[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;

[[Page S2624]]

       (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.).
                                 ______