Summary: H.R.973 — 106th Congress (1999-2000)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House amended (06/15/1999)


Title I: Transfers of Excess Defense Articles

Title II: Foreign Military Sales Authorities

Title III: Stockpiling of Defense Articles for Foreign


Title IV: International Arms Sales Code of Conduct Act of


Title V: Authority to Exempt India and Pakistan From Certain


Title VI: Transfer of Naval Vessels to Certain Foreign


Title VII: Miscellaneous Provisions

Security Assistance Act of 1999 - Title I: Transfers of Excess Defense Articles - Amends Federal law to extend through FY 2001 Department of Defense (DOD) authority to transfer excess defense articles to countries eligible to participate in the Partnership for Peace program and eligible for assistance under the Support for East European Democracy (SEED) Act of 1989.

(Sec. 102) Authorizes for FY 2000 and 2001 the use of funds made available to DOD for crating, packing, handling, and transportation of excess defense articles to Georgia, Kazakhstan, Kyrgyzstan, Moldova, Turkmenistan, Ukraine, and Uzbekistan.

Title II: Foreign Military Sales Authorities - Amends the Foreign Assistance Act of 1961 to extend assistance to countries for foreign military training programs under the Arms Export Control Act (AECA) for up to eight months from the program termination date for necessary expenses of winding up program related activities.

(Sec. 202) Amends the AECA to authorize the sale of excess Coast Guard defense articles and defense services to eligible foreign countries and international organizations.

(Sec. 203) Declares that direct costs associated with meeting additional or unique requirements of the purchaser shall be an allowable cost (including loadings applicable to such direct costs) at the same rates applicable to procurement of like items purchased by the DOD for its own use.

(Sec. 204) Requires certain numbered certifications to Congress with respect to any letter of offer to sell (Government-to-Government sale), or license for export (commercial sale) of, major defense equipment in the amount of $14 million or more, or defense articles or services in the amount of $50 million or more, to include a description of any offset agreement. Authorizes such description to be included in the classified portion of such numbered certification.

(Sec. 205) Applies certain numbered congressional certification requirements with respect to the upgrade of major defense articles, equipment, or services to their direct commercial sale as well.

(Sec. 206) Extends to exports of defense articles or services the current prohibition against incentive payments by U.S. suppliers to satisfy any offset agreement with a foreign country to which such articles or services are sold.

(Sec. 207) Authorizes the President to lease defense articles from DOD stocks to an eligible foreign country or international organization if, among other conditions, such country or entity agrees to pay in U.S. dollars a fee for the administrative services associated with processing such leasing.

Title III: Stockpiling of Defense Articles For Foreign Countries - Amends the Foreign Assistance Act of 1961 to increase the maximum value of additions to stockpiles in foreign countries in FY 1999 and 2000. Makes amounts available for such stockpiles in South Korea and Thailand.

(Sec. 302) Authorizes the President to transfer to South Korea and Thailand certain obsolete or surplus defense articles in return for concessions to be negotiated by the Secretary of Defense. Requires the value of such concessions to be at least equal to the fair market value of the transferred items. Requires the President to notify the Congress of the proposed transfer, including the identity of the items to be transferred and the concessions to be received. Terminates transfer authority five years after enactment of this Act.

Title IV: International Arms Sales Code of Conduct Act of 1999 - International Arms Sales Code of Conduct Act of 1999 - Directs the President to attempt, through negotiations with all Wassenaar Arrangement countries, to achieve the foreign policy goal of an international arms sales code of conduct that restricts or prohibits arms transfers to countries that: (1) do not promote democracy; (2) do not adhere to internationally recognized norms on human rights; (3) are engaged in acts of armed aggression; or (4) do not participate in the United Nations Register of Conventional Arms. Directs the President to report on such negotiations to the appropriate congressional committees.

Title V: Authority to Exempt India and Pakistan From Certain Sanctions - Authorizes the President to waive, upon proper notification to Congress, certain economic and military assistance sanctions against India or Pakistan with respect to the nonproliferation of nuclear weapons.

(Sec. 503) Directs the Secretary of State to report to the appropriate congressional committees on economic and national security developments in India and Pakistan.

Title VI: Transfer of Naval Vessels to Certain Foreign Countries - Authorizes the Secretary of the Navy to transfer certain naval vessels to: (1) the Dominican Republic; (2) Ecuador; (3) Egypt; (4) Greece; (5) Mexico; (6) Poland; (7) Taiwan; (8) Thailand; and (9) Turkey.

(Sec. 602) Declares that the value of such transferred vessels shall not be counted for the limitation on the aggregate value of excess defense articles that can be transferred to such a country in any fiscal year.

(Sec. 605) Directs the Secretary, to the maximum extent possible, to require recipient countries, as a condition of transfer, to have such vessels repaired or refurbished at U.S. shipyards, including a U.S. Navy shipyard.

(Sec. 606) Expresses the sense of Congress that: (1) the President should transfer on a grant basis certain excess aircraft and naval vessels to the Government of the Philippines; and (2) the United States should not oppose the transfer of F-5 aircraft by a third country to such Government.

Title VII: Miscellaneous Provisions - Amends the Foreign Assistance Act of 1961 to require a specified annual report to Congress regarding the export of defense articles (including excess defense articles) and services to foreign countries to specify, among other things, whether such defense articles were furnished with U.S. aid, including through loans and guarantees.

(Sec. 703) Requires a U.S. person to whom a license has been granted to export significant military equipment listed on the U.S. Munitions List to report to the Department of State on all shipment information, including a description of the equipment and the quantity, value, port of exit, and its destination. Requires the President to include, among other things, a report on all such exports in a certain quarterly unclassified report to Congress.

(Sec. 704) Amends the AECA to make applicable certain provisions authorizing the Secretary of State to commence a civil action to recover civil penalties with respect to violations regarding the export of defense articles and services to foreign countries and terrorist supporting countries (instead of the imposition of certain administrative sanctions, including the requirement of notice and opportunity for a hearing).

(Sec. 706) Authorizes the President to consent to the retransfer by the Government of Greece of HS Rodos (ex-U.S.S. Bowman County (LST 391)) to the USS LST Ship Memorial, Inc. Sets forth specified conditions for the granting of the consent.

(Sec. 707) Amends the Agriculture Export Relief Act of 1998 to repeal provisions exempting (through September 30, 1999) Department of Agriculture assistance for the purchase or other provision of food or other agricultural commodities (including fertilizer, medicines, and medical equipment) from the prohibition against extensions of U.S. Government credit, credit guarantees, or other financial assistance to countries involved in the transfer or use of nuclear explosive devices.

(Sec. 708) Provides for continued enforcement of Export Administration regulations under the International Emergency Economic Powers Act. Amends the Export Administration Act of 1979 to increase the penalties for exporting controlled goods or technology in violation of the provisions of such Act.