[Congressional Record (Bound Edition), Volume 145 (1999), Part 9]
[House]
[Pages 12827-12834]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 12827]]

                    SECURITY ASSISTANCE ACT OF 1999

  Mr. GILMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 973) to modify authorities with respect to the provision of 
security assistance under the Foreign Assistance Act of 1961 and the 
Arms Export Control Act, and for other purposes, as amended.


  The Clerk read as follows:

                                H.R. 973

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Security Assistance Act of 
     1999''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

             TITLE I--TRANSFERS OF EXCESS DEFENSE ARTICLES

Sec. 101. Excess defense articles for central European countries.
Sec. 102. Excess defense articles for certain independent States of the 
              former Soviet Union.

              TITLE II--FOREIGN MILITARY SALES AUTHORITIES

Sec. 201. Termination of foreign military financed training.
Sec. 202. Sales of excess Coast Guard property.
Sec. 203. Competitive pricing for sales of defense articles.
Sec. 204. Reporting of offset agreements.
Sec. 205. Notification of upgrades to direct commercial sales.
Sec. 206. Expanded prohibition on incentive payments.
Sec. 207. Administrative fees for leasing of defense articles.

    TITLE III--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES

Sec. 301. Additions to United States war reserve stockpiles for allies.
Sec. 302. Transfer of certain obsolete or surplus defense articles in 
              the war reserves stockpile for allies.

     TITLE IV--INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT OF 1999

Sec. 401. Short title.
Sec. 402. Findings.
Sec. 403. International arms sales code of conduct.

 TITLE V--AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM CERTAIN SANCTIONS

Sec. 501. Waiver authority.
Sec. 502. Consultation.
Sec. 503. Reporting requirement.
Sec. 504. Appropriate congressional committees defined.

    TITLE VI--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

Sec. 601. Authority to transfer naval vessels.
Sec. 602. Inapplicability of aggregate annual limitation on value of 
              transferred excess defense articles.
Sec. 603. Costs of transfers.
Sec. 604. Expiration of authority.
Sec. 605. Repair and refurbishment of vessels in United States 
              shipyards.
Sec. 606. Sense of Congress relating to transfer of naval vessels and 
              aircraft to the Government of the Philippines.

                  TITLE VII--MISCELLANEOUS PROVISIONS

Sec. 701. Annual military assistance reports.
Sec. 702. Publication of arms sales certifications.
Sec. 703. Notification requirements for commercial export of 
              significant military equipment on United States Munitions 
              List.
Sec. 704. Enforcement of Arms Export Control Act.
Sec. 705. Violations relating to material support to terrorists.
Sec. 706. Authority to consent to third party transfer of ex-U.S.S. 
              Bowman County to USS LST Ship Memorial, Inc.
Sec. 707. Exceptions relating to prohibitions on assistance to 
              countries involved in transfer or use of nuclear 
              explosive devices.
Sec. 708. Continuation of the export control regulations under IEEPA.

             TITLE I--TRANSFERS OF EXCESS DEFENSE ARTICLES

     SEC. 101. EXCESS DEFENSE ARTICLES FOR CENTRAL EUROPEAN 
                   COUNTRIES.

       Section 105 of Public Law 104-164 (110 Stat. 1427) is 
     amended by striking ``1996 and 1997'' and inserting ``2000 
     and 2001''.

     SEC. 102. EXCESS DEFENSE ARTICLES FOR CERTAIN INDEPENDENT 
                   STATES OF THE FORMER SOVIET UNION.

       (a) Uses For Which Funds Are Available.--Notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e)), during each of the fiscal years 2000 and 
     2001, funds available to the Department of Defense may be 
     expended for crating, packing, handling, and transportation 
     of excess defense articles transferred under the authority of 
     section 516 of that Act to Georgia, Kazakhstan, Kyrgyzstan, 
     Moldova, Turkmenistan, Ukraine, and Uzbekistan.
       (b) Content of Congressional Notification.--Each 
     notification required to be submitted under section 516(f) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(f)) with 
     respect to a proposed transfer of a defense article described 
     in subsection (a) shall include an estimate of the amount of 
     funds to be expended under subsection (a) with respect to 
     that transfer.

              TITLE II--FOREIGN MILITARY SALES AUTHORITIES

     SEC. 201. TERMINATION OF FOREIGN MILITARY FINANCED TRAINING.

       Section 617 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2367) is amended--
       (1) by inserting in the second sentence ``and the Arms 
     Export Control Act'' after ``under this Act'' the first place 
     it appears;
       (2) by striking ``under this Act'' the second place it 
     appears; and
       (3) by inserting in the third sentence ``and under the Arms 
     Export Control Act'' after ``this Act''.

     SEC. 202. SALES OF EXCESS COAST GUARD PROPERTY.

       Section 21(a)(1) of the Arms Export Control Act (22 U.S.C. 
     2761(a)(1)) is amended in the text above subparagraph (A) by 
     inserting ``and the Coast Guard'' after ``Department of 
     Defense''.

     SEC. 203. COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES.

       Section 22(d) of the Arms Export Control Act (22 U.S.C. 
     2762(d)) is amended--
       (1) by striking ``Procurement contracts'' and inserting 
     ``(1) Procurement contracts''; and
       (2) by adding at the end the following:
       ``(2) Direct costs associated with meeting additional or 
     unique requirements of the purchaser shall be allowable under 
     contracts described in paragraph (1). Loadings applicable to 
     such direct costs shall be permitted at the same rates 
     applicable to procurement of like items purchased by the 
     Department of Defense for its own use.''.

     SEC. 204. REPORTING OF OFFSET AGREEMENTS.

       (a) Government-to-Government Sales.--Section 36(b)(1) of 
     the Arms Export Control Act (22 U.S.C. 2776(b)(1)) is amended 
     in the fourth sentence by striking ``(if known on the date of 
     transmittal of such certification)'' and inserting ``and, if 
     known on the date of transmittal of such certification, a 
     description of the offset agreement. Such description may be 
     included in the classified portion of such numbered 
     certification''.
       (b) Commercial Sales.--Section 36(c)(1) of the Arms Export 
     Control Act (22 U.S.C. 2776(c)(1)) is amended in the second 
     sentence by striking ``(if known on the date of transmittal 
     of such certification)'' and inserting ``and, if known on the 
     date of transmittal of such certification, a description of 
     the offset agreement. Such description may be included in the 
     classified portion of such numbered certification''.

     SEC. 205. NOTIFICATION OF UPGRADES TO DIRECT COMMERCIAL 
                   SALES.

       Section 36(c) of the Arms Export Control Act (22 U.S.C. 
     2776(c)) is amended by adding at the end the following new 
     paragraph:
       ``(4) The provisions of subsection (b)(5) shall apply to 
     any equipment, article, or service for which a numbered 
     certification has been transmitted to Congress pursuant to 
     paragraph (1) in the same manner and to the same extent as 
     that subsection applies to any equipment, article, or service 
     for which a numbered certification has been transmitted to 
     Congress pursuant to subsection (b)(1). For purposes of such 
     application, any reference in subsection (b)(5) to `a letter 
     of offer' or `an offer' shall be deemed to be a reference to 
     `a contract'.''.

     SEC. 206. EXPANDED PROHIBITION ON INCENTIVE PAYMENTS.

       (a) In General.--Section 39A(a) of the Arms Export Control 
     Act (22 U.S.C. 2779a(a)) is amended--
       (1) by inserting ``or licensed'' after ``sold''; and
       (2) by inserting ``or export'' after ``sale''.
       (b) Definition of United States Person.--Section 
     39A(d)(3)(B)(ii) of the Arms Export Control Act (22 U.S.C. 
     2779a(d)(3)(B)(ii)) is amended by inserting ``or by an entity 
     described in clause (i)'' after ``subparagraph (A)''.

