[Congressional Record (Bound Edition), Volume 148 (2002), Part 1]
[Senate]
[Pages 76-87]
[From the U.S. Government Publishing Office, www.gpo.gov]




                    SECURITY ASSISTANCE ACT OF 2001

  On December 20, 2001, the Senate amended S. 1803, as follows:

                                S. 1803

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Security 
     Assistance Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

 TITLE I--VERIFICATION OF ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

Sec. 101. Verification and Compliance Bureau personnel.
Sec. 102. Key Verification Assets Fund.
Sec. 103. Revised verification and compliance reporting requirements.

               TITLE II--MILITARY AND RELATED ASSISTANCE

      Subtitle A--Foreign Military Sales and Financing Authorities

Sec. 201. Authorization of appropriations.
Sec. 202. Relationship of foreign military sales to United States 
              nonproliferation interests.
Sec. 203. Special Defense Acquisition Fund for nonproliferation and 
              counter-narcotics purposes.
Sec. 204. Representation allowances.
Sec. 205. Arms Export Control Act prohibition on transactions with 
              countries that have repeatedly provided support for acts 
              of international terrorism.
Sec. 206. Congressional notification of small arms and light weapons 
              license approvals; annual reports.

       Subtitle B--International Military Education and Training

Sec. 211. Authorization of appropriations.
Sec. 212. Annual human rights reports.

          Subtitle C--Security Assistance for Select Countries

Sec. 221. Security assistance for Israel and Egypt.
Sec. 222. Security assistance for Greece and Turkey.
Sec. 223. Security assistance for certain other countries.

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      Subtitle D--Excess Defense Article and Drawdown Authorities

Sec. 231. Excess defense articles for certain countries.
Sec. 232. Annual briefing on projected availability of excess defense 
              articles.
Sec. 233. Expanded drawdown authority.
Sec. 234. Duration of security assistance leases.

            Subtitle E--Other Political-Military Assistance

Sec. 241. Destruction of surplus weapons stockpiles.
Sec. 242. Identification of funds for demining programs.

                  Subtitle F--Antiterrorism Assistance

Sec. 251. Authorization of appropriations.
Sec. 252. Specific program objectives.

                       Subtitle G--Other Matters

Sec. 261. Revised military assistance reporting requirements.

       TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

                     Subtitle A--General Provisions

Sec. 301. Authorization of appropriations.
Sec. 302. Joint State Department-Defense Department programs.
Sec. 303. Nonproliferation technology acquisition programs for friendly 
              foreign countries.
Sec. 304. International nonproliferation and export control training.
Sec. 305. Relocation of scientists.
Sec. 306. Audits of the International Science and Technology Centers 
              Program.
Sec. 307. International Atomic Energy Agency regular budget 
              assessments.
Sec. 308. Revised nonproliferation reporting requirements.

   Subtitle B--Russian Federation Debt Reduction for Nonproliferation

Sec. 311. Short title.
Sec. 312. Findings and purposes.
Sec. 313. Definitions.
Sec. 314. Establishment of the Russian Nonproliferation Investment 
              Facility.
Sec. 315. Reduction of the Russian Federation's Soviet-era debt owed to 
              the United States, generally.
Sec. 316. Reduction of Soviet-era debt owed to the United States as a 
              result of credits extended under title I of the 
              Agricultural Trade Development and Assistance Act of 
              1954.
Sec. 317. Authority to engage in debt-for-nonproliferation exchanges 
              and debt buybacks.
Sec. 318. Russian Nonproliferation Investment Agreement.
Sec. 319. Structure of debt-for-nonproliferation arrangements.
Sec. 320. Independent media and the rule of law.
Sec. 321. Nonproliferation requirement.
Sec. 322. Discussion of Russian Federation debt reduction for 
              nonproliferation with other creditor states.
Sec. 323. Implementation of United States policy.
Sec. 324. Consultations with Congress.
Sec. 325. Annual report to Congress.

          Subtitle C--Nonproliferation Assistance Coordination

Sec. 331. Short title.
Sec. 332. Findings.
Sec. 333. Independent states of the former Soviet Union defined.
Sec. 334. Establishment of Committee on Nonproliferation Assistance to 
              the Independent States of the Former Soviet Union.
Sec. 335. Duties of the Committee.
Sec. 336. Administrative support.
Sec. 337. Confidentiality of information.
Sec. 338. Statutory construction.

          TITLE IV--EXPEDITING THE MUNITIONS LICENSING PROCESS

Sec. 401. License officer staffing.
Sec. 402. Funding for database automation.
Sec. 403. Information management priorities.
Sec. 404. Improvements to the Automated Export System.
Sec. 405. Adjustment of threshold amounts for congressional review 
              purposes.
Sec. 406. Periodic notification of pending applications for export 
              licenses.

             TITLE V--NATIONAL SECURITY ASSISTANCE STRATEGY

Sec. 501. Establishment of the Strategy.
Sec. 502. Security assistance surveys.

                   TITLE VI--MISCELLANEOUS PROVISIONS

Sec. 601. Nuclear and missile nonproliferation in South Asia.
Sec. 602. Real-time public availability of raw seismological data.
Sec. 603. Detailing United States governmental personnel to 
              international arms control and nonproliferation 
              organizations.
Sec. 604. Diplomatic presence overseas.
Sec. 605. Protection against agricultural bioterrorism.
Sec. 606. Compliance with the Chemical Weapons Convention.

             TITLE VII--AUTHORITY TO TRANSFER NAVAL VESSELS

Sec. 701. Authority to transfer naval vessels to certain foreign 
              countries.

     SEC. 2. DEFINITIONS.

       In this Act:
       (1) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means the Committee on 
     Foreign Relations of the Senate and the Committee on 
     International Relations of the House of Representatives.
       (2) Defense article.--The term ``defense article'' has the 
     meaning given the term in section 47(3) of the Arms Export 
     Control Act (22 U.S.C. 2794 note).
       (3) Defense service.--The term ``defense service'' has the 
     meaning given the term in section 47(4) of the Arms Export 
     Control Act (22 U.S.C. 2794 note).
       (4) Excess defense article.--The term ``excess defense 
     article'' has the meaning given the term in section 644(g) of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).
       (5) Secretary.--Except as otherwise provided, the term 
     ``Secretary'' means the Secretary of State.

 TITLE I--VERIFICATION OF ARMS CONTROL AND NONPROLIFERATION AGREEMENTS

     SEC. 101. VERIFICATION AND COMPLIANCE BUREAU PERSONNEL.

       (a) In General.--Of the total amounts made available to the 
     Department of State for fiscal years 2002 and 2003, not less 
     than $14,000,000 each such fiscal year shall be provided to 
     the Bureau of Verification and Compliance of the Department 
     of State for Bureau-administered activities, including the 
     Key Verification Assets Fund.
       (b) Additional Personnel.--In addition to the amounts made 
     available under subsection (a), not less than $1,800,000 
     shall be made available from the Department's American 
     Salaries Account, for the purpose of hiring new personnel to 
     carry out the Bureau's responsibilities, as set forth in 
     section 112 of the Arms Export Control and Nonproliferation 
     Act of 1999 (113 Stat. 1501A-486), as enacted into law by 
     section 1000(a)(7) of Public Law 106-113.

     SEC. 102. KEY VERIFICATION ASSETS FUND.

       Of the total amounts made available to the Department of 
     State for fiscal years 2002 and 2003, not less than 
     $7,000,000 shall be made available within the Verification 
     and Compliance Bureau's account for each such fiscal year to 
     carry out section 1111 of the Arms Control and 
     Nonproliferation Act of 1999 (113 Stat. 1501A-486), as 
     enacted into law by section 1000(a)(7) of Public Law 106-113.

     SEC. 103. REVISED VERIFICATION AND COMPLIANCE REPORTING 
                   REQUIREMENTS.

       Section 403(a) of the Arms Control and Disarmament Act (22 
     U.S.C. 2593a(a)) is amended by striking ``January 31'' and 
     inserting ``April 15''.

               TITLE II--MILITARY AND RELATED ASSISTANCE

      Subtitle A--Foreign Military Sales and Financing Authorities

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the President 
     for grant assistance under section 23 of the Arms Export 
     Control Act (22 U.S.C. 2763) and for the subsidy cost, as 
     defined in section 502(5) of the Federal Credit Reform Act of 
     1990, of direct loans under such section $3,674,000,000 for 
     fiscal year 2002 and $4,267,000,000 for fiscal year 2003.

     SEC. 202. RELATIONSHIP OF FOREIGN MILITARY SALES TO UNITED 
                   STATES NONPROLIFERATION INTERESTS.

       (a) Authorized Purposes.--The first sentence of section 4 
     of the Arms Export Control Act (22 U.S.C. 2754) is amended by 
     inserting ``for preventing or hindering the proliferation of 
     weapons of mass destruction and of the means of delivering 
     such weapons,'' after ``self-defense,''.
       (b) Definition of ``Weapons of Mass Destruction''.--Section 
     47 of the Arms Export Control Act (22 U.S.C. 2794) is 
     amended--
       (1) by striking ``and'' at the end of paragraph (8);
       (2) by striking the period at the end of paragraph (9) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(10) `weapons of mass destruction' has the meaning 
     provided by section 1403(1) of the Defense Against Weapons of 
     Mass Destruction Act of 1996 (title XIV of Public Law 104-
     201; 110 Stat. 2717; 50 U.S.C. 2302(1)).''.
       (c) Sense of Congress.--It is the sense of Congress that 
     the Secretary should ensure, in circumstances where the sale 
     of defense articles or defense services to a friendly country 
     would serve the nonproliferation interests of the United 
     States, but that country cannot afford to purchase such 
     defense articles or defense services, that grant assistance 
     is provided pursuant to section 23 of the Arms Export Control 
     Act to facilitate such acquisition.

     SEC. 203. SPECIAL DEFENSE ACQUISITION FUND FOR 
                   NONPROLIFERATION AND COUNTER-NARCOTICS 
                   PURPOSES.

       (a) Establishment.--Notwithstanding any other provision of 
     law, the President shall direct that the Special Defense 
     Acquisition Fund be established pursuant to section 51 of the 
     Arms Export Control Act (22 U.S.C. 2795).
       (b) Use of the Special Defense Acquisition Fund.--Section 
     51(a)(4) of the Arms Export Control Act (22 U.S.C. 
     2795(a)(4)) is

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     amended by striking ``for use for'' and all that follows 
     through ``equipment'' and inserting the following: ``for use 
     for--
       ``(A) narcotics control purposes and are appropriate to the 
     needs of recipient countries, such as small boats, planes 
     (including helicopters), and communications equipment; and
       ``(B) nonproliferation and export control purposes, such as 
     nuclear, radiological, chemical, and biological warfare 
     materials detection equipment.''.
       (c) Limitation.--Section 51(c) of the Arms Export Control 
     Act (22 U.S.C. 2795(c)) is amended--
       (1) in paragraph (1), by striking all after ``exceed'' 
     through the period and inserting ``$200,000,000.''; and
       (2) in paragraph (2), by striking ``provided'' and all that 
     follows through ``Acts'' and inserting ``specifically 
     authorized by law in advance''.
       (d) Authorization.--For fiscal year 2003, not more than 
     $20,000,000 may be made available for obligation for the 
     procurement of items pursuant to section 51 of the Arms 
     Export Control Act.

     SEC. 204. REPRESENTATION ALLOWANCES.

       Section 43(c) of the Arms Export Control Act (22 U.S.C. 
     2792(c)) is amended by striking ``$72,500'' and inserting 
     ``$86,500''.

     SEC. 205. ARMS EXPORT CONTROL ACT PROHIBITION ON TRANSACTIONS 
                   WITH COUNTRIES THAT HAVE REPEATEDLY PROVIDED 
                   SUPPORT FOR ACTS OF INTERNATIONAL TERRORISM.

