[Congressional Record (Bound Edition), Volume 162 (2016), Part 11]
[Senate]
[Pages 15704-15706]
[From the U.S. Government Publishing Office, www.gpo.gov]




                        ARMS SALES NOTIFICATION

  Mr. CORKER. Mr. President, section 36(b) of the Arms Export Control 
Act requires that Congress receive prior notification of certain 
proposed arms sales as defined by that statute. Upon such notification, 
the Congress has 30 calendar days during which the sale may be 
reviewed. The provision stipulates that, in the Senate, the 
notification of proposed sales shall be sent to the chairman of the 
Senate Foreign Relations Committee.
  In keeping with the committee's intention to see that relevant 
information is available to the full Senate, I ask unanimous consent to 
have printed in the Record the notifications which have been received. 
If the cover letter references a classified annex, then such annex is 
available to all Senators in the office of the Foreign Relations 
Committee, room SD-423.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 16-76, 
     concerning the Department of the Army's proposed Letter(s) of 
     Offer and Acceptance for the Government of Peru for defense 
     articles and services estimated to cost $668 million. After 
     this letter is delivered to your office, we plan to issue a 
     news release to notify the public of this proposed sale.
           Sincerely,
                                    J.W. Rixey, Vice Admiral, USN,
                                                         Director.
  Enclosures.


                         Transmittal No. 16-76

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Government of Peru.
       (ii) Total Estimated Value:
       Major Defense Equipment* $434 million.
       Other $234 million.
       Total $668 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       One hundred and seventy-eight (178) Reconditioned Stryker 
     Infantry Carrier Vehicles.
       One hundred and seventy-eight (178) M2 Flex .50 Cal Machine 
     Guns.
       One hundred and seventy-eight (178) Remote Weapon Stations 
     (RWS).
       Non-MDE includes: Driver's vision enhancers; Global 
     Positioning System (GPS) navigational capability; sets of 
     special tools testing equipment; associated M2 Flex spare 
     parts and tripods; M6 Smoke Grenade launchers and associated 
     spares; VIC-3 systems; Operators New Equipment Training 
     (OPNET) and Field Level Maintenance Training (FLMNET); 
     publications; training manuals; Contractor Field Service 
     Representative support; contractor and concurrent spare 
     parts; project office technical support; U.S. Government 
     technical assistance; packaging, crating, and handling; de-
     processing services for shipment; and associated 
     transportation.
       (iv) Military Department: Army.
       (v) Prior Related Cases, if any: None.
       (vi) Sales Commission, Fee. etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Annex 
     Attached.
       (viii) Date Report Delivered to Congress: December 2, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

  Government of Peru--Reconditioned Stryker Infantry Carrier Vehicles

       The Government of Peru has requested a possible sale of one 
     hundred and seventy-eight (178) Reconditioned Stryker 
     Infantry Carrier Vehicles; one hundred and seventy-eight 
     (178) M2 Flex .50 Cal Machine Guns; and one hundred and 
     seventy-eight (178) Remote Weapon Stations (RWS). Also 
     included are driver's vision enhancers; Global Positioning 
     System (GPS) navigation capability; sets of special tools 
     testing equipment; associated M2 Flex spare parts and 
     tripods; M6 Smoke Grenade launchers and associated spares; 
     VIC-3 systems; Operators New Equipment Training (OPNET) and 
     Field Level Maintenance Training (FLMNET); publications; 
     training manuals; Contractor Field Service Representative 
     support; contractor and concurrent spare parts; project 
     office technical support; U.S. Government technical 
     assistance; packaging, crating, and handling; de-processing 
     services for shipment; and associated transportation. Total 
     estimated program cost is $668 million.
       This proposed sale will contribute to the foreign policy 
     objectives of the United States by helping to improve the 
     security of an important partner which has been and continues 
     to be an important force for political stability, peace, and 
     economic progress in South America. It is in the U.S. 
     national security interest for Peru to field capable forces 
     and multi-role equipment for border security, disaster 
     response, and to confront de-stabilizing internal threats, 
     such as the terrorist group Sendero Luminoso (Shining Path).
       Peru intends to use these defense articles and services to 
     modernize its armed forces. This will contribute to the 
     Peruvian military's goal of updating its capabilities while 
     further enhancing interoperability between Peru, the United 
     States, and other allies and partners. This acquisition would 
     support the first major step in Peru's acquisition strategy 
     to build a multi-dimensional brigade by 2030. Peru will have 
     no difficulty absorbing this equipment into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The prime contractor for this program is General Dynamics 
     Land Systems. There are no known offset agreements in connect 
     with this potential sale.
       Implementation of this proposed sale will require the 
     temporary assignment of U.S. Government or contractor 
     representatives to Peru for up to three years.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-76