     SEC. 207. ADMINISTRATIVE FEES FOR LEASING OF DEFENSE 
                   ARTICLES.

       Section 61(a) of the Arms Export Control Act (22 U.S.C. 
     2796(a)) is amended in paragraph (4) of the first sentence by 
     inserting after ``including reimbursement for depreciation of 
     such articles while leased,'' the following: ``a fee for the 
     administrative services associated with processing such 
     leasing,''.

    TITLE III--STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES

     SEC. 301. ADDITIONS TO UNITED STATES WAR RESERVE STOCKPILES 
                   FOR ALLIES.

       Paragraph (2) of section 514(b) of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2321h(b)(2)) is amended to read as 
     follows:
       ``(2)(A) The value of such additions to stockpiles of 
     defense articles in foreign countries shall not exceed 
     $340,000,000 for fiscal year 1999 and $60,000,000 for fiscal 
     year 2000.
       ``(B)(i) Of the amount specified in subparagraph (A) for 
     fiscal year 1999, not more than $320,000,000 may be made 
     available for stockpiles in the Republic of Korea and not 
     more than $20,000,000 may be made available for stockpiles in 
     Thailand.
       ``(ii) Of the amount specified in subparagraph (A) for 
     fiscal year 2000, not more than $40,000,000 may be made 
     available for stockpiles in the Republic of Korea and not 
     more than $20,000,000 may be made available for stockpiles in 
     Thailand.''.

[[Page 12828]]



     SEC. 302. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE 
                   ARTICLES IN THE WAR RESERVES STOCKPILE FOR 
                   ALLIES.

       (a) Items in the Korean Stockpile.--
       (1) In general.--Notwithstanding section 514 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
     authorized to transfer to the Republic of Korea, in return 
     for concessions to be negotiated by the Secretary of Defense, 
     with the concurrence of the Secretary of State, any or all of 
     the items described in paragraph (2).
       (2) Covered items.--The items referred to in paragraph (1) 
     are munitions, equipment, and material such as tanks, trucks, 
     artillery, mortars, general purpose bombs, repair parts, 
     ammunition, barrier material, and ancillary equipment, if 
     such items are--
       (A) obsolete or surplus items;
       (B) in the inventory of the Department of Defense;
       (C) intended for use as reserve stocks for the Republic of 
     Korea; and
       (D) as of the date of enactment of this Act, located in a 
     stockpile in the Republic of Korea.
       (b) Items in the Thailand Stockpile.--
       (1) In general.--Notwithstanding section 514 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321h), the President is 
     authorized to transfer to Thailand, in return for concessions 
     to be negotiated by the Secretary of Defense, with the 
     concurrence of the Secretary of State, any or all of the 
     items in the WRS-T stockpile described in paragraph (2).
       (2) Covered items.--The items referred to in paragraph (1) 
     are munitions, equipment, and material such as tanks, trucks, 
     artillery, mortars, general purpose bombs, repair parts, 
     ammunition, barrier material, and ancillary equipment, if 
     such items are--
       (A) obsolete or surplus items;
       (B) in the inventory of the Department of Defense;
       (C) intended for use as reserve stocks for Thailand; and
       (D) as of the date of enactment of this Act, located in a 
     stockpile in Thailand.
       (c) Valuation of Concessions.--The value of concessions 
     negotiated pursuant to subsections (a) and (b) shall be at 
     least equal to the fair market value of the items 
     transferred. The concessions may include cash compensation, 
     services, waiver of charges otherwise payable by the United 
     States, and other items of value.
       (d) Prior Notifications of Proposed Transfers.--Not less 30 
     days before making a transfer under the authority of this 
     section, the President shall transmit to the chairmen of the 
     Committee on Foreign Relations of the Senate and the 
     Committee on International Relations of the House of 
     Representatives a detailed notification of the proposed 
     transfer, which shall include an identification of the items 
     to be transferred and the concessions to be received.
       (e) Termination of Authority.--No transfer may be made 
     under the authority of this section more than three years 
     after the date of enactment of this Act.

     TITLE IV--INTERNATIONAL ARMS SALES CODE OF CONDUCT ACT OF 1999

     SEC. 401. SHORT TITLE.

       This title may be cited as the ``International Arms Sales 
     Code of Conduct Act of 1999''.

     SEC. 402. FINDINGS.

       The Congress finds the following:
       (1) The proliferation of conventional arms and conflicts 
     around the globe are multilateral problems. The only way to 
     effectively prevent rogue nations from acquiring conventional 
     weapons is through a multinational ``arms sales code of 
     conduct''.
       (2) Approximately 40,000,000 people, over 75 percent of 
     whom were civilians, died as a result of civil and 
     international wars fought with conventional weapons during 
     the 45 years of the cold war, demonstrating that conventional 
     weapons can in fact be weapons of mass destruction.
       (3) Conflict has actually increased in the post cold war 
     era.
       (4) It is in the national security and economic interests 
     of the United States to reduce dramatically the 
     $840,000,000,000 that all countries spend on armed forces 
     every year, $191,000,000,000 of which is spent by developing 
     countries, an amount equivalent to 4 times the total 
     bilateral and multilateral foreign assistance such countries 
     receive every year.
       (5) The Congress has the constitutional responsibility to 
     participate with the executive branch in decisions to provide 
     military assistance and arms transfers to a foreign 
     government, and in the formulation of a policy designed to 
     reduce dramatically the level of international 
     militarization.
       (6) A decision to provide military assistance and arms 
     transfers to a government that is undemocratic, does not 
     adequately protect human rights, or is currently engaged in 
     acts of armed aggression should require a higher level of 
     scrutiny than does a decision to provide such assistance and 
     arms transfers to a government to which these conditions do 
     not apply.

     SEC. 403. INTERNATIONAL ARMS SALES CODE OF CONDUCT.

       (a) Negotiations.--The President shall attempt to achieve 
     the foreign policy goal of an international arms sales code 
     of conduct with all Wassenaar Arrangement countries. The 
     President shall take the necessary steps to begin 
     negotiations with all Wassenaar Arrangement countries within 
     120 days after the date of the enactment of this Act. The 
     purpose of these negotiations shall be to conclude an 
     agreement on restricting or prohibiting arms transfers to 
     countries that do not meet the following criteria:
       (1) Promotes democracy.--The government of the country--
       (A) was chosen by and permits free and fair elections;
       (B) promotes civilian control of the military and security 
     forces and has civilian institutions controlling the policy, 
     operation, and spending of all law enforcement and security 
     institutions, as well as the armed forces;
       (C) promotes the rule of law, equality before the law, and 
     respect for individual and minority rights, including freedom 
     to speak, publish, associate, and organize; and
       (D) promotes the strengthening of political, legislative, 
     and civil institutions of democracy, as well as autonomous 
     institutions to monitor the conduct of public officials and 
     to combat corruption.
       (2) Respects human rights.--The government of the country--
       (A) does not engage in gross violations of internationally 
     recognized human rights, including--
       (i) extra judicial or arbitrary executions;
       (ii) disappearances;
       (iii) torture or severe mistreatment;
       (iv) prolonged arbitrary imprisonment;
       (v) systematic official discrimination on the basis of 
     race, ethnicity, religion, gender, national origin, or 
     political affiliation; and
       (vi) grave breaches of international laws of war or 
     equivalent violations of the laws of war in internal 
     conflicts;
       (B) vigorously investigates, disciplines, and prosecutes 
     those responsible for gross violations of internationally 
     recognized human rights;
       (C) permits access on a regular basis to political 
     prisoners by international humanitarian organizations such as 
     the International Committee of the Red Cross;
       (D) promotes the independence of the judiciary and other 
     official bodies that oversee the protection of human rights;
       (E) does not impede the free functioning of domestic and 
     international human rights organizations; and
       (F) provides access on a regular basis to humanitarian 
     organizations in situations of conflict or famine.
       (3) Not engaged in certain acts of armed aggression.--The 
     government of the country is not currently engaged in acts of 
     armed aggression in violation of international law.
       (4) Full participation in u.n. register of conventional 
     arms.--The government of the country is fully participating 
     in the United Nations Register of Conventional Arms.
       (b) Reports to Congress.--(1) In the report required in 
     sections 116(d) and 502B of the Foreign Assistance Act of 
     1961, the Secretary of State shall describe the extent to 
     which the practices of each country evaluated meet the 
     criteria in paragraphs (1) through (4) of subsection (a).
       (2) Not later than 6 months after the commencement of the 
     negotiations under subsection (a), and not later than the end 
     of every 6-month period thereafter until an agreement 
     described in subsection (a) is concluded, the President shall 
     report to the appropriate committees of the Congress on the 
     progress made during these negotiations.
       (c) Definition.--The term ``Wassenaar Arrangement 
     countries'' means Argentina, Australia, Austria, Belgium, 
     Bulgaria, Canada, the Czech Republic, Denmark, Finland, 
     France, Germany, Greece, Hungary, Ireland, Italy, Japan, 
     Luxembourg, Netherlands, New Zealand, Norway, Poland, 
     Portugal, the Republic of Korea, Romania, Russia, Slovakia, 
     Spain, Sweden, Switzerland, Turkey, Ukraine, and the United 
     Kingdom.