       The second sentence of section 40(d) of the Arms Export 
     Control Act (22 U.S.C. 2780(d)) is amended--
       (1) by inserting ``or chemical, biological, or radiological 
     agents'' after ``nuclear explosive devices''; and
       (2) by inserting ``or chemical, biological, or radiological 
     agents'' after ``nuclear material''.

     SEC. 206. CONGRESSIONAL NOTIFICATION OF SMALL ARMS AND LIGHT 
                   WEAPONS LICENSE APPROVALS; ANNUAL REPORTS.

       (a) Congressional Notification of Export License 
     Approvals.--Section 36(c) of the Arms Export Control Act (22 
     U.S.C. 2776(c)) is amended by inserting ``(or, in the case of 
     a defense article that is a firearm controlled under category 
     I of the United States Munitions List, $1,000,000 or more)'' 
     after ``$50,000,000 or more''.
       (b) Report.--Not later than six months after the date of 
     enactment of this Act, and annually thereafter, the Secretary 
     of State shall submit an unclassified report to the 
     appropriate congressional committees on the numbers, range, 
     and findings of end-use monitoring of United States transfers 
     in small arms and light weapons.
       (c) Annual Military Assistance Reports.--Section 655(b)(3) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2415(b)(3)) 
     is amended by inserting before the period at the end the 
     following: ``, including, in the case of defense articles 
     that are firearms controlled under category I of the United 
     States Munitions List, a statement of the aggregate dollar 
     value and quantity of semiautomatic assault weapons, or 
     related equipment, the manufacture, transfer, or possession 
     of which is unlawful under section 922 of title 18, United 
     States Code, that were licensed for export during the period 
     covered by the report''.
       (d) Annual Report on Arms Brokering.--Not later than six 
     months after the date of enactment of this Act, and annually 
     thereafter, the Secretary of State shall submit a report to 
     the appropriate committees of Congress on activities of 
     registered arms brokers, including violations of the Arms 
     Export Control Act.
       (e) Annual Report on Investigations of the Bureau of 
     Alcohol, Tobacco and Firearms.--Not later than six months 
     after the date of enactment of this Act, and annually 
     thereafter, the Secretary of the Treasury shall submit a 
     report to the appropriate committees of Congress on 
     investigations and other efforts undertaken by the Bureau of 
     Alcohol, Tobacco and Firearms (including cooperation with 
     other agencies) to stop United States-source weapons from 
     being used in terrorist acts and international crime.

       Subtitle B--International Military Education and Training

     SEC. 211. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the President 
     $75,000,000 for fiscal year 2002 and $85,290,000 for fiscal 
     year 2003 to carry out chapter 5 of part II of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2347 et seq.; relating to 
     international military education and training).

     SEC. 212. ANNUAL HUMAN RIGHTS REPORTS.

       (a) With Respect to Prohibitions on Nonmilitary 
     Assistance.--Section 116(d) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2151n(d)) is amended by redesignating 
     paragraphs (7) and (8) as paragraphs (8) and (9), 
     respectively, and by inserting after paragraph (6) the 
     following:
       ``(7) to the extent practicable, for any violation of 
     internationally recognized human rights reported under this 
     subsection, whether any foreign military or defense ministry 
     civilian participant in education and training activities 
     under chapter 5 of part II of this Act was involved;''.
       (b) Records Regarding Foreign Participants.--Section 548 of 
     the Foreign Assistance Act of 1961 (22 U.S.C. 2347e) is 
     amended--
       (1) by striking ``In'' and inserting ``(a) Development and 
     Maintenance of Database.--In''; and
       (2) by adding at the end the following new subsections:
       ``(b) Annual List of Foreign Personnel.--For the purposes 
     of preparing the report required pursuant to section 116(d), 
     the Secretary of State may annually request the Secretary of 
     Defense to provide information contained in the database with 
     respect to a list submitted to the Secretary of Defense by 
     the Secretary of State, containing the names of foreign 
     personnel or military units. To the extent practicable, the 
     Secretary of Defense shall provide, and the Secretary of 
     State may take into account, the information contained in the 
     database, if any, relating to the Secretary of State's 
     submission.
       ``(c) Updating of Database.--If the Secretary of State 
     determines and reports to Congress under section 116(d) that 
     a foreign person identified in the database maintained 
     pursuant to this section was involved in a violation of 
     internationally recognized human rights, the Secretary of 
     Defense shall ensure that the database is updated to contain 
     such fact and all relevant information.''.

          Subtitle C--Security Assistance for Select Countries

     SEC. 221. SECURITY ASSISTANCE FOR ISRAEL AND EGYPT.

       (a) Authorization of Appropriations.--
       (1) Israel.--Section 513 of the Security Assistance Act of 
     2000 (Public Law 106-280) is amended by striking ``2001 and 
     2002'' each place that it appears and inserting ``2002 and 
     2003''.
       (2) Egypt.--Section 514 of the Security Assistance Act of 
     2000 (Public Law 106-280) is amended by striking ``2001 and 
     2002'' each place that it appears and inserting ``2002 and 
     2003''.
       (b) Ballistic Missile Defense.--Of the amounts made 
     available for fiscal years 2002 and 2003 under section 513 of 
     the Security Assistance Act of 2000 (Public Law 106-280), as 
     amended by subsection (a), $100,000,000 may be used each such 
     fiscal year for the establishment, in cooperation with a 
     United States company, of a production line for the Arrow 
     missile in the United States.

     SEC. 222. SECURITY ASSISTANCE FOR GREECE AND TURKEY.

       (a) In General.--Of the amounts made available for the 
     fiscal years 2002 and 2003 to carry out chapter 5 of part II 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 2347 et 
     seq.)--
       (1) $1,000,000 for fiscal year 2002 and $1,170,000 for 
     fiscal year 2003 are authorized to be available for Greece; 
     and
       (2) $2,500,000 for fiscal year 2002 and $2,920,000 for 
     fiscal year 2003 are authorized to be available for Turkey.
       (b) Use for Professional Military Education.--Of the 
     amounts available under paragraphs (1) and (2) of subsection 
     (a) for each of fiscal years 2002 and 2003, $500,000 of each 
     such amount should be available for purposes of professional 
     military education.
       (c) Use for Joint Training.--It is the sense of Congress 
     that, to the maximum extent practicable, amounts available 
     under subsection (a) that are used in accordance with 
     subsection (b) should be used for joint training of Greek and 
     Turkish officers.
       (d) Repeal.--Section 512 of the Security Assistance Act of 
     2000 (Public Law 106-280; 114 Stat. 856) is repealed.

     SEC. 223. SECURITY ASSISTANCE FOR CERTAIN OTHER COUNTRIES.

       (a) FMF for Certain Other Countries.--Of the amounts made 
     available for the fiscal years 2002 and 2003 under section 23 
     of the Arms Export Control Act (22 U.S.C. 2763), the 
     following amounts are authorized to be available on a grant 
     basis for the following countries for the fiscal years 
     specified:
       (1) The baltic states.--For all of the Baltic states of 
     Estonia, Latvia, and Lithuania, $21,000,000 for fiscal year 
     2002 and $24,400,000 for fiscal year 2003.
       (2) Bulgaria.--For Bulgaria, $10,000,000 for fiscal year 
     2002 and $11,620,000 for fiscal year 2003.
       (3) The czech republic.--For the Czech Republic, 
     $12,000,000 for fiscal year 2002 and $14,000,000 for fiscal 
     year 2003.
       (4) Georgia.--For Georgia, $5,650,000 for fiscal year 2002 
     and $6,560,000 for fiscal year 2003.
       (5) Hungary.--For Hungary, $12,000,000 for fiscal year 2002 
     and $14,000,000 for fiscal year 2003.
       (6) Jordan.--For Jordan, $75,000,000 for fiscal year 2002 
     and $87,300,000 for fiscal year 2003.
       (7) Malta.--For Malta, $1,000,000 for fiscal year 2002 and 
     $1,170,000 for fiscal year 2003.
       (8) The philippines.--For the Philippines, $19,000,000 for 
     fiscal year 2002 and $22,100,000 for fiscal year 2003.
       (9) Poland.--For Poland, $15,000,000 for fiscal year 2002 
     and $17,500,000 for fiscal year 2003.
       (10) Romania.--For Romania, $11,500,000 for fiscal year 
     2002 and $13,400,000 for fiscal year 2003.

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       (11) Slovakia.-- For Slovakia, $8,500,000 for fiscal year 
     2002 and $9,900,000 for fiscal year 2003.
       (12) Slovenia.--For Slovenia, $4,500,000 for fiscal year 
     2002 and $5,250,000 for fiscal year 2003.
       (b) IMET.--Of the amounts made available for the fiscal 
     years 2002 and 2003 to carry out chapter 5 of part II of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2347 et seq.), the 
     following amounts are authorized to be available for the 
     following countries for the fiscal years specified:
       (1) The baltic states.--For all of the Baltic states of 
     Estonia, Latvia, and Lithuania, $3,000,000 for fiscal year 
     2002 and $3,420,000 for fiscal year 2003.
       (2) Bulgaria.--For Bulgaria, $1,200,000 for fiscal year 
     2002 and $1,370,000 for fiscal year 2003.
       (3) The czech republic.--For the Czech Republic, $1,800,000 
     for fiscal year 2002 and $2,050,000 for fiscal year 2003.
       (4) Georgia.--For Georgia, $850,000 for fiscal year 2002 
     and $970,000 for fiscal year 2003.
       (5) Hungary.--For Hungary, $1,800,000 for fiscal year 2002 
     and $2,050,000 for fiscal year 2003.
       (6) Jordan.--For Jordan, $1,800,000 for fiscal year 2002 
     and $2,050,000 for fiscal year 2003.
       (7) Malta.--For Malta, $300,000 for fiscal year 2002 and 
     $350,000 for fiscal year 2003.
       (8) The philippines.--For the Philippines, $1,710,000 for 
     fiscal year 2002 and $2,000,000 for fiscal year 2003.
       (9) Poland.--For Poland, $1,900,000 for fiscal year 2002 
     and $2,160,000 for fiscal year 2003.
       (10) Romania.--For Romania, $1,400,000 for fiscal year 2002 
     and $1,600,000 for fiscal year 2003.
       (11) Slovakia.--For Slovakia, $850,000 for fiscal year 2002 
     and $970,000 for fiscal year 2003.
       (12) Slovenia.--For Slovenia, $800,000 for fiscal year 2002 
     and $910,000 for fiscal year 2003.
       (c) Written Explanation of Presidential Determinations.--In 
     the event that the President determines not to provide, or 
     determines to exceed, the funding allocated for any country 
     specified in this section by an amount that is more than five 
     percent of that specified in this section, the President 
     shall submit to the appropriate committees of Congress within 
     15 days of such determination a written explanation of the 
     reasons therefor.
       (d) Repeals.--Sections 511 (a) and (b) and 515 of the 
     Security Assistance Act of 2000 are repealed.

      Subtitle D--Excess Defense Article and Drawdown Authorities

     SEC. 231. EXCESS DEFENSE ARTICLES FOR CERTAIN COUNTRIES.

       (a) Authority.--Notwithstanding section 516(e) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j(e), during 
     each of the fiscal years 2002 and 2003, 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 
     such Act to Albania, Bulgaria, Croatia, Estonia, Former 
     Yugoslavia Republic of Macedonia, Georgia, India, Kazakhstan, 
     Kyrgyzstan, Latvia, Lithuania, Moldova, Mongolia, Pakistan, 
     Romania, Slovakia, Slovenia, Tajikistan, Turkmenistan, 
     Ukraine, and Uzbekistan.
       (b) Sense of Congress.--The authority provided under this 
     section should be utilized only for those countries 
     demonstrating a genuine commitment to democracy and human 
     rights.

