[Congressional Record Volume 169, Number 120 (Thursday, July 13, 2023)]
[Senate]
[Pages S2621-S2625]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 470. Mr. RISCH (for himself, Mr. Hagerty, Mr. Tillis, Mr. Scott of
Florida, Mr. Moran, Mr. Cornyn, Mr. Daines, Mr. Sullivan, Ms. Collins,
Ms. Ernst, and Mrs. Blackburn) submitted an amendment intended to be
proposed by him to the bill S. 2226, to authorize appropriations for
fiscal year 2024 for military activities of the Department of Defense,
for military construction, and for defense activities of the Department
of Energy, to prescribe military personnel strengths for such fiscal
year, and for other purposes; which was ordered to lie on the table; as
follows:
At the end of title XII, add the following:
Subtitle H--Bolstering the AUKUS Partnership
SEC. 1299L. DEFINITIONS.
In this subtitle:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations, the Committee on
Appropriations, and the Committee on Armed Services of the
Senate; and
(B) the Committee on Foreign Affairs, the Committee on
Appropriations, and the Committee on Armed Services of the
House of Representatives.
(2) AUKUS; aukus partnership.--The terms ``AUKUS'' and
``AUKUS partnership'' means the trilateral security
partnership between the United States, the United Kingdom,
and Australia, which includes the following two pillars:
(A) Pillar One of AUKUS is focused on developing a pathway
for Australia to acquire conventionally armed, nuclear
powered submarines.
(B) Pillar Two of AUKUS is focused on enhancing trilateral
collaboration on advanced defense capabilities to include
hypersonic and counter hypersonic capabilities, quantum
technologies, undersea technologies, and artificial
intelligence.
(3) AUKUS partner.--The term ``AUKUS partner'' refers to a
member of AUKUS.
(4) Defense article; defense service.--The terms ``defense
article'' and ``defense service'' have the meanings given
those terms in section 47 of the Arms Export Control Act (22
U.S.C. 2794).
SEC. 1299M. FINDINGS.
Congress makes the following findings:
(1) The United States has entered into a period of intense
strategic rivalry with China that includes military
competition on a scale unseen in generations.
(2) The perpetuation of a military balance of power in the
Indo-Pacific favorable to the United States and its allies
and partners can no longer be assumed as China continues to
invest massive resources in its military.
(3) China has undertaken a nuclear breakout, fields the
world's largest navy, and is fielding a fully modernized air
force.
(4) North Korea remains an urgent and gathering threat as
it fields an increasingly diverse and advanced nuclear and
missile force backed by a massive conventional army.
(5) Iran continues to pursue a nuclear weapons capability
while fomenting unrest in the Middle East and beyond.
(6) While China remains the pacing threat for the United
States, Russia's unprovoked and brutal invasion of Ukraine
makes clear that multiple dissatisfied powers are coalescing
into an informal bloc designed to challenge the existing
United States-led global order.
(7) United States efforts to help Ukraine defend itself
against Russian aggression and strengthen Taiwan's ability to
resist the coercion of the Chinese Communist Party have
exposed the production constraints inherent in the United
States defense industrial base.
(8) The capacity limitations of the United States defense
industrial base require urgent remedy to include a renewed
examination of burden sharing roles with United States
allies.
(9) To meet this comprehensive challenge to American
interests, we must act with urgency to expand the resilience
and capacity of our defense industrial base. United States
allies should be full partners in this effort and the AUKUS
partnership is a necessary first step to share the
responsibility of perpetuating the existing rules-based
order.
(10) The security partnership between Australia, the United
Kingdom, and the United States (referred to as the ``AUKUS
partnership'') is meant to bolster capability of the United
States and allies in the Indo-Pacific and beyond through
technology sharing, cooperation, and defense exports.
(11) The AUKUS partnership's focus on conventionally armed
nuclear-powered submarines and advanced capabilities, known
respectively as Pillars One and Two, rightly centers on
cooperation at the highest end of security and geostrategic
competition.
(12) Pillar One, while bold, is complex, highly contingent
and unlikely to produce additive submarine capability in the
Indo-Pacific until the 2030s.
