SECURITY COOPERATION ACT OF 2010
(House of Representatives - September 28, 2010)

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                    SECURITY COOPERATION ACT OF 2010

  Mr. BERMAN. Mr. Speaker, I move to suspend the rules and pass the 
bill

[[Page H7041]]

(S. 3847) to implement certain defense trade cooperation treaties, and 
for other purposes.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                                S. 3847

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Security Cooperation Act of 
     2010''.

              TITLE I--DEFENSE TRADE COOPERATION TREATIES

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Defense Trade Cooperation 
     Treaties Implementation Act of 2010''.

     SEC. 102. EXEMPTIONS FROM REQUIREMENTS.

       (a) Retransfer Requirements.--Section 3(b) of the Arms 
     Export Control Act (22 U.S.C. 2753(b)) is amended by 
     inserting ``a treaty referred to in section 38(j)(1)(C)(i) of 
     this Act permits such transfer without prior consent of the 
     President, or if'' after ``if''.
       (b) Bilateral Agreement Requirements.--Section 38(j)(1) of 
     such Act (22 U.S.C. 2778(j)(1)) is amended--
       (1) in the subparagraph heading for subparagraph (B), by 
     inserting ``for canada'' after ``Exception''; and
       (2) by adding at the end the following new subparagraph:
       ``(C) Exception for defense trade cooperation treaties.--
       ``(i) In general.--The requirement to conclude a bilateral 
     agreement in accordance with subparagraph (A) shall not apply 
     with respect to an exemption from the licensing requirements 
     of this Act for the export of defense items to give effect to 
     any of the following defense trade cooperation treaties, 
     provided that the treaty has entered into force pursuant to 
     article II, section 2, clause 2 of the Constitution of the 
     United States:

       ``(I) The Treaty Between the Government of the United 
     States of America and the Government of the United Kingdom of 
     Great Britain and Northern Ireland Concerning Defense Trade 
     Cooperation, done at Washington and London on June 21 and 26, 
     2007 (and any implementing arrangement thereto).
       ``(II) The Treaty Between the Government of the United 
     States of America and the Government of Australia Concerning 
     Defense Trade Cooperation, done at Sydney September 5, 2007 
     (and any implementing arrangement thereto).

       ``(ii) Limitation of scope.--The United States shall exempt 
     from the scope of a treaty referred to in clause (i)--

       ``(I) complete rocket systems (including ballistic missile 
     systems, space launch vehicles, and sounding rockets) or 
     complete unmanned aerial vehicle systems (including cruise 
     missile systems, target drones, and reconnaissance drones) 
     capable of delivering at least a 500 kilogram payload to a 
     range of 300 kilometers, and associated production 
     facilities, software, or technology for these systems, as 
     defined in the Missile Technology Control Regime Annex 
     Category I, Item 1;
       ``(II) individual rocket stages, re-entry vehicles and 
     equipment, solid or liquid propellant motors or engines, 
     guidance sets, thrust vector control systems, and associated 
     production facilities, software, and technology, as defined 
     in the Missile Technology Control Regime Annex Category I, 
     Item 2;
       ``(III) defense articles and defense services listed in the 
     Missile Technology Control Regime Annex Category II that are 
     for use in rocket systems, as that term is used in such 
     Annex, including associated production facilities, software, 
     or technology;
       ``(IV) toxicological agents, biological agents, and 
     associated equipment, as listed in the United States 
     Munitions List (part 121.1 of chapter I of title 22, Code of 
     Federal Regulations), Category XIV, subcategories (a), (b), 
     (f)(1), (i), (j) as it pertains to (f)(1), (l) as it pertains 
     to (f)(1), and (m) as it pertains to all of the subcategories 
     cited in this paragraph;
       ``(V) defense articles and defense services specific to the 
     design and testing of nuclear weapons which are controlled 
     under United States Munitions List Category XVI(a) and (b), 
     along with associated defense articles in Category XVI(d) and 
     technology in Category XVI(e);
       ``(VI) with regard to the treaty cited in clause (i)(I), 
     defense articles and defense services that the United States 
     controls under the United States Munitions List that are not 
     controlled by the United Kingdom, as defined in the United 
     Kingdom Military List or Annex 4 to the United Kingdom Dual 
     Use List, or any successor lists thereto; and
       ``(VII) with regard to the treaty cited in clause (i)(II), 
     defense articles for which Australian laws, regulations, or 
     other commitments would prevent Australia from enforcing the 
     control measures specified in such treaty.''.