 TITLE V--AUTHORITY TO EXEMPT INDIA AND PAKISTAN FROM CERTAIN SANCTIONS

     SEC. 501. WAIVER AUTHORITY.

       (a) Authority.--
       (1) In general.--Except as provided in subsection (b), the 
     President may waive, with respect to India or Pakistan, the 
     application of any sanction or prohibition (or portion 
     thereof) contained in section 101 or 102 of the Arms Export 
     Control Act (22 U.S.C. 2799aa or 2799aa-1), section 620E(e) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2375(e)), or 
     section 2(b)(4) of the Export Import Bank Act of 1945 (12 
     U.S.C. 635(b)(4)).
       (2) Effective date.--A waiver of the application of a 
     sanction or prohibition (or portion thereof) under paragraph 
     (1) shall be effective only for a period ending on or before 
     September 30, 2000.
       (b) Exception.--The authority to waive the application of a 
     sanction or prohibition (or portion thereof) under subsection 
     (a) shall not apply with respect to a sanction or prohibition 
     contained in subparagraph (B), (C), or (G) of section 
     102(b)(2) of the Arms Export Control Act.
       (c) Notification.--A waiver of the application of a 
     sanction or prohibition (or portion thereof) contained in 
     section 541 of the Foreign Assistance Act of 1961 shall not 
     become effective until 15 days after notice of such waiver 
     has been reported to the congressional committees specified 
     in section

[[Page 12829]]

     634A(a) of such Act in accordance with the procedures 
     applicable to reprogramming notifications under that section.

     SEC. 502. CONSULTATION.

       Prior to each exercise of the authority provided in section 
     501, the President shall consult with the appropriate 
     congressional committees.

     SEC. 503. REPORTING REQUIREMENT.

       Not later than August 31, 2000, the Secretary of State 
     shall prepare and submit to the appropriate congressional 
     committees a report on economic and national security 
     developments in India and Pakistan.

     SEC. 504. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

       In this title, the term ``appropriate congressional 
     committees'' means--
       (1) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       (2) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate.

    TITLE VI--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES

     SEC. 601. AUTHORITY TO TRANSFER NAVAL VESSELS.

       (a) Dominican Republic.--The Secretary of the Navy is 
     authorized to transfer to the Government of the Dominican 
     Republic the medium auxiliary floating dry dock AFDM 2. Such 
     transfer shall be on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
       (b) Ecuador.--The Secretary of the Navy is authorized to 
     transfer to the Government of Ecuador the ``OAK RIDGE'' class 
     medium auxiliary repair dry dock ALAMOGORDO (ARDM 2). Such 
     transfer shall be on a sales basis under section 21 of the 
     Arms Export Control Act (22 U.S.C. 2761).
       (c) Egypt.--The Secretary of the Navy is authorized to 
     transfer to the Government of Egypt the ``NEWPORT'' class 
     tank landing ships BARBOUR COUNTY (LST 1195) and PEORIA (LST 
     1183). Such transfers shall be on a sales basis under section 
     21 of the Arms Export Control Act (22 U.S.C. 2761).
       (d) Greece.--(1) The Secretary of the Navy is authorized to 
     transfer to the Government of Greece the ``KNOX'' class 
     frigate CONNOLE (FF 1056). Such transfer shall be on a grant 
     basis under section 516 of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j).
       (2) The Secretary of the Navy is authorized to transfer to 
     the Government of Greece the medium auxiliary floating dry 
     dock COMPETENT (AFDM 6). Such transfer shall be on a sales 
     basis under section 21 of the Arms Export Control Act (22 
     U.S.C. 2761).
       (e) Mexico.--The Secretary of the Navy is authorized to 
     transfer to the Government of Mexico the ``NEWPORT'' class 
     tank landing ship NEWPORT (LST 1179) and the ``KNOX'' class 
     frigate WHIPPLE (FF 1062). Such transfers shall be on a sales 
     basis under section 21 of the Arms Export Control Act (22 
     U.S.C. 2761).
       (f) Poland.--The Secretary of the Navy is authorized to 
     transfer to the Government of Poland the ``OLIVER HAZARD 
     PERRY'' class guided missile frigate CLARK (FFG 11). Such 
     transfer shall be on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j).
       (g) Taiwan.--The Secretary of the Navy is authorized to 
     transfer to the Taipei Economic and Cultural Representative 
     Office in the United States (which is the Taiwan 
     instrumentality designated pursuant to section 10(a) of the 
     Taiwan Relations Act) the ``NEWPORT'' class tank landing ship 
     SCHENECTADY (LST 1185). Such transfer shall be on a sales 
     basis under section 21 of the Arms Export Control Act (22 
     U.S.C. 2761).
       (h) Thailand.--The Secretary of the Navy is authorized to 
     transfer to the Government of Thailand the ``KNOX'' class 
     frigate TRUETT (FF 1095). Such transfer shall be on a grant 
     basis under section 516 of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2321j).
       (i) Turkey.--The Secretary of the Navy is authorized to 
     transfer to the Government of Turkey the ``OLIVER HAZARD 
     PERRY'' class guided missile frigates FLATLEY (FFG 21) and 
     JOHN A. MOORE (FFG 19). Such transfers shall be on a sales 
     basis under section 21 of the Arms Export Control Act (22 
     U.S.C. 2761).

     SEC. 602. INAPPLICABILITY OF AGGREGATE ANNUAL LIMITATION ON 
                   VALUE OF TRANSFERRED EXCESS DEFENSE ARTICLES.

       The value of a vessel transferred to another country on a 
     grant basis under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j) pursuant to authority provided by 
     section 601 shall not be counted for the purposes of section 
     516(g) of the Foreign Assistance Act of 1961 in the aggregate 
     value of excess defense articles transferred to countries 
     under that section in any fiscal year.

     SEC. 603. COSTS OF TRANSFERS.

       Any expense incurred by the United States in connection 
     with a transfer of a vessel authorized by section 601 shall 
     be charged to the recipient.

     SEC. 604. EXPIRATION OF AUTHORITY.

       The authority to transfer vessels under section 601 shall 
     expire at the end of the 2-year period beginning on the date 
     of the enactment of this Act.

     SEC. 605. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED 
                   STATES SHIPYARDS.

       The Secretary of the Navy shall require, to the maximum 
     extent possible, as a condition of a transfer of a vessel 
     under section 601, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.

     SEC. 606. SENSE OF CONGRESS RELATING TO TRANSFER OF NAVAL 
                   VESSELS AND AIRCRAFT TO THE GOVERNMENT OF THE 
                   PHILIPPINES.