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The following Major Defense Equipment items do not 
     contain any sensitive technologies or classified material: 
     178 M1126 Stryker Infantry Carrier Vehicles with M2 Flex .50 
     Cal machine guns and Remote Weapon Systems. The M1126 Stryker 
     is an infantry carrier vehicle transporting nine soldiers, 
     their mission equipment and a crew of two consisting of a 
     driver and vehicle commander. It is equipped with armor 
     protection, M2 machine guns and M6 smoke grenade launchers 
     for self-protection. The Stryker is an eight-wheeled vehicle 
     powered by a 350hp diesel engine. It incorporates a central 
     tire inflation system, run-flat tires, and a vehicle height 
     management system. The Stryker is capable of supporting a 
     communications suite, a Global Positioning System (GPS), and 
     a high frequency and near-term digital radio systems. The 
     Stryker is deployable by C-130 aircraft and combat capable 
     upon arrival. The Stryker is capable of self-deployment by 
     highway and self-recovery. It has a low noise level that 
     reduces crew fatigue and enhances survivability. It moves 
     about the battlefield quickly and is optimized for close, 
     complex, or urban terrain. The Stryker program leverages non-
     developmental items with common subsystems

[[Page 15705]]

     and components to quickly acquire and filed these systems.
       2. The AN/VAS-5 Driver's Vision Enhancer (DVE) is a compact 
     thermal camera providing armored vehicle drivers with day or 
     night time visual awareness in clear or reduced vision (fog, 
     smoke, dust) situations. The system provides the driver a 180 
     degree viewing angle using a high resolution infrared sensor 
     and image stabilization to reduce the effect of shock and 
     vibration. The viewer and monitor are ruggedized for 
     operation in tactical environments. The system is 
     UNCLASSIFIED but considered sensitive technology. If a 
     technically advanced adversary were to obtain knowledge of 
     the AN/VAS-5, the information could be used to identify ways 
     to countering the system or improve the adversary's ability 
     to avoid detection by the system in low-visibility 
     environments. This is a low-level concern because the thermal 
     imaging technology used in the AN/VAS-5 is considered mature 
     and available in other industrial nation's comparable 
     performance thresholds.
       3. A determination has been made that the recipient country 
     can provide the same degree of protection for the sensitive 
     technology being released as the U.S. Government. This sale 
     is necessary in furtherance of the U.S. foreign policy and 
     national security objectives outlined in the Policy 
     Justification.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     Peru.


     
                                  ____
                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 16-54, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance to the Government of Australia for 
     defense articles and services estimated to cost $115 million. 
     After this letter is delivered to your office, we plan to 
     issue a news release to notify the public of this proposed 
     sale.
           Sincerely,
                                    J.W. Rixey, Vice Admiral, USN,
                                                         Director.
       Enclosures.

                         Transmittal No. 16-54

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Government of Australia.
       (ii) Total Estimated Value:
       Major Defense Equipment (MDE)* $ 0.00 million.
       Basic Case (GUW) $ 79.07 million.
       Amendment Funding $ 35.93 million.
       Total $115.00 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Non-MDE: FMS case AT-P-GUW, originally offered below 
     congressional notification threshold at $79.07 million, was 
     for acquisition of two Range Systems to conduct Electronic 
     Warfare (EW), Electronic Surveillance, and Airborne 
     Electronic Attack for Royal Australian Air Force aircrew 
     training on its twelve (12) Australian EA-18G aircraft. An 
     amendment to AT-P-GUW is required to add $35.93 million in 
     funding, to provide for unfunded requirements to meet the 
     scope of the basic case and provide for the sale of 
     additional classified technical data and software, system 
     integration and testing, tools and test equipment, support 
     equipment, spare and repair parts, publications, operations 
     manuals, and technical documents, personnel training, U.S. 
     Government and contractor technical assistance, and other 
     related elements of engineering, logistics, and program 
     management. This amendment will push the original case value 
     above notification threshold and thus requires notification 
     of the entire case.
       Military Department: Navy (AT-P-GUW-A1).
       Prior Related Cases. if any:
       FMS case AT-P-LEN: $992M September 13, 2012 (Airborne 
     Electronic Attack Kits).
       FMS case AT-P-SCI $1.3B July 4, 2013 (twelve EA-18G 
     aircrafts).
       FMS case AT-P-GUW $79M February 12, 2015 (Electronic 
     Warfare Range System).
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Attached 
     Annex.
       (viii) Date Report Delivered to Congress: December 2, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.

