[Federal Register Volume 83, Number 47 (Friday, March 9, 2018)]
[Notices]
[Pages 10447-10449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04777]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 17-75]


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 a section 36(b)(1) 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 17-75 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: March 6, 2018.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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Transmittal No. 17-75
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 Finland
    (ii) Total Estimated Value:

Major Defense Equipment *................  $60 million
Other....................................  $10 million
                                          ------------------------------
  Total..................................  $70 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):
Four (4) MK 41 Baseline VII Strike-Length Vertical Launching Systems
    Non-MDE:
    Also included are spares, handling equipment, test equipment, 
operator manuals and technical documentation, U.S. Government and 
contractor engineering, training, technical, and logistical support 
services, and other related elements of logistical support.
    (iv) Military Department: Navy (FI-P-LBN)
    (v) Prior Related Cases, if any: None
    (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: February 20, 2018

    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Finland--Mk 41 Vertical Launching Systems

    The Government of Finland has requested a possible sale of four (4) 
Mk 41 Baseline VII Strike-Length Vertical Launching Systems. Also 
included are spares, handling equipment, test equipment, operator 
manuals and technical documentation, U.S. Government and contractor 
engineering, training, technical, and logistical support services, and 
other related elements of logistical support. The estimated total case 
value is $70 million.
    This proposed sale will support the foreign policy and national 
security objectives of the United States by improving the security of a 
partner nation that has been, and continues to be, an important force 
for political stability and economic progress in Europe.
    Finland intends to use the vertical launching systems on four new 
construction corvettes that will make up the Finnish Navy's Squadron 
2020. The vertical launching systems will enable Finland to acquire 
missiles that will significantly enhance the Finnish Navy's area 
defense capabilities over critical air-and-sea-lines of trade and 
communication. The proposed sale of the Mk 41 will increase the Finnish 
Navy's maritime partnership, interoperability, and regional security 
capability. Finland has not purchased the Mk 41 previously, but will 
have no difficulty incorporating this capability into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal contractor will be Lockheed Martin Corporation, 
Bethesda, MD. 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 require up to 12 U.S. 
Government personnel and up to five contractor representatives to 
travel to Finland providing support over a period of ten years.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 17-75
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. The Mk 41 Vertical Launching System (VLS) is a fixed, vertical, 
multi-missile launching system with the capability to store and launch 
multiple missile variants depending on the warfighting mission, 
including the Evolved Sea Sparrow Missile (ESSM) and Standard Missile 2 
(SM-2). This proposed sale would provide tactical VLS capability for 
the ESSM. Mk 41 VLS is a modular below-deck configuration with each 
module consisting of 8 missile cells with an associated gas management 
and deluge system. The highest classification of the hardware in the 
proposed sale is UNCLASSIFIED. The highest classification of the 
technical documentation in the proposed sale is UNCLASSIFIED. The 
highest classification of the software to be exported is CONFIDENTIAL.
    2. If a technologically advanced adversary were to obtain knowledge 
of specific hardware, the information could be used to develop 
countermeasures which might reduce weapons system effectiveness or be 
used in the development of a system with similar or advanced 
capabilities.
    3. A determination has been made that Finland can provide 
substantially the same degree of protection for sensitive technology 
being released as the U.S. Government. This proposed sustainment 
program 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 on this transmittal are 
authorized for release and export to the Government of Finland.

[FR Doc. 2018-04777 Filed 3-8-18; 8:45 am]
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