(13) The Pillar One initiative will rely on the expertise
developed by the United States and United Kingdom in
operating their submarine fleets to bring an Australian
capability into service at the earliest achievable date.
(14) Pillar Two proposes that AUKUS partners will also
deepen cooperation and integration on advanced defense
technologies to include hypersonic missiles, space
technology, artificial intelligence, quantum technologies and
additional undersea capabilities.
(15) Pillar Two, if executed with the vision described by
the three allies in the AUKUS announcement of September 2021,
offers the potential to produce meaningful capability and
increase industrial capacity during the current decade.
(16) Pillar Two can also expand and build resilience across
the supply chain of the AUKUS partners.
(17) However, certain statutory components of the United
States export control and regulatory system are overly
cumbersome for industries in the United States, Australia,
and the United Kingdom.
(18) Australia and the United Kingdom have legal,
regulatory, and technology control regimes that are
sufficiently comparable to those of the United States.
(19) United States technology controls and export licensing
decisions must balance the relatively low risk of compromise
that exists across all three AUKUS partners regulatory
regimes against the requirements to respond
[[Page S2622]]
at the speed of relevance to the rapid military advances made
by the Chinese People's Liberation Army.
(20) In order to implement the AUKUS agreement and realize
the value of increased cooperation between the United States,
the United Kingdom, and Australia, the United States must
ensure cooperation is fostered, not inhibited, by the United
States regulatory system.
(21) The United States export control system, encompassing
both the International Traffic and Arms Regulations and the
Export Administration Regulations, is largely based on a
bilateral government-to-government relationship rather than
being optimized for a trilateral or multilateral defense
technology partnership.
(22) The Department of State, in concert with the
Department of Defense, the Department of Commerce, and other
relevant United States agencies, should clearly communicate
to our AUKUS partners any United States requirements to
address matters related to the technology security and export
control measures of Australia and the United Kingdom.
(23) Further, the Department of State, in concert with the
Department of Defense, the Department of Commerce, and other
relevant United States agencies, should work to reduce
barriers to defense innovation, cooperation, trade,
sustainment, co-production, and co-development initiatives
with the governments and industry partners of the United
Kingdom and Australia.
(24) These barriers include the overuse of ``no foreign
nationals'' (NOFORN) and Controlled Unclassified Information
(CUI) determinations that inhibit collaboration among AUKUS
partners in determining requirements, design, development,
acquisition, testing, operation, and sustainment of
capabilities designed to be interoperable.
(25) The successful implementation of the AUKUS partnership
requires regulatory and licensing changes on the part of all
AUKUS partner countries and the continued enhancement of the
export control and technology security regimes of all three
nations.
(26) If AUKUS realizes its potential, it will set a
precedent and incentivize similar agreements with other close
United States allies, which will be necessary if we are to
prevail in the long-term competition with China, Russia and
its partners.
SEC. 1299N. STATEMENT OF POLICY.
It is the policy of the United States--
(1) to support a transformation and expansion of our
already close cooperation on a range of defense and security
issues with the United Kingdom and Australia, including
enhancing cooperation in the development and fielding of
advanced commercial and defense capabilities and in pursuing
deeper integration of our defense industrial bases and
supporting supply chains;
(2) to use AUKUS to enhance trilateral cooperation across
the submarine fleets of the partner countries and to support
Australian efforts to acquire nuclear-powered submarines for
the Royal Australian Navy;
(3) to reassess, and as needed revise, existing regulatory
and legal regimes, to include licensing, technology release
and contracting procedures to meet the objectives outlined in
the September 15, 2021, announcement of the AUKUS
partnership;
(4) to reinvigorate burden sharing with United States
allies as a key component of adopting a sustainable long-term
strategy to compete with China, Russia, and other revanchist
powers; and
(5) to modernize the United States export control system to
reflect the new era of cooperation with partners and allies,
incorporating commercial and defense technology that
preserve, and enhance our way of life.
SEC. 1299O. DEPARTMENT OF STATE PERSONNEL AND RESOURCES.