       (a) Sense of Congress.--It is the sense of the Congress 
     that--
       (1) the President should transfer to the Government of the 
     Philippines, on a grant basis under section 516 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j), the excess 
     defense articles described in subsection (b); and
       (2) the United States should not oppose the transfer of F-5 
     aircraft by a third country to the Government of the 
     Philippines.
       (b) Excess Defense Articles.--The excess defense articles 
     described in this subsection are the following:
       (1) UH-1 helicopters, A-4 aircraft, and the ``POINT'' class 
     Coast Guard cutter POINT EVANS.
       (2) Amphibious landing craft, naval patrol vessels 
     (including patrol vessels of the Coast Guard), and other 
     naval vessels (such as frigates), if such vessels are 
     available.

                  TITLE VII--MISCELLANEOUS PROVISIONS

     SEC. 701. ANNUAL MILITARY ASSISTANCE REPORTS.

       Section 655(b) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2415(b)) is amended to read as follows:
       ``(b) Information Relating to Military Assistance and 
     Military Exports.--Each such report shall show the aggregate 
     dollar value and quantity of defense articles (including 
     excess defense articles), defense services, and international 
     military education and training activities authorized by the 
     United States and of such articles, services, and activities 
     provided by the United States, excluding any activity that is 
     reportable under title V of the National Security Act of 
     1947, to each foreign country and international organization. 
     The report shall specify, by category, whether such defense 
     articles--
       ``(1) were furnished by grant under chapter 2 or chapter 5 
     of part II of this Act or under any other authority of law or 
     by sale under chapter 2 of the Arms Export Control Act;
       ``(2) were furnished with the financial assistance of the 
     United States Government, including through loans and 
     guarantees; or
       ``(3) were licensed for export under section 38 of the Arms 
     Export Control Act.''.

     SEC. 702. PUBLICATION OF ARMS SALES CERTIFICATIONS.

       Section 36 of the Arms Export Control Act (22 U.S.C. 2776) 
     is amended in the second subsection (e) (as added by section 
     155 of Public Law 104-164)--
       (1) by inserting ``in a timely manner'' after ``to be 
     published''; and
       (2) by striking ``the full unclassified text of'' and all 
     that follows and inserting the following: ``the full 
     unclassified text of--
       ``(1) each numbered certification submitted pursuant to 
     subsection (b);
       ``(2) each notification of a proposed commercial sale 
     submitted under subsection (c); and
       ``(3) each notification of a proposed commercial technical 
     assistance or manufacturing licensing agreement submitted 
     under subsection (d).''.

     SEC. 703. NOTIFICATION REQUIREMENTS FOR COMMERCIAL EXPORT OF 
                   SIGNIFICANT MILITARY EQUIPMENT ON UNITED STATES 
                   MUNITIONS LIST.

       (a) Notification Requirement.--Section 38 of the Arms 
     Export Control Act (22 U.S.C. 2778) is amended by adding at 
     the end the following:
       ``(i) As prescribed in regulations issued under this 
     section, a United States person to whom a license has been 
     granted to export an item identified as significant military 
     equipment on the United States Munitions List shall, not 
     later than 15 days after the item is exported, submit to the 
     Department of State a report containing all shipment 
     information, including a description of the item and the 
     quantity, value, port of exit, and destination of the 
     item.''.
       (b) Quarterly Reports to Congress.--Section 36(a) of the 
     Arms Export Control Act (22 U.S.C. 2776(a)) is amended--
       (A) in paragraph (11), by striking ``and'' at the end;
       (B) in paragraph (12), by striking ``third-party 
     transfers.'' and inserting ``third-party transfers; and''; 
     and
       (C) by adding after paragraph (12) (but before the last 
     sentence of the subsection), the following:
       ``(13) a report on all exports of significant military 
     equipment for which information has been provided pursuant to 
     section 38(i).''.

     SEC. 704. ENFORCEMENT OF ARMS EXPORT CONTROL ACT.

       The Arms Export Control Act (22 U.S.C. 2751 et seq.) is 
     amended in sections 38(e), 39A(c), and 40(k) by inserting 
     after ``except that'' each place it appears the following: 
     ``section 11(c)(2)(B) of such Act shall not apply, and 
     instead, as prescribed in regulations issued under this 
     section, the Secretary of State may assess civil penalties 
     for

[[Page 12830]]

     violations of this Act and regulations prescribed thereunder 
     and further may commence a civil action to recover such civil 
     penalties, and except further that''.

     SEC. 705. VIOLATIONS RELATING TO MATERIAL SUPPORT TO 
                   TERRORISTS.

       Section 38(g)(1)(A)(iii) of the Arms Export Control Act (22 
     U.S.C. 2778(g)(1)(A)(iii)) is amended by adding at the end 
     before the comma the following: ``or section 2339A of such 
     title (relating to providing material support to 
     terrorists)''.

     SEC. 706. AUTHORITY TO CONSENT TO THIRD PARTY TRANSFER OF EX-
                   U.S.S. BOWMAN COUNTY TO USS LST SHIP MEMORIAL, 
                   INC.

       (a) Findings.--Congress makes the following findings:
       (1) It is the long-standing policy of the United States 
     Government to deny requests for the retransfer of significant 
     military equipment that originated in the United States to 
     private entities.
       (2) In very exceptional circumstances, when the United 
     States public interest would be served by the proposed 
     retransfer and end-use, such requests may be favorably 
     considered.
       (3) Such retransfers to private entities have been 
     authorized in very exceptional circumstances following 
     appropriate demilitarization and receipt of assurances from 
     the private entity that the item to be transferred would be 
     used solely in furtherance of Federal Government contracts or 
     for static museum display.
       (4) Nothing in this section should be construed as a 
     revision of long-standing policy referred to in paragraph 
     (1).
       (5) The Government of Greece has requested the consent of 
     the United States Government to the retransfer of HS Rodos 
     (ex-U.S.S. Bowman County (LST 391)) to the USS LST Ship 
     Memorial, Inc.
       (b) Authority To Consent to Retransfer.--
       (1) In general.--Subject to paragraph (2), the President 
     may consent to the retransfer by the Government of Greece of 
     HS Rodos (ex-U.S.S. Bowman County (LST 391)) to the USS LST 
     Ship Memorial, Inc..
       (2) Conditions for consent.--The President should not 
     exercise the authority under paragraph (1) unless USS LST 
     Memorial, Inc.--
       (A) utilizes the vessel for public, nonprofit, museum-
     related purposes;
       (B) submits a certification with the import application 
     that no firearms frames or receivers, ammunition, or other 
     firearms as defined in section 5845 of the National Firearms 
     Act (26 U.S.C. 5845) will be imported with the vessel; and
       (C) complies with regulatory policy requirements related to 
     the facilitation of monitoring by the Federal Government of, 
     and the mitigation of potential environmental hazards 
     associated with, aging vessels, and has a demonstrated 
     financial capability to so comply.

     SEC. 707. EXCEPTIONS RELATING TO PROHIBITIONS ON ASSISTANCE 
                   TO COUNTRIES INVOLVED IN TRANSFER OR USE OF 
                   NUCLEAR EXPLOSIVE DEVICES.

       (a) In General.--Section 2 of the Agriculture Export Relief 
     Act of 1998 (Public Law 105-194; 112 Stat. 627) is amended--
       (1) by striking subsection (d); and
       (2) by striking the second sentence of subsection (e).
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect on the date of the enactment of this Act or 
     September 30, 1999, whichever occurs earlier.

     SEC. 708. CONTINUATION OF THE EXPORT CONTROL REGULATIONS 
                   UNDER IEEPA.

