[Congressional Record (Bound Edition), Volume 163 (2017), Part 7]
[Senate]
[Pages 10262-10265]
[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. 17-34, 
     concerning the Navy's proposed Letter(s) of Offer and 
     Acceptance to the Government of Australia for defense 
     articles and services estimated to cost $101.4 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.


                         Transmittal No. 17-34

     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* $100.0 million.
       Other $1.4 million.
       Total $101.4 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Thirty-two (32) Multifunctional Information Distribution 
     Systems--Joint Tactical Radio System (MIDS JTRS) with four 
     channel Concurrent Multi-Network (CMN-4).
       Thirty-nine (39) AN/ALQ-214A(V)4 Countermeasure Systems.
       Non-MDE includes: Also included in this sale are system 
     integration and testing, software development/integration, 
     test sets and support equipment, spare and repair parts, 
     publications and technical documents, U.S. Government and 
     contractor technical assistance, and other related elements 
     of logistical and program support.
       (iv) Military Department: Navy (XX-P-GQF A1).
       (v) Prior Related Cases, if any: AT-P-SAF--$2.2B--02 May 07 
     (F/A-18F aircraft procurement).
       AT-P-GQY--$358M--6 May 11 (first AF/A-18F sustainment).
       AT-P-LEN--$992M--13 September 12 (Airborne Electronic 
     Attack kit procurement).
       AT-P-SCI--$1.3B--4 July 13 (EA-18G aircraft procurement).
       (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: Jul 10 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

        Australia--Upgrades for F/A-18E/F Super Hornet Aircraft

       The Government of Australia requested the possible sale of 
     thirty-two (32) Multifunctional Information Distribution 
     System Joint Tactical Radio System (MIDS JTRS) with four 
     channel Concurrent Multi-Network (CMN-4), and thirty-nine 
     (39) AN/ALQ-214A(V)4 Countermeasure Systems. This will also 
     include all system integration and testing, component 
     improvement, test and tools equipment upgrades, support 
     equipment replenishment, supply support, publications and 
     technical document updates, personnel training and training 
     equipment upgrades, aircrew trainer device upgrades, U.S. 
     Government and contractor technical assistance and other 
     related elements of logistical and program support. The total 
     estimated program cost is $101.4 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.
       The proposed sale will improve Australia's capability in 
     current and future coalition efforts. This equipment will 
     help the Royal Australian Air Force better communicate with 
     and protect its F/A-18 aircraft, and the addition of MIDS 
     JTRS will accomplish the goal of making U.S. and Australian 
     aircraft more interoperable when supporting operational 
     forces. Australia will have no difficulty absorbing this 
     equipment into its armed forces.
       The proposed sale of this equipment does not alter the 
     basic military balance in the region.
       The prime contractors will be the Harris Corporation, 
     Melbourne, FL. There are no known offset agreements proposed 
     in connection with this potential sale.
       Implementation of this proposed sale may require the 
     assignment of U.S. contractor representatives to Australia 
     which will be determined at a later date.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-34

     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. Multifunctional Information Distribution System (MIDS) 
     Joint Tactical Radio System (JTRS) Concurrent Multi-Network 
     (CMN-4) is classified CONFIDENTIAL. MIDS JTRS CMN-4 is a 
     secure data and voice communication network using the Link-16 
     architecture. The system provides enhanced situational 
     awareness, positive identification of participants with the 
     network, secure fighter-to-fighter connectivity, and secure 
     voice capability. It provides three major functions: Air 
     Control, Wide Area Surveillance, and Fighter-to-Fighter. The 
     MIDS JTRS CMN-4 can be used to transfer data in Air-to-Air, 
     Air-to-Surface and Fighter-to-Fighter scenarios.
       2. The AN/ALQ-214A(V)4 is an advanced airborne Integrated 
     Defensive Electronic Countermeasures (IDECM) programmable 
     modular automated system capable of intercepting, 
     identifying, processing received radar signals (pulsed and 
     continuous) and applying an optimum probability of survival 
     from a variety of surface-to-air and air-to-