     SEC. 103. ENFORCEMENT.

       (a) Criminal Violations.--Section 38(c) of such Act (22 
     U.S.C. 2778(c)) is amended by striking ``this section or 
     section 39, or any rule or regulation issued under either 
     section'' and inserting ``this section, section 39, a treaty 
     referred to in subsection (j)(1)(C)(i), or any rule or 
     regulation issued under this section or section 39, including 
     any rule or regulation issued to implement or enforce a 
     treaty referred to in subsection (j)(1)(C)(i) or an 
     implementing arrangement pursuant to such treaty''.
       (b) Enforcement Powers of President.--Section 38(e) of such 
     Act (22 U.S.C. 2278(e)) is amended by striking ``defense 
     services,'' and inserting ``defense services, including 
     defense articles and defense services exported or imported 
     pursuant to a treaty referred to in subsection 
     (j)(1)(C)(i),''.
       (c) Notification Regarding Exemptions From Licensing 
     Requirements.--Section 38(f) of such Act (22 U.S.C. 2778(f)) 
     is amended by adding at the end the following new paragraph:
       ``(4) Paragraph (2) shall not apply with respect to an 
     exemption under subsection (j)(1) to give effect to a treaty 
     referred to in subsection (j)(1)(C)(i) (and any implementing 
     arrangements to such treaty), provided that the President 
     promulgates regulations to implement and enforce such treaty 
     under this section and section 39.''.
       (d) Incentive Payments.--Section 39A(a) of such Act (22 
     U.S.C. 2779a(a)) is amended by inserting ``or exported 
     pursuant to a treaty referred to in section 38(j)(1)(C)(i) of 
     this Act'' after ``under this Act''.

     SEC. 104. CONGRESSIONAL NOTIFICATION.

       (a) Retransfers and Reexports.--Section 3(d)(3)(A) of such 
     Act (22 U.S.C. 2753(d)(3)(A)) is amended by inserting ``or 
     has been exempted from the licensing requirements of this Act 
     pursuant to a treaty referred to in section 38(j)(1)(C)(i) of 
     this Act where such treaty does not authorize the transfer 
     without prior United States Government approval'' after 
     ``approved under section 38 of this Act''.
       (b) Discrimination.--Section 5(c) of such Act (22 U.S.C. 
     2755(c)) is amended by inserting ``or any import or export 
     under a treaty referred to in section 38(j)(1)(C)(i) of this 
     Act'' after ``under this Act''.
       (c) Annual Estimate of Sales.--Section 25(a) of such Act 
     (22 U.S.C. 2765(a)) is amended--
       (1) in paragraph (1), by inserting ``, as well as exports 
     pursuant to a treaty referred to in section 38(j)(1)(C)(i) of 
     this Act,'' after ``commercial exports under this Act''; and
       (2) in paragraph (2), by inserting ``, as well as exports 
     pursuant to a treaty referred to in section 38(j)(1)(C)(i) of 
     this Act,'' after ``commercial exports''.
       (d) Presidential Certifications.--
       (1) Exports.--Section 36(c) of such Act (22 U.S.C. 2776(c)) 
     is amended by adding at the end the following new paragraph:
       ``(6) The President shall notify the Speaker of the House 
     of Representatives and the Chairman of the Committee on 
     Foreign Relations of the Senate at least 15 days prior to an 
     export pursuant to a treaty referred to in section 
     38(j)(1)(C)(i) of this Act to which the provisions of 
     paragraph (1) of this subsection would apply absent an 
     exemption granted under section 38(j)(1) of this Act, for 
     which purpose such notification shall contain information 
     comparable to that specified in paragraph (1) of this 
     subsection.''.
       (2) Commercial technical assistance or manufacturing 
     licensing agreements.--Section 36(d) of such Act (22 U.S.C. 
     2776(d)) is amended by adding at the end the following new 
     paragraph:
       ``(6) The President shall notify the Speaker of the House 
     of Representatives and the Chairman of the Committee on 
     Foreign Relations of the Senate at least 15 days prior to an 
     export pursuant to a treaty referred to in section 
     38(j)(1)(C)(i) of this Act to which the provisions of 
     paragraph (1) of this subsection would apply absent an 
     exemption granted under section 38(j)(1) of this Act, for 
     which purpose such notification shall contain information 
     comparable to that specified in paragraph (1) of this 
     subsection.''.
       (e) Fees and Political Contributions.--Section 39(a) of 
     such Act (22 U.S.C. 2779(a)) is amended--
       (1) in paragraph (1), by striking ``; or'' and inserting a 
     semicolon;
       (2) in paragraph (2), by inserting ``or'' after the 
     semicolon; and
       (3) by adding at the end the following new paragraph:
       ``(3) exports of defense articles or defense services 
     pursuant to a treaty referenced in section 38(j)(1)(C)(i) of 
     this Act;''.