(a) Senior Advisor at the State Department for AUKUS.--
(1) Designation.--The Secretary of State shall appoint a
senior advisor at the Department of State to oversee and
coordinate the implementation of the AUKUS agreement by the
Department of State (referred to in this subtitle as the
``Senior Advisor'').
(2) Reporting.--The senior advisor shall report directly to
the Secretary of State.
(3) Responsibilities.--It shall be the responsibility of
the senior advisor--
(A) to coordinate AUKUS implementation between relevant
Department of State bureaus, directorates, and offices;
(B) to represent the Department of State on matters
relating to AUKUS in the interagency process;
(C) to engage with relevant government and industry
entities in the United Kingdom and Australia; and
(D) to issue guidance, including promulgating regulations,
in order to reduce barriers to defense collaboration,
innovation, trade, and production with the Governments and
industry partners of the United States, United Kingdom, and
Australia.
(4) Salary.--The annual salary of the senior advisor
described in this section shall not exceed salaries
authorized in the Office of Personnel Management's Executive
pay scale.
(b) Directorate of Defense Trade Controls Staffing.--
Section 45 of the State Department Basic Authorities Act of
1956 (22 U.S.C. 2717) is amended--
(1) in the first sentence, by striking ``100 percent of the
registration fees collected by the Office of Defense Trade
Controls of the Department of State'' and inserting ``100
percent of the defense trade control registration fees
collected by the Department of State'';
(2) in the second sentence, by inserting ``management,
licensing, compliance, and policy activities in the defense
trade controls function, including'' after ``incurred for'';
(3) in paragraph (1), by striking ``contract personnel to
assist in'';
(4) in paragraph (2), by striking ``; and'' and inserting a
semicolon;
(5) in paragraph (3), by striking the period at the end and
inserting ``; and''; and
(6) by adding at the end the following new paragraphs:
``(4) the facilitation of defense trade policy development,
implementation, and cooperation with a specific focus on
Canada, Australia, and the United Kingdom, review of
commodity jurisdiction determinations, outreach to United
States industry and foreign parties, and analysis of
scientific and technological developments as they relate to
the exercise of defense trade control authorities; and
``(5) contract personnel to assist in such activities.''.
SEC. 1299P. REPORTING REQUIREMENTS.
(a) Report on Department of State Implementation of
Partnership.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State, in
coordination with the Secretary of Defense and, as
appropriate, the Secretary of Commerce and the Secretary of
Energy, shall submit to the appropriate congressional
committees a report on efforts of the Department of State to
implement the AUKUS partnership.
(2) Elements.--The report required under paragraph (1)
shall include the following elements:
(A) Regarding the achievement of Phase One goals for of the
Optimal Pathway for AUKUS Pillar One for each of calendar
years 2023, 2024, 2025, 2026, and 2027, the following:
(i) A description of progress made by the AUKUS partners to
conclude an Article 14 Arrangement with the International
Atomic Energy Agency.
(ii) A description of the status of AUKUS partner efforts
to build the supporting infrastructure to base conventionally
armed nuclear powered attack submarines.
(iii) Updates on the efforts by the AUKUS partners to train
a workforce that can build, sustain, and operate
conventionally armed nuclear powered attack submarines.
(iv) A description of progress in the construction of a new
submarine facility to support the basing and disposition of
nuclear attack submarines on the east coast of Australia.
(v) The number of Australian and United Kingdom personnel
embedded on United States Navy ships during Phase One of the
Optimal Pathway.
(vi) A description of progress in establishing submarine
support facilities capable of hosting rotational forces in
western Australia by 2027.
(vii) A description of how the United States plans to
provide up to five Virginia Class submarines to Australia by
the early to mid-2030's.
(viii) A description of how the sale of United States
Virginia Class submarines and newly built SSN-AUKUS
submarines will be combined into a cohesive and sovereign
Royal Australian Navy submarine fleet.
(ix) A detailed assessment of how Australia's sovereign
conventionally armed nuclear attack submarines contribute to
United States defense and deterrence objectives in the Indo-
Pacific region.
