[104th Congress Public Law 164]
[From the U.S. Government Printing Office]
<DOC>
[DOCID: f:publ164.104]
[[Page 110 STAT. 1421]]
Public Law 104-164
104th Congress
An Act
To amend the Foreign Assistance Act of 1961 and the Arms Export Control
Act to make improvements to certain defense and security assistance
provisions under those Acts, to authorize the transfer of naval vessels
to certain foreign countries, and for other purposes. <<NOTE: July 21,
1996 - [H.R. 3121]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I--DEFENSE AND SECURITY ASSISTANCE
Chapter 1--Military and Related Assistance
Sec. 101. Terms of loans under the Foreign Military Financing program.
Sec. 102. Additional requirements under the Foreign Military Financing
program.
Sec. 103. Drawdown special authorities.
Sec. 104. Transfer of excess defense articles.
Sec. 105. Excess defense articles for certain European countries.
Chapter 2--International Military Education and Training
Sec. 111. Assistance for Indonesia.
Sec. 112. Additional requirements.
Chapter 3--Antiterrorism Assistance
Sec. 121. Antiterrorism training assistance.
Sec. 122. Research and development expenses.
Chapter 4--International Narcotics Control Assistance
Sec. 131. Additional requirements.
Sec. 132. Notification requirement.
Sec. 133. Waiver of restrictions for narcotics-related economic
assistance.
Chapter 5--Other Provisions
Sec. 141. Standardization of congressional review procedures for arms
transfers.
Sec. 142. Standardization of third country transfers of defense
articles.
Sec. 143. Increased standardization, rationalization, and
interoperability of assistance and sales programs.
Sec. 144. Definition of significant military equipment.
Sec. 145. Elimination of annual reporting requirement relating to the
Special Defense Acquisition Fund.
Sec. 146. Cost of leased defense articles that have been lost or
destroyed.
Sec. 147. Designation of major non-NATO allies.
Sec. 148. Annual military assistance report.
Sec. 149. Depleted uranium ammunition.
Sec. 150. End-use monitoring of defense articles and defense services.
Sec. 151. Brokering activities relating to commercial sales of defense
articles and services.
Sec. 152. Return and exchanges of defense articles previously
transferred pursuant to the Arms Export Control Act.
Sec. 153. National security interest determination to waive
reimbursement of depreciation for leased defense articles.
[[Page 110 STAT. 1422]]
Sec. 154. Eligibility of Panama under the Arms Export Control Act.
Sec. 155. Publication of arms sales certifications.
Sec. 156. Release of information.
Sec. 157. Repeal of termination of provisions of the Nuclear
Proliferation Prevention Act of 1994; Presidential
determinations.
TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES
Sec. 201. Authority to transfer naval vessels.
Sec. 202. Costs of transfers.
Sec. 203. Expiration of authority.
Sec. 204. Repair and refurbishment of vessels in United States
shipyards.
TITLE I--DEFENSE AND SECURITY ASSISTANCE
CHAPTER 1--MILITARY AND RELATED ASSISTANCE
SEC. 101. TERMS OF LOANS UNDER THE FOREIGN MILITARY FINANCING PROGRAM.
Section 31(c) of the Arms Export Control Act (22 U.S.C. 2771(c)) is
amended to read as follows:
``(c) Loans available under section 23 shall be provided at rates of
interest that are not less than the current average market yield on
outstanding marketable obligations of the United States of comparable
maturities.''.
SEC. 102. ADDITIONAL REQUIREMENTS UNDER THE FOREIGN MILITARY FINANCING
PROGRAM.
(a) Audit of Certain Private Firms.--Section 23 of the Arms Export
Control Act (22 U.S.C. 2763) is amended by adding at the end the
following new subsection:
``(f) For each fiscal year, the Secretary of Defense, as requested
by the Director of the Defense Security Assistance Agency, shall conduct
audits on a nonreimbursable basis of private firms that have entered
into contracts with foreign governments under which defense articles,
defense services, or design and construction services are to be procured
by such firms for such governments from financing under this section.''.
(b) Notification Requirement With Respect to Cash Flow Financing.--
Section 23 of such Act (22 U.S.C. 2763), as amended by this Act, is
further amended by adding at the end the following new subsection:
``(g)(1) For each country and international organization that has
been approved for cash flow financing under this section, any letter of
offer and acceptance or other purchase agreement, or any amendment
thereto, for a procurement of defense articles, defense services, or
design and construction services in excess of $100,000,000 that is to be
financed in whole or in part with funds made available under this Act or
the Foreign Assistance Act of 1961 shall be submitted to the
congressional committees specified in section 634A(a) of the Foreign
Assistance Act of 1961 in accordance with the procedures applicable to
reprogramming notifications under that section.
``(2) For purposes of this subsection, the term `cash flow
financing' has the meaning given such term in subsection (d) of section
25, as added by section 112(b) of Public Law 99-83.''.
(c) Limitations on Use of Funds for Direct Commercial Contracts.--
Section 23 of such Act (22 U.S.C. 2763), as amended
[[Page 110 STAT. 1423]]
by this Act, is further amended by adding at the end the following new
subsection:
``(h) Of the amounts made available for a fiscal year to carry out
this section, not more than $100,000,000 for such fiscal year may be
made available for countries other than Israel and Egypt for the purpose
of financing the procurement of defense articles, defense services, and
design and construction services that are not sold by the United States
Government under this Act.''.
(d) Annual Estimate and Justification for Sales Program.--Section
25(a) of such Act (22 U.S.C. 2765(a)) is amended--
(1) by striking the ``and'' at the end of paragraph (11);
(2) by redesignating paragraph (12) as paragraph (13); and
(3) by inserting after paragraph (11) the following:
``(12)(A) a detailed accounting of all articles, services,
credits, guarantees, or any other form of assistance furnished
by the United States to each country and international
organization, including payments to the United Nations, during
the preceding fiscal year for the detection and clearance of
landmines, including activities relating to the furnishing of
education, training, and technical assistance for the detection
and clearance of landmines; and
``(B) for each provision of law making funds available or
authorizing appropriations for demining activities described in
subparagraph (A), an analysis and description of the objectives
and activities undertaken during the preceding fiscal year,
including the number of personnel involved in performing such
activities; and''.
SEC. 103. DRAWDOWN SPECIAL AUTHORITIES.
(a) Unforeseen Emergency Drawdown.--Section 506(a)(1) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2318(a)(1)) is amended by striking
``$75,000,000'' and inserting ``$100,000,000''.
