[Congressional Record (Bound Edition), Volume 163 (2017), Part 7]
[Senate]
[Pages 10112-10117]
[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:


[[Page 10113]]


                                                  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. 16-68, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Acceptance to the Taipei Economic and Cultural Representative 
     Office in the United States for defense articles and services 
     estimated to cost $175 million. After this letter is 
     delivered to our office, we plan to issue a news release to 
     notify the public of this proposed sale.
           Sincerely,
                                                       J.W. Rixey,
                                      Vice Admiral, USN, Director.


                         Transmittal No. 16-68

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States.
       (ii) Total Estimated Value:
       Major Defense Equipment* $100 million.
       Other $75 million.
       Total $175 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       One hundred sixty-eight (168) MK-54 Lightweight Torpedo 
     (LWT) Conversion Kits.
       Non-MDE includes: Shipping containers, operator manuals and 
     technical documentation, U.S. Government and contractor 
     engineering, technical and logistics support services.
       (iv) Military Department: Navy.
       (v) Prior Related Cases, if any: FMS Cases TW-P-AJX and TW-
     P-AKB.
       (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: June 29, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          policy justification

   Taipei Economic and Cultural Representative Office (TECRO) in the 
     United States--MK-54 Lightweight Torpedo (LWT) Conversion Kits

       TECRO has requested a possible sale of MK-54 Lightweight 
     Torpedo (LWT) Conversion Kits. This request provides the 
     recipient with MK-54 LWTs in support of their LWT program. 
     This sale will include LWT containers, torpedo support, 
     torpedo spare parts, publications, training, weapon system 
     support, engineering and technical assistance for the upgrade 
     and conversion of one hundred sixty eight (168) MK-46 Mod 5 
     Torpedoes to the MK-54 Lightweight Torpedo (LWT) 
     configuration. The total estimated program cost is $175 
     million.
       This proposed sale is consistent with United States law and 
     policy, as expressed in Public Law 96-8.
       This proposed sale serves U.S. national, economic and 
     security interests by supporting the recipient's continuing 
     efforts to modernize its armed forces and enhance its 
     defensive capabilities. The proposed sale will help improve 
     the security of the recipient and assist in maintaining 
     political stability, military balance and economic progress 
     in the region.
       The proposed sale will improve the recipient's capability 
     in current and future defensive efforts. The recipient will 
     use the enhance capability as a deterrent to regional threats 
     and to strengthen homeland defense. The recipient 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 will be various contactors involved in this case.
       There are no known offset agreements proposed in connection 
     with this potential sale.
       It is estimated that during implementation of this proposed 
     sale, a number of U.S. Government and contractor 
     representatives will be assigned to the recipient or travel 
     there intermittently during the program.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-68

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

                           Annex Item No vii

       (vii) Sensitivity of Technology:
       1. The MK 54 Lightweight Torpedo (LWT) has been in service 
     in the U.S. Navy (USN) since 2004. The version offered in 
     this sale is the MK54 Mod 0 of the system. The purchaser 
     currently does not have this weapon system in its inventory. 
     The proposed sale consists 168 MK-54 Mod 0 LWT conversion 
     kits, containers, spare and repair parts, weapon system 
     support and integration, personnel training, training 
     equipment, test equipment, U.S. Government and contractor 
     engineering, technical and logistical support services and 
     other related elements of logistical support.
       a. Although the MK 54 Mod 0 LWT is considered state-of-the-
     art-technology, there is no Critical Program Information 
     associated with the MK 54 Mod 0 LWT hardware, technical 
     documentation or software. The highest classification of the 
     hardware to be exported is SECRET. The highest classification 
     of the technical manual that will be exported is 
     CONFIDENTIAL. The technical manual is required for operation 
     of the MK 54 Mod 0 LWT. The highest classification of the 
     software to be exported is SECRET.
       2. Loss of hardware, software, publications or other items 
     associated with the proposed sale to a technologically 
     advanced or competent adversary, poses the risk of the 
     destruction of the countermeasures or replication and/or 
     improvements to the adversary's Undersea Weapon Systems, 
     weakening U.S. defense capabilities.
       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 which 
     might reduce weapon system effectiveness or be used in 
     development of a system with similar or advanced 
     capabilities.
       4. A determination has been made that the recipient country 
     can provide substantially 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 in the Policy 
     justification.
       5. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the government of Taipei Economic and Cultural Representative 
     Office (IECRO) in the United States.
                                  ____

                                                  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. 16-69, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Acceptance to the Taipei Economic and Cultural Representative 
     Office in the United States for defense articles and services 
     estimated to cost $250 million. After this letter is 
     delivered to our office, we plan to issue a news release to 
     notify the public of this proposed sale.
           Sincerely,
                                                        J.W. Rixey
                                      Vice Admiral, USN, Director.