                          POLICY JUSTIFICATION

    Government of Australia--AEA-18G Electronic Warfare Range System

       The Government of Australia has requested additional 
     funding to a previously implemented case for two Electronic 
     Warfare Range Systems to conduct Electronic Warfare and 
     Electronic Surveillance training within the borders of 
     Australia. The original FMS case, valued at $79.07 million, 
     includes non-MDE costs for all support elements required to 
     provide for system integration testing, tools and test 
     equipment, support equipment, spare and repair parts, 
     publications, operations manuals, technical documents, 
     personnel training, U.S. Government and contractor technical 
     assistance, and other related elements of logistics and 
     program support. The addition of $35.93 million in non-MDE 
     funding to the basic case will provide for unfunded 
     requirements to meet the scope of the basic case and provide 
     for the sale of additional classified technical data and 
     software, system integration and testing, tools and test 
     equipment, support equipment, spare and repair parts, 
     publications, operations manuals, and technical documents, 
     personnel training, U.S. Government and contractor technical 
     assistance, and other related elements of engineering, 
     logistics, and program management. This amendment will push 
     the original case value above notification threshold and thus 
     requires notification of the entire case. The total overall 
     estimated value is $115 million.
       This sale will contribute to the foreign policy and 
     national security of the United States by helping to improve 
     the security of a major contributor to political stability, 
     security, and economic development in the Western Pacific. 
     Australia is an important Major non-NATO Ally and partner 
     that contributes significantly to peacekeeping and 
     humanitarian operations around the world. It is vital to the 
     U.S. national interest to assist our ally in developing and 
     maintaining a strong and ready self-defense capability. By 
     enabling Australian Defense Force (ADF) ranges, the U.S. 
     Government will ensure consistency in training across 
     platforms and theaters, whether the exercises are conducted 
     in the United States or in Australia, where U.S. aircrews 
     will be able to participate in training exercises alongside 
     their Australian counterparts. The proposed sale will allow 
     continued efforts to improve Australia's capability in 
     current and future coalition operations. Australia will use 
     the range to enhance Electronic Warfare capabilities as a 
     deterrent to regional threats and to strengthen its homeland 
     defense. Australia will have no difficulty absorbing these 
     items into its armed forces.
       The proposed sale will not alter the basic military balance 
     in the region.
       The prime contractors will be Leidos (hardware) and General 
     Dynamics Mission Systems (software). The U.S. Government is 
     not aware of any known offsets associated with this sale.
       Implementation of this sale will require ten (10) temporary 
     U.S. Government or contractor representatives to Australia 
     for assistance in integration and range operational and 
     maintenance training.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed amendment.


                         Transmittal No. 16-54

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. Provides two (2) in-country Electronic Warfare (EW) 
     ranges for EA-18G aircrew training to detect, identify, 
     locate, and suppress hostile emitters. Range technology 
     transfers programmable equipment able to emulate generic 
     Integrated Air Defense Systems, threat and other emitters, 
     along with authentic threat emitters purchased from vendors 
     in Former Soviet Block states. The range hardware is 
     Unclassified either stand-alone or integrated. The range 
     software is unclassified with the exception of one (1) Secret 
     Digital Integrated Air Defense System (DIADS) software suite. 
     The amendment facilitates transfer of classified information 
     such as software, classified threat and fly-out models, user 
     event captured data, range operations manuals, and security 
     classification guidance. The classified information enhances 
     the usefulness of the range technology being transferred and 
     provides guidance on safeguarding sensitive information.
       2. When EW range hardware and software work together 
     against a particular aircraft platform, the visual and 
     recorded information becomes classified Secret. The range 
     capability is unclassified until the networks touch a Secret 
     network (e.g., Link 16) or perform against real world 
     training missions. The customer may capture intelligence 
     regarding the authentic threat emitters that is classified 
     Confidential or Secret, as well as other training artifacts 
     and debrief products capturing weapons capability and 
     tactics.
       3. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures that 
     might reduce EA-18G weapon system effectiveness or be used in 
     the development of a system with similar or advanced 
     capabilities.
       4. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Government of Australia.

[[Page 15706]]

     
                                  ____
                                                  Defense Security


                                           Cooperation Agency,

                                                    Arlington, VA.
     Hon. Bob Corker,
     Chairman, Committee on Foreign Relations,
     U.S. Senate, Washington, DC.
       Dear Mr. Chairman: Pursuant to the reporting requirements 
     of Section 36(b)(1) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 16-65, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Offer and Acceptance for the Government of Finland for 
     defense articles and services estimated to cost $156 million. 
     After this letter is delivered to your office, we plan to 
     issue a news release to notify the public of this proposed 
     sale.
           Sincerely,
                               James Worm, Acting Deputy Director,
                    (for J.W. Rixey, Vice Admiral, USN, Director).
       Enclosures.