     SEC. 232. ANNUAL BRIEFING ON PROJECTED AVAILABILITY OF EXCESS 
                   DEFENSE ARTICLES.

       Not later than 90 days prior to the commencement of each 
     fiscal year, the Department of Defense shall brief the 
     Department of State and the appropriate committees of 
     Congress regarding the expected availability of excess 
     defense articles during the next fiscal year, for the purpose 
     of enabling the Department of State to factor such 
     availability into annual security assistance plans.

     SEC. 233. EXPANDED DRAWDOWN AUTHORITY.

       Section 506(c) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2318(c)) is amended to read as follows:
       ``(c) For the purposes of any provision of law that 
     authorizes the drawdown of defense or other articles or 
     commodities, or defense or other services from an agency of 
     the United States Government, such drawdown may include the 
     supply of commercial transportation and related services and 
     defense or other articles or commodities, or defense or other 
     services, that are acquired by contract for the purposes of 
     the drawdown in question, if the cost to acquire such items 
     or services is less than the cost to the United States 
     Government of providing such items or services from existing 
     agency assets.''.

     SEC. 234. DURATION OF SECURITY ASSISTANCE LEASES.

       Section 61 of the Arms Export Control Act (22 U.S.C. 2796) 
     is amended--
       (1) in subsection (b), by striking ``of not to exceed five 
     years'' and inserting ``that may not exceed 5 years, plus a 
     period of time specified in the lease as may be necessary for 
     major refurbishment work to be performed prior to final 
     delivery by the lessor of the defense articles,''; and
       (2) by adding at the end the following new subsection:
       ``(d) In this section, the term `major refurbishment work' 
     means refurbishment work performed over a period estimated to 
     be 6 months or more.''.

            Subtitle E--Other Political-Military Assistance

     SEC. 241. DESTRUCTION OF SURPLUS WEAPONS STOCKPILES.

       Of the funds authorized to be appropriated to the President 
     for fiscal years 2002 and 2003 to carry out chapters 1 and 10 
     of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2151 et seq.), relating to development assistance, up to 
     $10,000,000 is authorized to be made available each such 
     fiscal year for the destruction of surplus stockpiles of 
     small arms, light weapons, and other munitions.

     SEC. 242. IDENTIFICATION OF FUNDS FOR DEMINING PROGRAMS.

        Of the funds authorized to be appropriated under section 
     201 for nonproliferation, antiterrorism, demining, and 
     related programs, $40,000,000 is authorized to be 
     appropriated for fiscal year 2002 for demining programs and 
     program support costs.

                  Subtitle F--Antiterrorism Assistance

     SEC. 251. AUTHORIZATION OF APPROPRIATIONS.

       Section 574(a) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2349aa-4(a)) is amended by striking ``$72,000,000 for 
     fiscal year 2001 and $73,000,000 for fiscal year 2002'' and 
     inserting ``$73,000,000 for fiscal year 2002 and $75,000,000 
     for fiscal year 2003''.

     SEC. 252. SPECIFIC PROGRAM OBJECTIVES.

       Of the amounts authorized to be appropriated to the 
     President pursuant to section 574(a) of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2349aa-4(a)), $2,000,000 
     may be made available for the provision of the Pisces system 
     to the governments of the Philippines and Pakistan.

                       Subtitle G--Other Matters

     SEC. 261. REVISED MILITARY ASSISTANCE REPORTING REQUIREMENTS.

       (a) Annual Foreign Military Training Reports.--Section 
     656(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2416) 
     does not apply to any NATO or major non-NATO ally unless the 
     chairman or ranking member of one of the appropriate 
     committees of Congress has specifically requested, in 
     writing, inclusion of such country in the report. Such 
     request shall be made not later than 45 calendar days prior 
     to the date on which the report is required to be 
     transmitted.
       (b) Annual Military Assistance Reports.--Section 655 of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2415) is amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsection (d) as subsection (c).
       (c) Quarterly Reports on Government-To-Government Arms 
     Exports.--Section 36(a) of the Arms Export Control Act (22 
     U.S.C. 2776(a)) is amended--
       (1) by striking paragraph (7); and
       (2) by redesignating paragraphs (8), (9), (10), (11), (12), 
     and (13) as paragraphs (7), (8), (9), (10), (11), and (12), 
     respectively.

       TITLE III--NONPROLIFERATION AND EXPORT CONTROL ASSISTANCE

                     Subtitle A--General Provisions

     SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

       (a) Authorization.--Section 585 of the Foreign Assistance 
     Act of 1961 (22 U.S.C. 2349bb-4) is amended--
       (1) in subsection (a), by striking all after ``chapter'' 
     and inserting ``$142,000,000 for fiscal year 2002 and 
     $152,000,000 for fiscal year 2003.''; and
       (2) in subsection (c), by striking ``2001'' each place that 
     it appears and inserting ``2002''.
       (b) Suballocations.--Of the amounts authorized to be 
     appropriated to the President for fiscal years 2002 and 2003 
     under chapter 9 of part II of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2349bb et seq.)--
       (1) not less than $2,000,000 shall be made available each 
     such fiscal year for the purpose of carrying out section 584 
     of the Foreign Assistance Act of 1961, as added by section 
     304 of this Act; and
       (2) $65,000,000 for fiscal year 2002 and $65,000,000 for 
     fiscal year 2003 are authorized to be appropriated for 
     science and technology centers in the independent states of 
     the former Soviet Union.
       (c) Conforming Amendment.--Section 302 of the Security 
     Assistance Act of 2000 (Public Law 106-280) is repealed.

     SEC. 302. JOINT STATE DEPARTMENT-DEFENSE DEPARTMENT PROGRAMS.

       Of the amounts authorized to be appropriated to the 
     President for fiscal years 2002 and 2003 under chapter 9 of 
     part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2349bb et seq.), the Secretary is authorized to make 
     available not more than $1,000,000 for international 
     counterproliferation programs administered by the Department 
     of Defense.

     SEC. 303. NONPROLIFERATION TECHNOLOGY ACQUISITION PROGRAMS 
                   FOR FRIENDLY FOREIGN COUNTRIES.

       (a) In General.--For the purpose of enhancing the 
     nonproliferation and export control capabilities of friendly 
     countries, of the amounts authorized to be appropriated for 
     fiscal years 2002 and 2003 under chapter 9 of part II of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2349bb et seq.), 
     the Secretary is authorized to expend not more than--

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       (1) $5,000,000 for the procurement and provision of 
     nuclear, chemical, and biological detection systems, 
     including spectroscopic and pulse echo technologies; and
       (2) $10,000,000 for the procurement and provision of x-ray 
     systems capable of imaging sea-cargo containers.
       (b) Training Requirement.--The Secretary shall not provide 
     any equipment or technology pursuant to this section without 
     having first developed and budgeted for a multiyear training 
     plan to assist foreign personnel in the utilization of those 
     items.
       (c) Procurement Authorities.--For fiscal year 2003, the 
     Secretary shall utilize, to the maximum extent practicable, 
     the Special Defense Acquisition Fund for procurements 
     authorized under this section.

     SEC. 304. INTERNATIONAL NONPROLIFERATION AND EXPORT CONTROL 
                   TRAINING.

       Chapter 9 of part II of the Foreign Assistance Act of 1961 
     (22 U.S.C. 2349bb et seq.) is amended--
       (1) by redesignating sections 584 and 585 as sections 585 
     and 586, respectively; and
       (2) by inserting after section 583 the following:

     ``SEC. 584. INTERNATIONAL NONPROLIFERATION EXPORT CONTROL 
                   TRAINING.

       ``(a) General Authority.--The President is authorized to 
     furnish, on such terms and conditions consistent with this 
     chapter (but whenever feasible on a reimbursable basis), 
     education and training to foreign personnel for the purpose 
     of enhancing the nonproliferation and export control 
     capabilities of such personnel through their attendance in 
     special courses of instruction conducted by the United 
     States.
       ``(b) Administration of Courses.--The Secretary of State 
     shall have overall responsibility for the development and 
     conduct of international nonproliferation education and 
     training programs, but may utilize other departments and 
     agencies, as appropriate, to recommend personnel for the 
     education and training, and to administer specific courses of 
     instruction.
       ``(c) Purposes.--Education and training activities 
     conducted under this section shall be--
       ``(1) of a technical nature, emphasizing techniques for 
     detecting, deterring, monitoring, interdicting, and 
     countering proliferation;
       ``(2) designed to encourage effective and mutually 
     beneficial relations and increased understanding between the 
     United States and friendly countries; and
       ``(3) designed to improve the ability of friendly countries 
     to utilize their resources with maximum effectiveness, 
     thereby contributing to greater self-reliance by such 
     countries.
       ``(d) Priority to Certain Countries.--In selecting military 
     and foreign governmental personnel for education and training 
     pursuant to this section, priority shall be given to 
     personnel from countries for which the Secretary of State has 
     given priority under section 583(b).''.

     SEC. 305. RELOCATION OF SCIENTISTS.

       (a) Reinstatement of Classification Authority.--Section 4 
     of the Soviet Scientists Immigration Act of 1992 (Public Law 
     102-509; 106 Stat. 3316; 8 U.S.C. 1153 note) is amended by 
     striking subsection (d) and inserting the following:
       ``(d) Duration of Authority.--The authority under 
     subsection (a) shall be in effect during the following 
     periods:
       ``(1) The period beginning on the date of the enactment of 
     this Act and ending 4 years after such date.
       ``(2) The period beginning on the date of the enactment of 
     the Security Assistance Act of 2001 and ending 4 years after 
     such date.''.
       (b) Limitation on Number of Scientists Eligible for Visas 
     Under Authority.--Subsection (c) of such section is amended 
     by striking ``750'' and inserting ``950''.
       (c) Limitation on Eligibility.--Subsection (a) of such 
     section is amended by adding at the end the following new 
     sentence: ``A scientist is not eligible for designation under 
     this subsection if the scientist has previously been granted 
     the status of an alien lawfully admitted for permanent 
     residence (as defined in section 101(a)(20) of the 
     Immigration and Nationality Act (8 U.S.C. 1101(a)(20))).''.
       (d) Consultation Requirement.--The Attorney General shall 
     consult with the Secretary, the Secretary of Defense, the 
     Secretary of Energy, and the heads of other appropriate 
     agencies of the United States regarding--
       (1) previous experience in implementing the Soviet 
     Scientists Immigration Act of 1992; and
       (2) any changes that those officials would recommend in the 
     regulations prescribed under that Act.

     SEC. 306. AUDITS OF THE INTERNATIONAL SCIENCE AND TECHNOLOGY 
                   CENTERS PROGRAM.

       Consistent with section 303(b) of the Security Assistance 
     Act of 2000 (Public Law 106-280; 114 Stat. 853), not later 
     than 60 days after the date of enactment of this Act, the 
     Secretary shall submit a detailed report to the appropriate 
     committees of Congress on United States audit practices with 
     respect to the ``International Science and Technology Centers 
     Program''.