(B) For each of the calendar years 2021 and 2022--
(i) the average and median times for the United States
Government to review applications for licenses, disaggregated
by company size and license type and other agreements, to
export defense articles or defense services to persons,
corporations, and the governments (including agencies and
subdivisions of such governments, including official missions
of such governments) of Australia and the United Kingdom;
(ii) the number of applications from Australia and the
United Kingdom for licenses to export defense articles and
defense services that were denied, returned without action,
or approved with provisos, listed by year;
(iii) the number of requests made by licensees or exporters
for proviso reconsideration, listed by year;
(iv) the average and median times for the United States
Government to review applications from Australia and the
United Kingdom for foreign military sales beginning from the
date Australia or the United Kingdom submitted a letter of
request that resulted in a letter of acceptance; and
(v) the number of requests from Australia and the United
Kingdom for foreign military sales that were denied.
(C) A list of relevant United States laws, regulations, and
treaties and other international agreements to which the
United States is a party that govern authorizations to export
defense articles or defense services that are required to
implement the AUKUS partnership.
(D) An assessment of key recommendations the United States
Government has provided to the Governments of Australia and
the United Kingdom to revise laws, regulations, and policies
of such countries that are required to implement the AUKUS
partnership, including a detailed description of discussions
regarding ``deemed exports''.
(E) An assessment of recommended improvements to export
control laws and regulations of Australia, the United
Kingdom,
[[Page S2623]]
and the United States that such countries should make to
implement the AUKUS partnership and to otherwise meet the
requirements of section 38(j)(2) of the Arms Export Control
Act ( 22 U.S.C. 2778(j)(2)).
(b) Report on Interagency Actions.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State, in
coordination with the Secretary of Defense, the Secretary of
Energy, and the Secretary of Commerce, shall submit to the
appropriate congressional committees a report on actions
taken at the interagency level to implement the advanced
capabilities pillar of the AUKUS agreement.
(2) Elements.--The report required under paragraph (1)
shall include the following elements:
(A) A description of changes to the International Traffic
in Regulations (ITAR) and the United States export control
regime that are necessary to implement the AUKUS agreement
and to permit AUKUS member states and Canada to exchange
defense items at classified and unclassified levels.
(B) A plan for reducing barriers and implementing the
changes as described in ITAR (including decreasing
requirements for licenses within AUKUS and reducing timelines
for licensing decisions) and a description of any changes
that will require new authorities from Congress.
(C) A description of the progress the Department of State,
the Department of Defense, the Department of Energy, and the
Department of Commerce have made in implementing any changes
as described in subparagraphs (A) and (B).
(D) A list of actions the Departments have requested the
Governments of the United Kingdom and Australia to take in
order to amend their export control systems in a way that is
comparable to that of the United States.
(E) A classified annex describing the content and timing of
consultations amongst AUKUS partners on Pillar One and for
the eight Lines of Effort in Pillar Two.
(c) Briefing.--Not later than 90 days after the date of
enactment of this Act, and annually thereafter for 7 years,
the President shall provide a briefing to the appropriate
congressional committees that includes the following:
(1) A description of the efforts of AUKUS partners to
enhance collaboration across the following eight trilateral
Lines of Effort:
(A) Undersea capabilities.
(B) Quantum technologies.
(C) Artificial Intelligence and autonomy.
(D) Advanced cyber capabilities.
(E) Hypersonic and counter-hypersonic capabilities.
(F) Electronic warfare.
(G) Innovation.
(H) Information sharing.
(2) An assessment of the related capabilities necessary to
effectuate the eight trilateral Lines of Effort described in
paragraph (1).
SEC. 1299Q. EXEMPTION FOR LICENSE REQUIREMENTS FOR EXPORT OF
DEFENSE ITEMS TO THE UNITED KINGDOM AND
AUSTRALIA.
Section 38(j)(1) of the Arms Export Control Act (22 U.S.C.