                         TRANSMITTAL NO. 16-69

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States.
       (ii) Total Estimated Value:
       Major Defense Equipment* $150 million.
       Other $100 million.
       Total $250 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Forty-six (46) MK 48 Mod 6AT Heavyweight Torpedoes (HWT).
       Non-MDE includes: Shipping containers, operator manuals and 
     technical documentation, U.S. Government and contractor 
     engineering, technical and logistics support services.
       (iv) Military Department: Navy.
       (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 Attached 
     Annex.
       (viii) Date Notification Delivered to Congress: June 29, 
     2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

   Taipei Economic and Cultural Representative Office (TECRO) in the 
         United States--MK 48 Mod 6AT Heavyweight Torpedo (HWT)

       Taiwan has requested a possible sale of forty-six (46) MK 
     48 Mod 6AT Heavyweight Torpedoes (HWT). This sale will 
     include HWT containers, torpedo support, torpedo spare parts, 
     publications, training, weapon system support, engineering 
     and technical assistance. The total estimated program cost is 
     $250 million.
       This proposed sale is consistent with United States law and 
     policy, as expressed in Public Law 96-8.
       This proposed sale serves U.S. national, economic and 
     security interests by supporting the recipient's continuing 
     efforts to modernize its armed forces and enhance its 
     defensive capabilities. The proposed sale will help improve 
     the security of the recipient and assist in maintaining 
     political stability, military balance and economic progress 
     in the region.

[[Page 10114]]

       The proposed sale will improve the recipient's capability 
     in current and future defensive efforts. The recipient will 
     use the enhanced capability as a deterrent to regional 
     threats and to strengthen homeland defense. The recipient 
     will have no difficulty absorbing this equipment into its 
     armed forces.
       There are no prime contractors associated with this case as 
     all materials will be procured from U.S. Navy stocks. There 
     are no known offset agreements proposed in connection with 
     this potential sale.
       It is estimated that during implementation of this this 
     proposed sale a number of U.S. Government and contractor 
     representatives will be assigned to the recipient or travel 
     there intermittently during the program.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         TRANSMITTAL NO. 16-69

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

                           Annex Item No vii

       (vii) Sensitivity of Technology:
       1. The MK 48 Heavy Weight Torpedo (HWT) has been in service 
     in the U.S. Navy (USN) since 1972. This sale furnishes the MK 
     48 Mod 6 Advanced Technology (AT) version of the system. The 
     purchaser currently does not have this weapon system in its 
     inventory. The proposed sale consists of 46 HWTs, containers, 
     spare and repair parts, weapons system support and 
     integration, personnel training, training equipment, test 
     equipment, U.S. Government and contractor engineering, 
     technical and logistics support services and other related 
     elements of logistical support
       a. There is no Critical Program Information associated with 
     the MK 48 Mod 6AT HWT hardware, technical documentation or 
     software. The highest classification of the hardware to be 
     exported is SECRET. The highest classification of the 
     technical manual that will be exported is CONFIDENTIAL. The 
     technical manual is required for operation of the MK 48 Mod 
     6AT HWT. The highest classification of the software to be 
     exported is SECRET. The MK 48 Mod 6AT HWT meets Anti-
     Tampering requirements.
       2. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures which 
     might reduce weapon system effectiveness or be used in 
     development of a system with similar or advanced 
     capabilities.
       3. A determination has been made that the recipient country 
     can provide substantially 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 in the Policy 
     justification.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     Taipei Economic and Cultural Representative Office (TECRO) in 
     the United States.
                                  ____

                                                  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. 16-67, 
     concerning the Department of the Navy's proposed Letter(s) of 
     Acceptance to the Taipei Economic and Cultural Representative 
     Office in the United States for defense articles and services 
     estimated to cost $125 million. After this letter is 
     delivered to our office, we plan to issue a news release to 
     notify the public of this proposed sale.
           Sincerely,
                                                       J.W. Rixey,
                                      Vice Admiral, USN, Director.