(b) Additional Drawdown.--Section 506 of such Act (22 U.S.C. 2318)
is amended--
(1) in subsection (a)(2)(A), by striking ``defense articles
from the stocks'' and all that follows and inserting the
following: ``articles and services from the inventory and
resources of any agency of the United States Government and
military education and training from the Department of Defense,
the President may direct the drawdown of such articles,
services, and military education and training--
``(i) for the purposes and under the authorities
of--
``(I) chapter 8 of part I (relating to
international narcotics control assistance);
``(II) chapter 9 of part I (relating to
international disaster assistance); or
``(III) the Migration and Refugee Assistance
Act of 1962; or
``(ii) for the purpose of providing such articles,
services, and military education and training to
Vietnam, Cambodia, and Laos as the President determines
are necessary--
``(I) to support cooperative efforts to locate
and repatriate members of the United States Armed
Forces and civilians employed directly or
indirectly by the United States Government who
remain unaccounted for from the Vietnam War; and
[[Page 110 STAT. 1424]]
``(II) to ensure the safety of United States
Government personnel engaged in such cooperative
efforts and to support Department of Defense-
sponsored humanitarian projects associated with
such efforts.'';
(2) in subsection (a)(2)(B), by striking ``$75,000,000'' and
all that follows and inserting ``$150,000,000 in any fiscal year
of such articles, services, and military education and training
may be provided pursuant to subparagraph (A) of this paragraph--
``(i) not more than $75,000,000 of which may be
provided from the drawdown from the inventory and
resources of the Department of Defense;
``(ii) not more than $75,000,000 of which may be
provided pursuant to clause (i)(I) of such subparagraph;
and
``(iii) not more than $15,000,000 of which may be
provided to Vietnam, Cambodia, and Laos pursuant to
clause (ii) of such subparagraph.''; and
(3) in subsection (b)(1), by adding at the end the
following: ``In the case of drawdowns authorized by subclauses
(I) and (III) of subsection (a)(2)(A)(i), notifications shall be
provided to those committees at least 15 days in advance of the
drawdowns in accordance with the procedures applicable to
reprogramming notifications under section 634A.''.
(c) Notice to Congress of Exercise of Special Authorities.--Section
652 of such Act (22 U.S.C. 2411) is amended by striking ``prior to the
date'' and inserting ``before''.
SEC. 104. TRANSFER OF EXCESS DEFENSE ARTICLES.
(a) In General.--Section 516 of the Foreign Assistance Act of 1961
(22 U.S.C. 2321j) is amended to read as follows:
``SEC. 516. AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.
``(a) Authorization.--The President is authorized to transfer excess
defense articles under this section to countries for which receipt of
such articles was justified pursuant to the annual congressional
presentation documents for military assistance programs, or for programs
under chapter 8 of part I of this Act, submitted under section 634 of
this Act, or for which receipt of such articles was separately justified
to the Congress, for the fiscal year in which the transfer is
authorized.
``(b) Limitations on Transfers.--(1) The President may transfer
excess defense articles under this section only if--
``(A) such articles are drawn from existing stocks of the
Department of Defense;
``(B) funds available to the Department of Defense for the
procurement of defense equipment are not expended in connection
with the transfer;
``(C) the transfer of such articles will not have an adverse
impact on the military readiness of the United States;
``(D) with respect to a proposed transfer of such articles
on a grant basis, such a transfer is preferable to a transfer on
a sales basis, after taking into account the potential proceeds
from, and likelihood of, such sales, and the comparative foreign
policy benefits that may accrue to the United States as the
result of a transfer on either a grant or sales basis;
``(E) the President determines that the transfer of such
articles will not have an adverse impact on the national
technology and industrial base and, particularly, will not
reduce
[[Page 110 STAT. 1425]]
the opportunities of entities in the national technology and
industrial base to sell new or used equipment to the countries
to which such articles are transferred; and
``(F) the transfer of such articles is consistent with the
policy framework for the Eastern Mediterranean established under
section 620C of this Act.
``(2) <<NOTE: Effective date. President.>> Accordingly, for the
four-year period beginning on October 1, 1996, the President shall
ensure that excess defense articles offered to Greece and Turkey under
this section will be made available consistent with the manner in which
the President made available such excess defense articles during the
four-year period that began on October 1, 1992, pursuant to section
573(e) of the Foreign Operations, Export Financing, and Related Programs
Appropriations Act, 1990.
``(c) Terms of Transfers.--
``(1) No cost to recipient country.--Excess defense articles
may be transferred under this section without cost to the
recipient country.
``(2) Priority.--Notwithstanding any other provision of law,
the delivery of excess defense articles under this section to
member countries of the North Atlantic Treaty Organization
(NATO) on the southern and southeastern flank of NATO and to
major non-NATO allies on such southern and southeastern flank
shall be given priority to the maximum extent feasible over the
delivery of such excess defense articles to other countries.
``(d) Waiver of Requirement for Reimbursement of Department of
Defense Expenses.--Section 632(d) shall not apply with respect to
transfers of excess defense articles (including transportation and
related costs) under this section.
``(e) Transportation and Related Costs.--
``(1) In general.--Except as provided in paragraph (2),
funds available to the Department of Defense may not be expended
for crating, packing, handling, and transportation of excess
defense articles transferred under the authority of this
section.
``(2) Exception.--The President may provide for the
transportation of excess defense articles without charge to a
country for the costs of such transportation if--
``(A) it is determined that it is in the national
interest of the United States to do so;
``(B) the recipient is a developing country
receiving less than $10,000,000 of assistance under
chapter 5 of this part of this Act (relating to
international military education and training) or
section 23 of the Arms Export Control Act (22 U.S.C.
2763; relating to the Foreign Military Financing
program) in the fiscal year in which the transportation
is provided;
``(C) the total weight of the transfer does not
exceed 25,000 pounds; and
``(D) such transportation is accomplished on a space
available basis.
``(f) Advance Notification to Congress for Transfer of Certain
Excess Defense Articles.--
``(1) In general.--The President may not transfer excess
defense articles that are significant military equipment (as
defined in section 47(9) of the Arms Export Control Act) or
[[Page 110 STAT. 1426]]
excess defense articles valued (in terms of original acquisition
cost) at $7,000,000 or more, under this section or under the
Arms Export Control Act (22 U.S.C. 2751 et seq.) until 30 days
after the date on which the President has provided notice of the
proposed transfer to the congressional committees specified in
section 634A(a) in accordance with procedures applicable to
reprogramming notifications under that section.
``(2) Contents.--Such notification shall include--
``(A) a statement outlining the purposes for which
the article is being provided to the country, including
whether such article has been previously provided to
such country;
``(B) an assessment of the impact of the transfer on
the military readiness of the United States;
``(C) an assessment of the impact of the transfer on
the national technology and industrial base and,
particularly, the impact on opportunities of entities in
the national technology and industrial base to sell new
or used equipment to the countries to which such
articles are to be transferred; and
``(D) a statement describing the current value of
such article and the value of such article at
acquisition.
``(g) Aggregate Annual Limitation.--
``(1) In general.--The aggregate value of excess defense
articles transferred to countries under this section in any
fiscal year may not exceed $350,000,000.
``(2) Effective date.--The limitation contained in paragraph
(1) shall apply only with respect to fiscal years beginning
after fiscal year 1996.