     SEC. 307. INTERNATIONAL ATOMIC ENERGY AGENCY REGULAR BUDGET 
                   ASSESSMENTS.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of State has concluded that the 
     International Atomic Energy Agency (hereafter in this section 
     referred to as the ``IAEA'') is a critical and effective 
     instrument for verifying compliance with international 
     nuclear nonproliferation agreements, and that it serves as an 
     essential barrier to the spread of nuclear weapons.
       (2) The IAEA furthers United States national security 
     objectives by helping to prevent the proliferation of nuclear 
     weapons material, especially through its work on effective 
     verification and safeguards measures.
       (3) The IAEA can also perform a critical role in monitoring 
     and verifying aspects of nuclear weapons reduction agreements 
     between nuclear weapons states.
       (4) As the IAEA has negotiated and developed more effective 
     verification and safeguards measures, it has experienced 
     significant real growth in its mission, especially in the 
     vital area of nuclear safeguards inspections.
       (5) Nearly two decades of zero budget growth have affected 
     the ability of the IAEA to carry out its mission and to hire 
     and retain the most qualified inspectors and managers, as 
     evidenced in the decreasing proportion of such personnel who 
     hold doctorate degrees.
       (6) Although voluntary contributions by the United States 
     lessen the IAEA's budgetary constraints, they cannot readily 
     be used for the long-term capital investments or permanent 
     staff increases necessary to an effective IAEA safeguards 
     regime.
       (7) It was not the intent of Congress that the United 
     States contributions to all United Nations-related 
     organizations and activities be reduced pursuant to the 
     Admiral James W. Nance and Meg Donovan Foreign Relations 
     Authorization Act, Fiscal Years 2000 and 2001 (as enacted 
     into law by section 1000(a)(7) of Public Law 106-113; 113 
     Stat. 1501A-405 et seq.), which sets 22 percent assessment 
     rates as benchmarks for the general United Nations budget, 
     the Food and Agricultural Organization, the World Health 
     Organization, and the International Labor Organization. 
     Rather, contributions for important and effective agencies 
     such as the IAEA should be maintained at levels commensurate 
     with the criticality of its mission.
       (b) Additional Funding for the International Atomic Energy 
     Agency.--It is the sense of Congress that--
       (1) the Secretary should negotiate a gradual and sustained 
     increase in the regular budget of the International Atomic 
     Energy Agency, which should begin with the 2002 budget;
       (2) if a regular budget increase for the IAEA is achieved, 
     the Secretary should seek to gain consensus within the IAEA 
     Board of Governors for allocation of a larger proportion of 
     that budget to nuclear nonproliferation activities; and
       (3) if such a reallocation of the regular IAEA budget 
     cannot be obtained, the United States should decrease its 
     voluntary contribution by $400,000 for each $1,000,000 
     increase in its annual assessment.
       (c) Authorization of Appropriations.--Of the funds 
     authorized to be appropriated for international 
     organizations, $60,000,000 are authorized to be appropriated 
     in fiscal year 2002 for the payment of the United States 
     assessment to the International Atomic Energy Agency, and 
     $75,000,000 shall be available for that purpose in fiscal 
     year 2003.

     SEC. 308. REVISED NONPROLIFERATION REPORTING REQUIREMENTS.

       Section 308 of Public Law 102-182 (22 U.S.C. 5606) is 
     hereby repealed.

   Subtitle B--Russian Federation Debt Reduction for Nonproliferation

     SEC. 311. SHORT TITLE.

       This subtitle may be cited as the ``Russian Federation Debt 
     Reduction for Nonproliferation Act of 2001''.

     SEC. 312. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds the following:
       (1) It is in the vital security interests of the United 
     States to prevent the spread of weapons of mass destruction 
     to additional states or to terrorist organizations, and to 
     ensure that other nations' obligations to reduce their 
     stockpiles of such arms in accordance with treaties, 
     executive agreements, or political commitments are fulfilled.
       (2) In particular, it is in the vital national security 
     interests of the United States to ensure that--
       (A) all stocks of nuclear weapons and weapons-usable 
     nuclear material in the Russian Federation are secure and 
     accounted for;
       (B) stocks of nuclear weapons and weapons-usable nuclear 
     material that are excess to military needs in the Russian 
     Federation are monitored and reduced;
       (C) any chemical or biological weapons, related materials, 
     and facilities in the Russian Federation are destroyed;
       (D) the Russian Federation's nuclear weapons complex is 
     reduced to a size appropriate to its post-Cold War missions, 
     and its experts in weapons of mass destruction technologies 
     are shifted to gainful and sustainable civilian employment;

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       (E) the Russian Federation's export control system blocks 
     any proliferation of weapons of mass destruction, the means 
     of delivering such weapons, and materials, equipment, know-
     how, or technology that would be used to develop, produce, or 
     deliver such weapons; and
       (F) these objectives are accomplished with sufficient 
     monitoring and transparency to provide confidence that they 
     have in fact been accomplished and that the funds provided to 
     accomplish these objectives have been spent efficiently and 
     effectively.
       (3) United States programs should be designed to accomplish 
     these vital objectives in the Russian Federation as rapidly 
     as possible, and the President should develop and present to 
     Congress a plan for doing so.
       (4) Substantial progress has been made in United States-
     Russian Federation cooperative programs to achieve these 
     objectives, but much more remains to be done to reduce the 
     urgent risks to United States national security posed by the 
     current state of the Russian Federation's weapons of mass 
     destruction stockpiles and complexes.
       (5) The threats posed by inadequate management of weapons 
     of mass destruction stockpiles and complexes in the Russian 
     Federation remain urgent. Incidents in years immediately 
     preceding 2001, which have been cited by the Russia Task 
     Force of the Secretary of Energy's Advisory Board, include--
       (A) a conspiracy at one of the Russian Federation's largest 
     nuclear weapons facilities to steal nearly enough highly 
     enriched uranium for a nuclear bomb;
       (B) an attempt by an employee of the Russian Federation's 
     premier nuclear weapons facility to sell nuclear weapons 
     designs to agents of Iraq and Afghanistan; and
       (C) the theft of radioactive material from a Russian 
     Federation submarine base.
       (6) Addressing these threats to United States and world 
     security will ultimately consume billions of dollars, a 
     burden that will have to be shared by the Russian Federation, 
     the United States, and other governments, if this objective 
     is to be achieved.
       (7) The creation of new funding streams could accelerate 
     progress in reducing these threats to United States security 
     and help the government of the Russian Federation to fulfill 
     its responsibility for secure management of its weapons 
     stockpiles and complexes as United States assistance phases 
     out.
       (8) The Russian Federation suffers from a significant 
     foreign debt burden, a substantial proportion of which it 
     inherited from the Soviet Union. The Russian Federation is 
     taking full responsibility for this debt, but the burden of 
     debt repayment could threaten Russian Federation economic 
     reform, particularly in 2003 and beyond.
       (9) The Russian Federation's need for debt relief has been 
     the subject of discussions between the United States and the 
     Russian Federation at the highest levels and is cited by 
     United States officials as one reason why the Russian 
     Federation has recognized that its future lies with the West.
       (10) Past debt-for-environment exchanges, in which a 
     portion of a country's foreign debt is canceled in return for 
     certain environmental commitments or payments by that 
     country, provide a model for a possible debt-for-
     nonproliferation exchange with the Russian Federation, which 
     could be designed to provide additional funding for 
     nonproliferation and arms reduction initiatives.
       (11) Most of the Russian Federation's official bilateral 
     debt is held by United States allies that are advanced 
     industrial democracies. Since the issues described pose 
     threats to United States allies as well, United States 
     leadership that results in a larger contribution from United 
     States allies to cooperative threat reduction activities will 
     be needed.
       (b) Purposes.--The purposes of this subtitle are--
       (1) to recognize the vital interests of the United States, 
     its allies, and the Russian Federation in reducing the 
     threats to international security described in the findings 
     set forth in subsection (a);
       (2) to facilitate the accomplishment of the United States 
     objectives described in the findings set forth in subsection 
     (a) by providing for the alleviation of a portion of the 
     Russian Federation's foreign debt, thus allowing the use of 
     additional resources for these purposes; and
       (3) to ensure that resources freed from debt in the Russian 
     Federation are targeted to the accomplishment of the United 
     States objectives described in the findings set forth in 
     subsection (a).

     SEC. 313. DEFINITIONS.

       In this subtitle:
       (1) Agreement.--The term ``Agreement'' means the Russian 
     Nonproliferation Investment Agreement provided for in section 
     318.
       (2) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       (B) the Committee on Foreign Relations and the Committee on 
     Appropriations of the Senate.
       (3) Cost.--The term ``cost'' has the meaning given that 
     term in section 502(5) of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a(5)).
       (4) Facility.--The term ``Facility'' means the Russian 
     Nonproliferation Investment Facility established in the 
     Department of the Treasury by section 314.
       (5) Soviet-era debt.--The term ``Soviet-era debt'' means 
     debt owed as a result of loans or credits provided by the 
     United States (or any agency of the United States) to the 
     Union of Soviet Socialist Republics.

     SEC. 314. ESTABLISHMENT OF THE RUSSIAN NONPROLIFERATION 
                   INVESTMENT FACILITY.

       There is established in the Department of the Treasury an 
     entity to be known as the ``Russian Nonproliferation 
     Investment Facility'' for the purpose of providing for the 
     administration of debt reduction in accordance with this 
     subtitle.

     SEC. 315. REDUCTION OF THE RUSSIAN FEDERATION'S SOVIET-ERA 
                   DEBT OWED TO THE UNITED STATES, GENERALLY.

       (a) Authority To Reduce Soviet-Era Debt.--
       (1) Authority.--
       (A) In general.--Except as provided in subparagraph (B), 
     and subject to section 321, the President may reduce the 
     amount of Soviet-era debt owed by the Russian Federation to 
     the United States (or any agency of the United States) that 
     is outstanding as of October 1, 2001.
       (B) Exception.--The authority of subparagraph (A) to reduce 
     Soviet-era debt does not include any debt that is described 
     in section 316(a)(1).
       (2) Congressional notification.--The President shall notify 
     the appropriate congressional committees of his intention to 
     reduce the amount of the Russian Federation's Soviet-era debt 
     at least 15 days in advance of any formal determination to do 
     so.
       (3) Authorization of appropriations.--
       (A) In general.--For the cost of the reduction of any 
     Soviet-era debt pursuant to this section, there are 
     authorized to be appropriated to the President--
       (i) $50,000,000 for fiscal year 2002; and
       (ii) $100,000,000 for fiscal year 2003.
       (B) Limitation.--The authority provided by this section 
     shall be available only to the extent that appropriations for 
     the cost of the modification of any Soviet-era debt pursuant 
     to this section are made in advance.
       (4) Certain prohibitions inapplicable.--
       (A) In general.--A reduction of Soviet-era debt pursuant to 
     this section shall not be considered assistance for the 
     purposes of any provision of law limiting assistance to a 
     country.
       (B) Additional requirement.--The authority of this section 
     may be exercised notwithstanding section 620(r) of the 
     Foreign Assistance Act of 1961 or section 321 of the 
     International Development and Food Assistance Act of 1975.
       (b) Implementation of Soviet-Era Debt Reduction.--
       (1) In general.--Any reduction of Soviet-era debt pursuant 
     to subsection (a) shall be--
       (A) implemented pursuant to the terms of a Russian 
     Nonproliferation Investment Agreement authorized under 
     section 318; and
       (B) accomplished at the direction of the Facility by the 
     exchange of a new obligation for obligations of the type 
     referred to in such subsection that are outstanding as of 
     October 1, 2001.
       (2) Exchange of obligations.--
       (A) In general.--The Facility shall notify the agency 
     primarily responsible for administering part I of the Foreign 
     Assistance Act of 1961 of an agreement entered into under 
     paragraph (1) with the Russian Federation to exchange a new 
     obligation for outstanding obligations.
       (B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation for the 
     Russian Federation shall be established relating to the 
     agreement, and the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 
     shall make an adjustment in its accounts to reflect the debt 
     reduction.
       (c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of Soviet-era debt under subsection (a)(1) in the same manner 
     as such terms and conditions apply to the reduction of debt 
     under section 704(a)(1) of the Foreign Assistance Act of 
     1961:
       (1) The provisions relating to repayment of principal under 
     section 705 of the Foreign Assistance Act of 1961.
       (2) The provisions relating to interest on new obligations 
     under section 706 of the Foreign Assistance Act of 1961.

