[Federal Register Volume 88, Number 63 (Monday, April 3, 2023)]
[Notices]
[Pages 19623-19625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06840]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 21-55]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense 
(DoD).

ACTION: Arms sales notice.

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

FOR FURTHER INFORMATION CONTACT: Neil Hedlund at 
[email protected] or (703) 697-9214.

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 21-55 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: March 29, 2023.
Aaron T. Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
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[GRAPHIC] [TIFF OMITTED] TN03AP23.005

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Transmittal No. 21-55
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 Australia
    (ii) Total Estimated Value:

Major Defense Equipment *................  $ 0 million
Other....................................  $350 million
                                          ------------------------------
  TOTAL..................................  $350 million
 

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

Major Defense Equipment (MDE):
    None
Non-MDE:
    Defense services related to the future purchase of Standard Missile 
6 Block I (SM-6) and Standard Missile 2 Block IIIC (SM-2 IIIC) 
missiles. These services include development; engineering, integration, 
and testing (EI&T); obsolescence engineering activities required to 
ensure readiness; U.S. Government and contractor engineering/technical 
assistance; related studies and analysis support; and other related 
elements of programmatic, technical and logistics support.
    (iv) Military Department: Navy (AT-P-AVY)
    (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

[[Page 19625]]

    (viii) Date Report Delivered to Congress: August 25, 2021
    *As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Australia--Defense Services Related to Future Standard Missile 
Production

    The Government of Australia has requested to buy defense services 
related to the future purchase of Standard Missile 6 Block I (SM-6) and 
Standard Missile 2 Block IIIC (SM-2 IIIC) missiles. These services 
include development; engineering, integration, and testing (EI&T); 
obsolescence engineering activities required to ensure readiness; U.S. 
Government and contractor engineering/technical assistance, and related 
studies and analysis support; technical and logistics support services; 
and other related elements of program and logistical support. The total 
estimated value is $350 million.
    This proposed sale will support the foreign policy and national 
security objectives of the United States. Australia is one of our most 
important allies in the Western Pacific. Australia is strategically 
positioned to contribute significantly to ensuring peace and economic 
stability in the region. It is vital to the U.S. national interest to 
assist our ally in developing and maintaining a strong and ready self-
defense capability.
    The proposed sale will support the readiness and future sale of 
vital anti-air warfare capability that can be deployed from Australia's 
newest Hunter-Class Destroyers equipped with the latest AEGIS Combat 
Systems. The purchase of Standard Missile 6 Block I (SM-6) and Standard 
Missile 2 Block IIIC (SM-2 IIIC) missiles is currently included in 
Australia's procurement roadmap and will improve their ability to 
operate alongside U.S. and Allied naval forces against the full 
spectrum of naval threats. Australia will have no difficulty absorbing 
these defense services into its armed forces.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal U.S. contractor will be Raytheon Missiles and Defense 
(RMD), Tucson, AZ. There are no known offset agreements proposed in 
connection with this potential sale.
    Implementation of the proposed sale will require U.S. Government 
and contractor personnel to visit Australia on a temporary basis in 
conjunction with program technical oversight and support requirements, 
including program and technical reviews.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 21-55
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 proposed sale will result in the transfer of sensitive and 
classified technical data related to obsolescence engineering, 
integration, and test activities required to ensure readiness for the 
future procurement of Standard Missile 6 Block I (SM-6) and Standard 
Missile 2 Block IIIC (SM-2 IIIC) missiles. No SM-6 Blk I or SM-2 IIIC 
hardware or software will be transferred under this proposed sale. 
Australia currently employs SM-2 Block IIIA and IIIB on Royal 
Australian Navy (RAN) AEGIS surface combatants, and has been afforded 
access to similar technical information for these delivered systems.
    2. The highest level of classification of defense articles, 
components, and services included in this potential sale is SECRET.
    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 the Government of Australia 
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 are 
authorized for release and export to the Government of Australia.

[FR Doc. 2023-06840 Filed 3-31-23; 8:45 am]
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