                         TRANSMITTAL NO. 16-67

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States
       (ii) Total Estimated Value:
       Major Defense Equipment $100 million.
       Other $25 million.
       TOTAL $125 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Sixteen (16) Standard Missile-2 (SM-2) Block IIIA All-Up 
     Rounds (AUR) Forty-seven (47) MK 93 MOD 1 SM-2 Block IIIA 
     Guidance Sections (GSs).
       Five (5) MK 45 MOD 14 SM-2 Block IIIA Target Detecting 
     Device (TDDs) Shrouds.
       Non-MDE includes: Seventeen (17) MK 11 MOD6 SM-2 Block IIIA 
     Autopilot Battery Units (APBUs) maneuverability upgrades on 
     the GSs, sixty-nine (69) section containers and sixteen (16) 
     AUR containers, operator manuals and technical documentation, 
     U.S. Government and contractor engineering, technical and 
     logistics support services.
       (iv) Military Department: Navy (LHT).
       (v) Prior Related Cases if any: FMS Cases TW-P-LGQ.
       (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: June 29, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

   Taipei Economic and Cultural Representative Office (TECRO) in the 
    United States--SM-2 Block IIIA Standard Missiles and Components

       TECRO has requested a possible sale of sixteen (16) 
     Standard Missile-2 (SM-2) Block IIIA All-Up Rounds (AUR), 
     forty-seven (47) MK 93 MOD 1 SM-2 Block IIIA Guidance 
     Sections (GSs), and five (5) MK 45 MOD 14 SM-2 Block IIIA 
     Target Detecting Devices (TDDs) Shrouds. This request also 
     includes Seventeen (17) MK 11 MOD6 SM-2 Block IIIA Autopilot 
     Battery Units (APBUs) maneuverability upgrades on the GSs, 
     sixty-nine (69) section containers and sixteen (16) AUR 
     containers, operator manuals and technical documentation, 
     U.S. Government and contractor engineering, technical and 
     logistics support services. The total estimated program cost 
     is $125 million.
       This proposed sale is consistent with United States law and 
     policy, as expressed in Public Law 96-8.
       This proposed sale serves U.S. national, economic and 
     security interests by supporting the recipient's continuing 
     efforts to modernize its armed forces and enhance its 
     defensive capabilities. The proposed sale will help improve 
     the security of the recipient and assist in maintaining 
     political stability, military balance and economic progress 
     in the region.
       The proposed sale will improve the recipient's capability 
     in current and future defensive efforts. The recipient will 
     use the enhanced capability as a deterrent to regional 
     threats and to strengthen homeland defense. The SM-2 Block 
     IIIA missiles and components proposed in this purchase will 
     be used to supplement existing inventories of SM-2 Block 
     IIIAs to be used for self-defense against air and cruise 
     missile threats onboard their destroyer-class surface ships. 
     The recipient will have no difficulty absorbing this 
     equipment into its armed forces.
       The proposed sale of this equipment and support will not 
     alter the military balance in the region.
       The prime contractor will be Raytheon Missiles Systems 
     Company of Tucson, Arizona. There are no known offset 
     agreements proposed in connection with this potential sale.
       It is estimated that during implementation of this proposed 
     sale, a number of U.S. Government and contractor 
     representatives will be assigned to the recipient or travel 
     there intermittently during the program.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-67

     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. A completely assembled STANDARD Missile-2 (SM-2) Block 
     IIIA with or without a conventional warhead, whether a 
     tactical or inert (training) configuration, is classified 
     CONFIDENTIAL. Missile component hardware includes: Guidance 
     Section (classified CONFIDENTIAL), Target Detection Device 
     (classified CONFIDENTIAL), Warhead (UNCLASSIFIED), Rocket 
     Motor (UNCLASSIFIED), Steering Control Section 
     (UNCLASSIFIED), Safe and Arming Device (UNCLASSIFIED), and 
     Autopilot Battery Unit (classified CONFIDENTIAL).
       2. SM-2 operator and maintenance documentation is 
     considered CONFIDENTIAL. Shipboard operation/firing guidance 
     is considered CONFIDENTIAL. Pre-firing missile assembly/
     pedigree information is UNCLASSIFIED.
       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 weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       4. A determination has been made that recipient can provide 
     substantially 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.
       5. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Taipei Economic and Cultural Representative Office 
     (TECRO) in the United States.

