[Federal Register Volume 82, Number 54 (Wednesday, March 22, 2017)]
[Notices]
[Pages 14702-14704]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05646]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 17-02]


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: Pamela Young, (703) 697-9107 or Kathy 
Valadez, (703) 697-9217; DSCA/SA&E-RAN.
    The following is a copy of a letter to the Speaker of the House of 
Representatives, Transmittal 17-02 with attached Policy Justification 
and Sensitivity of Technology.

    Dated: March 17, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

[[Page 14703]]

[GRAPHIC] [TIFF OMITTED] TN22MR17.000

Transmittal No. 17-02

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 *..............................   $135.0 million
Other..................................................   $ 15.0 million
                                                        ----------------
  Total................................................   $150.0 million
 

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

Major Defense Equipment (MDE): One thousand (1,000) AGM-114-R1/R2 
Hellfire II Semi-Active Laser (SAL) Missiles
Non-MDE: Logistics support services and other related program support

    (iv) Military Department: Air Force (YAI)
    (v) Prior Related Cases, if any: UK-D-YAC--$22M--May 2008; UK-D-
YAF--$21M--Mar 2011; UK-D-YAY--$134M--Aug 2013

[[Page 14704]]

    (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: March 16, 2017
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

United Kingdom--Hellfire Missiles

    The Government of the United Kingdom (UK) requested a possible sale 
of 1,000 AGM-114-R1/R2 Hellfire II Semi-Active Laser (SAL) Missiles 
with logistics support services and other related program support. The 
estimated cost is $150 million.
    This proposed sale directly contributes to the foreign policy and 
national security policies of the United States by enhancing the close 
air support capability of the UK in support of NATO and other coalition 
operations. Commonality between close air support capabilities greatly 
increases interoperability between our two countries' military and 
peacekeeping forces and allows for greater burden sharing.
    The proposed sale improves the UK's capability to meet current and 
future threats by providing close air support to counter enemy attacks 
on coalition ground forces in the U.S. Central Command area of 
responsibility (AOR) and other areas, as needed. The UK already has 
Hellfire missiles in its inventory and will have no difficulty 
absorbing these additional missiles.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    There is no principal contractor for this sale as the missiles are 
coming from U.S. stock.
    Implementation of this proposed sale will not require the 
assignment of any additional U.S. Government or contractor 
representatives to the UK.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.

Transmittal No. 17-02

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. AGM-114-R1/R2 Hellfire. The AGM-114-R1/R2 Hellfire II Semi-
Active Laser (SAL) Missiles are rail-launched guided missiles developed 
and produced by Lockheed Martin. The guidance system employs a SAL 
seeker. The SAL missile homes in on the laser energy reflected off a 
target that has been illuminated by a laser designator. The laser can 
be on either the launch platform or another platform that can be 
separated from it by several kilometers. The target sets are armor, 
bunkers, caves, enclosures, boats, and enemy personnel. The weapon 
system hardware, as an ``All Up Round,'' is UNCLASSIFIED. The highest 
level of classified information to be disclosed regarding the AGM-114-
R1/R2 Hellfire II missile software is SECRET. The highest level of 
classified information that could be disclosed by a proposed sale or by 
testing of the end item is SECRET and the highest level that must be 
disclosed for production, maintenance, or training is CONFIDENTIAL.

The AGM-114 R1/R2 Hellfire II missiles use pulse-coded laser 
illumination. The R2 variant includes a Height-of-Burst (HOB)/
proximity sensor. The AGM-114-R1/R2 missiles each have a multi-
purpose selectable warhead and inertial measurement unit (IMU)-Aided 
Trajectories. The missiles United Kingdom operators employ are only 
handled by USAF personnel. The United Kingdom does not take 
possession of, or store the missile, and this policy has been in 
place since 2008.

    2. If a technologically advanced adversary obtained knowledge of 
the specific hardware and software elements, the information could be 
used to develop countermeasures or equivalent systems which might 
reduce system effectiveness or be used in the development of a system 
with similar or advanced capabilities.
    3. A determination has been made that the United Kingdom can 
provide substantially the same degree of protection for the AGM-114-R1/
R2 Hellfire II missiles as the U.S. Government. Transfer of these 
missiles to the UK is necessary in the furtherance of U.S. foreign 
policy and national security objectives.
    4. All defense articles and services listed in this transmittal 
have been authorized for release and export to the United Kingdom.

[FR Doc. 2017-05646 Filed 3-21-17; 8:45 am]
 BILLING CODE 5001-06-P