[Federal Register Volume 81, Number 142 (Monday, July 25, 2016)]
[Notices]
[Pages 48396-48398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17476]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-47]


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: 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 16-47 with attached Policy Justification 
and Sensitivity of Technology.

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

[[Page 48397]]

[GRAPHIC] [TIFF OMITTED] TN25JY16.017

Transmittal No. 16-47
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 Japan
    (ii) Total Estimated Value:

Major Defense Equipment*.................  $685 million
Other....................................  $136 million
                                          ------------------------------
  TOTAL..................................  $821 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE): Up to two hundred forty-six (246) 
Standard Missiles (SM-2), Block IIIB Vertical Launching Tactical All-Up 
Rounds, RIM-66M-09
    Non-MDE: This request also includes the following Non-MDE: MK 13 
MOD 0 Vertical Launching System Canisters, operator manuals, U.S. 
Government and contractor engineering, technical and logistics support 
services.
    (iv) Military Department: Navy (ATA and ASZ)
    (v)  Prior Related Cases, if any: JA-P-ARH--MAR 11, $32,149,836; 
JA-P-AQO--FEB 08, $36,133,478; JA-P-AQE--AUG 06, $25,932,921; JA-P-
AQF--AUG 06, $32,030,680; JA-P-ANW--SEP 05, $46,147,937; JA-P-ANX--SEP 
05, $30,207,196; JA-P-APS--SEP 05, $24,923,134; JA-P-APT--NOV 04, 
$25,041,269; JA-P-APU--NOV 04, $18,297,591; JA-P-APV--NOV 04, 
$13,328,470; JA-P-

[[Page 48398]]

APG--JUL 03, $26,545,311; JA-P-APP--JUL 03, $15,581,478
    (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: 15 July 2016
    * as defined in Section 47(6) of the Arms Export Control Act

POLICY JUSTIFICATION

Japan--SM-2 Block IIIB Standard Missiles

    The Government of Japan has requested a possible sale of up to two 
hundred forty-six (246) Standard Missile (SM-2), Block IIIB Vertical 
Launching Tactical All-Up Rounds, RIM-66M-09. This request also 
includes MK 13 MOD 0 Vertical Launching System Canisters, operator 
manuals and technical documentation, U.S. Government and contractor 
engineering, technical and logistics support services. The total 
estimated value of Major Defense Equipment (MDE) is $685 million. The 
total overall estimated value is $821 million.
    Japan is one of the major political and economic powers in East 
Asia and the Western Pacific, a key democratic partner of the United 
States in ensuring regional peace and stability, a close coalition ally 
in regional contingency operations, and a close cooperative and 
international exchange agreement partner. It is vital to U.S. national 
interests that Japan develops and maintains a strong and ready self-
defense capability. This transaction is consistent with U.S. foreign 
policy and national security objectives and the 1960 Treaty of Mutual 
Cooperation and Security.
    These SM-2 Block IIIB missiles will be used for anti-air warfare at 
sea. Japan currently fields four Kongo-class and two Atago-class 
destroyers, all of which are equipped with the Aegis Combat system and 
SM-2 Block IIIA/IIIB missiles. Japan is also building two new Aegis-
equipped destroyers based on a modified Atago-class hull. The SM-2 
Block IIIB missiles proposed in this sale will be used on these two 
future destroyers as well as supplementing Japan's missile inventory. 
Combined with the Aegis combat system, the SM-2 Block IIIB provides 
significantly enhanced area defense capabilities over critical East 
Asian and Western Pacific air and sea-lines of communication. Japan has 
two Intermediate-Level Maintenance Facilities capable of maintaining 
the SM-2 Block IIIB and will have no difficulty absorbing these new 
missiles into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal contractors will be Raytheon Missile Systems Company, 
Tucson, Arizona; Raytheon Company, Camden, Arkansas; and BAE of 
Minneapolis and Aberdeen, South Dakota. There are no known offset 
agreements proposed in connection with this potential sale.
    Implementation of this sale will not require the assignment of any 
U.S. or contractor representatives to Japan.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 16-47
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 IIIB with 
or without a conventional warhead, whether a tactical, telemetry 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), 
Autopilot Battery Unit (classified CONFIDENTIAL), and if telemetry 
missiles, AN/DKT-71 Telemeters (UNCLASSIFIED).
    2. SM-2 operator and maintenance documentation is usually 
CONFIDENTIAL. Shipboard operation/firing guidance is generally 
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 Japan 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 Government of Japan.

[FR Doc. 2016-17476 Filed 7-22-16; 8:45 am]
 BILLING CODE 5001-06-P