[Congressional Record Volume 167, Number 158 (Tuesday, September 14, 2021)]
[Senate]
[Page S6491]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        ARMS SALES NOTIFICATION

  Mr. MENENDEZ. 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. Robert Menendez,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(h)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 21-55, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Australia for defense 
     articles and services estimated to cost $350 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,
                                                Jedidiah P. Royal,
                                                  Deputy Director.
       Enclosures.


                         Transmittal No. 21-55

     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* $0 million.
       Other $350 million.
       Total $350 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       None.
       Non-MDE: Defense services related to the future purchase of 
     Standard Missile 6 Block I (SM-6) and Standard Missile 2 
     Block IIIC (SM-2 IIIC) missiles. These services include 
     development; engineering, integration, and testing (EI&T); 
     obsolescence engineering activities required to ensure 
     radiness; U.S. Government and contractor engineering/
     technical assistance; related studies and analysis support; 
     and other related elements of programmatic, technical and 
     logistics support.
       (iv) Military Department: Navy (AT-P-AVY).
       (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 25, 2021.
       * As defined in Section (47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

    Australia--Defense Services Related to Future Standard Missile 
                               Production

       The Government of Australia has requested to buy defense 
     services related to the future purchase of Standard Missile 6 
     Block I (SM-6) and Standard Missile 2 Block IIIC (SM-2 IIIC) 
     missiles. These services include development; engineering, 
     integration, and testing (EI&T); obsolescence engineering 
     activities required to ensure readiness; U.S. Government and 
     contractor engineering/technical assistance, and related 
     studies and analysis support; technical and logistics support 
     services; and other related elements of program and 
     logistical support. The total estimated value is $350 
     million.
       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. 
     Australia is strategically positioned to contribute 
     significantly to ensuring peace and economic stability in the 
     region. It is vital to the U.S. national interest to assist 
     our ally in developing and maintaining a strong and ready 
     self-defense capability.
       The proposed sale will support the readiness and future 
     sale of vital anti-air warfare capability that can be 
     deployed from Australia's newest Hunter-Class Destroyers 
     equipped with the latest AEGIS Combat Systems. The purchase 
     of Standard Missile 6 Block I (SM-6) and Standard Missile 2 
     Block IIIC (SM-2 IIIC) missiles is currently included in 
     Australia's procurement roadmap and will improve their 
     ability to operate alongside U.S. and Allied naval forces 
     against the full spectrum of naval threats. Australia will 
     have no difficulty absorbing these defense services into its 
     armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal U.S. contractor will be Raytheon Missiles and 
     Defense (RMD), Tucson, AZ. There are no known offset 
     agreements proposed in connection with this potential sale.
       Implementation of the proposed sale will require U.S. 
     Government and contractor personnel to visit Australia on a 
     temporary basis in conjunction with program technical 
     oversight and support requirements, including program and 
     technical reviews.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 21-55

  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 proposed sale will result in the transfer of 
     sensitive and classified technical data related to 
     obsolescence engineering, integration, and test activities 
     required to ensure readiness for the future procurement of 
     Standard Missile 6 Block I (SM-6) and Standard Missile 2 
     Block IIIC (SM-2 IIIC) missiles. No SM-6 Blk I or SM-2 IIIC 
     hardware or software will be transferred under this proposed 
     sale. Australia currently employs SM-2 Block IIIA and IIIB on 
     Royal Australian Navy (RAN) AEGIS surface combatants, and has 
     been afforded access to similar technical information for 
     these delivered systems.
       2. The highest level of classification of defense articles, 
     components, and services included in this potential sale is 
     SECRET.
       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 the Government of 
     Australia 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 are authorized for release and export to the 
     Government of Australia.

                          ____________________