       To the extent that the President exercises the authorities 
     of the International Emergency Economic Powers Act to carry 
     out the provisions of the Export Administration Act of 1979 
     in order to continue in full force and effect the export 
     control system maintained by the Export Administration 
     regulations issued under that Act, including regulations 
     issued under section 8 of that Act, the following shall 
     apply:
       (1) The penalties for violations of the regulations 
     continued pursuant to the International Emergency Economic 
     Powers Act shall be the same as the penalties for violations 
     under section 11 of the Export Administration Act of 1979, as 
     if that section were amended--
       (A) by amending subsection (a) to read as follows:
       ``(a) In General.--Except as provided in subsection (b), 
     whoever knowingly violates or conspires to or attempts to 
     violate any provision of this Act or any license, order, or 
     regulation issued under this Act--
       ``(1) except in the case of an individual, shall be fined 
     not more than $500,000 or 5 times the value of any exports 
     involved, whichever is greater; and
       ``(2) in the case of an individual, shall be fined not more 
     than $250,000 or 5 times the value of any exports involved, 
     whichever is greater, or imprisoned not more than 5 years, or 
     both.'';
       (B) in subsection (b)--
       (i) in paragraphs (1)(A) and (2)(A) by striking ``five 
     times'' and inserting ``10 times''; and
       (ii) in paragraph (1)(B) by striking ``$250,000'' and 
     inserting ``$500,000''; and
       (iii) in paragraph (2)(B) by striking ``$250,000, or 
     imprisoned not more than 5 years'' and inserting ``$500,000, 
     or imprisoned not more than 10 years'';
       (C) in subsection (c)(1)--
       (i) by striking ``$10,000'' and inserting ``$250,000''; and
       (ii) by striking ``except that the civil penalty'' and all 
     that follows through the end of the paragraph and inserting 
     ``except that the civil penalty for a violation of the 
     regulations issued pursuant to section 8 may not exceed 
     $50,000.''; and
       (D) in subsection (h)(1), by inserting after ``Arms Export 
     Control Act (22 U.S.C. 2778)'' the following: ``section 16 of 
     the Trading with the enemy Act (50 U.S.C. 16), or, to the 
     extent the violation involves the export of goods or 
     technology controlled under this or any other Act or defense 
     articles or defense services controlled under the Arms Export 
     Control Act, section 371 or 1001 of title 18, United States 
     Code,''.
       (2) The authorities set forth in section 12(a) of the 
     Export Administration Act of 1979 may be exercised in 
     carrying out the regulations continued pursuant to the 
     International Emergency Economic Powers Act.
       (3) The provisions of sections 12(c) and 13 of the Export 
     Administration Act of 1979 shall apply in carrying out the 
     regulations continued pursuant to the International Emergency 
     Economic Powers Act.
       (4) The continuation of the provisions of the Export 
     Administration Regulations pursuant to the International 
     Emergency Economic Powers Act shall not be construed as not 
     having satisfied the requirements of that Act.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New 
York (Mr. Gilman) and the gentleman from Connecticut (Mr. Gejdenson) 
each will control 20 minutes.
  The Chair recognizes the gentleman from New York (Mr. Gilman).


                             General Leave

  Mr. GILMAN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on H.R. 973.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.
  Mr. GILMAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I am pleased to bring to the House floor H.R. 973, the 
Security Assistance Act of 1999.
  I want to extend my appreciation to the gentleman from Connecticut 
(Mr. Gejdenson), the ranking member on our committee, for his support 
of this legislation.
  This bill modifies authorities with respect to the provision of 
security assistance under the Foreign Assistance Act of 1961 and the 
Arms Export Control Act.
  These provisions address the transfer of excess defense articles, and 
amendments to our foreign military sales program including additional 
notification requirements for arms sales, new reporting requirements 
for offset agreements associated with arms transfers, and ensuring DOD 
charges foreign customers for the administrative cost of processing 
leases.
  This bill also modifies authorities to provide for the stockpiling of 
defense articles in foreign countries for use by our U.S. forces. Two 
additional provisions regarding annual military assistance reports and 
publications of arms sales certifications will bring greater 
transparency to our arms transfer process.
  This measure also extends for 1 fiscal year the waiver authority 
which exempts India and Pakistan from certain sanctions imposed 
pursuant to the nuclear tests last year. Last week the other Chamber 
passed legislation suspending many of these sanctions for a period of 5 
years.
  It is my intention to work with Senator Brownback and other Senators 
and House Members to ensure that legislation suspending India and 
Pakistan from certain sanctions becomes law.
  I do have specific concerns about the bill passed in the other 
Chamber, and we want to carefully analyze it before proceeding. In 
particular, we need to consider linking any changes in current law 
regarding transfers of sales of military equipment to Pakistan to 
verifiable evidence that Pakistan ceases all destabilizing activities 
in Kashmir.
  In addition, the bill also contains a permanent exemption for USDA 
export credits and credit guarantees of those programs subject to 
termination for

[[Page 12831]]

nations that violate our nuclear proliferation laws. Extending these 
waivers recognizes the small but important steps each of these 
countries have taken to move forward on the nonproliferation agenda as 
well as improved bilateral ties between the countries.
  This bill contains compromise language on a Code of Conduct governing 
arms sales, which was worked out by the gentleman from Connecticut (Mr. 
Gejdenson), our ranking member, and the gentlewoman from Georgia (Ms. 
McKinney), who have long championed this important issue.
  This legislation also authorizes the transfer of 10 vessels to 8 
nations: to the Dominican Republic, to Equador, Egypt, Greece, Mexico, 
Poland, Taiwan, and Turkey. These transfers, which have been requested 
by the DOD, will generate over $80 million for our Treasury, in 
addition to an additional $250 million for training, for supplies and 
for support and repair services, and U.S. Government and U.S. private 
shipyards are going to realize between $100 million and $140 million to 
accomplish the required reactivation work in order to transfer these 
vessels.
  Finally, this legislation protects our national security and enacts 
one of the key bipartisan Cox committee recommendations by increasing 
the criminal and civil penalties that can be imposed against any U.S. 
company that violates U.S. export control laws.
  The Department of State and Department of Defense support this 
measure. Many of the provisions have been requested by the 
administration.
  In sum, H.R. 973 helps protect our national security by modifying 
U.S. laws that govern the provision of security assistance worldwide. 
It enacts a key bipartisan recommendation of the Cox committee to 
impose stiffer penalties against companies that violate our export 
control laws. It helps our farmers and exporters by providing permanent 
waiver authority for agricultural products and for medicine for export 
to India and to Pakistan. And it generates revenue for our Treasury and 
our Government and private shipyards by the sale of naval vessels to 
foreign nations.
  Accordingly, I urge my colleagues to fully support this legislation.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GEJDENSON. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I am privileged to be here with the chairman of the 
committee and to support this legislation. The gentleman from New York 
(Mr. Gilman) has done a yeoman's work here in working with Members on 
both sides of the aisle.
  I am particularly pleased to see two major provisions in this 
legislation, at first the Code of Conduct that I think is so important. 
And I am a great believer that we need to focus on nuclear, chemical 
and biological weapons, but conventional weapons still kill more people 
than almost anything else, and we should not be in the process of an 
arms race in the poorest countries on this planet.
  We need to make sure that we take the major producers of these 
systems and try to restrain the kind of sales that will only impoverish 
these nations and not make them stronger or more secure. To the 
contrary, spending massive amounts of money on these system also 
impoverish and destabilize these countries.
  Additionally, we have the Glenn amendment sanctions and the waiver 
for another year in India and Pakistan, both important countries to the 
United States. India, the largest, most populous democracy on this 
planet, is a country that we have strong ties with and relationships 
that we want to develop.