[[Page 10263]]

     air RF threats. The system operates in a standalone or 
     Electronic Warfare (EW) suite mode. In the EW suite mode, the 
     system operates various dispensable countermeasures and the 
     onboard radar in the F/A-18E/F in a coordinated, non-
     interference manner, sharing information for enhanced 
     information. The ALQ-214 was designed to operate in a high-
     density Electromagnetic Hostile Environment with the ability 
     to identify and counter a wide variety of multiple threats 
     including those with Doppler characteristics. Hardware with 
     the AN/ALQ-214A(V)4 is classified CONFIDENTIAL.
       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 or 
     equivalent system which might reduce system effectiveness or 
     be used in the development of a system with similar or 
     advanced capabilities.
       4. A determination has been made that Australia 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 
     Australia.
                                                  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. 17-40, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of the Netherlands for defense 
     articles and services estimated to cost $58.2 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,

                                                  Greg Kausner

                                    (For J.W. Rixey, Vice Admiral,
                                                   USN, Director).


                         Transmittal No. 17-40

     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: The Government of the 
     Netherlands.
       (ii) Total Estimated Value:
       Major Defense Equipment* $30.0 million.
       Other $28.2 million.
       Total $58.2 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Foreign Military Sales (FMS) case NE-B-WGC for Aircraft 
     Survivability Equipment (ASE) for the Netherlands' AH-64D 
     Apache helicopters, was below the congressional notification 
     threshold at $8.2M (all non-MDE) and included a total of 
     thirty-three (33) AN/AVR-2B laser detecting sets and 
     communications, logistics and support equipment. The 
     Netherlands has requested the case be amended to include the 
     Common Missile Warning Systems (CMWS). This amendment, which 
     will add $30M of MDE and $20M of non-MDE, will push the 
     current case above the congressional notification threshold, 
     requiring notification of the entire case before the 
     amendment can be offered.
       Major Defense Equipment (MDE):
       Thirty-two (32) AN/AAR-57A(V)7 Common Missile Warning 
     Systems (CMWS).
       Non-MDE: Thirty-three (33) AN/AVR-2B laser detecting sets, 
     mission equipment, hardware and services required to 
     implement customer unique post modifications, communications 
     and navigation equipment, special tools and test equipment, 
     ground support equipment, technical data, publications, MWO/
     ECP, technical assistance, and training, and other related 
     elements of logistics and program support.
       (iv) Military Department: Army (XX-B-WGC Amend 1).
       (v) Prior Related Cases, if any: NE-B-WES.
       (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: July 10, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

 Government of the Netherlands--AN/AAR-57A(V)7 Common Missile Warning 
                             System (CMWS)

       The Government of the Netherlands has requested the 
     possible sale of thirty-two (32) AN/AAR-57A(V)7 Common 
     Missile Warning Systems (CMWS). This would be in addition to 
     the thirty-three (33) AN/AVR-2B laser detecting sets with 
     various support elements included in an earlier FMS case 
     valued at $8.2M. Also included in the amended FMS case would 
     be mission equipment, hardware and services required to 
     implement customer unique post modifications, communication 
     and navigation equipment, special tools and test equipment, 
     ground support equipment, technical data, publications, MWO/
     ECP, technical assistance, and training, and other related 
     elements of logistics and program support. The estimated 
     total case value is $58.2 million.
       This proposed sale will enhance the foreign policy and 
     national security objectives of the United States by helping 
     to improve the security of the Netherlands which has been, 
     and continues to be an important force for political 
     stability and economic progress in Europe. It is vital to the 
     U.S. national interest to assist the Netherlands to develop 
     and maintain a strong and ready self-defense capability.
       The proposed sale will improve the Netherlands' capability 
     to meet current and future threats and will be employed on 
     the Netherlands' AH-64D Apache helicopters. The Netherlands 
     will use the enhanced capability to strengthen its homeland 
     defense, deter regional threats, and provide direct support 
     to coalition and security cooperation operations. The 
     Netherlands will have no difficulty absorbing these systems 
     into its armed forces.
       The proposed sale of these systems will not alter the basic 
     military balance in the region.
       The principal contractor will be BAE Systems, Nashua, NH. 
     There are no known offset agreements proposed in connection 
     with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. Government personnel or 
     contractor representatives to the Netherlands.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-40