     SEC. 316. REDUCTION OF SOVIET-ERA DEBT OWED TO THE UNITED 
                   STATES AS A RESULT OF CREDITS EXTENDED UNDER 
                   TITLE I OF THE AGRICULTURAL TRADE DEVELOPMENT 
                   AND ASSISTANCE ACT OF 1954.

       (a) Authority To Reduce Certain Soviet-Era Debt.--
       (1) Authority.--Notwithstanding any other provision of law, 
     and subject to section 321, the President may reduce the 
     amount of Soviet-era debt owed to the United States (or any 
     agency of the United States) by the Russian Federation that 
     is outstanding as of October 1, 2001, as a result of any 
     credits extended under title I of the Agricultural

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     Trade Development and Assistance Act of 1954 (7 U.S.C. 1701 
     et seq.).
       (2) Congressional notification.--The President shall notify 
     the appropriate congressional committees of his intention to 
     reduce the amount of the Russian Federation's Soviet-era debt 
     described in paragraph (1) at least 15 days in advance of any 
     formal determination to do so.
       (3) Authorization of appropriations.--
       (A) In general.--For the cost of the reduction of any 
     Soviet-era debt pursuant to this section, there are 
     authorized to be appropriated to the President--
       (i) $50,000,000 for fiscal year 2002; and
       (ii) $100,000,000 for fiscal year 2003.
       (B) Limitation.--The authority provided by this section 
     shall be available only to the extent that appropriations for 
     the cost of the modification of any Soviet-era debt pursuant 
     to this section are made in advance.
       (b) Implementation of Soviet-Era Debt Reduction.--
       (1) In general.--Any reduction of Soviet-era debt pursuant 
     to subsection (a) shall be--
       (A) implemented pursuant to the terms of a Russian 
     Nonproliferation Investment Agreement authorized under 
     section 318; and
       (B) accomplished at the direction of the Facility by the 
     exchange of a new obligation for obligations of the type 
     referred to in such subsection that are outstanding as of 
     October 1, 2001.
       (2) Exchange of obligations.--
       (A) In general.--The Facility shall notify the Commodity 
     Credit Corporation of an agreement entered into under 
     paragraph (1) with an eligible country to exchange a new 
     obligation for outstanding obligations.
       (B) Additional requirement.--At the direction of the 
     Facility, the old obligations that are the subject of the 
     agreement shall be canceled and a new debt obligation shall 
     be established for the Russian Federation relating to the 
     agreement, and the Commodity Credit Corporation shall make an 
     adjustment in its accounts to reflect the debt reduction.
       (c) Additional Terms and Conditions.--The following 
     additional terms and conditions shall apply to the reduction 
     of Soviet-era debt under subsection (a)(1) in the same manner 
     as such terms and conditions apply to the reduction of debt 
     under section 604(a)(1) of the Agricultural Trade Development 
     and Assistance Act of 1954 (7 U.S.C. 1738c):
       (1) The provisions relating to repayment of principal under 
     section 605 of such Act.
       (2) The provisions relating to interest on new obligations 
     under section 606 of such Act.

     SEC. 317. AUTHORITY TO ENGAGE IN DEBT-FOR-NONPROLIFERATION 
                   EXCHANGES AND DEBT BUYBACKS.

       (a) Loans and Credits Eligible for Sale, Reduction, or 
     Cancellation.--
       (1) Debt-for-nonproliferation exchanges.--
       (A) In general.--Notwithstanding any other provision of 
     law, and subject to section 321, the President may, in 
     accordance with this section, sell to any purchaser eligible 
     under subparagraph (B), any loan or credit described in 
     section 315(a)(1), or any credit described in section 
     316(a)(1), or on receipt of payment from an eligible 
     purchaser, reduce or cancel any such loan or credit or 
     portion thereof, only for the purpose of facilitating a debt-
     for-nonproliferation exchange to support activities that 
     further United States objectives described in the findings 
     set forth in section 312(a).
       (B) Eligible purchaser.--A loan or credit may be sold, 
     reduced, or canceled under subparagraph (A) with respect to a 
     purchaser who presents plans satisfactory to the President 
     for using the loan or credit for the purpose of engaging in 
     debt-for-nonproliferation exchange to support activities that 
     further United States objectives described in the findings 
     set forth in section 312(a).
       (C) Consultation requirement.--Before the sale under 
     subparagraph (A) to any purchaser eligible under subparagraph 
     (B), or any reduction or cancellation under subparagraph (A), 
     of any loan or credit made to the Russian Federation, the 
     President shall consult with that country concerning the 
     amount of loans or credits to be sold, reduced, or canceled 
     and their uses for debt-for-nonproliferation exchanges to 
     support activities that further United States objectives 
     described in the findings set forth in section 312(a).
       (D) Authorization of appropriations.--For the cost of the 
     reduction of any debt pursuant to subparagraph (A), amounts 
     authorized to be appropriated under sections 315(a)(3) and 
     316(a)(3) shall be made available for such reduction of debt 
     pursuant to subparagraph (A).
       (2) Debt buybacks.--Notwithstanding any other provision of 
     law, the President may, in accordance with this section, sell 
     to the Russian Federation any loan or credit described in 
     section 315(a)(1) or any credit described in section 
     316(a)(1), or on receipt of payment from the Russian 
     Federation, reduce or cancel such loan or credit or portion 
     thereof, if the purpose of doing so is to facilitate a debt 
     buyback by the Russian Federation of its own qualified debt 
     and the Russian Federation uses a substantial additional 
     amount of its local currency to support activities that 
     further United States objectives described in the findings 
     set forth in section 312(a).
       (3) Limitation.--The authority provided by paragraphs (1) 
     and (2) shall be available only to the extent that 
     appropriations for the cost of the modification of any debt 
     pursuant to such paragraphs are made in advance.
       (4) Terms and conditions.--Notwithstanding any other 
     provision of law, the President shall, in accordance with 
     this section, establish the terms and conditions under which 
     loans and credits may be sold, reduced, or canceled pursuant 
     to this section.
       (5) Administration.--
       (A) In general.--The Facility shall notify the 
     Administrator of the agency primarily responsible for 
     administering part I of the Foreign Assistance Act of 1961 or 
     the Commodity Credit Corporation, as the case may be, of 
     purchasers that the President has determined to be eligible 
     under paragraph (1)(B), and shall direct such agency or 
     Corporation, as the case may be, to carry out the sale, 
     reduction, or cancellation of a loan pursuant to such 
     paragraph.
       (B) Additional requirement.--Such agency or Corporation, as 
     the case may be, shall make an adjustment in its accounts to 
     reflect the sale, reduction, or cancellation.
       (b) Deposit of Proceeds.--The proceeds from a sale, 
     reduction, or cancellation of a loan sold, reduced, or 
     canceled pursuant to this section shall be deposited in the 
     United States Government account or accounts established for 
     the repayment of such loan.

     SEC. 318. RUSSIAN NONPROLIFERATION INVESTMENT AGREEMENT.

       (a) Authority.--Subject to section 321, the Secretary is 
     authorized, in consultation with other appropriate officials 
     of the Federal Government, to enter into an agreement with 
     the Russian Federation concerning the use of the funds saved 
     by that country as a result of any debt relief provided 
     pursuant to this subtitle. An agreement entered into under 
     this section may be referred to as the ``Russian 
     Nonproliferation Investment Agreement''.
       (b) Content of Agreement.--The Russian Nonproliferation 
     Investment Agreement shall ensure that--
       (1) a significant proportion of the funds saved by the 
     Russian Federation as a result of any debt relief provided 
     pursuant to this subtitle is devoted to nonproliferation 
     programs and projects;
       (2) funding of each such program or project is approved by 
     the United States Government, either directly or through its 
     representation on any governing board that may be directed or 
     established to manage these funds;
       (3) administration and oversight of nonproliferation 
     programs and projects incorporate best practices from 
     established threat reduction and nonproliferation assistance 
     programs;
       (4) each program or project funded pursuant to the 
     Agreement is subject to audits conducted by or for the United 
     States Government;
       (5) unobligated funds for investments pursuant to the 
     Agreement are segregated from other Russian Federation funds 
     and invested in financial instruments guaranteed or insured 
     by the United States Government;
       (6) the funds that are devoted to programs and projects 
     pursuant to the Agreement are not subject to any taxation by 
     the Russian Federation;
       (7) all matters relating to the intellectual property 
     rights and legal liabilities of United States firms in a 
     given project are agreed upon before the expenditure of funds 
     is authorized for that project; and
       (8) not less than 75 percent of the funds made available 
     for each nonproliferation program or project under the 
     Agreement is spent in the Russian Federation.
       (c) Use of Existing Mechanisms.--It is the sense of 
     Congress that, to the extent practicable, the boards and 
     administrative mechanisms of existing threat reduction and 
     nonproliferation programs should be used in the 
     administration and oversight of programs and projects under 
     the Agreement.

     SEC. 319. STRUCTURE OF DEBT-FOR-NONPROLIFERATION 
                   ARRANGEMENTS.

       It is the sense of Congress that any debt-for-
     nonproliferation arrangements with the Russian Federation 
     should provide for gradual debt relief over a period of 
     years, with debt relief to be suspended if more than two 
     years' worth of funds remain unobligated for approved 
     nonproliferation programs or projects.

     SEC. 320. INDEPENDENT MEDIA AND THE RULE OF LAW.

       Subject to section 321, of the agreed funds saved by the 
     Russian Federation as a result of any debt relief provided 
     pursuant to this subtitle, up to 10 percent may be used to 
     promote a vibrant, independent media sector and the rule of 
     law in the Russian Federation through an endowment to support 
     the establishment of a ``Center for an Independent Press and 
     the Rule of Law'' in the Russian Federation, which shall be 
     directed by a joint United States-Russian Board of Directors 
     in which the majority of members, including the chairman, 
     shall be United States personnel, and which shall be 
     responsible for management of the endowment, its funds, and 
     the Center's programs.

     SEC. 321. NONPROLIFERATION REQUIREMENT.

       (a) Proliferation to State Sponsors of Terrorism.--The 
     authorities granted under

[[Page 83]]

     sections 315, 316, 317, 318, and 320 may not be exercised, 
     and funds may not be expended, unless and until--
       (1) the Russian Federation makes material progress in 
     stemming the flow of sensitive goods, technologies, material, 
     and know-how related to the design, development, and 
     production of weapons of mass destruction and the means to 
     deliver them to countries that have been determined by the 
     Secretary, for the purposes of section 40 of the Arms Export 
     Control Act, section 620A of the Foreign Assistance Act, or 
     section 6(j) of the Export Administration Act of 1979, to 
     have repeatedly provided support for acts of international 
     terrorism; and
       (2) the President certifies to the appropriate 
     congressional committees that the condition required in 
     paragraph (1) has been met.
       (b) Annual Determination.--If, in any annual report to 
     Congress submitted pursuant to section 325, the President 
     cannot certify that the Russian Federation continues to meet 
     the condition required in subsection (a)(1), then, subject to 
     the provisions of subsection (c), the authorities granted 
     under under sections 315, 316, 317, 318, and 320 may not be 
     exercised, and funds may not be expended, unless and until 
     such certification is made to the appropriate congressional 
     committees.
       (c) Presidential Waiver.--The President may waive the 
     requirements of subsection (b) for a fiscal year if the 
     President determines that imposition of those requirements in 
     that fiscal year would be counter to the national interest of 
     the United States and so reports to the appropriate 
     congressional committees.

     SEC. 322. DISCUSSION OF RUSSIAN FEDERATION DEBT REDUCTION FOR 
                   NONPROLIFERATION WITH OTHER CREDITOR STATES.