                              {time}  1145

  My own State of Connecticut and district had Chet Bowles as 
Ambassador twice to India who is credited for establishing a good 
relationship with India and saving it through some of the toughest 
times. India is the most populous democracy. We need to work with them 
and be closer to that great democratic society.
  Also, the bill increases penalties for violations of the export 
control regulations, the Export Administration Act of 1979, and 
strengthens the enforcement of the Arms Export Control Act.
  Particularly important to me are the increased penalties. I have 
often argued that what we want to do is focus on a smaller number of 
challenges, but when we get to those challenges, we find somebody who 
is violating dual use or selling to countries like Iran, Iraq or North 
Korea, that we should make sure the penalties are significant and not 
simply look at it as a cost of doing business. There has been such a 
time lag between when the original legislation passed that some of 
these companies may be making millions of dollars on a sale, and if the 
penalty is tens of thousands of dollars, it may simply be, well, that 
is the price of doing business.
  So I think this is the right kind of action, and I think we need to 
again continue to focus on the problem areas and not just have a broad 
net that frankly does more damage to our country than good.
  This is important legislation, it is bipartisan and broadly 
supported.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GILMAN. Mr. Speaker, I yield such time as he may consume to the 
gentleman from South Carolina (Mr. Spence) the distinguished chairman 
of the Committee on Armed Services, for the purposes of a colloquy.
  Mr. SPENCE. Mr. Speaker, I thank the gentleman for yielding this time 
to me.
  Let me begin by first thanking the gentleman for working with me and 
my staff on mutually agreeable modifications to section 608 of this 
bill dealing with penalties under the Export Administration Act or the 
EAAA. The issue of how best to control the export of sensitive, dual-
use military technology lies at the heart of most of the recent 
revelations and scandals over militarily sensitive technologies being 
acquired by China and other potential adversaries around the world.
  Our two communities have over the years done considerable work in 
this area. While not always in agreement on the best approach, mutually 
we recognize these issues to be of critical importance to both the 
national security and economic well-being of the Nation.
  As such, it is my strong belief that any effort by Congress to modify 
or reform the statutory framework underlying the United States export 
control policy should only occur after careful debate, consideration 
and deliberation afforded through the regular legislative process. 
Therefore, I ask the gentleman to confirm that it is his understanding 
and commitment that this legislation, which does contain an important 
improvement in this level of sanctions imposed on firms that violate 
the EAA will not be used as a legislative vehicle for any broader 
policy change or revision to the EAA itself or to United States export 
control policy.
  Mr. GILMAN. Mr. Speaker, will the gentleman yield?
  Mr. SPENCE. I yield to the gentleman from New York.
  Mr. GILMAN. The gentleman is absolutely correct. This legislation 
narrowly focuses on a much needed increase in the level of penalties 
that would result from violations to the EAA and associated 
implementing regulations. The distinguished chairman has my commitment 
and assurance that this bill will not be transformed into a broader 
rewrite of the EAA or U.S. export control policy.
  Mr. SPENCE. Mr. Speaker, I thank the gentleman for that assurance and 
further would inquire as to whether or not it is the gentleman's 
understanding that this same understanding and commitment is shared by 
the Speaker of the House.
  Mr. GILMAN. It is my understanding that the Speaker shares my 
position on this matter and would similarly not support using a 
legislative vehicle to pursue any broader reform of U.S. export control 
policy.
  Mr. SPENCE. Again, I would thank the gentleman for his commitment and 
for his cooperation on this important issue.
  Mr. GILMAN. Mr. Speaker, I reserve the balance of my time.
  Mr. GEJDENSON. Mr. Speaker, I yield 5 minutes to the gentleman from 
New Jersey (Mr. Pallone).

[[Page 12832]]


  Mr. PALLONE. Mr. Speaker, the legislation introduced by the 
distinguished chairman of the Committee on International Relations, the 
gentleman from New York (Mr. Gilman), contains an important provision 
regarding the sanctions that were imposed last year on India and 
Pakistan following the nuclear tests conducted by the two south Asian 
nations. The legislation would extend for another year the waiver 
authority provided for under the Omnibus Appropriations Act for Fiscal 
Year 1999, giving the President the authority to waive the unilateral 
U.S. sanctions that were imposed pursuant to the Glenn amendment of the 
Arms/Export Control Act.
  Mr. Speaker, I want to thank both the gentleman from New York (Mr. 
Gilman) and our ranking member, the gentleman from Connecticut (Mr. 
Gejdenson), for their leadership on this issue. They have clearly been 
working for progress on resolving the sanctions issue.
  I would, however, stress that I believe we should be going further 
than the 1-year extension provided for in this legislation. Last week 
the other body, the Senate, approved an amendment to the fiscal year 
2000 defense appropriations bill that would suspend for 5 years the 
sanctions against India and Pakistan, and I would note that our 
chairman already indicated in the speech that he made just prior to 
mine or earlier today that he, too, would like to go much further.
  Mr. GILMAN. Mr. Speaker, will the gentleman yield?
  Mr. PALLONE. I yield to the gentleman from New York.
  Mr. GILMAN. Mr. Speaker, I want the gentleman to know I look forward 
to working with him on this important issue. It is my intention to 
introduce a bill shortly which mirrors in most instances the provisions 
that are contained in the bill recently adopted by the other body, and 
I hope the gentleman from New Jersey will be able to work with me in 
supporting that legislation as we move through the legislative process 
to make certain that we change our law to suspend certain sanctions 
against both India and Pakistan.
  Mr. PALLONE. Mr. Speaker, I want to thank the gentleman from New York 
for his leadership on this issue and agree with what he just said about 
the need to move more towards what the Senate has proposed in most 
respects.
  Let me just say briefly, if I could, Mr. Speaker, that I believe that 
giving the administration waiver authority does not fully accomplish 
the goal of getting the U.S.-India relationship back on track and 
restoring confidence in the future of that relationship. The problem 
with the waiver authority that we have had in the last year is that the 
broad discretion given to the President means more of the same 
incremental carrot and stick approach. In other words, one of the 
requirements of the Glenn amendment is that the United States oppose 
World Bank loans to India that do not meet the strict definition of 
humanitarian needs. World Bank projects have the ability to improve the 
health and welfare of the people of India, and we should support those.
  Similarly, USAID projects in India that do not meet strict 
humanitarian criteria but which still make a huge difference for the 
quality of the life of people have been blocked by the President's 
refusal to grant the waiver, and we should not allow these important 
development projects to be held hostage to our diplomatic 
considerations.
  I just wanted to mention that I have introduced legislation to 
permanently repeal the sanctions. I am also drafting a sense of the 
Congress resolution similar to the provision in the Senate bill that 
states that export control should be applied only to those Indian and 
Pakistani entities that make direct and material contributions to 
weapons of mass destruction and missile programs and only those items 
that can contribute to such programs.
  I have long been critical of the administration's so-called entities 
list which has targeted a wide range of commercial and government 
entities in India but have no bearing on nuclear proliferation or other 
national security concerns but which have been prohibited from contacts 
with U.S. entities.
  Now I wanted to say one thing, and I do not know what the position of 
the gentleman from New York (Mr. Gilman) is on this, but one negative 
provision in the Senate bill in the Brownback amendment, which I hope 
we do not include in the House, is the language to repeal the Pressler 
amendment which bans U.S. military assistance to Pakistan. I think we 
should retain the Pressler amendment since nothing has changed to 
justify its repeal, and I do want to emphasize that I do support 
removing the economic sanctions on Pakistan, but not military 
cooperation.
  Mr. Speaker, as is demonstrated by the Senate action last week and 
today's action in the House and a statement by our chairman, the 
gentleman from New York (Mr. Gilman) there is bipartisan and bicameral 
support for putting the U.S.-India relationship back on track, and I 
just want to thank both the chairman and the ranking member for their 
leadership and look forward to working with them for continued 
progress.
  Mr. GILMAN. Mr. Speaker, I thank the gentleman from New Jersey (Mr. 
Pallone) for his intercession on this and for his comments.
  Mr. Speaker, I yield 5 minutes to the gentleman from California (Mr. 
Rohrabacher), a member of our committee.
  Mr. ROHRABACHER. Mr. Speaker, I want to thank the gentleman from New 
York (Mr. Gilman) and the gentleman from Connecticut (Mr. Gejdenson) 
for incorporating my amendment into this legislation, H.R. 963, that 
calls for the transfer of excess naval and Coast Guard patrol vessels 
and fixed wing aircraft and helicopters to the Republic of the 
Philippines.
  We should be under no illusion. The Philippines is a strategic 
partner, and I think those words have been misused by this 
administration in regard to China, but certainly the Philippines with a 
democratic government is a strategic, a vital strategic, partner of the 
United States and is a front line Nation in the growing designs of 
China to militarily control the Pacific in the 21st century. The 
ongoing Chinese construction of naval bases and facilities and 
fortifications in the Spratley Islands and repeated incursions of 
warships and fishing fleets into Philippine territorial waters has 
increased the urgency of our longtime ally's need to modernize its 
naval and air patrol capabilities. I believe that the current 
availability of excess U.S. defense articles such as POINT class Coast 
Guard cutters, and in this case it is the Point Evans, and UH-1 
helicopters and A-4 aircraft would make an immediate impact on 
strengthening the Philippines' defense capabilities.
  And the section also instructs our government to offer the naval 
vessels such as frigates, amphibious landing craft and cutters to the 
Philippines when available, and the section instructs our government 
not to oppose the transfer of F-5 aircraft by third countries to the 
Philippines.
  This section of H.R. 9063 reaffirms the importance of America's 
friendship and mutual defense partnership with the people of the 
Philippines and their democratic government, and the most important 
phrase is ``their democratic government.'' They have just recently 
passed a Visiting Forces Agreement in which American military personnel 
will be able to, permitted, to come to the Philippines and transit and 
to land there for rest and relaxation purposes. They are strengthening 
ties with the Philippines, and all of this happening while the 
Philippines has been expanding the concepts of democracy and freedom 
and liberty and justice that we hold so dear here in the United States.
  In fact, part of this overall legislation, part of H.R. 963, is a 
code of conduct provision that has been spearheaded by the gentlewoman 
from Georgia (Ms. McKinney) and myself, and I would like to take this 
opportunity to congratulate Ms. McKinney on her efforts to ensure that 
American military equipment not be sent to dictatorships.
  So I would like to add my congratulations to the gentlewoman from 
Georgia (Ms. McKinney) who spent a lot of time and effort to make sure 
that when