``(h) Congressional Presentation Documents.--Documents described in
subsection (a) justifying the transfer of excess defense articles shall
include an explanation of the general purposes of providing excess
defense articles as well as a table which provides an aggregate annual
total of transfers of excess defense articles in the preceding year by
country in terms of offers and actual deliveries and in terms of
acquisition cost and current value. Such table shall indicate whether
such excess defense articles were provided on a grant or sale basis.
``(i) Excess Coast Guard Property.--For purposes of this section,
the term `excess defense articles' shall be deemed to include excess
property of the Coast Guard, and the term `Department of Defense' shall
be deemed, with respect to such excess property, to include the Coast
Guard.''.
(b) Conforming Amendments.--
(1) Arms export control act.--Section 21(k) of the Arms
Export Control Act (22 U.S.C. 2761(k)) is amended by striking
``the President shall'' and all that follows and inserting the
following: <<NOTE: President.>> ``the President shall determine
that the sale of such articles will not have an adverse impact
on the national technology and industrial base and,
particularly, will not reduce the opportunities of entities in
the national technology and industrial base to sell new or used
equipment to the countries to which such articles are
transferred.''.
(2) Repeals.--The following provisions of law are hereby
repealed:
(A) Section 502A of the Foreign Assistance Act of
1961 (22 U.S.C. 2303).
[[Page 110 STAT. 1427]]
(B) Sections 517 through 520 of the Foreign
Assistance Act of 1961 (22 U.S.C. 2321k through 2321n).
(C) Section 31(d) of the Arms Export Control Act (22
U.S.C. 2771(d)).
SEC. 105. EXCESS DEFENSE ARTICLES FOR CERTAIN EUROPEAN COUNTRIES.
Notwithstanding section 516(e) of the Foreign Assistance Act of
1961, as added by this Act, during each of the fiscal years 1996 and
1997, funds available to the Department of Defense may be expended for
crating, packing, handling, and transportation of excess defense
articles transferred under the authority of section 516 of such Act to
countries that are eligible to participate in the Partnership for Peace
and that are eligible for assistance under the Support for East European
Democracy (SEED) Act of 1989.
CHAPTER 2--INTERNATIONAL MILITARY EDUCATION AND TRAINING
SEC. 111. ASSISTANCE FOR INDONESIA.
Funds made available for fiscal years 1996 and 1997 to carry out
chapter 5 of part II of the Foreign Assistance Act of 1961 (22 U.S.C.
2347 et seq.) may be obligated for Indonesia only for expanded military
and education training that meets the requirements of clauses (i)
through (iv) of the second sentence of section 541 of such Act (22
U.S.C. 2347).
SEC. 112. ADDITIONAL REQUIREMENTS.
(a) General Authority.--Section 541 of the Foreign Assistance Act of
1961 (22 U.S.C. 2347) is amended in the second sentence in the matter
preceding clause (i) by inserting ``and individuals who are not members
of the government'' after ``legislators''.
(b) Exchange Training.--Section 544 of such Act (22 U.S.C. 2347c) is
amended--
(1) by striking ``In carrying out this chapter'' and
inserting ``(a) In carrying out this chapter''; and
(2) by adding at the end the following new subsection:
``(b) The President may provide for the attendance of foreign
military and civilian defense personnel at flight training schools and
programs (including test pilot schools) in the United States without
charge, and without charge to funds available to carry out this chapter
(notwithstanding section 632(d) of this Act), if such attendance is
pursuant to an agreement providing for the exchange of students on a
one-for-one basis each fiscal year between those United States flight
training schools and programs (including test pilot schools) and
comparable flight training schools and programs of foreign countries.''.
(c) Assistance for Certain High-Income Foreign Countries.--
(1) Amendment to the foreign assistance act of 1961.--
Chapter 5 of part II of such Act (22 U.S.C. 2347 et seq.) is
amended by adding at the end the following new section:
``SEC. 546. <<NOTE: 22 USC 2347c.>> PROHIBITION ON GRANT ASSISTANCE FOR
CERTAIN HIGH INCOME FOREIGN COUNTRIES.
``(a) In General.--None of the funds made available for a fiscal
year for assistance under this chapter may be made available for
assistance on a grant basis for any of the high-income foreign
[[Page 110 STAT. 1428]]
countries described in subsection (b) for military education and
training of military and related civilian personnel of such country.
``(b) High-Income Foreign Countries Described.--The high-income
foreign countries described in this subsection are Austria, Finland, the
Republic of Korea, Singapore, and Spain.''.
(2) Amendment to the arms export control act.--Section
21(a)(1)(C) of the Arms Export Control Act (22 U.S.C.
2761(a)(1)(C)) is amended by inserting ``or to any high-income
foreign country (as described in that chapter)'' after ``Foreign
Assistance Act of 1961''.
CHAPTER 3--ANTITERRORISM ASSISTANCE
SEC. 121. ANTITERRORISM TRAINING ASSISTANCE.
(a) In General.--Section 571 of the Foreign Assistance Act of 1961
(22 U.S.C. 2349aa) is amended by striking ``Subject to the provisions of
this chapter'' and inserting ``Notwithstanding any other provision of
law that restricts assistance to foreign countries (other than sections
502B and 620A of this Act)''.
(b) Limitations.--Section 573 of such Act (22 U.S.C. 2349aa-2) is
amended--
(1) in the heading, by striking ``Specific Authorities
and'';
(2) by striking subsection (a);
(3) by redesignating subsections (b) through (f) as
subsections (a) through (e), respectively; and
(4) in subsection (c) (as redesignated)--
(A) by striking paragraphs (1) and (2);
(B) by redesignating paragraphs (3) through (5) as
paragraphs (1) through (3), respectively; and
(C) by amending paragraph (2) (as redesignated) to
read as follows:
``(2)(A) Except as provided in subparagraph (B), funds made
available to carry out this chapter shall not be made available for the
procurement of weapons and ammunition.
``(B) Subparagraph (A) shall not apply to small arms and ammunition
in categories I and III of the United States Munitions List that are
integrally and directly related to antiterrorism training provided under
this chapter if, at least 15 days before obligating those funds, the
President notifies the appropriate congressional committees specified in
section 634A of this Act in accordance with the procedures applicable to
reprogramming notifications under such section.
``(C) The value (in terms of original acquisition cost) of all
equipment and commodities provided under this chapter in any fiscal year
may not exceed 25 percent of the funds made available to carry out this
chapter for that fiscal year.''.
(c) Annual Report.--Section 574 of such Act (22 U.S.C. 2349aa-3) is
hereby repealed.
(d) Technical Corrections.--Section 575 (22 U.S.C. 2349aa-4) and
section 576 (22 U.S.C. 2349aa-5) of such Act are redesignated as
sections 574 and 575, respectively.
SEC. 122. RESEARCH AND DEVELOPMENT EXPENSES.
Funds made available for fiscal years 1996 and 1997 to carry out
chapter 8 of part II of the Foreign Assistance Act of 1961 (22 U.S.C.