2778(j)(1)) is amended--
(1) in subparagraph (B)--
(A) in the subsection heading, by inserting ``, the United
Kingdom, and Australia'' after ``Canada''; and
(B) by inserting ``, the United Kingdom, or Australia''
after ``Canada''; and
(2) in subparagraph (C)--
(A) by striking ``treaties.--'' and all that follows
through ``(i) In general.--The requirement'' and inserting
``treaties.--The requirement'';
(B) by striking clause (ii); and
(C) by redesignating subclauses (I) and (II) as clauses (i)
and (ii) and moving such clauses, as so redesignated, two ems
to the left.
SEC. 1299R. UNITED STATES MUNITIONS LIST.
(a) Exemption for the Governments of the United Kingdom and
Australia From Certification and Congressional Notification
Requirements Applicable to Certain Transfers.--Section
38(f)(3) of the Arms Export Control Act (22 U.S.C.
2778(f)(3)) is amended by inserting ``, the United Kingdom,
or Australia'' after ``Canada''.
(b) United States Munitions List Periodic Reviews.--
(1) In general.--The Secretary of State, acting through
authority delegated by the President to carry out period
reviews of items on the United States Munitions List under
subsection (f) of section 38 of the Arms Export Control Act
(22 U.S.C. 2778) and in coordination with the Secretary of
Defense, the Secretary of Energy, the Secretary of Commerce,
and the Director of the Office of Management and Budget,
shall carry out such reviews not less frequently than
annually in order to determine which capabilities may be
transitioned from the United States Munitions List to the
Commerce Control List.
(2) Scope.--The periodic reviews described under paragraph
(1) shall focus on interagency resources to address current
threats faced by the United States, the evolving
technological and economic landscape, and the widespread
availability of certain technologies and items on the United
States Munitions List.
(3) Consultation.--The periodic reviews described under
paragraph (1) shall be conducted in coordination with the
Defense Trade Advisory Group (DTAG), who shall provide--
(A) relevant industry expertise selected from major defense
primes and nontraditional contractors; and
(B) recommendations for improvements to facilitate
cooperation.
SEC. 1299S. OPEN GENERAL LICENSE FOR THE EXPORT, REEXPORT,
TRANSFER, AND RETRANSFER OF CERTAIN DEFENSE
ARTICLES TO AUSTRALIA, CANADA, AND THE UNITED
KINGDOM UNDER ITAR.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State shall
publish in the Federal Register a notice of proposed
rulemaking relating to amending the International Traffic in
Arms Regulations (ITAR) to establish a Final Rule
establishing an Open General Export License for export,
reexport, transfer, and retransfer of certain defense
articles and services to or between the United States,
Australia, Canada, and the United Kingdom. The Open General
License shall be available for exports, reexports, transfers,
and retransfers of defense articles and services between or
among--
(1) the Government of Australia;
(2) the Government of Canada;
(3) the Government of the United Kingdom;
(4) members of the Australian Community as defined in part
126.16(d) of the ITAR, at all locations in Australia;
(5) members of the United Kingdom Community as defined in
part 126.17(d) of the ITAR, at all locations in the United
Kingdom; and
(6) Canadian-registered persons as defined in part 126.5(b)
of the ITAR.
(b) Applicable Requirements and Limitations.--The export,
reexport, transfer, or retransfer of any unclassified defense
article pursuant to subsection (a) to any of the parties
listed in such subsection shall be subject to the following
requirements and limitations:
(1) Compliance with the requirements of part 123.9(b) of
the ITAR.
(2) The export, reexport, transfer, or retransfer must take
place wholly within or between the physical territory of
Australia, Canada, or the United Kingdom and the United
States except for--
(A) the purposes of maintenance, repair, replacement, or
overhaul; or
(B) transit and transshipment in which the exporter retains
effective custody over the export, reexport, transfer, or
retransfer.
(3) Any export, reexport, transfer, or retransfer of a
defense article other than technical data (including
development, manufacturing, and production by industrial
partners) for end use by, or operation on behalf of, the
Government of Australia, the Government of Canada, the
Government of the United Kingdom, or the Government of the
United States.