[[Page 12833]]

we are transferring weapons, especially modern weapons of mass 
destruction that we built for the Cold War, trying to deter war with 
the Soviet Union, that now those weapons will not find their way in 
into the hands of dictatorships, nor should weapons manufacturers who 
are building weapons today be selling weapons that will permit these 
dictatorships to oppress their own people and to commit acts of 
aggression against their neighbors.
  So I salute the gentlewoman from Georgia (Ms. McKinney) and have been 
very happy to join with her on this effort.
  I think it is a tragedy that the United States of America, that our 
government, has been treating dictatorships the same as we do 
democracies. We have most-favored-nation status with China which 
encourages people to invest in China, while democratic countries like 
the Philippines and countries like Indonesia, struggling to be 
democracies, and other countries around the world that are trying to 
develop their democratic institutions that could use investment in 
their countries; but instead here we provide Vietnam with an equivalent 
of a most-favored-nation status; China, a communist China, 
dictatorships like that, in order to encourage American businessmen to 
invest in those countries that are ruled by vicious dictatorships 
rather than investing in countries like the Philippines.
  Again I thank the chairman and the ranking member of the committee 
for including my provisions into H.R. 963 which will, at the very 
least, help the Philippines and aim towards the Philippines, a country 
that is struggling now with a major national security threat while at 
the same time having democratic elections, freedom of the press and 
freedom of religion, the things that we hold true, and they want to be 
friends of the United States.
  So this is a very good sign to the people of Philippines and the 
other people throughout the world struggling to have democratic 
government.

                              {time}  1200

  Mr. GEJDENSON. Mr. Speaker, I yield 3 minutes to the distinguished 
gentleman from Massachusetts (Mr. McGovern).
  Mr. McGOVERN. Mr. Speaker, I thank the gentleman for yielding me this 
time. I rise in support of H.R. 973, the Security Assistance Act of 
1999. I want to thank the distinguished chairman, the gentleman from 
New York (Mr. Gilman), and the ranking member, the gentleman from 
Connecticut (Mr. Gejdenson), for bringing this bipartisan bill before 
the House for consideration.
  Mr. Speaker, section 706 of this bill has special meaning for me and 
for hundreds of World War II Navy veterans in Massachusetts. It will 
allow the transfer of the U.S.S. Bowman County, currently in Greece, to 
the veterans who make up the LST Ship Memorial, Incorporated, a 
nonprofit organization. They will operate the vessel as a memorial to 
the veterans of World War II amphibious landings so that all Americans 
might learn of their deeds, their bravery and their sacrifice.
  The U.S.S. Bowman County is the last of her kind and played an 
important role during D-Day, the invasion of Normandy on June 6, 1944. 
Time and again, this gallant landing craft returned to Omaha Beach, 
through murderous gunfire, to unload more men and replenish equipment. 
It was during one of these return trips that she struck a German mine.
  Prior to Normandy, the U.S.S. Bowman County served in the invasions 
of North Africa and Sicily. After World War II, it transported 
prisoners of war until transferred to Greece. Today, Greece has 
requested the transfer of this ship back to the United States and to 
the control of the U.S.S. LST Ship Memorial. This is a third-party 
transfer, Mr. Speaker, at no cost to the United States Government.
  This transfer will recognize a group of veterans who put their lives 
in harm's way for all of us. Many of their shipmates lost their lives 
during amphibious assaults, and returning the LST to their care is one 
way we can all honor the men who carried out their duties, who are 
still with us, and to honor those who gave their lives for our freedom. 
Among those living veterans is Peter Leasca of Worcester, 
Massachusetts, and other members of the LST Association of 
Massachusetts, who have worked so long to bring the U.S.S. Bowman 
County home.
  In the last Congress, the House approved a bill to provide for this 
transfer, but the Senate failed to act. In January, the gentleman from 
Texas (Mr. Hall) and I introduced H.R. 146 to provide for this 
transfer, and I am pleased that that bill has been incorporated into 
H.R. 973, as well as into the Defense Authorization bill that passed 
the House last week.
  Mr. Speaker, I urge my colleagues to honor these Navy veterans by 
approving H.R. 973 today.
  Mr. POMEROY. Mr. Speaker, I rise in strong support of the Security 
Assistance Act of 1999, I commend Chairman Gilman and Mr. Gedjenson for 
their bipartisan work on this legislation.
  The Security Assistance Act includes several important measures that 
will enhance our nation's security. The bill updates and codifies U.S. 
policy with respect to the transfer of military items, it directs the 
President to negotiate an international ``code of conduct'' to control 
the sale of arms to governments that violate human rights, it increases 
penalties for violations of the arms export laws, and it strengthens 
the role of Congress in overseeing arms exports. This bill is 
especially timely and appropriate in light of recent revelations of 
Chinese espionage activities and our ongoing concern over the 
proliferation of advanced weapons among rogue nations.
  In addition to its national security provisions, the Security 
Assistance Act is one of two bills the House will consider today that 
together represent a significant victory for American farmers in the 
fight to reform our sanctions policy. This bill, and the Selective 
Agriculture Embargoes Act considered earlier, reflects a growing 
bipartisan acknowledgment that unilateral food sanctions have failed to 
achieve our foreign policy objectives while causing significant harm to 
American farmers by denying them access to valuable export markets. 
This bill recognizes that we have many tools in our arsenal to fight 
the proliferation of weapons, but that food should not be among them.
  Specifically, I would like to thank Chairman Gilman for including 
Section 602 in this bill, which permanently excludes USDA export 
programs from the list of programs subject to elimination under the 
Arms Export Control Act. My colleagues will remember that this issue 
surfaced last spring following the nuclear detonations by India and 
Pakistan. At the time, the Administration determined that the Arms 
Export Control Act required the termination of credit guarantees to 
both countries. In the case of Pakistan, the loss of credit guarantees 
threatened to halt the sale of U.S. wheat to the third largest market 
in the world for our wheat farmers. The Canadians, Australians, and 
Europeans were eagerly standing by to fill the vacuum. Fortunately, 
Congress acted swiftly with the support of the Administration to enact 
legislation exempting agriculture export programs from the Arms Export 
Control Act for a period of one year, ending September 30, 1999. With 
the expiration of this earlier legislation now only 14 weeks away, 
however, the Security Assistance Act is needed to provide permanent 
assurance that our vital agriculture export tools will remain at our 
disposal.
  In summary, I thank the Chairman and his staff for including this 
provision in the bill, and I strongly urge my colleagues to support the 
Security Assistance Act.
  Mr. BEREUTER. Mr. Speaker, this Member rises in strong support of 
H.R. 973, the Security Assistance Act of 1999. This Member 
congratulates the Chairman of the Committee on International Relations, 
the distinguished gentleman from New York [Mr. Gilman] for his action 
in bringing this legislation before this body.
  There are many important elements to the legislation before this body 
today. This Member will draw attention only to two key elements.
  Representing the great state of Nebraska, this Member is keenly aware 
of the crisis that continues to affect the American farmer. As was made 
clear in the discussion of H.R. 17, food commodities are the lowest 
they have been in many years. Our farmers need markets to sell their 
grain and other produce. Thus, the loss of the Indian and Pakistani 
agricultural markets--which occurred following the imposition of the 
mandatory sanctions that resulted from the May 1998 testing of nuclear 
devices in South Asia--was particularly devastating for American 
farmers. A one-year legislative waiver was granted last year, and this 
waiver permitted the sale of several hundred