2349aa et seq.; relating to antiterrorism assistance) may be made
available to the Technical Support Working Group
[[Page 110 STAT. 1429]]
of the Department of State for research and development expenses related
to contraband detection technologies or for field demonstrations of such
technologies (whether such field demonstrations take place in the United
States or outside the United States).
CHAPTER 4--INTERNATIONAL NARCOTICS CONTROL ASSISTANCE
SEC. 131. ADDITIONAL REQUIREMENTS.
(a) Policy and General Authorities.--Section 481(a) of the Foreign
Assistance Act (22 U.S.C. 2291(a)) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (D) through (F)
as subparagraphs (E) through (G), respectively; and
(B) by inserting after subparagraph (C) the
following:
``(D) International criminal activities, particularly
international narcotics trafficking, money laundering, and
corruption, endanger political and economic stability and
democratic development, and assistance for the prevention and
suppression of international criminal activities should be a
priority for the United States.''; and
(2) in paragraph (4), by adding before the period at the end
the following: ``, or for other anticrime purposes''.
(b) Contributions and Reimbursement.--Section 482(c) of that Act (22
U.S.C. 2291a(c)) is amended--
(1) by striking ``Contribution by Recipient Country.--To''
and inserting ``Contributions and Reimbursement.--(1) To''; and
(2) by adding at the end the following new paragraphs:
``(2)(A) The President is authorized to accept contributions from
foreign governments to carry out the purposes of this chapter. Such
contributions shall be deposited as an offsetting collection to the
applicable appropriation account and may be used under the same terms
and conditions as funds appropriated pursuant to this chapter.
``(B) <<NOTE: President. Reports.>> At the time of submission of
the annual congressional presentation documents required by section
634(a), the President shall provide a detailed report on any
contributions received in the preceding fiscal year, the amount of such
contributions, and the purposes for which such contributions were used.
``(3) The President is authorized to provide assistance under this
chapter on a reimbursable basis. Such reimbursements shall be deposited
as an offsetting collection to the applicable appropriation and may be
used under the same terms and conditions as funds appropriated pursuant
to this chapter.''.
(c) Implementation of Law Enforcement Assistance.--Section 482 of
such Act (22 U.S.C. 2291a) is amended by adding at the end the following
new subsections:
``(f) Treatment of Funds.--Funds transferred to and consolidated
with funds appropriated pursuant to this chapter may be made available
on such terms and conditions as are applicable to funds appropriated
pursuant to this chapter. Funds so transferred or consolidated shall be
apportioned directly to the bureau within the Department of State
responsible for administering this chapter.
``(g) Excess Property.--For purposes of this chapter, the Secretary
of State may use the authority of section 608, without regard
[[Page 110 STAT. 1430]]
to the restrictions of such section, to receive nonlethal excess
property from any agency of the United States Government for the purpose
of providing such property to a foreign government under the same terms
and conditions as funds authorized to be appropriated for the purposes
of this chapter.''.
SEC. 132. <<NOTE: 21 USC 1502 note.>> NOTIFICATION REQUIREMENT.
(a) In General.--The authority of section 1003(d) of the National
Narcotics Control Leadership Act of 1988 (21 U.S.C. 1502(d)) may be
exercised with respect to funds authorized to be appropriated pursuant
to the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.) and with
respect to the personnel of the Department of State only to the extent
that the appropriate congressional committees have been notified 15 days
in advance in accordance with the reprogramming procedures applicable
under section 634A of that Act (22 U.S.C. 2394-1).
(b) Definition.--For purposes of this section, the term
``appropriate congressional committees'' means the Committee on
International Relations and the Committee on Appropriations of the House
of Representatives and the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
SEC. 133. <<NOTE: 22 USC 2151 note.>> WAIVER OF RESTRICTIONS FOR
NARCOTICS-RELATED ECONOMIC ASSISTANCE.
For each of the fiscal years 1996 and 1997, narcotics-related
assistance under part I of the Foreign Assistance Act of 1961 (22 U.S.C.
2151 et seq.) may be provided notwithstanding any other provision of law
that restricts assistance to foreign countries (other than section
490(e) or section 502B of that Act (22 U.S.C. 2291j(e) and 2304)) if, at
least 15 days before obligating funds for such assistance, the President
notifies the appropriate congressional committees (as defined in section
481(e) of that Act (22 U.S.C. 2291(e))) in accordance with the
procedures applicable to reprogramming notifications under section 634A
of that Act (22 U.S.C. 2394-1).
CHAPTER 5--OTHER PROVISIONS
SEC. 141. STANDARDIZATION OF CONGRESSIONAL REVIEW PROCEDURES FOR ARMS
TRANSFERS.
(a) Third Country Transfers Under FMS Sales.--Section 3(d)(2) of the
Arms Export Control Act (22 U.S.C. 2753(d)(2)) is amended--
(1) in subparagraph (A), by striking ``, as provided for in
sections 36(b)(2) and 36(b)(3) of this Act'';
(2) in subparagraph (B), by striking ``law'' and inserting
``joint resolution''; and
(3) by adding at the end the following:
``(C) <<NOTE: President.>> If the President states in his
certification under subparagraph (A) or (B) that an emergency exists
which requires that consent to the proposed transfer become effective
immediately in the national security interests of the United States,
thus waiving the requirements of that subparagraph, the President shall
set forth in the certification a detailed justification for his
determination, including a description of the emergency circumstances
which necessitate immediate consent to the transfer and a discussion of
the national security interests involved.
[[Page 110 STAT. 1431]]
``(D)(i) Any joint resolution under this paragraph shall be
considered in the Senate in accordance with the provisions of section
601(b) of the International Security Assistance and Arms Export Control
Act of 1976.
``(ii) For the purpose of expediting the consideration and enactment
of joint resolutions under this paragraph, a motion to proceed to the
consideration of any such joint resolution after it has been reported by
the appropriate committee shall be treated as highly privileged in the
House of Representatives.''.
(b) Third Country Transfers Under Commercial Sales.--Section 3(d)(3)
of such Act (22 U.S.C. 2753(d)(3)) is amended--
(1) by inserting ``(A)'' after ``(3)'';
(2) in the first sentence--
(A) by striking ``at least 30 calendar days''; and
(B) by striking ``report'' and inserting
``certification''; and
(3) by striking the last sentence and inserting the
following: ``Such certification shall be submitted--
``(i) at least 15 calendar days before such consent is given
in the case of a transfer to a country which is a member of the
North Atlantic Treaty Organization or Australia, Japan, or New
Zealand; and
``(ii) at least 30 calendar days before such consent is
given in the case of a transfer to any other country,
unless the President states in his certification that an emergency
exists which requires that consent to the proposed transfer become
effective immediately in the national security interests of the United
States. <<NOTE: President.>> If the President states in his
certification that such an emergency exists (thus waiving the
requirements of clause (i) or (ii), as the case may be, and of
subparagraph (B)) the President shall set forth in the certification a
detailed justification for his determination, including a description of
the emergency circumstances which necessitate that consent to the
proposed transfer become effective immediately and a discussion of the
national security interests involved.