(4) An Open General License under subsection (a) may not be
utilized by persons to whom a presumption of denial is
applied by DDTC pursuant to parts 120.1(c) or 127.11(a) of
the ITAR, including, among other reasons, for past
convictions of certain United States criminal statutes or
because the persons are otherwise ineligible to contract with
or receive an export or import license from an agency of the
United States Government.
(5) No exporter may use an Open General License under
subsection (a) to export, reexport, transfer, retransfer, or
otherwise provide defense articles, defense services, or
technical data to any foreign person subject to any United
States sanctions as administered by the Office of Foreign
Assets Control (OFAC), subject to any embargo maintained by
the United States, or otherwise ineligible to receive defense
articles, defense services, or technical data under ITAR
license or authorizations.
(c) Congressional Notification.--The export, reexport,
transfer, or retransfer pursuant to subsection (a) of any
major defense equipment (as defined in part 120.37 of the
ITAR) valued (in terms of its original acquisition cost) at
$25,000,000 or more or any defense article or related
training or other defense service valued (in terms of its
original acquisition cost) at $100,000,000 or more shall be
notified to Congress for a 15 day formal review period as
outlined in the Arms Export Control Act (22 U.S.C. 2751 et
seq.).
SEC. 1299T. LICENSE EXCEPTION FOR EXPORT, REEXPORT, AND IN-
COUNTRY TRANSFER OF ITEMS ON COMMERCE CONTROL
LIST TO OR BETWEEN AUSTRALIA, CANADA, AND THE
UNITED KINGDOM UNDER EXPORT ADMINISTRATION
REGULATIONS.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Commerce shall
publish in the Federal Register a notice of proposed
rulemaking relating to amending the Export Administration
Regulations to establish a license exception for the export,
reexport, and in-country transfer of items on the Commerce
Control List to or between covered persons in Australia,
Canada, and the United Kingdom.
(b) Requirements.--A person that exports, reexports, or in-
country transfers an item on the Commerce Control List under
the license exception established under subsection (a), and a
recipient of such an item, shall--
(1) comply with all applicable requirements of the Export
Administration Regulations;
(2) maintain, for each such export, reexport, or in-country
transfer, a record of--
(A) the exporter;
(B) a description of the item, including technology;
(C) the name and address, and other available contact
information, of the recipient and the end-user of the item;
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(D) the name of the person responsible for the transaction;
(E) the stated end use of the item;
(F) the date of the transaction; and
(G) the method of transfer; and
(3) ensure that such records are made available, upon
request, to the Under Secretary of Commerce for Industry and
Security.
(c) Limitations.--
(1) Limitation on reexports through third countries.--The
export, reexport, or in-country transfer of an item under the
license exception established under subsection (a) is
required to take place wholly within or between the physical
territory of Australia, Canada, the United Kingdom, or the
United States, except for the export, reexport, or in-country
transfer of such an item for--
(A) the purposes of maintenance, repair, replacement, or
overhaul; or
(B) transit or transshipment in which the exporter retains
effective custody over the export, reexport, transfer, or
retransfer.
(2) Prohibition on exports to restricted persons.--An item
may not be exported, reexported, or in-country transferred
under the license exception established under subsection (a)
to any foreign person--
(A) with respect to which sanctions have been imposed by
the Office of Foreign Assets Control of the Department of the
Treasury;
(B) on any restricted parties list;
(C) subject to any embargo maintained by the United States;
or
(D) that is otherwise ineligible to receive controlled
dual-use or commercial articles or technology on the Commerce
Control List.
(d) Definitions.--In this section:
(1) Commerce control list.--The term ``Commerce Control
List'' means the list maintained by the Bureau of Industry
and Security of the Department of Commerce and set forth in
Supplement No. 1 to part 774 of the Export Administration
Regulations.
(2) Covered person.--
(A) In general.--Except as provided by subparagraph (B),
the term ``covered person'' means--
(i) the government of Australia, Canada, or the United
Kingdom;
(ii) a citizen or national of Australia, Canada, or the
United Kingdom; or
(iii) an entity organized under the laws of, or otherwise
subject to the jurisdiction of, Australia, Canada, or the
United Kingdom.
