Pub.L. 104-165 To authorize the Secretary of Agriculture to convey lands to the city of Rolla, Missouri. <> ...

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[[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.

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