[[Page 12834]]

thousand tons of wheat to Pakistan. H.R. 973 extends that waiver on 
agricultural sanctions to India and Pakistan for an additional year, 
permitting this important market to remain open. This Member would 
thank the distinguished gentleman from North Dakota [Mr. Pomeroy] for 
his important work on this issue, and would thank the Chairman for 
incorporating this matter into his legislation.
  Other issues in H.R. 973 are also significant. The legislation 
transfers certain forward-based but outdated defensive stockpiles to 
South Korea and Thailand. While these items were no longer of use to 
the United States, they are of great significance to the recipient 
countries. This is particularly true of South Korea, which faces a 
volatile neighbor to the North. Indeed, in an unfortunate coincidence 
just yesterday North and South Korea wages a dangerous naval gun-battle 
as the North attempted to seize control of what appear to be South 
Korean territorial waters. Certainly, South Korea rightly hopes that 
its ``sunshine policy'' towards the North will bring better relations. 
Until better relations are achieved, however, South Korea must be 
prepared to defend itself. House Resolution 973 assists in that effort.
  Mr. Speaker, this Member urges strong support for H.R. 973.
  Mr. FARR of California. Mr. Speaker, I am pleased that the House of 
Representatives finally passed an International Arms Sales Code of 
Conduct today as part of H.R. 973, the Security Assistance Act. During 
the 104th and 105th Congresses, I cosponsored legislation calling for 
an Arms Transfer Code of Conduct on international arms sales.
  Many of my constituents share my concern with the escalating problem 
of conventional weapons proliferation and the role of the United States 
in foreign arms sales. If we are concerned about rogue nations 
acquiring conventional weapons, we must establish a multinational arms 
sales code of conduct. If we are concerned about human rights, we must 
establish a multinational arms sales code of conduct. If we are 
concerned about national security, we must establish a multinational 
arms sales code of conduct. If we learned only one lesson from the fall 
of the former Soviet Union, it would be that the Soviet leadership 
chose to fuel the international arms race at the expense of their 
citizens' domestic tranquility.
  Specifically, the bill lays out four criteria for the Administration 
that would restrict or prohibit arms transfers to countries that: do 
not respect democratic processes and the rule of law; do not adhere to 
internationally recognized norms on human rights; engage in acts of 
armed aggression; or, are not fully participating in the United 
National Register of Conventional Weapons. The language in H.R. 973 
also directs the president to attempt to achieve the foreign policy 
goal of an international arms sales code of conduct with all Wassenaar 
Arrangement (to control weapons of mass destruction) countries.
  I urge my colleagues in the Senate to pass comparable legislation and 
close the loophole on international arms sales to countries that are 
undemocratic, abuse the civil rights of their citizens, are engaged in 
armed aggression, and fail to comply with the UN Registry of Arms.
  Mr. LANTOS. Mr. Speaker, I join my colleagues in supporting H.R. 
973--the Security Assistance Act of 1999--a bipartisan bill that 
contains many important initiatives that will enhance our national 
security and promote our national interests.
  Mr. Speaker, I welcome the provisions in this legislation that 
require the President to seek to negotiate a multilateral Code of 
Conduct for arms sales, which would take into account when deciding 
whether to sell weapons such issues as human rights, the state of 
democracy and involvement of the government seeking to purchase arms in 
military aggression. Mr. Speaker, multilateral action is the only 
approach that will work. Unilateral American restrictions on arms sales 
deals only with a part of the problem, and non-American suppliers of 
arms will simply move in to fill the gap. I want to comment our 
distinguished colleague from Georgia, Ms. McKinney, and our 
distinguished colleague from Connecticut, Mr. Gejdenson, for their 
contribution to these provisions.
  Another provision that I want to note, Mr. Speaker, is the authority 
this legislation includes for the President to waive the so-called 
``Glenn Amendment'' sanctions against India and Pakistan for one 
additional year. The Administration--under the able and dedicated 
leadership of Deputy Secretary Strobe Talbot and Assistant Secretary 
Rick Inderfurth--has made significant progress with India and Pakistan, 
and I am delighted that we have seen important progress in coming to 
grips with the problems of nuclear non-proliferation. The nuclear 
threat in South Asia remains a serious problem, Mr. Speaker, and the 
Administration needs the flexibility and negotiating leverage which the 
waiver authority provides. I strongly support the inclusion of this 
provision.
  Mr. Speaker, I also support the provisions of this legislation which 
increase the penalties for violation of the export control regulations 
under the Export Administration Act of 1979, and the provisions which 
strengthen the enforcement of the Arms Export Control Act. This will 
increase the penalties on American companies selling dual-use items to 
rogue nations such as Iran, Iraq, Libya and North Korea in violation of 
United States export controls. As my colleagues know, strengthening our 
export administration provisions through increasing penalties for 
violation of these regulations was strongly recommended in the report 
on ``U.S. National Security and Military/Commercial Concerns with the 
People's Republic of China'' issued by the Select Committee under the 
leadership of Congressman Chris Cox of California and Congressman Norm 
Dicks of Washington.
  I also support, Mr. Speaker, this bill's authorization of the sale 
and transfer of American naval vessels that are no longer required by 
our navy. These ships can support the security of countries in which we 
have a political and a national security interest. Furthermore, these 
sales will produce some $90 million for the United States Treasury, 
whereas decommissioning these vessels will be a significant cost to the 
American taxpayers. The legislation also authorizes an increase in the 
War Reserve Stockpile for our allies, South Korea and Thailand, and 
authorizes the Secretary of Defense to transfer such items to these 
countries in return for certain concessions to be negotiated. This 
provision is in our national security interest.
  Mr. Speaker, I urge my colleagues to support the adoption of this 
legislation.
  Mr. GILMAN. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. GEJDENSON. Mr. Speaker, I have no further requests for time, and 
I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Shimkus). The question is on the motion 
offered by the gentleman from New York (Mr. Gilman) that the House 
suspend the rules and pass the bill, H.R. 973, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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