     SEC. 105. LIMITATION ON IMPLEMENTING ARRANGEMENTS.

       (a) In General.--No amendment to an implementing 
     arrangement concluded pursuant to a treaty referred to in 
     section 38(j)(1)(C)(i) of the Arms Export Control Act, as 
     added by this Act, shall enter into effect for the United 
     States unless the Congress adopts, and there is enacted, 
     legislation approving the entry into effect of that amendment 
     for the United States.
       (b) Covered Amendments.--
       (1) In general.--The requirements specified in subsection 
     (a) shall apply to any amendment other than an amendment that 
     addresses an administrative or technical matter. The 
     requirements in subsection (a) shall not apply to any 
     amendment that solely addresses an administrative or 
     technical matter.
       (2) U.S.-UK implementing arrangement.--In the case of the 
     Implementing Arrangement Pursuant to the Treaty Between the 
     Government of the United States of America and the Government 
     of the United Kingdom of Great Britain and Northern Ireland 
     Concerning Defense Trade Cooperation, signed at Washington 
     February 14, 2008, amendments to which the requirements 
     specified in subsection (a) apply shall include--
       (A) any amendment to section 2, paragraphs (1), (2), or (3) 
     that modifies the criteria governing operations, programs, 
     and projects to which the treaty applies;

[[Page H7042]]

