[Federal Register Volume 82, Number 151 (Tuesday, August 8, 2017)]
[Notices]
[Pages 37082-37083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16632]



[[Page 37082]]

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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 17-25]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

ACTION: Arms sales notice.

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SUMMARY: The Department of Defense is publishing the unclassified text 
of an arms sales notification.

FOR FURTHER INFORMATION CONTACT: Pamela Young, (703) 697-9107, 
[email protected] or Kathy Valadez, (703) 697-9217, 
[email protected]; 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 17-25 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: August 2, 2017.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
[GRAPHIC] [TIFF OMITTED] TN08AU17.000


[[Page 37083]]


Transmittal No. 17-25
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: The Government of the Netherlands
    (ii) Total Estimated Value:

 
Major Defense Equipment*.................  $30 million
Other....................................  $4 million
                                          ------------------------------
    Total................................  $34 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Foreign Military Sales (FMS) case NE-B-WFV, implemented in June 
2013, was below congressional notification threshold at $26.3M ($20M in 
MDE) and included one hundred and eighty (180) AGM-114R Hellfire II 
Missiles and twenty-four (24) M36E8 Captive Air Training Missiles 
(CATM). The Netherlands has requested the case be amended to include an 
additional seventy (70) AGM-114R Hellfire II missiles. This amendment 
will push the current case above the MDE notification threshold and 
thus requires notification of the entire case.
    Major Defense Equipment (MDE):
Two hundred fifty (250) AGM-114R Hellfire II Missiles
Twenty-four (24) M36E8 Captive Air Training Missiles (CATM)
    Non-MDE includes: Hellfire missile cutaway model, AGM-114R missile 
spare parts, a Launcher Test Station (LTS), LTS spares, two (2) 
maintenance support devices, integrated logistics support tools, M299 
launcher software upgrade and testing, aircrew familiarization 
training, launcher test station training, unclassified publications, 
technical assistance, AN/AWM-101A software, CATM spare parts and 
related support services, and other related elements of logistics and 
program support.
    (iv) Military Department: Army
    (v) Prior Related Cases, if any: NE-B-WFV
    (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: July 11, 2017
    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Government of the Netherlands--AGM-114R Hellfire Missiles

    The Government of the Netherlands has requested the possible sale 
of an additional seventy (70) AGM-114R Hellfire II missiles to a 
previously implemented case for Hellfire missiles. The original FMS 
case, valued at $26.3M, included one hundred and eighty (180) AGM-114R 
Hellfire II Missiles and twenty-four (24) M36E8 Captive Air Training 
Missiles (CATM) with various support elements. Therefore, this case is 
for a total of two hundred fifty (250) AGM-114R Hellfire II Missiles, 
twenty-four (24) M36E8 CATMs, to include Hellfire missile cutaway 
model, AGM-114R missile spare parts, a Launcher Test Station (LTS), LTS 
spares, two (2) maintenance support devices, integrated logistics 
support tools, M299 launcher software upgrade and testing, aircrew 
familiarization training, launcher test station training, unclassified 
publications, technical assistance, AN/AWM-101A software, CATM spare 
parts and related support services, and other related elements of 
logistics and program support. The estimated total case value is $34 
million.
    This proposed sale will enhance the foreign policy and national 
security objectives of the United States by helping to improve the 
security of the Netherlands which has been, and continues to be an 
important force for political stability and economic progress in 
Europe. It is vital to the U.S. national interests to assist the 
Netherlands to develop and maintain a strong and ready self-defense 
capability.
    The proposed sale will improve the Netherlands' capability to meet 
current and future threats and will be employed on the Netherlands' AH-
64D Apache helicopters. The Netherlands will use this capability to 
strengthen its homeland defense, deter regional threats, and provide 
direct support to coalition operations. The Netherlands will have no 
difficulty absorbing these missiles into its armed forces.
    The proposed sale of these missiles will not alter the basic 
military balance in the region.
    The principal contractor will be Lockheed Martin. The purchaser 
typically requests offsets. Any offset agreement will be defined in 
negotiations between the purchaser and the contractor.
    Implementation of this proposed sale will not require the 
assignment of any additional U.S. Government personnel or contractor 
representatives to the Netherlands.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 17-25
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. AGM-114R: The AGM-114R is used against heavy and light armored 
targets, thin skinned vehicles, urban structures, bunkers, caves and 
personnel. The missile is Inertial Measurement Unit (IMU) based, with a 
variable delay fuse, improved safety and reliability. The highest level 
for release of the AGM-114R is SECRET. Software and firmware 
documentation (e.g., Data Processing, Software Requirements, Source 
Code, Algorithms) are not authorized for disclosure. The highest level 
of classified information that could be disclosed by a proposed sale or 
by testing of the end item is up to and including SECRET. The highest 
level that must be disclosed for production, maintenance, or training 
is up to and including SECRET. Vulnerability data, countermeasures, 
vulnerability/susceptibility analyses, and threat definitions are 
classified SECRET or CONFIDENTIAL. Detailed information to include 
discussions, reports and studies of system capabilities, 
vulnerabilities and limitations that leads to conclusions on specific 
tactics or other counter-countermeasures (CCM) are not authorized for 
disclosure. Reverse engineering could reveal SECRET information.
    2. 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 weapons systems 
effectiveness or be used in the development of a system with similar or 
advanced capabilities.
    3. A determination has been made that the Government of the 
Netherlands can provide substantially the same degree of protection for 
the sensitive technology being released as the U.S. Government. This 
proposed sale is necessary to the furtherance of the U.S. foreign 
policy and national security objectives outlined in the policy 
justification.
    4. All defense articles and services listed in this transmittal are 
authorized for release and export to the Government of the Netherlands.

[FR Doc. 2017-16632 Filed 8-7-17; 8:45 am]
 BILLING CODE 5001-06-P