[Federal Register Volume 81, Number 142 (Monday, July 25, 2016)]
[Notices]
[Pages 48405-48407]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17472]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-39]


36(b)(1) Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

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: Chandelle K. Parker, DSCA/LMO, (703) 
697-9027.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 16-39 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: July 20, 2016.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.

[[Page 48406]]

[GRAPHIC] [TIFF OMITTED] TN25JY16.015

Transmittal No. 16-39
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 Chile
    (ii) Total Estimated Value:

Major Defense Equipment *..............................    $73.2 million
Other..................................................    $66.9 million
                                                        ----------------
  TOTAL................................................   $140.1 million
 
*as defined in Section 47(6) of the Arms Export Control Act.

    (iii) Description and Quantity or Quantities of Articles or 
Services Under Consideration for Purchase:

    Major Defense Equipment (MDE):
    Thirty-three (33) Evolved Seasparrow Missiles (ESSMs)
    Six (6) Evolved Seasparrow Telemetry Missiles
    Three (3) MK 41 Vertical Launching Systems (VLS), tactical version, 
baseline VII
    Non-MDE:
    This request also includes the following Non-MDE: Five (5) ESSM 
Shipping Containers, Five (5) MK-73 Continuous Wave Illumination 
Transmitters, Ten (10) MK25 Quad Pack Containers, One (1) Inertial 
Missile Initializer Power Supply (IMIPS), canisters, spare and repair 
parts, support and test equipment, publications and technical 
documentation, personnel training, U.S. Government and contractor 
engineering, technical and logistics support services, technical 
assistance, installation and integration oversight support, logistics, 
program management, packaging and transportation.
    (iv) Military Department: Navy

[[Page 48407]]

    (v) Prior Related Cases, if any: CI-P-AFO, P&A data
    (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed To Be 
Paid: None
    (vii) Sensitivity of Technology Contained in the Defense Article or 
Defense Services Proposed To Be Sold: See Annex attached.
    (viii) Date Report Delivered to Congress: 1 July 2016

POLICY JUSTIFCATION

Chile--Evolved Seasparrow Missiles (ESSMs):

    The Government of Chile has requested a possible sale of:

    Major Defense Equipment (MDE):
    Thirty-three (33) Evolved Seasparrow Missiles (ESSMs)
    Six (6) Evolved Seasparrow Telemetry Missiles
    Three (3) MK 41 Vertical Launching Systems (VLS), tactical version, 
baseline VII
    Non-MDE:
    This request also includes the following Non-MDE: Ten (10) MK25 
Quad Pack Canisters; Five (5) ESSM Shipping Containers; Five (5) MK-73 
Continuous Wave Illumination Transmitters, One (1) Inertial Missile 
Initializer Power Supply (IMIPS); spare and repair parts, support and 
test equipment, publications and technical documentation, personnel 
training, U.S. Government and contractor engineering, technical and 
logistics support services, technical assistance, installation and 
integration oversight support, logistics, program management, packaging 
and transportation.
    The total estimated value of MDE is $73.2 million. The total 
overall estimated value is $140.1 million.
    This proposed sale will contribute to the foreign policy and 
national security of the United States by increasing Chile's ability to 
contribute to regional security and promoting interoperability with the 
U.S. forces. The sale will provide upgraded air defense capabilities on 
Chile's type 23 frigates. The proposed sale improves Chile's capability 
to deter regional threats and strengthen its homeland defense. Chile 
will have no difficulty absorbing this equipment into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The prime contractors will be Raytheon Missile Systems, Tucson, 
Arizona, BAE Systems, Aberdeen, South Dakota, and Lockheed Martin, 
Bethesda, MD. 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 or contractor 
representatives to Chile.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 16-39
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 sale of Evolved Seasparrow missiles (ESSM) under this 
proposed FMS case will result in the transfer of classified missile 
equipment to Chile. Both classified and unclassified defense equipment 
and technical data will be transferred. The missile includes the 
guidance section, warhead section, transition section, propulsion 
section, control section and Thrust Vector Control (TVC), of which the 
guidance section and transition section are classified CONFIDENTIAL. 
Standard missile documentation to be provided under this FMS case will 
include:
    a. Parametric documents classified CONFIDENTIAL.
    b. Missile Handling/Maintenance Procedures.
    c. General Performance Data classified CONFIDENTIAL.
    d. Firing Guidance classified CONFIDENTIAL.
    e. Dynamics Information classified CONFIDENTIAL.
    2. The MK 41 Vertical Launching Systems (VLS) is a fixed, vertical, 
multi-missile launching system with the capability to store and launch 
multiple missile variants depending on the warfighting mission. MK 41 
VLS is a modular, below-deck configuration with each module consisting 
of 8 missile cells with an associated gas management and deluge system. 
The highest classification of the hardware to be exported is 
UNCLASSIFIED. The highest classification of the technical documentation 
to be exported is UNCLASSIFIED. The highest classification of software 
to be exported is CONFIDENTIAL.
    3. The proposed sale of ESSM under this FMS case will result in the 
transfer of sensitive technological information and or restricted 
information contained in the missile guidance section. Certain 
operating frequencies and performance characteristics are classified 
SECRET because they could be used to develop tactics and/or 
countermeasures to reduce or defeat missile effectiveness.
    4. If a technologically advanced adversary were to obtain knowledge 
of the specific hardware and software elements, primarily performance 
characteristics, engagement algorithms, and transmitter specific 
frequencies, the information could be used to develop countermeasures 
that might reduce weapon system effectiveness.
    5. 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.
    6. All defense articles and services listed in this transmittal 
have been authorized for release and export to Chile.

[FR Doc. 2016-17472 Filed 7-22-16; 8:45 am]
 BILLING CODE 5001-06-P