[[Page 10115]]

     
                                  ____
                                                  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. 16-73, 
     concerning the Department of the Air Force proposed Letter(s) 
     of Acceptance to the Taipei Economic and Cultural 
     Representative Office in the United States for defense 
     articles and services estimated to cost $185.5 million. After 
     this letter is delivered to our 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. 16-73

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States.
       (ii) Total Estimated Value:
       Major Defense Equipment* $83.5 million.
       Other $102.0 million.
       Total $185.5 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Fifty-six (56) AGM-154C Joint Standoff Weapons (JSOWs).
       Non-MDE includes: JSOW integration, captive flight 
     vehicles, dummy training missiles, missile containers, spare 
     and repair parts, support and test equipment, Joint Mission 
     Planning System updates, publications and technical 
     documentation, personnel training and training equipment, 
     U.S. Government and contractor engineering, technical and 
     logistics support services, and other related elements of 
     logistical and program support.
       (iv) Military Department: Air Force (QBZ).
       (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 Attached 
     Annex.
       (viii) Date Report Delivered to Congress: June 29, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

   Taipei Economic and Cultural Representative Office (TECRO) in the 
     United States--AGM-154C Joint Standoff Weapon (JSOW) Missiles

       TECRO requested a possible sale of fifty-six (56) AGM-154C 
     JSOW Air-to-Ground Missiles. This request also includes: JSOW 
     integration, captive flight vehicles, dummy training 
     missiles, missile containers, spare and repair parts, support 
     and test equipment, Joint Mission Planning System updates, 
     publications and technical documentation, personnel training 
     and training equipment, U.S. Government and contractor 
     engineering, technical and logistics support services, and 
     other related elements of logistical and program support. The 
     total estimated program cost is $185.5 million.
       This proposed sale is consistent with U.S. law and policy 
     as expressed in Public Law 96-8.
       This proposed sale serves U.S. national, economic, and 
     security interests by supporting the recipient's continuing 
     efforts to modernize its armed forces and to maintain a 
     credible defensive capability. The proposed sale will help 
     improve the security of the recipient and assist in 
     maintaining political stability, military balance, and 
     economic progress in the region.
       The proposed sale will improve the recipient's capability 
     in current and future defensive efforts. The recipient will 
     use the enhanced capability as a deterrent to regional 
     threats and to strengthen homeland defense. The recipient 
     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.
       Currently, market research is being conducted to determine 
     the viability of a qualified contractor in accordance with 
     Federal Acquisition Regulations. The purchaser typically 
     requests offsets, but any offsets will be determined between 
     the purchaser and the contractor.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives outside the United States.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-73

     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 AGM-154C Joint Standoff Weapon (JSOW) is a low 
     observable, 1,000 lb. class, inertial navigation and global 
     positioning satellite guided family of air-to-ground glide 
     weapons. JSOW consists of a common airframe and avionics that 
     provides for a modular payload assembly to attack stationary 
     and moving massed flight-armored and armored vehicle columns, 
     surface-to-air, soft to hard, relocatable, and fixed targets. 
     JSOW provides combat forces with an all-weather, day/night/
     multiple kills per pass, launch and leave, and standoff 
     capability.
       2. The highest classification of the hardware to be 
     exported is SECRET. The highest classification of the 
     technical documentation to be exported is SECRET, but no 
     radar cross-section and infrared signature data nor U.S.-only 
     tactics or tactical doctrine will be disclosed. The highest 
     classification of the software to be exported is SECRET; 
     however, no software source code will be disclosed. All 
     reprogramming of missile microprocessor memories must be 
     accomplished by U.S. Government personnel or U.S. Government 
     approved contractors.
       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 weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       4. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification. Moreover, the benefits to be 
     derived from this sale, as outlined in the Policy 
     Justification, outweigh the potential damage that could 
     result if the sensitive technology were revealed to 
     unauthorized persons.
       5. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Taipei Economic and Cultural Representative Office (TECRO) in 
     the United States.
                                  ____

                                                  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. 16-75, 
     concerning the Department of the Air Force proposed Letter(s) 
     of Acceptance to the Taipei Economic and Cultural 
     Representative Office in the United States for defense 
     articles and services estimated to cost $400 million. After 
     this letter is delivered to our office, we plan to issue a 
     news release to notify the public of this proposed sale.
           Sincerely,
                                                       J.W. Rixey,
                                      Vice Admiral, USN, Director.
           Enclosure.