``(B) <<NOTE: Effective date.>> Consent to a transfer subject to
subparagraph (A) shall become effective after the end of the 15-day or
30-day period specified in subparagraph (A)(i) or (ii), as the case may
be, only if the Congress does not enact, within that period, a joint
resolution prohibiting the proposed transfer.
``(C)(i) Any joint resolution under this paragraph shall be
considered in the Senate in accordance with the provisions of section
601(b) of the International Security Assistance and Arms Export Control
Act of 1976.
``(ii) For the purpose of expediting the consideration and enactment
of joint resolutions under this paragraph, a motion to proceed to the
consideration of any such joint resolution after it has been reported by
the appropriate committee shall be treated as highly privileged in the
House of Representatives.''.
(c) Commercial Sales.--Section 36(c)(2) of such Act (22 U.S.C.
2776(c)(2)) is amended by amending subparagraphs (A) and (B) to read as
follows:
``(A) in the case of a license for an export to the North
Atlantic Treaty Organization, any member country of that
Organization or Australia, Japan, or New Zealand, shall not be
issued until at least 15 calendar days after the Congress
receives such certification, and shall not be issued then if
[[Page 110 STAT. 1432]]
the Congress, within that 15-day period, enacts a joint
resolution prohibiting the proposed export; and
``(B) in the case of any other license, shall not be issued
until at least 30 calendar days after the Congress receives such
certification, and shall not be issued then if the Congress,
within that 30-day period, enacts a joint resolution prohibiting
the proposed export.''.
(d) Commercial Manufacturing Agreements.--Section 36(d) of such Act
(22 U.S.C. 2776(d)) is amended--
(1) by inserting ``(1)'' after ``(d)'';
(2) by striking ``for or in a country not a member of the
North Atlantic Treaty Organization''; and
(3) by adding at the end the following:
``(2) A certification under this subsection shall be submitted--
``(A) at least 15 days before approval is given in the case
of an agreement for or in a country which is a member of the
North Atlantic Treaty Organization or Australia, Japan, or New
Zealand; and
``(B) at least 30 days before approval is given in the case
of an agreement for or in any other country;
unless the President states in his certification that an emergency
exists which requires the immediate approval of the agreement in the
national security interests of the United States.
``(3) <<NOTE: President.>> If the President states in his
certification that an emergency exists which requires the immediate
approval of the agreement in the national security interests of the
United States, thus waiving the requirements of paragraph (4), he shall
set forth in the certification a detailed justification for his
determination, including a description of the emergency circumstances
which necessitate the immediate approval of the agreement and a
discussion of the national security interests involved.
``(4) Approval for an agreement subject to paragraph (1) may not be
given under section 38 if the Congress, within the 15-day or 30-day
period specified in paragraph (2)(A) or (B), as the case may be, enacts
a joint resolution prohibiting such approval.
``(5)(A) Any joint resolution under paragraph (4) shall be
considered in the Senate in accordance with the provisions of section
601(b) of the International Security Assistance and Arms Export Control
Act of 1976.
``(B) For the purpose of expediting the consideration and enactment
of joint resolutions under paragraph (4), a motion to proceed to the
consideration of any such joint resolution after it has been reported by
the appropriate
committee shall be treated as highly privileged in the House of
Representatives.''.
(e) Government-to-Government Leases.--
(1) Congressional review period.--Section 62 of such Act (22
U.S.C. 2796a) is amended--
(A) in subsection (a), by striking ``Not less than
30 days before'' and inserting ``Before'';
(B) in subsection (b)--
(i) by striking ``determines, and immediately
reports to the Congress'' and inserting ``states
in his certification''; and
(ii) by adding at the end of the subsection
the following: <<NOTE: President.>> ``If the
President states in his certification that such an
emergency exists, he shall set forth in the
certification a detailed justification for his
deter
[[Page 110 STAT. 1433]]
mination, including a description of the emergency
circumstances which necessitate that the lease be
entered into immediately and a discussion of the
national security interests involved.''; and
(C) by adding at the end of the section the
following:
``(c) The certification required by subsection (a) shall be
transmitted--
``(1) not less than 15 calendar days before the agreement is
entered into or renewed in the case of an agreement with the
North Atlantic Treaty Organization, any member country of that
Organization or Australia, Japan, or New Zealand; and
``(2) not less than 30 calendar days before the agreement is
entered into or renewed in the case of an agreement with any
other organization or country.''.
(2) Congressional disapproval.--Section 63(a) of such Act
(22 U.S.C. 2796b(a)) is amended--
(A) by striking ``(a)(1)'' and inserting ``(a)'';
(B) by striking ``30 calendar days after receiving
the certification with respect to that proposed
agreement pursuant to section 62(a),'' and inserting
``the 15-day or 30-day period specified in section 62(c)
(1) or (2), as the case may be,''; and
(C) by striking paragraph (2).
(f) <<NOTE: 22 USC 2753 note.>> Effective Date.--The amendments
made by this section apply with respect to certifications required to be
submitted on or after the date of the enactment of this Act.
SEC. 142. STANDARDIZATION OF THIRD COUNTRY TRANSFERS OF DEFENSE
ARTICLES.
Section 3 of the Arms Export Control Act (22 U.S.C. 2753) is amended
by inserting after subsection (a) the following new subsection:
``(b) The consent of the President under paragraph (2) of subsection
(a) or under paragraph (1) of section 505(a) of the Foreign Assistance
Act of 1961 (as it relates to subparagraph (B) of such paragraph) shall
not be required for the transfer by a foreign country or international
organization of defense articles sold by the United States under this
Act if--
``(1) such articles constitute components incorporated into
foreign defense articles;
``(2) the recipient is the government of a member country of
the North Atlantic Treaty Organization, the Government of
Australia, the Government of Japan, or the Government of New
Zealand;
``(3) the recipient is not a country designated under
section 620A of the Foreign Assistance Act of 1961;
``(4) the United States-origin components are not--
``(A) significant military equipment (as defined in
section 47(9));
``(B) defense articles for which notification to
Congress is required under section 36(b); and
``(C) identified by regulation as Missile Technology
Control Regime items; and
``(5) the foreign country or international organization
provides notification of the transfer of the defense articles to
[[Page 110 STAT. 1434]]
the United States Government not later than 30 days after the
date of such transfer.''.
SEC. 143. INCREASED STANDARDIZATION, RATIONALIZATION, AND
INTEROPERABILITY OF ASSISTANCE AND SALES PROGRAMS.
Paragraph (6) of section 515(a) of the Foreign Assistance Act of
1961 (22 U.S.C. 2321i(a)(6)) is amended by striking ``among members of
the North Atlantic Treaty Organization and with the Armed Forces of
Japan, Australia, and New Zealand''.
SEC. 144. DEFINITION OF SIGNIFICANT MILITARY EQUIPMENT.
