provide software, 
     documentation (including combat system capabilities and 
     limitations), training devices and services, and other 
     technical support to ensure the proper installation, testing 
     and operation of the provided equipment.
       2. AEGIS Weapon System simulation software, documentation, 
     training and study material will be provided a classification 
     levels up to and including SECRET. Delivery of sensitive 
     technological information, up to and including SECRET, will 
     be limited to the minimum level of information required to 
     progress activities associated with the integration of 
     indigenous combat system systems into the AEGIS Combat 
     System. This consists primarily of AEGIS Combat System 
     requirements and integration information to support early 
     combat system development activities, in the form of 
     documentation, simulation software, and technical 
     specifications. This information is sensitive as it provides 
     limited insight into AEGIS Combat System capabilities and 
     requirements--as tailored to the Australian AEGIS Combat 
     System configurations.
       3. The Cooperative Engagement Capability (CEC) is a system 
     that fuses tracking data from shipboard sensors and 
     distributes radar measurement data to other platforms with 
     CEC capability. This data is filtered and combined to create 
     a common tactical picture, based on available sensor data 
     from all platforms netted through the CEC system. The 
     hardware is unclassified with the exception of a 
     Communications Security (COMSEC) card which is classified 
     SECRET. The software and documentation are classified SECRET. 
     All manuals and technical documentation disclosure will be 
     limited to those necessary for operational use and 
     organizational maintenance.
       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, which 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       5. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the enclosed Policy Justification. A determination has been 
     made that Australia can provide the same degree of protection 
     for the sensitive technology being released as the U.S. 
     Government.
       6. All defense articles and services listed on this 
     transmittal have been authorized for release and export to 
     the Government of Australia.
                                  ____
                                  

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