     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 AN/AAR-57A(V)7 CMWS is the detection component of 
     the suite of countermeasures designed to increase 
     survivability of current generation combat aircraft and 
     specialized special operations aircraft against the threat 
     posed by infrared guided missiles.
       2. The KIV-77, is a Common Crypto Applique for 
     Identification Friend or Foe (IFF) that provides Mode 4/5 
     capability. The KIV-77 can be removed from the host and 
     stored as an UNCLASSIFIED Controlled Cryptographic Item 
     (CCI).
       3. A determination has been made that the Government of the 
     Netherlands can provide substantially the same degree of 
     protection for the sensitive technology being released as the 
     U.S. Government. This proposed sale is necessary to the 
     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 are authorized for release and export to the 
     Government of the Netherlands.
                                                  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. 17-35, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Romania for defense articles 
     and services estimated to cost $3.9 billion. 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.


                         Transmittal No. 17-35

     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 Romania.
       (ii) Total Estimated Value:
       Major Defense Equipment* $1.3 billion.
       Other $2.6 billion.
       Total $3.9 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase: Seven (7) Phased 
     Array Tracking to Intercept of Target (Patriot) 
     Configuration-3+ Modernized Fire Units consisting of:
       Major Defense Equipment (MDE):
       Seven (7) AN/MPQ-65 Radar Sets.
       Seven (7) AN/MSQ-132 Engagement Control Stations.
       Thirteen (13) Antenna Mast Groups.
       Twenty-eight (28) M903 Launching Stations.
       Fifty-six (56) Patriot MIM-104E Guidance Enhanced Missile 
     Tactical Ballistic Missile (GEM-T) Missiles.
       One hundred sixty-eight (168) Patriot Advanced Capability-3 
     (PAC-3) Missile Segment Enhancement (MSE) Missiles.
       Seven (7) Electrical Power Plants (EPP) III.
       Non-MDE includes: Also included with this request are 
     communications equipment,

[[Page 10264]]

     tools and test equipment, support equipment, prime movers, 
     generators, publications and technical documentation, 
     training equipment, spare and repair parts, personnel 
     training, TAFT team, U.S. Government and contractor 
     technical, engineering, and logistics support services,
       Systems Integration and Checkout (SICO), field office 
     support, and other related elements of logistics and program 
     support.
       (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 Attached 
     Annex.
       (viii) Date Report Delivered to Congress: July 10, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

 Romania--Patriot Air Defense System and Related Support and Equipment

       The Government of Romania has requested the possible sale 
     of seven (7) Patriot Configuration-3+ Modernized Fire Units 
     consisting of: seven (7) AN/MPQ-65 radar sets, seven (7) AN/
     MSQ-132 engagement control stations, thirteen (13) antenna 
     mast groups, twenty-eight (28) M903 launching stations, 
     fifty-six (56) Patriot MIM-104E Guidance Enhanced Missile-TBM 
     (GEM-T) missiles, one hundred and sixty-eight (168) Patriot 
     Advanced Capability-3 (PAC-3) Missile Segment Enhancement 
     (MSE) missiles, and seven (7) Electrical Power Plants (EPP) 
     III. Also included with this request are communications 
     equipment, tools and test equipment, support equipment, prime 
     movers, generators, publications and technical documentation, 
     training equipment, spare and repair parts, personnel 
     training, TAFT team, U.S. Government and contractor 
     technical, engineering, and logistics support services, 
     Systems Integration and Checkout (SICO), field office 
     support, and other related elements of logistics and program 
     support. The total estimated program cost is $3.9 billion.
       This proposed sale will enhance the foreign policy and 
     national security objectives of the United States by helping 
     to improve the security of a NATO ally that has been, and 
     continues to be an important force for political stability 
     and economic progress within Europe. The proposed sale of the 
     Patriot system will support Romania's needs for its own self-
     defense and support NATO defense goals.
       Romania will use the Patriot missile system to strengthen 
     its homeland defense and deter regional threats. The proposed 
     sale will increase the defensive capabilities of the Romanian 
     military to guard against aggression and shield the NATO 
     allies who often train and operate within Romania's borders. 
     Romania should have no difficulty absorbing this system into 
     its armed forces.
       The proposed sale of these missiles and equipment will not 
     alter the basic military balance in the region.
       The prime contractors will be Raytheon Corporation in 
     Andover, Massachusetts, and Lockheed-Martin in Dallas, Texas. 
     There are no known offset agreements proposed in connection 
     with this potential sale.
       Implementation of this proposed sale will require 
     approximately 30 U.S. Government and 40 contractor 
     representatives to travel to Romania for an extended period 
     for equipment de-processing/fielding, system checkout, 
     training, and technical and logistics support.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         Transmittal No. 17-35