Section 47 of the Arms Export Control Act (22 U.S.C. 2794) is
amended--
(1) in paragraph (7), by striking ``and'' at the end;
(2) in paragraph (8), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following new paragraph:
``(9) `significant military equipment' means articles--
``(A) for which special export controls are warranted
because of the capacity of such articles for substantial
military utility or capability; and
``(B) identified on the United States Munitions List.''.
SEC. 145. ELIMINATION OF ANNUAL REPORTING REQUIREMENT RELATING TO THE
SPECIAL DEFENSE ACQUISITION FUND.
(a) In General.--Section 53 of the Arms Export Control Act (22
U.S.C. 2795b) is hereby repealed.
(b) Conforming Amendment.--Section 51(a)(4) of such Act (22 U.S.C.
2795(a)(4)) is amended--
(1) by striking ``(A)''; and
(2) by striking subparagraph (B).
SEC. 146. COST OF LEASED DEFENSE ARTICLES THAT HAVE BEEN LOST OR
DESTROYED.
Section 61(a)(4) of the Arms Export Control Act (22 U.S.C.
2796(a)(4)) is amended by striking ``and the replacement cost'' and all
that follows and inserting the following: ``and, if the articles are
lost or destroyed while leased--
``(A) in the event the United States intends to
replace the articles lost or destroyed, the replacement
cost (less any depreciation in the value) of the
articles; or
``(B) in the event the United States does not intend
to replace the articles lost or destroyed, an amount not
less than the actual value (less any depreciation in the
value) specified in the lease agreement.''.
SEC. 147. DESIGNATION OF MAJOR NON-NATO ALLIES.
(a) Designation.--
(1) Notice to congress.--Chapter 2 of part II of the Foreign
Assistance Act of 1961 (22 U.S.C. 2311 et seq.), as amended by
this Act, is further amended by adding at the end the following
new section:
``SEC. 517. <<NOTE: 22 USC 2321k.>> DESIGNATION OF MAJOR NON-NATO
ALLIES.
``(a) <<NOTE: President.>> Notice to Congress.--The President shall
notify the Congress in writing at least 30 days before--
[[Page 110 STAT. 1435]]
``(1) designating a country as a major non-NATO ally for
purposes of this Act and the Arms Export Control Act (22 U.S.C.
2751 et seq.); or
``(2) terminating such a designation.
``(b) Initial Designations.--Australia, Egypt, Israel, Japan, the
Republic of Korea, and New Zealand shall be deemed to have been so
designated by the President as of the effective date of this section,
and the President is not required to notify the Congress of such
designation of those countries.''.
(2) Definition.--Section 644 of such Act (22 U.S.C. 2403) is
amended by adding at the end the following:
``(q) `Major non-NATO ally' means a country which is designated in
accordance with section 517 as a major non-NATO ally for purposes of
this Act and the Arms Export Control Act (22 U.S.C. 2751 et seq.).''.
(3) Existing definitions.--(A) The last sentence of section
21(g) of the Arms Export Control Act (22 U.S.C. 2761(g)) is
repealed.
(B) Section 65(d) of such Act (22 U.S.C. 2796d(d)) is
amended--
(i) by striking ``or major non-NATO''; and
(ii) by striking out ``or a'' and all that follows
through ``Code''.
(b) Cooperative Training Agreements.--Section 21(g) of the Arms
Export Control Act (22 U.S.C. 2761(g)) is amended in the first sentence
by striking ``similar agreements'' and all that follows through ``other
countries'' and inserting ``similar agreements with countries''.
SEC. 148. ANNUAL MILITARY ASSISTANCE REPORT.
Section 655 of the Foreign Assistance Act of 1961 (22 U.S.C. 2415)
is amended to read as follows:
``SEC. 655. ANNUAL MILITARY ASSISTANCE REPORT.
``(a) <<NOTE: President.>> Report Required.--Not later than
February 1 of each year, the President shall transmit to the Congress an
annual report for the fiscal year ending the previous September 30.
``(b) Information Relating to Military Assistance and Military
Exports.--Each such report shall show the aggregate dollar value and
quantity of defense articles (including excess defense articles),
defense services, and international military education and training
authorized by the United States, excluding that which is pursuant to
activies reportable under title V of the National Security Act of 1947,
to each foreign country and international organization. The report shall
specify, by category, whether such defense articles--
``(1) were furnished by grant under chapter 2 or chapter 5
of part II of this Act or under any other authority of law or by
sale under chapter 2 of the Arms Export Control Act; or
``(2) were licensed for export under section 38 of the Arms
Export Control Act.
``(c) Information Relating to Military Imports.--Each such report
shall also include the total amount of military items manufactured
outside the United States that were imported into the United States
during the fiscal year covered by the report. For each country of origin
the report shall show the type of item being imported and the total
amount of the items.''.
[[Page 110 STAT. 1436]]
SEC. 149. DEPLETED URANIUM AMMUNITION.
Chapter 1 of part III of the Foreign Assistance Act of 1961 (22
U.S.C. 2370 et seq.), is amended by adding at the end the following new
section:
``SEC. 620G. <<NOTE: 22 USC 2378a.>> DEPLETED URANIUM AMMUNITION.
``(a) Prohibition.--Except as provided in subsection (b), none of
the funds made available to carry out this Act or any other Act may be
made available to facilitate in any way the sale of M-833 antitank
shells or any comparable antitank shells containing a depleted uranium
penetrating component to any country other than--
``(1) a country that is a member of the North Atlantic
Treaty Organization;
``(2) a country that has been designated as a major non-NATO
ally (as defined in section 644(q)); or
``(3) Taiwan.
``(b) Exception.--The prohibition contained in subsection (a) shall
not apply with respect to the use of funds
to facilitate the sale of antitank shells to a country if the President
determines that to do so is in the national security interest of the
United States.''.
SEC. 150. END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE SERVICES.
(a) In General.--The Arms Export Control Act (22 U.S.C. 2751 et
seq.) is amended by inserting after chapter 3 the following new chapter:
``CHAPTER 3A--END-USE MONITORING OF DEFENSE ARTICLES AND DEFENSE
SERVICES
``SEC. 40A. <<NOTE: President. 22 USC 2785.>> END-USE MONITORING OF
DEFENSE ARTICLES AND DEFENSE SERVICES.
``(a) Establishment of Monitoring Program.--
``(1) In general.--In order to improve accountability with
respect to defense articles and defense services sold, leased,
or exported under this Act or the Foreign Assistance Act of 1961
(22 U.S.C. 2151 et seq.), the President shall establish a
program which provides for the end-use monitoring of such
articles and services.
``(2) Requirements of program.--To the extent practicable,
such program--
``(A) shall provide for the end-use monitoring of
defense articles and defense services in accordance with
the standards that apply for identifying high-risk
exports for regular end-use verification developed under
section 38(g)(7) of this Act (commonly referred to as
the `Blue Lantern' program); and
``(B) shall be designed to provide reasonable
assurance that--
``(i) the recipient is complying with the
requirements imposed by the United States
Government with respect to use, transfers, and
security of defense articles and defense services;
and
``(ii) such articles and services are being
used for the purposes for which they are provided.