       The President and such other appropriate officials as the 
     President may designate shall institute discussions in the 
     Paris Club of creditor states with the objectives of--
       (1) reaching agreement that each member of the Paris Club 
     is authorized to negotiate debt exchanges with the Russian 
     Federation covering a portion of its bilateral debt, to 
     finance the accomplishment of nonproliferation and arms 
     reduction activities;
       (2) convincing other member states of the Paris Club, 
     especially the largest holders of Soviet-era Russian debt, to 
     dedicate significant proportions of their bilateral debt with 
     the Russian Federation to these purposes; and
       (3) reaching agreement, as appropriate, to establish a 
     unified debt exchange fund to manage and provide financial 
     transparency for the resources provided through the debt 
     exchanges.

     SEC. 323. IMPLEMENTATION OF UNITED STATES POLICY.

       It is the sense of Congress that implementation of debt-
     for-nonproliferation programs with the Russian Federation 
     should be overseen by the Committee on Nonproliferation 
     Assistance to the Independent States of the Former Soviet 
     Union (established pursuant to section 334 of this Act).

     SEC. 324. CONSULTATIONS WITH CONGRESS.

       The President shall consult with the appropriate 
     congressional committees on a periodic basis to review the 
     operations of the Facility and the Russian Federation's 
     eligibility for benefits from the Facility.

     SEC. 325. ANNUAL REPORT TO CONGRESS.

       Not later than December 31, 2002, and not later than 
     December 31 of each year thereafter, the President shall 
     prepare and transmit to Congress a report concerning the 
     operation of the Facility during the fiscal year preceding 
     the fiscal year in which the report is transmitted. The 
     report on a fiscal year shall include--
       (1) a description of the activities undertaken by the 
     Facility during the fiscal year;
       (2) a description of any agreement entered into under this 
     subtitle;
       (3) a description of any grants that have been provided 
     pursuant to the agreement; and
       (4) a summary of the results of audits performed in the 
     fiscal year pursuant to the agreement.

          Subtitle C--Nonproliferation Assistance Coordination

     SEC. 331. SHORT TITLE.

       This subtitle may be cited as the ``Nonproliferation 
     Assistance Coordination Act of 2001''.

     SEC. 332. FINDINGS.

       Congress finds that--
       (1) United States nonproliferation efforts in the 
     independent states of the former Soviet Union have achieved 
     important results in ensuring that weapons of mass 
     destruction, weapons-usable material and technology, and 
     weapons-related knowledge remain beyond the reach of 
     terrorists and weapons-proliferating states;
       (2) although these efforts are in the United States 
     national security interest, the effectiveness of these 
     efforts suffers from a lack of coordination within and among 
     United States Government agencies;
       (3) increased spending and investment by the United States 
     private sector on nonproliferation efforts in the independent 
     states of the former Soviet Union, specifically, spending and 
     investment by the United States private sector in job 
     creation initiatives and proposals for unemployed Russian 
     Federation weapons scientists and technicians, are making an 
     important contribution in ensuring that knowledge related to 
     weapons of mass destruction remains beyond the reach of 
     terrorists and weapons-proliferating states; and
       (4) increased spending and investment by the United States 
     private sector on nonproliferation efforts in the independent 
     states of the former Soviet Union require the establishment 
     of a coordinating body to ensure that United States public 
     and private efforts are not in conflict, and to ensure that 
     public spending on efforts by the independent states of the 
     former Soviet Union is maximized to ensure efficiency and 
     further United States national security interests.

     SEC. 333. INDEPENDENT STATES OF THE FORMER SOVIET UNION 
                   DEFINED.

       In this subtitle, the term ``independent states of the 
     former Soviet Union'' has the meaning given the term in 
     section 3 of the FREEDOM Support Act (22 U.S.C. 5801).

     SEC. 334. ESTABLISHMENT OF COMMITTEE ON NONPROLIFERATION 
                   ASSISTANCE TO THE INDEPENDENT STATES OF THE 
                   FORMER SOVIET UNION.

       (a) Establishment.--There is established within the 
     executive branch of the Government an interagency committee 
     known as the ``Committee on Nonproliferation Assistance to 
     the Independent States of the Former Soviet Union'' (in this 
     subtitle referred to as the ``Committee'').
       (b) Membership.--
       (1) In general.--The Committee shall be composed of five 
     members, as follows:
       (A) A representative of the Department of State designated 
     by the Secretary of State.
       (B) A representative of the Department of Energy designated 
     by the Secretary of Energy.
       (C) A representative of the Department of Defense 
     designated by the Secretary of Defense.
       (D) A representative of the Department of Commerce 
     designated by the Secretary of Commerce.
       (E) A representative of the Assistant to the President for 
     National Security Affairs designated by the Assistant to the 
     President.
       (2) Level of representation.--The Secretary of a department 
     named in subparagraph (A), (B), (C), or (D) of paragraph (1) 
     shall designate as the department's representative an 
     official of that department who is not below the level of an 
     Assistant Secretary of the department.
       (c) Chair.--The representative of the Assistant to the 
     President for National Security Affairs shall serve as Chair 
     of the Committee. The Chair may invite the head of any other 
     department or agency of the United States to designate a 
     representative of that department or agency to participate 
     from time to time in the activities of the Committee.

     SEC. 335. DUTIES OF THE COMMITTEE.

       (a) In General.--The Committee shall have primary 
     continuing responsibility within the executive branch of the 
     Government for--
       (1) monitoring United States nonproliferation efforts in 
     the independent states of the former Soviet Union; and
       (2) coordinating the implementation of United States policy 
     with respect to such efforts.
       (b) Duties Specified.--In carrying out the responsibilities 
     described in subsection (a), the Committee shall--
       (1) arrange for the preparation of analyses on the issues 
     and problems relating to coordination within and among United 
     States departments and agencies on nonproliferation efforts 
     of the independent states of the former Soviet Union;
       (2) arrange for the preparation of analyses on the issues 
     and problems relating to coordination between the United 
     States public and private sectors on nonproliferation efforts 
     in the independent states of the former Soviet Union, 
     including coordination between public and private spending on 
     nonproliferation programs of the independent states of the 
     former Soviet Union and coordination between public spending 
     and private investment in defense conversion activities of 
     the independent states of the former Soviet Union;
       (3) provide guidance on arrangements that will coordinate, 
     de-conflict, and maximize the utility of United States public 
     spending on nonproliferation programs of the independent 
     states of the former Soviet Union to ensure efficiency and 
     further United States national security interests;
       (4) encourage companies and nongovernmental organizations 
     involved in nonproliferation efforts of the independent 
     states of the former Soviet Union to voluntarily report these 
     efforts to the Committee;
       (5) arrange for the preparation of analyses on the issues 
     and problems relating to the coordination between the United 
     States and other countries with respect to nonproliferation 
     efforts in the independent states of the former Soviet Union; 
     and
       (6) consider, and make recommendations to the President and 
     Congress with respect to, proposals for new legislation or 
     regulations relating to United States nonproliferation 
     efforts in the independent states of the former Soviet Union 
     as may be necessary.

     SEC. 336. ADMINISTRATIVE SUPPORT.

       All United States departments and agencies shall provide, 
     to the extent permitted by

[[Page 84]]

     law, such information and assistance as may be requested by 
     the Committee in carrying out its functions and activities 
     under this subtitle.

     SEC. 337. CONFIDENTIALITY OF INFORMATION.

       Information which has been submitted or received in 
     confidence shall not be publicly disclosed, except to the 
     extent required by law, and such information shall be used by 
     the Committee only for the purpose of carrying out the 
     functions and activities set forth in this subtitle.

     SEC. 338. STATUTORY CONSTRUCTION.

       Nothing in this subtitle--
       (1) applies to the data-gathering, regulatory, or 
     enforcement authority of any existing United States 
     department or agency over nonproliferation efforts in the 
     independent states of the former Soviet Union, and the review 
     of those efforts undertaken by the Committee shall not in any 
     way supersede or prejudice any other process provided by law; 
     or
       (2) applies to any activity that is reportable pursuant to 
     title V of the National Security Act of 1947 (50 U.S.C. 413 
     et seq.).

          TITLE IV--EXPEDITING THE MUNITIONS LICENSING PROCESS

     SEC. 401. LICENSE OFFICER STAFFING.

       (a) Funding.--Of the amounts authorized to be appropriated 
     under the appropriations account entitled ``Diplomatic and 
     Consular Programs'' for fiscal years 2002 and 2003, not less 
     than $10,000,000 shall be made available each such fiscal 
     year for the Office of Defense Trade Controls of the 
     Department of State for salaries and expenses.
       (b) Assignment of License Review Officers.--Effective 
     January 1, 2002, the Secretary shall assign to the Office of 
     Defense Trade Controls of the Department of State a 
     sufficient number of license review officers to ensure that 
     the average weekly caseload for each officer does not exceed 
     40.
       (c) Detailees.--For the purpose of expediting license 
     reviews, the Secretary of Defense should ensure that 10 
     military officers are continuously detailed to the Office of 
     Defense Trade Controls of the Department of State on a 
     nonreimbursable basis.

     SEC. 402. FUNDING FOR DATABASE AUTOMATION.

       Of the amounts authorized to be appropriated under the 
     appropriations account entitled ``Capital Investment Fund'' 
     for fiscal years 2002 and 2003, not less than $4,000,000 
     shall be made available each such fiscal year for the Office 
     of Defense Trade Controls of the Department of State for the 
     modernization of information management systems.

     SEC. 403. INFORMATION MANAGEMENT PRIORITIES.

       (a) Objective.--The Secretary shall establish a secure, 
     Internet-based system for the filing and review of 
     applications for export of Munitions List items.
       (b) Establishment of an Electronic System.--Of the amounts 
     made available pursuant to section 402, not less than 
     $3,000,000 each such fiscal year shall be made available to 
     fully automate the Defense Trade Application System, and to 
     ensure that the system--
       (1) is a secure, electronic system for the filing and 
     review of Munitions List license applications;
       (2) is accessible by United States companies through the 
     Internet for the purpose of filing and tracking their 
     Munitions List license applications; and
       (3) is capable of exchanging data with--
       (A) the Export Control Automated Support System of the 
     Department of Commerce;
       (B) the Foreign Disclosure and Technology Information 
     System and the USXPORTS systems of the Department of Defense;
       (C) the Export Control System of the Central Intelligence 
     Agency; and
       (D) the Proliferation Information Network System of the 
     Department of Energy.
       (c) Munitions List Defined.--In this section, the term 
     ``Munitions List'' means the United States Munitions List of 
     defense articles and defense services controlled under 
     section 38 of the Arms Export Control Act (22 U.S.C. 2778).

     SEC. 404. IMPROVEMENTS TO THE AUTOMATED EXPORT SYSTEM.