     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 Patriot Air Defense System contains classified 
     CONFIDENTIAL hardware components, SECRET tactical software 
     and CRITICAL/SENSITIVE technology. Patriot ground support 
     equipment and Patriot missile hardware is classified 
     CONFIDENTIAL and the associated launcher hardware is 
     UNCLASSIFIED. Information on system performance capabilities, 
     effectiveness, survivability, missile seeker capabilities, 
     select software/software documentation and test data are 
     classified up to and including SECRET. The items requested 
     represent significant technological advances for Romania 
     Patriot. The Patriot Air Defense System continues to hold a 
     significant technology lead over other surface-to-air missile 
     systems in the world.
       2. The Patriot Air Defense System's sensitive/critical 
     technology is primarily in the area of design and production 
     know-how and primarily inherent in the design, development 
     and/or manufacturing data related to certain components. The 
     list of components is classified CONFIDENTIAL. For more 
     information contact the PEO Missiles and Space Lower Tier 
     Project Office.
       3. The loss of this hardware, software, documentation and/
     or data could permit development of information which may 
     lead to a significant threat to future U.S. military 
     operations. If an adversary were to obtain this sensitive 
     technology, the missile system effectiveness could be 
     compromised through reverse engineering techniques.
       4. This proposed 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 have been authorized for release and export to 
     Romania.
                                                  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)(l) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-31, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of Australia for defense 
     articles and services estimated to cost $50 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,

                                                  Greg Kausner

                                    (For J.W. Rixey, Vice Admiral,
                                                   USN, Director).


                         TRANSMITTAL NO. 17-31

     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* $49 million.
       Other $1 million.
       Total $50 million.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE):
       Six thousand thirty (6,030) rounds of M865 120mm Target 
     Practice Cone Stabilized Discarding Sabot-Tracer (TPCSDS-T) 
     Tank Projectiles.
       Eight thousand six hundred ten (8,610) rounds of Ml002 
     120mm Target Practice Multipurpose Tracer (TPMP-T) Tank 
     Projectiles.
       Non-MDE includes: Also included are U.S. Government 
     technical assistance, technical data, and other related 
     elements of logistical and program support.
       (iv) Military Department: Army (XX-B-UJL).
       (v) Prior Related Cases. if any: AT-B-UGR.
       (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: None.
       (viii) Date Report Delivered to Congress: July 10, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

     Australia--120mm Tank Ammunition and Related Support Services

       The Government of Australia has requested the possible sale 
     of six thousand thirty (6,030) rounds of M865 120mm Target 
     Practice Cone Stabilized Discarding Sabot-Tracer (TPCSDS-T) 
     Tank Projectiles and eight thousand six hundred ten (8,610) 
     rounds of M1002 120mm Target Practice Multipurpose Tracer 
     (TPMP-T) Tank Projectiles. Also included are U.S. Government 
     technical services, technical data, and other related 
     elements of logistical and program support. The total 
     estimated program cost is $50 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.
       The proposed sale of 120mm tank ammunition will improve 
     Australia's capability to meet out-year operational readiness 
     and training requirements. Australia will use this ammunition 
     to help sustain necessary training levels for its tank 
     operators. Australia 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.
       This requirement will be provided from U.S. Army inventory. 
     There are no known offset agreements proposed in connection 
     with this potential sale.
       Implementation of this proposed sale will not require the 
     assignment of any additional U.S. or contractor 
     representatives to Australia.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.