[[Page 110 STAT. 1437]]
``(b) Conduct of Program.--In carrying out the program established
under subsection (a), the President shall ensure that the program--
``(1) provides for the end-use verification of defense
articles and defense services that incorporate sensitive
technology, defense articles and defense services that are
particularly vulnerable to diversion or other misuse, or defense
articles or defense services whose diversion or other misuse
could have significant consequences; and
``(2) prevents the diversion (through reverse engineering or
other means) of technology incorporated in defense articles.
``(c) Report to Congress.--Not later than 6 months after the date of
the enactment of this section, and annually thereafter as a part of the
annual congressional presentation documents submitted under section 634
of the Foreign Assistance Act of 1961, the President shall transmit to
the Congress a report describing the actions taken to implement this
section, including a detailed accounting of the costs and number of
personnel associated with the monitoring program.
``(d) Third Country Transfers.--For purposes of this section,
defense articles and defense services sold, leased, or exported under
this Act or the Foreign Assistance Act of 1961 (22 U.S.C. 2151 et seq.)
includes defense articles and defense services that are transferred to a
third country or other third party.''.
(b) <<NOTE: 22 USC 2785 note.>> Effective Date.--Section 40A of the
Arms Export Control Act, as added by subsection (a), applies with
respect to defense articles and defense services provided before or
after the date of the enactment of this Act.
SEC. 151. BROKERING ACTIVITIES RELATING TO COMMERCIAL SALES OF DEFENSE
ARTICLES AND SERVICES.
(a) In General.--Section 38(b)(1)(A) of the Arms Export Control Act
(22 U.S.C. 2778(b)(1)(A)) is amended--
(1) in the first sentence, by striking ``As prescribed in
regulations'' and inserting ``(i) As prescribed in
regulations''; and
(2) by adding at the end the following new clause:
``(ii)(I) <<NOTE: Regulations.>> As prescribed in regulations
issued under this section, every person (other than an officer or
employee of the United States Government acting in official capacity)
who engages in the business of brokering activities with respect to the
manufacture, export, import, or transfer of any defense article or
defense service designated by the President under subsection (a)(1), or
in the business of brokering activities with respect to the manufacture,
export, import, or transfer of any foreign defense article or defense
service (as defined in subclause (IV)), shall register with the United
States Government agency charged with the administration of this
section, and shall pay a registration fee which shall be prescribed by
such regulations.
``(II) Such brokering activities shall include the financing,
transportation, freight forwarding, or taking of any other action that
facilitates the manufacture, export, or import of a defense article or
defense service.
``(III) No person may engage in the business of brokering activities
described in subclause (I) without a license, issued in accordance with
this Act, except that no license shall be required for such
[[Page 110 STAT. 1438]]
activities undertaken by or for an agency of the United States
Government--
``(aa) for use by an agency of the United States Government;
or
``(bb) for carrying out any foreign assistance or sales
program authorized by law and subject to the control of the
President by other means.
``(IV) For purposes of this clause, the term `foreign defense
article or defense service' includes any non-United States defense
article or defense service of a nature described on the United States
Munitions List regardless of whether such article or service is of
United States origin or whether such article or service contains United
States origin components.''.
(b) <<NOTE: 22 USC 2778 note.>> Effective Date.--Section
38(b)(1)(A)(ii) of the Arms Export Control Act, as added by subsection
(a), shall apply with respect to brokering activities engaged in
beginning on or after 120 days after the enactment of this Act.
SEC. 152. RETURN AND EXCHANGES OF DEFENSE ARTICLES PREVIOUSLY
TRANSFERRED PURSUANT TO THE ARMS EXPORT CONTROL ACT.
(a) Repair of Defense Articles.--Section 21 of the Arms Export
Control Act (22 U.S.C. 2761) is amended by adding at the end the
following new subsection:
``(l) Repair of Defense Articles.--
``(1) In general.--The President may acquire a repairable
defense article from a foreign country or international
organization if such defense article--
``(A) previously was transferred to such country or
organization under this Act;
``(B) is not an end item; and
``(C) will be exchanged for a defense article of the
same type that is in the stocks of the Department of
Defense.
``(2) Limitation.--The President may exercise the authority
provided in paragraph (1) only to the extent that the Department
of Defense--
``(A)(i) has a requirement for the defense article
being returned; and
``(ii) has available sufficient funds authorized and
appropriated for such purpose; or
``(B)(i) is accepting the return of the defense
article for subsequent transfer to another foreign
government or international organization pursuant to a
letter of offer and acceptance implemented in accordance
with this Act; and
``(ii) has available sufficient funds provided by or
on behalf of such other foreign government or
international organization pursuant to a letter of offer
and acceptance implemented in accordance with this Act.
``(3) Requirement.--(A) The foreign government or
international organization receiving a new or repaired defense
article in exchange for a repairable defense article pursuant to
paragraph (1) shall, upon the acceptance by the United States
Government of the repairable defense article being returned, be
charged the total cost associated with the repair and
replacement transaction.
[[Page 110 STAT. 1439]]
``(B) The total cost charged pursuant to subparagraph (A)
shall be the same as that charged the United States Armed Forces
for a similar repair and replacement transaction, plus an
administrative surcharge in accordance with subsection (e)(1)(A)
of this section.
``(4) Relationship to certain other provisions of law.--The
authority of the President to accept the return of a repairable
defense article as provided in subsection (a) shall not be
subject to chapter 137 of title 10, United States Code, or any
other provision of law relating to the conclusion of
contracts.''.
(b) Return of Defense Articles.--Section 21 of such Act (22 U.S.C.
2761), as amended by this Act, is further amended by adding at the end
the following new subsection:
``(m) Return of Defense Articles.--
``(1) In general.--The President may accept the return of a
defense article from a foreign country or international
organization if such defense article--
``(A) previously was transferred to such country or
organization under this Act;
``(B) is not significant military equipment (as
defined in section 47(9) of this Act); and
``(C) is in fully functioning condition without need
of repair or rehabilitation.
``(2) Limitation.--The President may exercise the authority
provided in paragraph (1) only to the extent that the Department
of Defense--
``(A)(i) has a requirement for the defense article
being returned; and
``(ii) has available sufficient funds authorized and
appropriated for such purpose; or
``(B)(i) is accepting the return of the defense
article for subsequent transfer to another foreign
government or international organization pursuant to a
letter of offer and acceptance implemented in accordance
with this Act; and
``(ii) has available sufficient funds provided by or
on behalf of such other foreign government or
international organization pursuant to a letter of offer
and acceptance implemented in accordance with this Act.
``(3) Credit for transaction.--Upon acquisition and
acceptance by the United States Government of a defense article
under paragraph (1), the appropriate Foreign Military Sales
account of the provider shall be credited to reflect the
transaction.
``(4) Relationship to certain other provisions of law.--The
authority of the President to accept the return of a defense
article as provided in
paragraph (1) shall not be subject to chapter 137 of title 10, United
States Code, or any other provision of law relating to the conclusion of
contracts.''.