                         Transmittal No. 16-75

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States.
       (ii) Total Estimated Value:
       Major Defense Equipment (MDE)* $0 million.
       Other $400 million.
       Total $400 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Non-MDE includes: Follow-on sustainment package for the 
     Surveillance Radar Program (SRP) that includes contractor 
     logistics support (sustainment); engineering services and 
     technical updates to address equipment obsolescence; 
     transportation and material costs associated with contractor 
     repair and return services; spare and repair parts; support 
     and test equipment; publications and technical documentation 
     personnel training and training equipment; U.S. Government 
     and contractor engineering; technical and logistics support 
     services; and other related elements of logistical and 
     program support.
       (iv) Military Department: Air Force (QAP).
       (v) Prior Related Cases, if any: TW-D-DAH--$831 million--27 
     Oct 2004; TW-D-QAI--$370 million--25 May 2012.
       (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: June 29, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

       Taipei Economic and Cultural Representative Office (TECRO) 
     in the United States--Surveillance Radar Program (SRP) 
     Operation and Maintenance Support
       TECRO requested a possible sale of SRP Operations and 
     Maintenance follow-on sustainment package that includes, 
     contractor logistics support (sustainment); engineering 
     services and technical updates to address equipment 
     obsolescence; transportation and material costs associated 
     with contractor repair and return services; spare

[[Page 10116]]

     and repair parts; support and test equipment; publications 
     and technical documentation personnel training and training 
     equipment; U.S. Government and contractor engineering; 
     technical and logistics support services; and other related 
     elements of logistical and program support. The total 
     estimated program cost is $400 million.
       This proposed sale is consistent with United States law and 
     policy as expressed in Public Law 96-8.
       This proposed sale contributes to the foreign policy and 
     national security of the United States by helping to improve 
     the security and defensive capability of the recipient, which 
     has been and continues to be an important force for political 
     stability, military balance, and economic progress in the 
     region.
       The proposed sale improves the recipient's capability to 
     provide early warning against current and future airborne 
     threats. The SRP is a key component to the recipient's 
     Command, Control, Communications, Computers, Intelligence 
     Surveillance and Reconnaissance architecture. It will use the 
     requested updates and sustainment as a defensive deterrent to 
     regional threats and to strengthen its homeland defense. This 
     potential sale will not introduce new capabilities, but will 
     continue a similar sustainment package to one currently in 
     place.
       The proposed sale of this equipment and support will not 
     alter the basic military balance in the region.
       Currently, market research is being conducted to determine 
     the viability of a qualified contractor in accordance with 
     Federal Acquisition Regulations. The purchaser typically 
     requests offsets, but any offsets will be determined between 
     the purchaser and the contractor.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives outside the United States.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-75

     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 purchaser currently owns an Early Warning Radar 
     (EWR) that serves as a critical element to its Command, 
     Control, Communications, Computers, Intelligence, 
     Surveillance, and Reconnaissance (C4ISR) infrastructure. The 
     radars provide a robust capability to detect, acquire, and 
     track theater ballistic missiles, air breathing targets, and 
     cruise missile threats. The system is able to operate in 
     severe clutter and jamming environments amid high levels of 
     background radio frequency interference. The follow on 
     sustainment package requested will not introduce new 
     capabilities.
       2. The highest classification of the hardware to be 
     exported is UNCLASSIFIED. The highest classification of the 
     technical documentation to be exported is SECRET. There are 
     technical manuals as well as Engineering Change Proposals, 
     drawings, and specifications required as part of the 
     sustainment updates. Components requiring depot level 
     maintenance will be shipped to the U.S. for servicing. The 
     highest level of software to be exported is UNCLASSIFIED.
       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 which 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       4. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification. Moreover, the benefits to be 
     derived from this sale, as outlined in the Policy 
     Justification, outweigh the potential damage that could 
     result if the sensitive technology were revealed to 
     unauthorized persons.
       5. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Taipei Economic and Cultural Representative Office (TECRO) in 
     the United States.
                                  ____

                                                  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. 16-74, 
     concerning the Department of the Air Force proposed Letter(s) 
     of Acceptance to the Taipei Economic and Cultural 
     Representative Office in the United States for defense 
     articles and services estimated to cost $147.5 million. After 
     this letter is delivered to our office, we plan to issue a 
     news release to notify the public of this proposed sale.
           Sincerely,
                                                      J.W. Rixley,
                                      Vice Admiral, USN, Director.