       (a) Contribution to the Automated Export System.--Not less 
     than $250,000 of the amounts provided under section 302 for 
     each fiscal year shall be available for the purpose of--
       (1) providing the Department of State with full access to 
     the Automated Export System;
       (2) ensuring that the system is modified to meet the needs 
     of the Department of State, if such modifications are 
     consistent with the needs of other United States Government 
     agencies; and
       (3) providing operational support.
       (b) Mandatory Filing.--The Secretary of Commerce, with the 
     concurrence of the Secretary of State and the Secretary of 
     Treasury, shall publish regulations in the Federal Register 
     to require, upon the effective date of those regulations, 
     that all persons who are required to file export information 
     under chapter 9 of title 13, United States Code, to file such 
     information through the Automated Export System.
       (c) Requirement for Information Sharing.--The Secretary 
     shall conclude an information-sharing arrangement with the 
     heads of United States Customs Service and the Census 
     Bureau--
       (1) to allow the Department of State to access information 
     on controlled exports made through the United States Postal 
     Service; and
       (2) to adjust the Automated Export System to parallel 
     information currently collected by the Department of State.
       (d) Secretary of Treasury Functions.--Section 303 of title 
     13, United States Code, is amended by striking ``, other than 
     by mail,''.
       (e) Filing Export Information, Delayed Filings, Penalties 
     for Failure To File.--Section 304 of title 13, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) in the first sentence, by striking ``the penal sum of 
     $1,000'' and inserting ``a penal sum of $10,000''; and
       (B) in the third sentence, by striking ``a penalty not to 
     exceed $100 for each day's delinquency beyond the prescribed 
     period, but not more than $1,000,'' and inserting ``a penalty 
     not to exceed $1,000 for each day's delinquency beyond the 
     prescribed period, but not more than $10,000 per violation'';
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following:
       ``(b) Any person, other than a person described in 
     subsection (a), required to submit export information, shall 
     file such information in accordance with any rule, 
     regulation, or order issued pursuant to this chapter. In the 
     event any such information or reports are not filed within 
     such prescribed period, the Secretary of Commerce (and 
     officers of the Department of Commerce designated by the 
     Secretary) may impose a civil penalty not to exceed $1,000 
     for each day's delinquency beyond the prescribed period, but 
     not more than $10,000 per violation.''.
       (f) Additional Penalties.--
       (1) In general.--Section 305 of title 13, United States 
     Code, is amended to read as follows:

     ``SEC. 305. PENALTIES FOR UNLAWFUL EXPORT INFORMATION 
                   ACTIVITIES.

       ``(a) Criminal Penalties.--(1) Any person who knowingly 
     fails to file or knowingly submits false or misleading export 
     information through the Shippers Export Declaration (SED) (or 
     any successor document) or the Automated Export System (AES) 
     shall be subject to a fine not to exceed $10,000 per 
     violation or imprisonment for not more than 5 years, or both.
       ``(2) Any person who knowingly reports any information on 
     or uses the SED or the AES to further any illegal activity 
     shall be subject to a fine not to exceed $10,000 per 
     violation or imprisonment for not more than 5 years, or both.
       ``(3) Any person who is convicted under this subsection 
     shall, in addition to any other penalty, be subject to 
     forfeiting to the United States--
       ``(A) any of that person's interest in, security of, claim 
     against, or property or contractual rights of any kind in the 
     goods or tangible items that were the subject of the 
     violation;
       ``(B) any of that person's interest in, security of, claim 
     against, or property or contractual rights of any kind in 
     tangible property that was used in the export or attempt to 
     export that was the subject of the violation; and
       ``(C) any of that person's property constituting, or 
     derived from, any proceeds obtained directly or indirectly as 
     a result of the violation.
       ``(b) Civil Penalties.--The Secretary (and officers of the 
     Department of Commerce specifically designated by the 
     Secretary) may impose a civil penalty not to exceed $10,000 
     per violation on any person violating the provisions of this 
     chapter or any rule, regulation, or order issued thereunder, 
     except as provided in section 304. Such penalty may be in 
     addition to any other penalty imposed by law.
       ``(c) Civil Penalty Procedure.--(1) When a civil penalty is 
     sought for a violation of this section or of section 304, the 
     charged party is entitled to receive a formal complaint 
     specifying the charges and, at his or her request, to contest 
     the charges in a hearing before an administrative law judge. 
     Any such hearing shall be conducted in accordance with 
     sections 556 and 557 of title 5, United States Code.
       ``(2) If any person fails to pay a civil penalty imposed 
     under this chapter, the Secretary may ask the Attorney 
     General to commence a civil action in an appropriate district 
     court of the United States to recover the amount imposed 
     (plus interest at currently prevailing rates from the date of 
     the final order). No such action may be commenced more than 5 
     years after the order imposing the civil penalty becomes 
     final. In such action, the validity, amount, and 
     appropriateness of such penalty shall not be subject to 
     review.
       ``(3) The Secretary may remit or mitigate any penalties 
     imposed under paragraph (1) if, in his or her opinion--
       ``(A) the penalties were incurred without willful 
     negligence or fraud; or
       ``(B) other circumstances exist that justify a remission or 
     mitigation.
       ``(4) If, pursuant to section 306, the Secretary delegates 
     functions under this section to another agency, the 
     provisions of law of that agency relating to penalty 
     assessment, remission or mitigation of such penalties, 
     collection of such penalties, and limitations of actions and 
     compromise of claims, shall apply.
       ``(5) Any amount paid in satisfaction of a civil penalty 
     imposed under this section or

[[Page 85]]

     section 304 shall be deposited into the general fund of the 
     Treasury and credited as miscellaneous receipts.
       ``(d) Enforcement.--(1) The Secretary of Commerce may 
     designate officers or employees of the Office of Export 
     Enforcement to conduct investigations pursuant to this 
     chapter. In conducting such investigations, those officers or 
     employees may, to the extent necessary or appropriate to the 
     enforcement of this chapter, exercise such authorities as are 
     conferred upon them by other laws of the United States, 
     subject to policies and procedures approved by the Attorney 
     General.
       ``(2) The Commissioner of Customs may designate officers or 
     employees of the Customs Service to enforce the provisions of 
     this chapter, or to conduct investigations pursuant to this 
     chapter.
       ``(e) Regulations.--The Secretary of Commerce shall 
     promulgate regulations for the implementation and enforcement 
     of this section.
       ``(f) Exemption.--The criminal fines provided for in this 
     section are exempt from the provisions of section 3571 of 
     title 18, United States Code.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of chapter 9 of title 13, United States Code, is 
     amended by striking the item relating to section 305 and 
     inserting the following:

``305. Penalties for unlawful export information activities.''.

     SEC. 405. ADJUSTMENT OF THRESHOLD AMOUNTS FOR CONGRESSIONAL 
                   REVIEW PURPOSES.

       The Arms Export Control Act is amended--
       (1) in section 3(d) (22 U.S.C. 2753(d))--
       (A) in paragraphs (1) and (3)(A), by striking ``The 
     President may not'' and inserting ``Subject to paragraph (5), 
     the President may not''; and
       (B) by adding at the end of the following new paragraph:
       ``(5) In the case of a transfer to a member country of the 
     North Atlantic Treaty Organization (NATO) or Australia, 
     Japan, or New Zealand that does not authorize a new sales 
     territory that includes any country other than such 
     countries, the limitations on consent of the President set 
     forth in paragraphs (1) and (3)(A) shall apply only if the 
     transfer is--
       ``(A) a transfer of major defense equipment valued (in 
     terms of its original acquisition cost) at $25,000,000 or 
     more; or
       ``(B) a transfer of defense articles or defense services 
     valued (in terms of its original acquisition cost) at 
     $100,000,000 or more).'';
       (2) in section 36 (22 U.S.C. 2776)--
       (A) in subsection (b)--
       (i) in paragraph (1), by striking ``(1) In the case of'' 
     and inserting ``(1) Subject to paragraph (6), in the case 
     of'';
       (ii) in paragraph (5)(C), by striking ``(C) If'' and 
     inserting ``(C) Subject to paragraph (6), if''; and
       (iii) by adding at the end of the following new paragraph:
       ``(6) The limitation in paragraph (1) and the requirement 
     in paragraph (5)(C) shall apply in the case of a letter of 
     offer to sell to a member country of the North Atlantic 
     Treaty Organization (NATO) or Australia, Japan, or New 
     Zealand that does not authorize a new sales territory that 
     includes any country other than such countries only if the 
     letter of offer involves--
       ``(A) sale of major defense equipment under this Act for, 
     or enhancement or upgrade of major defense equipment at a 
     cost of, $25,000,000 or more, as the case may be; and
       ``(B) sale of defense articles or services for, or 
     enhancement or upgrade of defense articles or services at a 
     cost of, $100,000,000 or more, as the case may be; or
       ``(C) sale of design and construction services for, or 
     enhancement or upgrade of design and construction services at 
     a cost of, $300,000,000 or more, as the case may be.''; and
       (B) in subsection (c)--
       (i) in paragraph (1), by striking ``(1) In the case of'' 
     and inserting ``(1) Subject to paragraph (5), in the case 
     of''; and
       (ii) by adding at the end the following new paragraph:
       ``(5) In the case of an application by a person (other than 
     with regard to a sale under section 21 or 22 of this Act) for 
     a license for the export to a member country of the North 
     Atlantic Treaty Organization (NATO) or Australia, Japan, or 
     New Zealand that does not authorize a new sales territory 
     that includes any country other than such countries, the 
     limitation on the issuance of the license set forth in 
     paragraph (1) shall apply only if the license is for export 
     of--
       ``(A) major defense equipment sold under a contract in the 
     amount of $25,000,000 or more; or
       ``(B) defense articles or defense services sold under a 
     contract in the amount of $100,000,000 or more.''; and
       (3) in section 63(a) (22 U.S.C. 2796b(a))--
       (A) by striking ``In the case of'' and inserting ``(1) 
     Subject to paragraph (2), in the case of''; and
       (B) by adding at the end the following new paragraph:
       ``(2) In the case of an agreement described in paragraph 
     (1) that is entered into with a member country of the North 
     Atlantic Treaty Organization (NATO) or Australia, Japan, or 
     New Zealand, the limitation in paragraph (1) shall apply only 
     if the agreement involves a lease or loan of--
       ``(A) major defense equipment valued (in terms of its 
     replacement cost less any depreciation in its value) at 
     $25,000,000 or more; or
       ``(B) defense articles valued (in terms of their 
     replacement cost less any depreciation in their value) at 
     $100,000,000 or more.''.

     SEC. 406. PERIODIC NOTIFICATION OF PENDING APPLICATIONS FOR 
                   EXPORT LICENSES.

       The Secretary shall submit, on a biannual basis, to the 
     appropriate committees of Congress a report identifying--
       (1) each outstanding application for a license to export 
     under section 38 of the Arms Export Control Act for which 
     final administrative action has been withheld for longer than 
     180 days; and
       (2) the referral status of each such application and any 
     other relevant information.

             TITLE V--NATIONAL SECURITY ASSISTANCE STRATEGY

     SEC. 501. ESTABLISHMENT OF THE STRATEGY.

       (a) Requirement.--Not later than 180 days after the date of 
     enactment of this Act, and annually thereafter in connection 
     with submission of congressional presentation materials for 
     the foreign operations appropriations budget request, the 
     Secretary shall submit to the appropriate committees of 
     Congress a report setting forth a National Security 
     Assistance Strategy for the United States.
       (b) Elements of the Strategy.--The National Security 
     Assistance Strategy shall--
       (1) set forth a 5-year plan for security assistance 
     programs;
       (2) be consistent with the National Security Strategy of 
     the United States;
       (3) be coordinated with the Secretary of Defense and the 
     Chairman of the Joint Chiefs of Staff;
       (4) identify overarching security assistance objectives, 
     including identification of the role that specific security 
     assistance programs will play in achieving such objectives;
       (5) identify a primary security assistance objective, as 
     well as specific secondary objectives, for individual 
     countries;
       (6) identify, on a country-by-country basis, how specific 
     resources will be allocated to accomplish both primary and 
     secondary objectives;
       (7) discuss how specific types of assistance, such as 
     foreign military financing and international military 
     education and training, will be combined at the country level 
     to achieve United States objectives; and
       (8) detail, with respect to each of the paragraphs (1) 
     through (7), how specific types of assistance provided 
     pursuant to the Arms Export Control Act and Foreign 
     Assistance Act of 1961 are coordinated with United States 
     assistance programs administered by the Department of Defense 
     and other agencies.
       (c) Covered Assistance.--The National Security Assistance 
     Strategy shall cover assistance provided under--
       (1) section 23 of the Arms Export Control Act (22 U.S.C. 
     2763);
       (2) chapter 5 of part II of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2347 et seq.); and
       (3) section 516 of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321i).

     SEC. 502. SECURITY ASSISTANCE SURVEYS.