(B) Exclusions.--The term ``covered person'' does not
include any person on any a restricted parties list.
(3) Restricted parties list.--The term ``restricted parties
list'' means any of the following lists maintained by the
Bureau of Industry and Security:
(A) The Entity List set forth in Supplement No. 4 to part
744 of the Export Administration Regulations.
(B) The Military End-User List set forth in Supplement No.
7 to part 744 of the Export Administration Regulations.
(C) The Denied Persons List maintained pursuant to section
764.3(a)(2) of the Export Administration Regulations.
(D) The Unverified List set forth in Supplement No. 6 to
part 744 of the Export Administration Regulations.
(4) Other terms.--The terms ``export'', ``Export
Administration Regulations'', ``in-country transfer'',
``item'', and ``reexport'' have the meanings given those
terms in section 1742 of the Export Control Reform Act of
2018 (50 U.S.C. 4801).
SEC. 1299U. TREATMENT OF AUSTRALIA AND THE UNITED KINGDOM AS
DOMESTIC SOURCES UNDER DEFENSE PRODUCTION ACT
OF 1950.
Section 702(7)(A) of the Defense Production Act of 1950 (
50 U.S.C. 4552(7)(A)) is amended by striking ``or Canada''
and inserting ``, Canada, Australia, or the United Kingdom''.
SEC. 1299V. EXPEDITED RELEASE OF ADVANCED TECHNOLOGIES TO
AUSTRALIA, CANADA, AND THE UNITED KINGDOM.
(a) Preclearance of Certain Military Sales Items.--
(1) In general.--Not later than 90 days after the date of
the enactment of this Act, and annually thereafter, the
Secretary of State, in coordination with the Secretary of
Defense, and in conjunction with coordinating entities such
as the National Disclosure Policy Committee, the Arms
Transfer and Technology Release Senior Steering Group, and
other appropriate entities, shall compile a list of available
and emerging military platforms, technologies, and equipment
that are pre-cleared and prioritized for sale and release to
Australia, Canada, and the United Kingdom through the Foreign
Military Sales program (including items controlled by the
International Traffic in Arms Regulations (ITAR) or the
Federal Acquisition Regulation (FAR) and items included in
programs of record and programs that are not programs of
record) that are pre-cleared and prioritized for sale and
release to Australia, Canada, and the United Kingdom through
the Foreign Military Sales and Direct Commercial Sales
programs.
(2) Rules of construction regarding selection of items.--
(A) No limitation on foreign military sales and direct
commercial sales program activities.--The list compiled
pursuant to paragraph (1) shall not be construed as limiting
the type, timing, or quantity of items that may be requested
by, or sold to, Australia, the United Kingdom, and Canada
under the Foreign Military Sales and Direct Commercial Sales
programs.
(B) Congressional notification requirements.--Nothing in
this [subtitle/title] shall be construed to supersede
congressional notification requirements under the Arms Export
Control Act (22 U.S.C. 2751 et. seq.).
(b) Expedited Processing of Foreign Military Sales and
Direct Commercial Sales Requests.--The Secretary of State and
the Secretary of Defense shall expedite the processing of
requests of Australia, the United Kingdom, and Canada under
the Foreign Military Sales and Direct Commercial Sales
programs.
(c) Release Policy for Australia, Canada, and the United
Kingdom.--The Secretary of State, in consultation with the
Secretary of Defense, shall create an anticipatory release
policy for key Foreign Military Sales and Direct Commercial
Sales capabilities for Australia, the United Kingdom, and
Canada. Review of these capabilities for releasability shall
be subject to a ``fast track'' decision-making process with a
presumption of approval. The capabilities subject to this
policy should include--
(1) Pillar One technologies associated with submarine and
associated combat systems; and
(2) Pillar Two technologies, including but not limited to
hypersonic missiles, cyber capabilities, artificial
intelligence, quantum technologies, and undersea
capabilities, and other advanced technologies.