       (B) any amendment to section 3, paragraphs (1) or (2) that 
     modifies the criteria governing end-use requirements and the 
     requirements for approved community members responding to 
     United States Government solicitations;
       (C) any amendment to section 4, paragraph (4) that modifies 
     the criteria for including items on the list of defense 
     articles exempt from the treaty;
       (D) any amendment to section 4, paragraph (7) that modifies 
     licensing and other applicable requirements relating to items 
     added to the list of defense articles exempt from the scope 
     of the treaty;
       (E) any amendment to section 7, paragraph (4) that modifies 
     the criteria for eligibility in the approved community under 
     the treaty for nongovernmental United Kingdom entities and 
     facilities;
       (F) any amendment to section 7, paragraph (9) that modifies 
     the conditions for suspending or removing a United Kingdom 
     entity from the approved community under the treaty;
       (G) any amendment to section 7, paragraphs (11) or (12) 
     that modifies the conditions under which individuals may be 
     granted access to defense articles exported under the treaty;
       (H) any amendment to section 9, paragraphs (1), (3), (7), 
     (8), (9), (12), or (13) that modifies the circumstances under 
     which United States Government approval is required for the 
     re-transfer or re-export of a defense article, or to 
     exceptions to such requirement; and
       (I) any amendment to section 11, paragraph (4)(b) that 
     modifies conditions of entry to the United Kingdom community 
     under the treaty.
       (3) U.S.-Australia implementing arrangement.--In the case 
     of the Implementing Arrangement Pursuant to the Treaty 
     Between the Government of the United States of America and 
     the Government of the Australia Concerning Defense Trade 
     Cooperation, signed at Washington March 14, 2008, amendments 
     to which the requirements specified in subsection (a) apply 
     shall include--
       (A) any amendment to section 2, paragraphs (1), (2), or (3) 
     that modifies the criteria governing operations, programs, 
     and projects to which the treaty applies;
       (B) any amendment to section 3, paragraphs (1) or (2) that 
     modifies the criteria governing end-use requirements and the 
     requirements for approved community members responding to 
     United States Government solicitations;
       (C) any amendment to section 4, paragraph (4) that modifies 
     criteria for including items on the list of defense articles 
     exempt from the scope of the treaty;
       (D) any amendment to section 4, paragraph (7) that modifies 
     licensing and other applicable requirements relating to items 
     added to the list of defense articles exempt from the scope 
     of the treaty;
       (E) any amendment to section 6, paragraph (4) that modifies 
     the criteria for eligibility in the approved community under 
     the treaty for nongovernmental Australian entities and 
     facilities;
       (F) any amendment to section 6, paragraph (9) that modifies 
     the conditions for suspending or removing an Australian 
     entity from the Australia community under the treaty;
       (G) any amendment to section 6, paragraphs (11), (12), 
     (13), or (14) that modifies the conditions under which 
     individuals may be granted access to defense articles 
     exported under the treaty;
       (H) any amendment to section 9, paragraphs (1), (2), (4), 
     (7), or (8) that modifies the circumstances under which 
     United States Government approval is required for the re-
     transfer or re-export of a defense article, or to exceptions 
     to such requirement; and
       (I) any amendment to section 11, paragraph (6) that 
     modifies conditions of entry to the Australian community 
     under the treaty.
       (c) Congressional Notification for Other Amendments To 
     Implementing Arrangements.--Not later than 15 days before any 
     amendment to an implementing arrangement to which subsection 
     (a) does not apply shall take effect, the President shall 
     provide to the Committee on Foreign Relations of the Senate 
     and the Committee on Foreign Affairs of the House of 
     Representatives a report containing--
       (1) the text of the amendment; and
       (2) an analysis of the amendment's effect, including an 
     analysis regarding why subsection (a) does not apply.

     SEC. 106. IMPLEMENTING REGULATIONS.

       The President is authorized to issue regulations pursuant 
     to the Arms Export Control Act (22 U.S.C. 2751 et seq.) to 
     implement and enforce the Treaty Between the Government of 
     the United States of America and the Government of the United 
     Kingdom of Great Britain and Northern Ireland Concerning 
     Defense Trade Cooperation, done at Washington and London on 
     June 21 and 26, 2007 (and any implementing arrangement 
     thereto) and the Treaty Between the Government of the United 
     States of America and the Government of Australia Concerning 
     Defense Trade Cooperation, done at Sydney, September 5, 2007 
     (and any implementing arrangement thereto), consistent with 
     other applicable provisions of the Arms Export Control Act, 
     as amended by this Act, and with the terms of any resolution 
     of advice and consent adopted by the Senate with respect to 
     either treaty.

     SEC. 107. RULE OF CONSTRUCTION.