       (a) Utilization.--The Secretary shall utilize security 
     assistance surveys in preparation of the National Security 
     Assistance Strategy required pursuant to section 501 of this 
     Act.
       (b) Funding.--Of the amounts made available for fiscal year 
     2002 under section 23 of the Arms Export Control Act (22 
     U.S.C. 2763), $2,000,000 is authorized to be available to the 
     Secretary to conduct security assistance surveys, or to 
     request such a survey, on a reimbursable basis, by the 
     Department of Defense or other United States Government 
     agencies. Such surveys shall be conducted consistent with the 
     requirements of section 26 of the Arms Export Control Act.

                   TITLE VI--MISCELLANEOUS PROVISIONS

     SEC. 601.0 NUCLEAR AND MISSILE NONPRO-
                   LIFERATION IN SOUTH ASIA.

       (a) United States Policy.--It shall be the policy of the 
     United States, consistent with its obligations under the 
     Treaty on the Non-Proliferation of Nuclear Weapons, to 
     encourage and work with the governments of India and Pakistan 
     to achieve the following objectives by September 30, 2003:
       (1) Continuation of a nuclear testing moratorium.
       (2) Commitment not to deploy nuclear weapons.
       (3) Agreement by both governments to bring their export 
     controls in line with the guidelines and requirements of the 
     Nuclear Suppliers Group.
       (4) Agreement by both governments to bring their export 
     controls in line with the guidelines and requirements of the 
     Zangger Committee.
       (5) Agreement by both governments to bring their export 
     controls in line with the guidelines, requirements, and 
     annexes of the Missile Technology Control Regime.
       (6) Establishment of a modern, effective system to protect 
     and secure nuclear devices and materiel from unauthorized 
     use, accidental employment, theft, espionage, misuse, or 
     abuse.

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       (7) Establishment of a modern, effective system to control 
     the export of sensitive dual-use items, technology, technical 
     information, and materiel that can be used in the design, 
     development, or production of weapons of mass destruction and 
     ballistic missiles.
       (8) Conduct of bilateral meetings between Indian and 
     Pakistani senior officials to discuss security issues, 
     establish confidence building measures, and increase 
     transparency with regard to nuclear policies, programs, 
     stockpiles, capabilities, and delivery systems.
       (b) Report.--Not later than March 1, 2003, the President 
     shall submit to the appropriate committees of Congress a 
     report describing United States efforts in pursuit of the 
     objectives listed in subsection (a), the progress made toward 
     the achievement of those objectives, and the likelihood that 
     each objective will be achieved by September 30, 2003.

     SEC. 602. REAL-TIME PUBLIC AVAILABILITY OF RAW SEISMOLOGICAL 
                   DATA.

       The head of the Air Force Technical Applications Center 
     shall make available to the public, immediately upon receipt 
     or as soon after receipt as is possible, all raw 
     seismological data provided to the United States Government 
     by any international monitoring organization that is directly 
     responsible for seismological monitoring.

     SEC. 603. DETAILING UNITED STATES GOVERNMENTAL PERSONNEL TO 
                   INTERNATIONAL ARMS CONTROL AND NONPROLIFERATION 
                   ORGANIZATIONS.

       (a) In General.--The Secretary, in consultation with the 
     Secretaries of Defense and Energy and the heads of other 
     relevant United States departments and agencies, as 
     appropriate, shall develop measures to improve the process by 
     which United States Government personnel may be detailed to 
     international arms control and nonproliferation organizations 
     without adversely affecting the pay or career advancement of 
     such personnel.
       (b) Report Required.--Not later than May 1, 2002, the 
     Secretary shall submit a report to the Committee on Foreign 
     Relations of the Senate and the Committee on International 
     Relations of the House of Representatives setting forth the 
     measures taken under subsection (a).

     SEC. 604. DIPLOMATIC PRESENCE OVERSEAS.

       (a) Purpose.--The purpose of this section is to--
       (1) elevate the stature given United States diplomatic 
     initiatives relating to nonproliferation and political-
     military issues; and
       (2) develop a group of highly specialized, technical 
     experts with country expertise capable of administering the 
     nonproliferation and political-military affairs functions of 
     the Department of State.
       (b) Authority.--To carry out the purposes of subsection 
     (a), the Secretary is authorized to establish the position of 
     Counselor for Nonproliferation and Political Military Affairs 
     in United States diplomatic missions overseas to be filled by 
     individuals who are career Civil Service officers or Foreign 
     Service officers committed to follow-on assignments in the 
     Nonproliferation or Political Military Affairs Bureaus of the 
     Department of State.
       (c) Training.--After being selected to serve as Counselor, 
     any person so selected shall spend not less than 10 months in 
     language training courses at the Foreign Service Institute, 
     or in technical courses administered by the Department of 
     Defense, the Department of Energy, or other appropriate 
     departments and agencies of the United States, except that 
     such requirement for training may be waived by the Secretary.

     SEC. 605. PROTECTION AGAINST AGRICULTURAL BIOTERRORISM.

       Of funds made available to carry out programs under the 
     Foreign Assistance Act of 1961, $1,500,000 may be made 
     available to North Carolina State University for the purpose 
     of fingerprinting crop and livestock pathogens in order to 
     enhance the ability of the United States Government to detect 
     new strains, determine their origin, and to facilitate 
     research in pathogen epidemiology.

     SEC. 606. COMPLIANCE WITH THE CHEMICAL WEAPONS CONVENTION.

       (a) Findings.--Congress makes the following findings:
       (1) On April 24, 1997, the Senate provided its advice and 
     consent to ratification of the Chemical Weapons Convention 
     subject to the condition that no sample collected in the 
     United States pursuant to the Convention would be transferred 
     for analysis to any laboratory outside the territory of the 
     United States.
       (2) Congress enacted the same condition into law as section 
     304(f)(1) of the Chemical Weapons Convention Implementation 
     Act of 1998 (22 U.S.C. 6724(f)(1)).
       (3) Part II, paragraph 57, of the Verification Annex of the 
     Convention requires that all samples taken during a challenge 
     inspection under the Convention shall be analyzed by at least 
     two laboratories that have been designated as capable of 
     conducting such testing by the OPCW.
       (4) The only United States laboratory currently designated 
     by the OPCW is the United States Army Edgewood Forensic 
     Science Laboratory.
       (5) In order to meet the requirements of condition (18) of 
     the resolution of ratification of the Chemical Weapons 
     Convention, and section 304 of the Chemical Weapons 
     Convention Implementation Act of 1998 (22 U.S.C. 6724), the 
     United States must possess, at a minimum, a second OPCW-
     designated laboratory.
       (6) The possession of a second laboratory is necessary in 
     view of the potential for a challenge inspection to be 
     initiated against the United States by a foreign nation.
       (7) To qualify as a designated laboratory, a laboratory 
     must be certified under ISO Guide 25 or a higher standard, 
     and complete three proficiency tests. The laboratory must 
     have the full capability to handle substances listed on 
     Schedule 1 of the Annex on Schedules of Chemicals of the 
     Chemical Weapons Convention. In order to handle such 
     substances in the United States, a laboratory also must 
     operate under a bailment agreement with the United States 
     Army.
       (8) Several existing United States commercial laboratories 
     have approved quality control systems, already possess 
     bailment agreements with the United States Army, and have the 
     capabilities necessary to obtain OPCW designation.
       (9) In order to bolster the legitimacy of United States 
     analysis of samples taken on its national territory, it is 
     preferable that the second designated laboratory is not a 
     United States Government facility. Further, it is not cost-
     effective to build and equip another Government laboratory to 
     meet OPCW designation standards when such capability already 
     exists in the private sector.
       (b) Establishment of Second Designated Laboratory.--
       (1) Directive.--Not later than February 1, 2002, the United 
     States National Authority, as designated under section 101 of 
     the Chemical Weapons Convention Implementation Act of 1998 
     (22 U.S.C. 6711), shall select, through competitive 
     procedures, a commercial laboratory within the United States 
     to pursue designation by the OPCW.
       (2) Delegation.--The National Authority may delegate the 
     authority and administrative responsibility for carrying out 
     paragraph (1) to one or more of the heads of the agencies 
     described in section 101(b)(2) of the Chemical Weapons 
     Convention Implementation Act of 1998 (22 U.S.C. 6711(b)(2)).
       (3) Report.--Not later than March 1, 2002, the National 
     Authority shall submit to the appropriate committees of 
     Congress a report detailing a plan for securing OPCW 
     designation of a third United States laboratory by December 
     1, 2003.
       (c) Definitions.--In this section:
       (1) Chemical weapons convention.--The term ``Chemical 
     Weapons Convention'' means the Convention on the Prohibition 
     of Development, Production, Stockpiling and Use of Chemical 
     Weapons and on Their Destruction, Opened for Signature and 
     Signed by the United States at Paris on January 13, 1993, 
     including the following protocols and memorandum of 
     understanding:
       (A) The Annex on Chemicals.
       (B) The Annex on Implementation and Verification.
       (C) The Annex on the Protection of Confidential 
     Information.
       (D) The Resolution Establishing the Preparatory Commission 
     for the Organization for the Prohibition of Chemical Weapons.
       (E) The Text on the Establishment of a Preparatory 
     Commission.
       (2) OPCW.--The term ``OPCW'' means the Organization for the 
     Prohibition of Chemical Weapons established under the 
     Convention.

             TITLE VII--AUTHORITY TO TRANSFER NAVAL VESSELS

     SEC. 701. AUTHORITY TO TRANSFER NAVAL VESSELS TO CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Authority To Transfer.--
       (1) Brazil.--The President is authorized to transfer to the 
     Government of Brazil the ``Newport'' class tank landing ship 
     Peoria (LST1183). Such transfer shall be on a sale basis 
     under section 21 of the Arms Export Control Act (22 U.S.C. 
     2761).
       (2) Poland.--The President is authorized to transfer to the 
     Government of Poland the ``Oliver Hazard Perry'' class guided 
     missile frigate Wadsworth (FFG 9). Such transfer shall be on 
     a grant basis under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j).
       (3) Turkey.--The President is authorized to transfer to the 
     Government of Turkey the ``Oliver Hazard Perry'' class guided 
     missile frigates Estocin (FFG 15) and Samuel Eliot Morrison 
     (FFG 13). Each such transfer shall be on a sale basis under 
     section 21 of the Arms Export Control Act (22 U.S.C. 2761). 
     The President is further authorized to transfer to the 
     Government of Turkey the ``Knox'' class frigates Capadanno 
     (FF 1093), Thomas C. Hart (FF 1092), Donald B. Beary (FF 
     1085), McCandless (FF 1084), Reasoner (FF 1063), and Bowen 
     (FF 1079). The transfer of these 6 ``Knox'' class frigates 
     shall be on a grant basis under section 516 of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2321j).
       (4) Taiwan.--The President 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 
     ``Kidd'' class guided missile destroyers Kidd (DDG 993), 
     Callaghan

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     (DDG 994), Scott (DDG 995), and Chandler (DDG 996). The 
     transfer of these 4 ``Kidd'' class guided missile destroyers 
     shall be on a sale basis under section 21 of the Arms Export 
     Control Act (22 U.S.C. 2761).
       (b) Grants Not Counted in Annual Total 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 subsection (a) shall not be counted for 
     the purposes of subsection (g) of that section in the 
     aggregate value of excess defense articles transferred to 
     countries under that section in any fiscal year.
       (c) Costs of Transfers.--Notwithstanding section 516(e)(1) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j(e)(1)), any expense incurred by the United States in 
     connection with a transfer authorized to be made on a grant 
     basis under subsection (a) or (b) shall be charged to the 
     recipient.
       (d) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, 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 United States Navy shipyard or 
     other shipyard located in the United States.
       (e) Expiration of Authority.--The authority provided under 
     subsection (a) shall expire at the end of the 2-year period 
     beginning on the date of the enactment of this Act.

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