(d) Interagency Policy.--The Secretary of State and the
Secretary of Defense shall jointly review and update
interagency policies and implementation guidance related to
Foreign Military Sales and Direct Commercial Sales requests,
including incorporating the anticipatory release provisions
of this section.
SEC. 1299W. EXPEDITED REVIEW OF EXPORT LICENSES FOR EXPORTS
OF ADVANCED TECHNOLOGIES TO AUSTRALIA, THE
UNITED KINGDOM, AND CANADA.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of State, in
coordination with the Secretary of Defense, shall initiate a
rulemaking to establish a ``fast track'' decision-making
process for applications, classified or unclassified, to
export defense articles and defense services to Australia,
the United Kingdom, and Canada, with a presumption of
approval.
(b) Eligibility.--To qualify for the ``fast track'' process
described in subsection (a), the application must be for an
export that will take place wholly within or between the
physical territory of Australia, Canada, or the United
Kingdom and the United States and with governments or
corporate entities from such countries.
(c) Criteria.--Such ``fast-track'' process shall be
available for both classified and unclassified items, and the
process must satisfy the following criteria:
(1) Any licensing application to export defense articles
and services that is related to a government-to-government
AUKUS agreement shall be exempted from staffing requirements
and must be approved, returned, or denied within 14 days of
submission.
(2) For all other licensing requests, any review shall be
completed not later than 30 calendar days after the date of
application.
(3) The Secretary of State shall issue a decision on the
case not later than five days after the such review period
has elapsed.
SEC. 1299X. ANTICIPATORY DISCLOSURE POLICY FOR AUSTRALIA,
CANADA, AND THE UNITED KINGDOM.
The Secretary of Defense, in consultation with the
Secretary of State, shall direct the National Disclosure
Policy Committee (NDPC) to adopt a classification category
for the purposes of anticipatory disclosure policy to
facilitate information sharing on Pillar One, Pillar Two, and
other critical technologies for Australia, Canada, and the
United Kingdom.
SEC. 1299Y. REPORT ON AUKUS STRATEGY.
(a) In General.--Not later than 90 days after the date of
the enactment of this Act, the Secretary of Defense and the
Secretary of State shall submit a report to the appropriate
congressional committees an AUKUS strategy identifying.
(b) Elements.--The strategy required under subsection (a)
shall include the following elements:
(1) An identification of the defensive military capability
gaps and capacity shortfalls that AUKUS seeks to offset.
(2) An explanation of the total cost associated with Pillar
One of AUKUS and the operational rationale for Australia's
acquisition of nuclear submarines.
(3) An assessment of possible opportunity costs for other
defense capabilities associated with investing in the SSN-
AUKUS program.
(4) A detailed explanation of how the Australian industrial
base will contribute to strengthening the United States
strategic position in Asia.
(5) A detailed explanation of the military and strategic
benefit provided by the improved access provided by
Australian naval bases.
(6) An assessment of how sovereign United Kingdom and
Australian submarines contribute to the achievement of United
States military objectives as defined in United States
strategy and planning documents.
(7) A net assessment contrasting the investments the
Government of the People's Republic of China is making in its
submarine, hypersonic missile, and unmanned
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antisubmarine technologies relative to that of the AUKUS
partners.
SEC. 1299Z. AUSTRALIA, UNITED KINGDOM, AND UNITED STATES
SUBMARINE SECURITY TRAINING.
(a) In General.--The President may transfer or authorize
export of defense services to the Government of Australia
under the Arms Export Control Act (22 U.S.C. 2751 et seq.)
that may also be directly exported to Australian private
sector personnel to support the development of the Australian
submarine industrial base necessary for submarine security
activities between Australia, the United Kingdom, and the
United States, including where such private-sector personnel
are not officers, employees, or agents of the Government of
Australia.
(b) Application of Requirements for Further Transfer.--Any
transfer of defense services to the Government of Australia
pursuant to subsection (a) to persons other than those
directly provided such defense services pursuant to such
subsection shall only be made in accordance with the
requirements of the Arms Export Control Act (22 U.S.C. 2751
et seq.).
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