                         Transmittal No. 16-65

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act, as 
         amended
       (i) Prospective Purchaser: Government of Finland.
       (ii) Total Estimated Value:
       Major Defense Equipment* $ 57 million.
       Other $ 99 million.
       Total $156 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Ninety (90) Multifunctional Information Distribution System 
     Joint Tactical Radio System (MIDS-JTRS) Variant(s).
       Non-MDE includes: Follow-on equipment and support for 
     Finland's F/A-18 Mid-Life Upgrade (MLU) program includes 
     software test and integration center upgrades, flight 
     testing, spare and repair parts, support and test equipment, 
     transportation, publications and technical documentation, 
     personnel training and training equipment, U.S. Government 
     and contractor technical and logistics support services, and 
     other related elements of logistics support.
       (iv) Military Department: Navy.
       (v) Prior Related Cases, if any:
       FMS case FI-P-SAA $2.4 billion--9 Jun 1992.
       FMS case FI-P-SAB $675 million--7 Feb 1994.
       FMS case FI-P-GAD $25 million--13 Jul 2001.
       FMS case FI-P-LBB $63 million--4 Aug 2001.
       FMS case FI-P-LBC $127 million--1 Jan 2004.
       FMS case FI-P-LBD $252 million--25 Jul 2007.
       FMS case FI-P-LBH $307 million--3 Apr 2009.
       FMS case FI-P-GAU $170 million--27 Jun 2013.
       (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed 
     to be Paid: None.
       (vii) Sensitivity of Technology Contained in the Defense 
     Article or Defense Services Proposed to be Sold: See Annex 
     Attached.
       (viii) Date Report Delivered to Congress: December 2, 2016.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

          Government of Finland--F-18 Mid-Life Upgrade Program

       The Government of Finland has requested a possible sale of 
     follow-on equipment and support for Finland's F/A-18 Mid-Life 
     Upgrade (MLU) program, consisting of: Ninety (90) 
     Multifunctional Information Distribution System Joint 
     Tactical Radio System (MIDS-JTRS) variant(s). The proposed 
     program support also includes software test and integration 
     center upgrades, flight testing, spare and repair parts, 
     support and test equipment, transportation, publications and 
     technical documentation, personnel training and training 
     equipment, U.S. Government and contractor technical and 
     logistics support services, and other related elements of 
     logistics support. Total estimated program cost is $156 
     million.
       This proposed sale will contribute to the foreign policy 
     and national security objectives of the United State by 
     helping to improve the security of a friendly country which 
     has been and continues to be an important force for political 
     stability and economic progress in Europe.
       The Finnish Air Force (FAF) intend to purchase this MLU 
     program equipment and services to extend the useful life of 
     its F/A-18 fighter aircraft and enhance their survivability 
     and communications connectivity. The FDF needs this upgrade 
     to keep pace with technology advances in sensors, weaponry, 
     and communications. Finland has extensive experience 
     operating the F/A-18 aircraft and will have no difficulty 
     incorporating the upgraded capabilities into its forces.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       The principal contractors will be Raytheon in Waltham, 
     Massachusetts; Lockheed Martin in Bethesda, Maryland; The 
     Boeing Company in St. Louis, Missouri; BAE North America in 
     Arlington, Virginia; General Electric in Fairfield, 
     Connecticut; General Dynamics in West Falls Church, Virginia; 
     Northrop Grumman in Falls Church, Virginia; Rockwell Collins 
     in Cedar rapids, Iowa; ViaSat in Carlsbad, California; and 
     Data Link Solutions in Cedar Rapids, Iowa. There are no known 
     offset agreements proposed in connection with this potential 
     sale.
       Implementation of this proposed sale will require multiple 
     trips to Finland involving U.S. Government and contractor 
     representatives for technical reviews, support, and training.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-65

     Notice of Proposed Issuance of Letter of Offer Pursuant to 
         Section 36(b)(1) of the Arms Export Control Act

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. The Multifunctional Information Distribution System 
     Joint Tactical Radio System (MIDS-JTRS) is not classified but 
     is considered a COMSEC Controlled Item (CCI). There are no 
     training devices, associated documentation, or services to be 
     provided with the sale of these MIDS-JTRS units. No sensitive 
     information is provided or associated with this sale.
       2. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Finland.

                          ____________________