(c) <<NOTE: 22 USC 2761 note.>> Regulations.--Under the direction
of the President, the Secretary of Defense shall promulgate regulations
to implement subsections (l) and (m) of section 21 of the Arms Export
Control Act, as added by this section.
[[Page 110 STAT. 1440]]
SEC. 153. NATIONAL SECURITY INTEREST DETERMINATION TO WAIVE
REIMBURSEMENT OF DEPRECIATION FOR LEASED DEFENSE ARTICLES.
(a) In General.--Section 61(a) of the Arms Export Control Act (22
U.S.C. 2796(a)) is amended--
(1) in the second sentence, by striking ``, or to any
defense article which has passed three-quarters of its normal
service life''; and
(2) by inserting after the second sentence the following new
sentence: ``The President may waive the requirement of paragraph
(4) for reimbursement of depreciation for any defense article
which has passed three-quarters of its normal service life if
the President determines that to do so is important to the
national security interest of the United States.''.
(b) <<NOTE: 22 USC 2796 note.>> Effective Date.--The third sentence
of section 61(a) of the Arms Export Control Act, as added by subsection
(a)(2), shall apply only with respect to a defense article leased on or
after the date of the enactment of this Act.
SEC. 154. <<NOTE: 22 USC 2751 note.>> ELIGIBILITY OF PANAMA UNDER THE
ARMS EXPORT CONTROL ACT.
The Government of the Republic of Panama shall be eligible to
purchase defense articles and defense services under the Arms Export
Control Act (22 U.S.C. 2751 et seq.), except as otherwise specifically
provided by law.
SEC. 155. <<NOTE: President. Federal Register, publication.>>
PUBLICATION OF ARMS SALES CERTIFICATIONS.
Section 36 of the Arms Export Control Act (22 U.S.C. 2776) is
amended by adding at the end the following new subsection:
``(e) The President shall cause to be published in the Federal
Register, upon transmittal to the Speaker of the House of
Representatives and to the chairman of the Committee on Foreign
Relations of the Senate, the full unclassified text of each numbered
certification submitted pursuant to subsection (b) and each notification
of a proposed commercial sale submitted under subsection (c).''.
SEC. 156. <<NOTE: President.>> RELEASE OF INFORMATION.
Section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) is
amended by inserting in the first sentence before the period at the end
the following: ``, except that the names of the countries and the types
and quantities of defense articles for which licenses are issued under
this section shall not be withheld from public disclosure unless the
President determines that the release of such information would be
contrary to the national interest''.
SEC. 157. REPEAL OF TERMINATION OF PROVISIONS OF THE NUCLEAR
PROLIFERATION PREVENTION ACT OF 1994; PRESIDENTIAL
DETERMINATIONS.
(a) Repeal.--Part D of the Nuclear Proliferation Prevention Act of
1994 (part D of title VIII of the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995; Public Law 103-236; 108 Stat.
525) <<NOTE: 22 USC 3201 note.>> is hereby repealed.
(b) Judicial Review.--Section 824 of the Nuclear Proliferation
Prevention Act of 1994 (22 U.S.C. 3201 note) is amended--
(1) in subsection (c), by striking ``in writing after
opportunity for a hearing on the record'';
(2) by striking subsection (e); and
[[Page 110 STAT. 1441]]
(3) by redesignating subsections (f) through (k) as
subsections (e) through (j), respectively.
TITLE II--TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN COUNTRIES
SEC. 201. AUTHORITY TO TRANSFER NAVAL VESSELS.
(a) Egypt.--The Secretary of the Navy is authorized to transfer to
the Government of Egypt the ``OLIVER HAZARD PERRY CLASS'' frigate
GALLERY. Such transfer shall be on a sales basis under section 21 of the
Arms Export Control Act (22 U.S.C. 2761; relating to the foreign
military sales program).
(b) Mexico.--The Secretary of the Navy is authorized to transfer to
the Government of Mexico the ``KNOX'' class frigates STEIN (FF 1065) and
MARVIN SHIELDS (FF 1066). Such transfers shall be on a sales basis under
section 21 of the Arms Export Control Act (22 U.S.C. 2761; relating to
the foreign military sales program).
(c) New Zealand.--The Secretary of the Navy is authorized to
transfer to the Government of New Zealand the ``STALWART'' class ocean
surveillance ship TENACIOUS. Such transfer shall be on a sales basis
under section 21 of the Arms Export Control Act (22 U.S.C. 2761;
relating to the foreign military sales program).
(d) Portugal.--The Secretary of the Navy is authorized to transfer
to the Government of Portugal the ``STALWART'' class ocean surveillance
ship AUDACIOUS. Such transfer shall be on a grant basis under section
516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j; relating to
transfers of excess defense articles).
(e) Taiwan.--The Secretary of the Navy is authorized to transfer to
the Taipei Economic and Cultural Representative Office in the United
States (which is the Taiwan instrumentality designated pursuant to
section 10(a) of the Taiwan Relations Act) the following:
(1) The ``KNOX'' class frigates AYLWIN (FF 1081), PHARRIS
(FF 1094), and VALDEZ (FF 1096). Such transfers shall be on a
sales basis under section 21 of the Arms Export Control Act (22
U.S.C. 2761; relating to the foreign military sales program).
(2) The ``NEWPORT'' class tank landing ship NEWPORT (LST
1179). Such transfer shall be on a lease basis under section 61
of the Arms Export Control Act (22 U.S.C. 2796).
(f) Thailand.--The Secretary of the Navy is authorized to transfer
to the Government of Thailand the ``KNOX'' class frigate OUELLET (FF
1077). Such transfer shall be on a sales basis under section 21 of the
Arms Export Control Act (22 U.S.C. 2761; relating to the foreign
military sales program).
SEC. 202. COSTS OF TRANSFERS.
Any expense of the United States in connection with a transfer
authorized by this title shall be charged to the recipient.
SEC. 203. EXPIRATION OF AUTHORITY.
The authority granted by section 201 shall expire at the end of the
2-year period beginning on the date of the enactment of this Act.
[[Page 110 STAT. 1442]]
SEC. 204. REPAIR AND REFURBISHMENT OF VESSELS IN UNITED STATES
SHIPYARDS.
The Secretary of the Navy shall require, to the maximum extent
possible, as a condition of a transfer of a vessel under this title,
that the country to which the vessel is transferred have such repair or
refurbishment of the vessel as is needed, before the vessel joins the
naval forces of that country, performed at a shipyard located in the
United States, including a United States Navy shipyard.
Approved July 21, 1996.
LEGISLATIVE HISTORY--H.R. 3121:
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HOUSE REPORTS: No. 104-519, Pt. 1 (Comm. on International Relations).
CONGRESSIONAL RECORD, Vol. 142 (1996):
Apr. 16, considered and passed House.
June 27, considered and passed Senate, amended.
July 9, House concurred in Senate amendments.
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