[Federal Register Volume 76, Number 137 (Monday, July 18, 2011)]
[Notices]
[Pages 42119-42121]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-18011]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 10-67]


36(b)(1) Arms Sales Notification

AGENCY: Department of Defense, Defense Security Cooperation Agency.

ACTION: Notice.

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SUMMARY: The Department of Defense is publishing the unclassified text 
of a section 36(b)(1) arms sales notification. This is published to 
fulfill the requirements of section 155 of Public Law 104-164 dated 
July 21, 1996.

FOR FURTHER INFORMATION CONTACT: Mr. John Unglesbee, DSCA/DBO/CFM, 
(703) 601-6026.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 10-67 with attached transmittal, policy 
justification, and Sensitivity of Technology statement.

    Dated: July 11, 2011.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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Transmittal No. 10-67
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: Egypt
    (ii) Total Estimated Value:

Major Defense Equipment                                   $ .980 billion
Other                                                       .349 billion
                                                         ---------------
Total                                                      1.329 billion
 

    (iii) Description and Quantity or Quantities of Articles or 
Services Under Consideration for Purchase: 125 M1A1 Abrams tank kits 
for co-production, 125 M256 Armament Systems, 125 M2 .50 caliber 
machine guns, 250 M240 7.62mm machine guns, 125 AGT-1500 M1A1 series 
tank engines and transmissions, 120mm test cartridges, spare and repair 
parts, maintenance, support equipment, special tool and test equipment, 
personnel training and equipment, publications and technical 
documentation, U.S. Government and contractor engineering and logistics 
support services, and other related elements of logistics and program 
support. Articles may be provided in furtherance of a co-production 
agreement.
    (iv) Military Department: Army (NFY, NFZ, VCV, VCW)
    (v) Prior Related Cases, if any: numerous cases from 1988 through 
2007
    (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

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    (viii) Date Report Delivered to Congress:
    * as defined in Section 47(6) of the Arms Export Control Act.

Policy Justification

Egypt--Co-Production of M1A1 Abrams Tank

    The Government of Egypt has requested a possible sale that includes 
125 M1A1 Abrams tank kits for co-production, 125 M256 Armament Systems, 
125 M2 .50 caliber machine guns, 250 M240 7.62mm machine guns, 125 AGT-
1500 M1A1 series tank engines and transmissions, 120mm test cartridges, 
spare and repair parts, maintenance, support equipment, special tool 
and test equipment, personnel training and equipment, publications and 
technical documentation, U.S. Government and contractor engineering and 
logistics support services, and other related elements of logistics and 
program support. Articles may be provided in furtherance of a co-
production agreement. The estimated cost is $1.329 billion.
    This proposed sale will contribute to the foreign policy and 
national security of the United States by helping to improve the 
security of a friendly country that has been and continues to be an 
important force for political stability and economic progress in the 
Middle East.
    The additional M1A1 tanks will provide Egypt with a modern tank 
fleet, enhancing its capability to meet current and future threats. 
This will contribute to Egypt's goal to update its military capability 
while further enhancing interoperability between Egypt, the U.S., and 
other allies. Egypt, which has co-produced the M1A1 Abrams tank, will 
have no difficulty absorbing the additional tanks.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The prime contractors will be General Dynamics in Sterling Heights, 
Michigan, Honeywell International Incorporated in Phoenix, Arizona, and 
Allison Transmission Motors in Indianapolis, Indiana. There are no 
known offset agreements proposed in connection with this potential 
sale.
    Implementation of this proposed sale will require the assignment of 
approximately 4 U.S. government and 35 contractor representatives for 
up to three years in Egypt to manage this production and fielding 
program.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 10-67
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. The M1A1 Thermal Imaging System (TIS) 2nd Generation Forward 
Looking Infrared (FLIR) constitutes a target acquisition system which, 
when operated with other tank systems, gives the tank crew a 
substantial advantage over a potential threat. The TIS provides the 
M1A1 crew with the ability to effectively aim and fire the tank main 
armament system under a broad range of adverse battlefield conditions. 
The hardware itself is Unclassified. The engineering design and 
manufacturing data associated with the detector and infrared (IR) 
optics and coatings are considered sensitive. The technical data 
package is Unclassified with exception of the specifications for target 
acquisition range (Confidential), nuclear hardening (Confidential, 
restricted data), and laser hardening (Secret).
    2. The M1A1 Tank Special Armor and other special armors used in the 
hull and turret are classified at the Secret level. Major components of 
special armor are fabricated in sealed modules and in serialized 
removable subassemblies. Special armor components and associated 
vulnerability data for both chemical and kinetic energy rounds are 
classified Secret.
    3. Most of the components of the training ammunition are not 
considered to be sensitive material or technology. These rounds could 
be reverse engineered given sufficiently capable analysis. Technical 
information available from testing and analysis of this ammunition 
could form the basis of research to develop more capable rounds.
    4. The use of the Advanced Gas Turbine-1500 (AGT-1500) Gas Turbine 
Propulsion System in the MlA1 is a unique application of armored 
vehicle power-pack technology. The hardware is composed of the AGT-1500 
engine and transmission, and is Unclassified. Manufacturing processes 
associated with the production of turbine blades, recuperator, bearings 
and shafts, and hydrostatic pump and motor, are proprietary and 
therefore commercially competition sensitive.
    5. A major survivability feature of the Abrams tank is the 
compartmentalization of fuel and ammunition. Compartmentalization is 
the positive separation of the crew and critical components from 
combustible materials. In the event that the fuel or ammunition is 
ignited or deteriorated by an incoming threat round, the crew is fully 
protected by the compartmentalization. Sensitive information includes 
the performance of the ammunition compartments as well as the 
compartment design parameters.
    6. 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.

[FR Doc. 2011-18011 Filed 7-15-11; 8:45 am]
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