                         Transmittal No. 16-74

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States
       (ii) Total Estimated Value:
       Major Defense Equipment* $47.5 million.
       Other $100.0 million.
       Total $147.5 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Fifty (50) AGM-88B High-Speed Anti-Radiation Missiles 
     (HARMs).
       Ten (10) AGM-88B Training HARMs.
       Non-MDE includes: HARM integration, LAU-118A Launchers, 
     missile containers, spare and repair parts, support and test 
     equipment, Joint Mission Planning System update, publications 
     and technical documentation, personnel training and training 
     equipment, U.S. Government and contractor engineering, 
     technical and logistics support services, and other related 
     elements of logistical and program support.
       (iv) Military Department: Air Force (QBZ).
       (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 Attached 
     Annex.
       (viii) Date Report Delivered to Congress: June 29, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

   Taipei Economic and Cultural Representative Office (TECRO) in the 
    United States--AGM-88B High-Speed Anti-Radiation Missiles (HARM)

       TECRO requested a possible sale of fifty (50) AGM-88B HARMs 
     and ten (10) AGM-88B Training HARMs. This request also 
     includes: HARM integration, LAU-118A Launchers, missile 
     containers, spare and repair parts, support and test 
     equipment, Joint Mission Planning System update, publications 
     and technical documentation, personnel training and training 
     equipment, U.S. Government and contractor engineering, 
     technical and logistics support services, and other related 
     elements of logistical and program support. The total 
     estimated program cost is $147.5 million.
       This proposed sale is consistent with U.S. law and policy 
     as expressed in Public Law 96-8.
       This proposed sale serves U.S. national, economic, and 
     security interests by supporting the recipient's continuing 
     efforts to modernize its armed forces and to maintain a 
     credible defensive capability. The proposed sale will help 
     improve the security of the recipient and assist in 
     maintaining political stability, military balance, and 
     economic progress in the region.
       The proposed sale will improve the recipient's capability 
     in current and future defensive efforts. The recipient will 
     use the enhanced capability as a deterrent to regional 
     threats and to strengthen homeland defense. The recipient 
     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.
       Currently, market research is being conducted to determine 
     the viability of a qualified contractor in accordance with 
     Federal Acquisition Regulations. The purchaser typically 
     requests offsets, but any offsets will be determined between 
     the purchaser and the contractor.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government or contractor 
     representatives outside the United States.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-74

     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. AGM-88B High-Speed Anti-Radiation Missile (HARM) is a 
     supersonic air-to-surface missile designed to seek and 
     destroy enemy radar-equipped air defense systems. HARM has a 
     proportional guidance system that hones in on enemy radar 
     emissions through a fixed antenna and seeker head in the 
     missile nose. The missile consists of four sections; guidance 
     section, warhead, control section, and rocket motor.
       2. The highest classification of the hardware to be 
     exported is SECRET. The highest classification of the 
     technical documentation to be exported is SECRET, but no 
     radar cross-section and infrared signature data nor U.S.-only 
     tactics or tactical doctrine will be disclosed. The highest 
     classification of the software to be exported is SECRET; 
     however, no software source code will be disclosed. All 
     reprogramming of missile microprocessor memories must be 
     accomplished by U.S. Government personnel or U.S. Government 
     approved contractors.