       Nothing in this title, the Treaty Between the Government of 
     the United States of America and the Government of the United 
     Kingdom of Great Britain and Northern Ireland Concerning 
     Defense Trade Cooperation, done at Washington and London on 
     June 21 and 26, 2007 (and any implementing arrangement 
     thereto), the Treaty Between the Government of the United 
     States of America and the Government of Australia Concerning 
     Defense Trade Cooperation, done at Sydney, September 5, 2007 
     (and any implementing arrangement thereto), or in any 
     regulation issued to implement either treaty, shall be 
     construed to modify or supersede any provision of law or 
     regulation other than the Arms Export Control Act (22 U.S.C. 
     2751 et seq.), as amended by this Act, and the International 
     Traffic in Arms Regulations (subchapter M of chapter I of 
     title 22, Code of Federal Regulations).

             TITLE II--AUTHORITY TO TRANSFER NAVAL VESSELS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Naval Vessel Transfer Act 
     of 2010''.

     SEC. 202. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                   RECIPIENTS.

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign countries on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j), as follows:
       (1) India.--To the Government of India, the OSPREY class 
     minehunter coastal ships KINGFISHER (MHC-56) and CORMORANT 
     (MHC-57).
       (2) Greece.--To the Government of Greece, the OSPREY class 
     minehunter coastal ships OSPREY (MHC-51), BLACKHAWK (MHC-58), 
     and SHRIKE (MHC-62).
       (3) Chile.--To the Government of Chile, the NEWPORT class 
     amphibious tank landing ship TUSCALOOSA (LST-1187).
       (4) Morocco.--To the Government of Morocco, the NEWPORT 
     class amphibious tank landing ship BOULDER (LST-1190).
       (b) Transfer by Sale.--The President is authorized to 
     transfer the OSPREY class minehunter coastal ship ROBIN (MHC-
     54) to the Taipei Economic and Cultural Representative Office 
     of the United States (which is the Taiwan instrumentality 
     designated pursuant to section 10(a) of the Taiwan Relations 
     Act (22 U.S.C. 3309(a)) on a sale basis under section 21 of 
     the Arms Export Control Act (22 U.S.C. 2761).
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis pursuant to authority 
     provided by subsection (a) shall not be counted against the 
     aggregate value of excess defense articles transferred in any 
     fiscal year under section 516 of the Foreign Assistance Act 
     of 1961 (22 U.S.C. 2321j).
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized by this 
     section shall be charged to the recipient (notwithstanding 
     section 516(e) of the Foreign Assistance Act of 1961 (22 
     U.S.C. 2321j(e))).
       (e) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the recipient 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 the 
     recipient, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (f) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the 2-
     year period beginning on the date of the enactment of this 
     Act.

                        TITLE III--OTHER MATTERS

     SEC. 301. EXPEDITED CONGRESSIONAL DEFENSE EXPORT REVIEW 
                   PERIOD FOR ISRAEL.

       The Arms Export Control Act (22 U.S.C. 2751 et seq.) is 
     amended--
       (1) in sections 3(d)(2)(B), 3(d)(3)(A)(i), 3(d)(5), 
     21(e)(2)(A), 36(b), 36(c), 36(d)(2)(A), 62(c)(1), and 
     63(a)(2), by inserting ``Israel,'' before ``or New Zealand'' 
     each place it appears; and
       (2) in section 3(b)(2), by inserting ``the Government of 
     Israel,'' before ``or the Government of New Zealand''.

     SEC. 302. EXTENSION OF WAR RESERVES STOCKPILE AUTHORITY.

       (a) Department of Defense Appropriations Act, 2005.--
     Section 12001(d) of the Department of Defense Appropriations 
     Act, 2005 (Public Law 108-287; 118 Stat. 1011) is amended by 
     striking ``more than 4 years after'' and inserting ``more 
     than 8 years after''.
       (b) Foreign Assistance Act of 1961.--Section 514(b)(2)(A) 
     of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321h(b)(2)(A)) is amended by striking ``fiscal years 2007 
     and 2008'' and inserting ``fiscal years 2011 and 2012''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
California (Mr. Berman) and the gentleman from California (Mr. Bilbray) 
each will control 20 minutes.
  The Chair recognizes the gentleman from California (Mr. Berman).