[[Page 10265]]

                                                  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)(l) of the Arms Export Control Act, as 
     amended, we are forwarding herewith Transmittal No. 17-23, 
     concerning the Army's proposed Letter(s) of Offer and 
     Acceptance to the Government of the United Kingdom for 
     defense articles and services estimated to cost $1.035 
     billion. 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.


                         TRANSMITTAL NO. 17-23

     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: United Kingdom.
       (ii) Total Estimated Value:
       Major Defense Equipment* $887 million.
       Other $148 million.
       Total $1.035 billion.
       (iii) Description and Quantity or Quantities of Articles or 
     Services under Consideration for Purchase:
       Major Defense Equipment (MDE): Two thousand seven hundred 
     forty-seven (2,747) Joint Light Tactical Vehicles (JLTV).
       Non-MDE: Also included with this request are baseline 
     integration kits, basic issue item kits, B-kit armor, engine 
     arctic kits, fording kits, run-flat kits, spare tire kits, 
     silent watch kits, power expansion kits cargo cover kits, 
     maintainer and operator training, U.S. government technical 
     assistance and logistics support services, and other related 
     elements of logistics and program support.
       (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 Attached 
     Annex.
       (viii) Date Report Delivered to Congress: July 10, 2017.
       *As defined in Section 47(6) of the Arms Export Control 
     Act.


                          POLICY JUSTIFICATION

  United Kingdom--Joint Light Tactical Vehicles (JLTV) and Accessories

       The Government of the United Kingdom (UK) has requested a 
     possible sale of up to two thousand seven hundred forty-seven 
     (2,747) Joint Light Tactical Vehicles (JLTV). This possible 
     sale also includes baseline integration kits, basic issue 
     item kits, B-kit armor, engine arctic kits, fording kits, 
     run-flat kits, spare tire kits, silent watch kits, power 
     expansion kits cargo cover kits, maintainer and operator 
     training, U.S. government technical assistance and logistics 
     support services, and other related elements of logistics and 
     program support. Total estimated cost is $1.035 billion.
       This proposed sale supports the foreign policy and national 
     security policies of the United States by helping to improve 
     the security of a NATO ally which has been, and continues to 
     be, an important partner on critical foreign policy and 
     defense issues.
       The proposed sale will help improve the UK's Light Tactical 
     Vehicle Fleet and enhance its ability to meet current and 
     future threats. The UK will have no difficulty absorbing this 
     equipment into its armed forces.
       The proposed sale will not alter the basic military balance 
     in the region.
       The principal contractor of this sale will be Oshkosh 
     Defense, LLC, Oshkosh, Wisconsin. The procured items will 
     require minimum contractor support until the foreign customer 
     can eventually transition to internal organic support. There 
     is no known offset agreement associated with this proposed 
     sale.
       There will be no adverse impact on U.S. defense readiness 
     as a result of this proposed sale.


                         TRANSMITTAL NO. 17-23

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

                           Annex Item No. vii

       (vii) Sensitivity of Technology:
       1. This sale will involve the release of sensitive 
     technology to the Government of the United Kingdom. The Joint 
     Light Tactical Vehicle platform is classified as SECRET. The 
     Joint Light Tactical Vehicle fleet will incorporate ballistic 
     armor kits for protection from improvised explosive devices.
       2. Sensitive and/or classified (up to SECRET) elements of 
     the proposed Joint Light Tactical Vehicle include hardware 
     and accessories, components and associated software: baseline 
     integration kits, basic issue items, ballistic-kit armor, 
     engine arctic kits, fording kits, run-flat kits, silent watch 
     energy kits, power expansion kits and cargo covering kits.
       3. A determination has been made that the United Kingdom 
     can provide substantially the same degree of protection for 
     this technology as the U.S. Government. This proposed sale is 
     necessary in furtherance of 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 
     the Government of the UK.

                          ____________________