[[Page 10117]]


       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 which 
     might reduce weapon system effectiveness or be used in the 
     development of a system with similar or advanced 
     capabilities.
       4. This sale is necessary in furtherance of the U.S. 
     foreign policy and national security objectives outlined in 
     the Policy Justification. Moreover, the benefits to be 
     derived from this sale, as outlined in the Policy 
     Justification, outweigh the potential damage that could 
     result if the sensitive technology were revealed to 
     unauthorized persons. A determination has been made that the 
     recipient country can provide substantially 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 and in accordance with 
     the Taiwan Relations Act.
       5. All defense articles and services listed in this 
     transmittal are authorized for release and export to the 
     Taipei Economic and Cultural Representative Office (TECRO) in 
     the United States.
                                  ____

                                                  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. 16-70, 
     concerning the Department of the Navy proposed Letter(s) of 
     Acceptance to the Taipei Economic and Cultural Representative 
     Office in the United States for defense articles and services 
     estimated to cost $80 million. After this letter is delivered 
     to our office, we plan to issue a news release to notify the 
     public of this proposed sale.
           Sincerely,
                                                      J.W. Rixley,
                                      Vice Admiral, USN, Director.


                         Transmittal No. 16-70

     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: Taipei Economic and Cultural 
     Representative Office (TECRO) in the United States
       (ii) Total Estimated Value:
       Major Defense Equipment* $0 million.
       Other $ 80 million.
       Total $ 80 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Non-MDE Includes: AN/SLQ-32(V)3 Electronic Warfare System 
     upgrade hardware, software, support equipment and parts, 
     publications, training, engineering and technical assistance.
       (iv) Military Department: Navy (LHW).
       (v) Prior Related Cases, if any: FMS Cases TW-P-SDV, TW-P-
     GNT, and TW-P-GOU.
       (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: June 29, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

       Taipei Economic and Cultural Representative Office (TECRO) 
     in the United States--AN/SLO-32(V)3 Upgrade
       TECRO has requested a possible sale to upgrade the AN/SLQ-
     32(V)3 Electronic Warfare Systems in support of four
       (4) ex-KIDD Class (now KEELUNG Class) destroyers. This sale 
     will include AN/SLQ-32(V)3 upgrade hardware, software, 
     support equipment and parts, publications, training, 
     engineering and technical assistance. The total estimated 
     program cost is $80 million.
       This proposed sale is consistent with United States law and 
     policy, as expressed in Public Law 96-8.
       This proposed sale serves U.S. national, economic and 
     security interests by supporting the recipient's continuing 
     efforts to modernize its armed forces and enhance its 
     defensive capabilities. The proposed sale will help improve 
     the security of the recipient and assist in maintaining 
     political stability, military balance and economic progress 
     in the region.
       The proposed sale will improve the recipient's capability 
     in current and future defensive efforts. The recipient will 
     use the enhanced capability as a deterrent to regional 
     threats and to strengthen homeland defense. The proposed sale 
     will improve operational readiness and enhance the electronic 
     warfare capability onboard the ex-KIDD Class destroyers. The 
     recipient will have no difficulty in absorbing this equipment 
     into its armed forces.
       The proposed sale will not alter the basic military balance 
     in the region.
       The prime contractor will be Raytheon Missiles Systems 
     Company of Tucson, Arizona. There are no known offset 
     agreements proposed in connection with this potential sale.
       It is estimated that during implementation of this proposed 
     sale, a number of U.S. Government and contractor 
     representatives will be assigned to the recipient or travel 
     there intermittently during the program.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 16-70

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

                           Annex Item No vii

       (vii) Sensitivity of Technology:
       1. The AN/SLQ-32(V)3 is an electronic warfare system 
     providing shipboard identification and cataloguing of the 
     electronic signature of missiles and aircraft. The system 
     consists of sensors and computers which process electronic 
     signals within parameters established in a threat library. 
     The customer currently has an earlier version of this 
     equipment in inventory.
       a. The AN/SLQ-32(V)3 upgrade consists of hardware, 
     technical documentation, and software. The highest 
     classification of the hardware to be exported is SECRET. The 
     highest classification of software to be exported is SECRET.
       2. If a technologically advanced adversary were to obtain 
     knowledge of the specific hardware and software elements, the 
     information could be used to develop countermeasures which 
     might reduce weapon system effectiveness or be used in 
     development of a system with similar or advanced 
     capabilities.
       3. A determination has been made that the recipient country 
     can provide substantially 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 in the Policy 
     justification.
       4. All defense articles and services listed in this 
     transmittal have been authorized for release and export to 
     the Government of Taipei Economic and Cultural Representative 
     Office (TECRO) in the United States.

                          ____________________