                              {time}  1520


                             General Leave

  Mr. BERMAN. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days to revise

[[Page H7043]]

and extend their remarks and include extraneous material on the bill 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. BERMAN. Mr. Speaker, I rise in strong support of the bill, and I 
yield myself such time as I may consume.
  Mr. Speaker, the bill before us, the Security Cooperation Act of 
2010, has three major components. First, it includes implementing 
legislation for the defense trade treaties between the United States 
and two of our closest allies, the United Kingdom and Australia, 
respectively. These treaties will support the longstanding special 
relationship shared by the U.S., the United Kingdom, and Australia by 
streamlining the processes for transferring certain controlled items 
among our items to support combined military and counterterrorism 
operations, cooperative security and research, and other defense 
projects. The implementing legislation also provides a clear statutory 
basis for enforcement of the treaties, including the prosecution of 
those who violate their requirements.
  Second, S. 3847 gives Israel the same status as our NATO allies 
Australia, Japan, New Zealand and South Korea with regard to the length 
of the congressional review period for U.S. arms sales. The security 
relationship between the U.S. and Israel is vital and strong, and 
Israel deserves the same treatment as these other nations.
  Finally, this bill authorizes the transfer by grant and sale of 
excess naval vessels to India, Greece, Chile, Morocco, and Taiwan to 
better assist them with their legitimate defense needs, and in so doing 
strengthens our relationship with these nations.
  Mr. Speaker, I reserve the balance of my time.
  Mr. BILBRAY. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I appreciate the chairman's action on this item. Let me 
just say as probably the only Member of Congress of Australian 
ancestry, I want to point out that the British, we might have had a 
couple of run-ins with the British every once in a while over the last 
few centuries, but the only country, the only country that fought in 
every war in the last century and this last century alongside the 
United States was those men and women from Australia.
  I am very proud to be able to serve here in Congress and be able to 
support this bill in this forum. I think that we just have to remember 
that too often we take our allies for granted, our truly close friends, 
who are close to us in many ways. But in some of us, it is closer than 
others, and I hope that somewhere I can be able to stick this to my 
cousins in Queensland, Australia, and point out that I was here to at 
least speak in favor of this bill.
  Mr. Speaker, I yield the balance of my time to the gentleman from New 
Jersey (Mr. Smith), and I ask unanimous consent that he be allowed to 
control that time.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from California?
  There was no objection.
  Mr. SMITH of New Jersey. Mr. Speaker, I yield myself such time as I 
may consume.
  (Mr. SMITH of New Jersey asked and was given permission to revise and 
extend his remarks.)
  Mr. SMITH of New Jersey. Mr. Speaker, I rise in support of this 
important national security measure. Mr. Speaker, this legislation is 
comprised of three components. First, it authorizes the transfer of 
certain naval vessels to U.S. friends and allies abroad, including 
India, Greece and Taiwan.
  It also includes language previously adopted by the House that 
strengthens the U.S. commitment to the security of the Jewish state of 
Israel by expediting the process for approving foreign military sales 
to that country and by extending the dates and the amounts of U.S. 
excess equipment that can be transferred to Israel from regional 
stockpiles.
  Thirdly, it provides a statutory basis for the President to implement 
defense trade cooperation treaties signed between the government of the 
United States and the governments of the U.K. and Australia 
respectively. These treaties represent a fundamental shift in the way 
the United States conducts defense trade with its closest allies.
  Rather than reviewing export licenses, the treaties will establish a 
structure in which trade in defense articles, technology, and services 
can take place more freely between approved communities in the United 
States, the United Kingdom, and Australia where such trade is in 
support of combined military and counterterrorism operations, joint 
research and development, production and support programs, and mutually 
agreed upon projects where the end user is the U.K., the Australian 
Government, or U.S. Government end users.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BERMAN. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from California (Mr. Berman) that the House suspend the rules 
and pass the bill, S. 3847.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

                          ____________________