[Federal Register Volume 82, Number 137 (Wednesday, July 19, 2017)]
[Notices]
[Pages 33074-33076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15092]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 16-67]


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 an 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 16-67 with 
attached Policy Justification and Sensitivity of Technology.

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

[[Page 33075]]

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[[Page 33076]]


Transmittal No. 16-67
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...................................................      25 million
                                                         ---------------
    Total...............................................     125 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):
Sixteen (16) Standard Missile-2 (SM-2) Block IIIA All-Up Rounds (AUR)
Forty-seven (47) MK 93 MOD 1 SM-2 Block IIIA Guidance Sections (GSs)
Five (5) MK 45 MOD 14 SM-2 Block IIIA Target Detecting Device (TDDs) 
Shrouds
    Non-MDE includes:
Seventeen (17) MK 11 MOD6 SM-2 Block IIIA Autopilot Battery Units 
(APBUs) maneuverability upgrades on the GSs, sixty-nine (69) section 
containers and sixteen (16) AUR containers, operator manuals and 
technical documentation, U.S. Government and contractor engineering, 
technical and logistics support services.
    (iv) Military Department: Navy (LHT)
    (v) Prior Related Cases, if any: FMS Cases TW-P-LGQ
    (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--SM-2 Block IIIA Standard Missiles and Components

    TECRO has requested a possible sale of sixteen (16) Standard 
Missile-2 (SM-2) Block IIIA All Up Rounds (AUR), forty-seven (47) MK 93 
MOD 1 SM-2 Block IIIA Guidance Sections (GSs), and five (5) MK 45 MOD 
14 SM-2 Block IIIA Target Detecting Devices (TDDs) Shrouds. This 
request also includes Seventeen (17) MK 11 MOD6 SM-2 Block IIIA 
Autopilot Battery Units (APBUs) maneuverability upgrades on the GSs, 
sixty-nine (69) section containers and sixteen (16) AUR containers, 
operator manuals and technical documentation, U.S. Government and 
contractor engineering, technical and logistics support services. The 
total estimated program cost is $125 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 recipient's 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 
enhanced capability as a deterrent to regional threats and to 
strengthen homeland defense. The SM-2 Block IIIA missiles and 
components proposed in this purchase will be used to supplement 
existing inventories of SM-2 Block IIIAs to be used for self-defense 
against air and cruise missile threats onboard their destroyer-class 
surface ships. 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 
military balance in the region.
    The prime contractor will be Raytheon Missiles Systems Company of 
Tucson, Arizona. 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.
Transmittal No. 16-67
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(l) of the Arms Export Control Act
Annex
Item No. vii
    (vii) Sensitivity of Technology:
    1. A completely assembled STANDARD Missile-2 (SM-2) Block IIIA with 
or without a conventional warhead, whether a tactical 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), and Autopilot Battery Unit 
(classified CONFIDENTIAL).
    2. SM-2 operator and maintenance documentation is considered 
CONFIDENTIAL. Shipboard operation/firing guidance is considered 
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 recipient 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 Taipei Economic and 
Cultural Representative Office (TECRO) in the United States.
[FR Doc. 2017-15092 Filed 7-18-17; 8:45 am]
BILLING CODE 5001-06-P