[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)]
[Notices]
[Pages 33076-33079]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15072]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-68]


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.

FOR FURTHER INFORMATION CONTACT: Kathy Valadez, (703) 697-9217 or 
Pamela Young, (703) 697-9107; DSCA/DSA-RAN.

SUPPLEMENTARY INFORMATION: This 36(b)(1) arms sales notification is 
published to fulfill the requirements of section 155 of Public Law 104-
164 dated July 21, 1996. The following is a copy of a letter to the 
Speaker of the House of Representatives, Transmittal 16-68 with 
attached Policy Justification.


[[Page 33077]]


    Dated: July 13, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[[Page 33078]]

[GRAPHIC] [TIFF OMITTED] TN19JY17.020


[[Page 33079]]


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Transmittal No. 16-68
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(l) of the Arms Export Control Act, as amended
    (i) Prospective Purchaser: Taipei Economic and Cultural 
Representative Office (TECRO) in the United States
    (ii) Total Estimated Value:

Major Defense Equipment *...............................    $100 million
Other...................................................      75 million
                                                         ---------------
  TOTAL.................................................     175 million
 

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

Major Defense Equipment (MDE):
One hundred sixty-eight (168) MK-54 Lightweight Torpedo (LWT) 
Conversion Kits
Non-MDE includes:
Shipping containers, operator manuals and technical documentation, U.S. 
Government and contractor engineering, technical and logistics support 
services.

    (iv) Military Department: Navy
    (v) Prior Related Cases, if any: FMS Cases TW-P-AJX and TW-P-AKB
    (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: 29 JUN 2017
    * as defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Taipei Economic and Cultural Representative Office (TECRO) in the 
United States-- MK-54 Lightweight Torpedo (LWT) Conversion Kits

    TECRO has requested a possible sale of MK-54 Lightweight Torpedo 
(LWT) Conversion Kits. This request provides the recipient with MK-54 
LWTs in support of their LWT program. This sale will include LWT 
containers, torpedo support, torpedo spare parts, publications, 
training, weapon system support, engineering and technical assistance 
for the upgrade and conversion of one hundred sixty eight (168) MK-46 
Mod 5 Torpedoes to the MK-54 Lightweight Torpedo (LWT) configuration. 
The total estimated program cost is $175 million.
    This proposed sale is consistent with United States law and policy, 
as expressed in Public Law 96-8.
    This proposed sale serves U.S. national, economic and security 
interests by supporting the recipients continuing efforts to modernize 
its armed forces and enhance its defensive capabilities. The proposed 
sale will help improve the security of the recipient and assist in 
maintaining political stability, military balance and economic progress 
in the region.
    The proposed sale will improve the recipient's capability in 
current and future defensive efforts. The recipient will use the 
enhance capability as a deterrent to regional threats and to strengthen 
homeland defense. The recipient 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 will be various contactors involved in this case.
    There are no known offset agreements proposed in connection with 
this potential sale.
    It is estimated that during implementation of this proposed sale, a 
number of U.S. Government and contractor representatives will be 
assigned to the recipient or travel there intermittently during the 
program .
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Annex Item No vii
    (vii) Sensitivity of Technology:
    1. The MK 54 Lightweight Torpedo (LWT) has been in service in the 
U.S. Navy (USN) since 2004. The version offered in this sale is the 
MK54 Mod 0 of the system. The purchaser currently does not have this 
weapon system in its inventory. The proposed sale consists 168 MK-54 
Mod 0 LWT conversion kits, containers, spare and repair parts, weapon 
system support and integration, personnel training, training equipment, 
test equipment, U.S. Government and contractor engineering, technical 
and logistical support services and other related elements of 
logistical support.
    a. Although the MK 54 Mod 0 LWT is considered state-of-the-art-
technology, there is no Critical Program Information associated with 
the MK 54 Mod 0 LWT hardware, technical documentation or software. The 
highest classification of the hardware to be exported is SECRET. The 
highest classification of the technical manual that will be exported is 
CONFIDENTIAL. The technical manual is required for operation of the MK 
54 Mod 0 LWT. The highest classification of the software to be exported 
is SECRET.
    2. Loss of hardware, software, publications or other items 
associated with the proposed sale to a technologically advanced or 
competent adversary, poses the risk of the destruction of the 
countermeasures or replication and/or improvements to the adversary's 
Undersea Weapon Systems, weakening U.S. defense capabilities.
    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 which might reduce weapon system 
effectiveness or be used in development of a system with similar or 
advanced capabilities.
    4. 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 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 Taipei 
Economic and Cultural Representative Office (TECRO) in the United 
States.

[FR Doc. 2017-15072 Filed 7-18-17; 8:45 am]
BILLING CODE 5001-06-P