3 SEC. 101. EXCESS DEFENSE ARTICLES FOR CENTRAL EURO 4 5 PEAN COUNTRIES. Section 105 of Public Law 104-164 (110 Stat. 1427) 6 is amended by striking "1996 and 1997" and inserting 7 "2000 and 2001". 8 SEC. 102. EXCESS DEFENSE ARTICLES FOR CERTAIN INDE 9 10 11 PENDENT STATES OF THE FORMER SOVIET UNION. (a) USES FOR WHICH FUNDS ARE AVAILABLE.12 Notwithstanding section 516(c) of the Foreign Assistance 13 Act of 1961 (22 U.S.C. 2321j(e)), during each of the fiscal 14 years 2000 and 2001. funds available to the Department 15 of Defense may be expended for crating, packing, han16 dling, and transportation of excess defense articles trans17 ferred under the authority of section 516 of that Act to 18 Georgia. Kazakhstan, Kyrgyzstan, 19 Turkmenistan, Ukraine, and Uzbekistan. 20 Moldova, (b) CONTENT OF CONGRESSIONAL NOTIFICATION.— 21 Each notification required to be submitted under section 22 516(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 23 2321j(f)) with respect to a proposed transfer of a defense 24 article described in subsection (a) shall include an esti F:\M6\GILMAN\GILMAN.060 4 H.L.C. 1 mate of the amount of funds to be expended under sub 7 TRAINING. Section 617 of the Foreign Assistance Act of 1961 8 (22 U.S.C. 2367) is amended 9 10 11 12 13 14 15 16 (1) by inserting in the second sentence "and the Arms Export Control Act" after "under this Act" the first place it appears; (2) by striking "under this Act" the second place it appears; and (3) by inserting in the third sentence "and under the Arms Export Control Act" after "this Act". 17 SEC. 202. SALES OF EXCESS COAST GUARD PROPERTY. 18 Section 21(a)(1) of the Arms Export Control Act (22 19 U.S.C. 2761(a)(1)) is amended in the text above subpara20 graph (A) by inserting “and the Coast Guard" after "De21 partment of Defense". 22 SEC. 203. COMPETITIVE PRICING FOR SALES OF DEFENSE 23 24 ARTICLES. Section 22(d) of the Arms Export Control Act (22 25 U.S.C. 2762(d)) is amended— F:\M6\GILMAN\GILMAN.060 H.L.C. 1 2 3 4 5 (1) by striking "Procurement contracts" and inserting "(1) Procurement contracts"; and (2) by adding at the end the following: "(2) Direct costs associated with meeting additional 5 or unique requirements of the purchaser shall be allowable 6 under contracts described in paragraph (1). Loadings ap7 plicable to such direct costs shall be permitted at the same 8 rates applicable to procurement of like items purchased 9 by the Department of Defense for its own use.". 10 SEC. 204. REPORTING OF OFFSET AGREEMENTS. 11 (a) GOVERNMENT-TO-GOVERNMENT SALES.-Sec 12 tion 36(b)(1) of the Arms Export Control Act (22 U.S.C. 13 2776(b)(1)) is amended in the fourth sentence by striking 14 "(if known on the date of transmittal of such certifi15 cation)" and inserting “and, if known on the date of trans16 mittal of such certification, a description of the offset 17 agreement. Such description may be included in the classi18 fied portion of such numbered certification". 19 (b) COMMERCIAL SALES-Section 36(c)(1) of the 20 Arms Export Control Act (22 U.S.C. 2776(c)(1)) is 21 amended in the second sentence by striking "(if known 22 on the date of transmittal of such certification)" and in23 serting "and, if known on the date of transmittal of such 24 certification, a description of the offset agreement. Such F:\M6\GILMAN\GILMAN.060 6 H.L.C. 1 description may be included in the classified portion of 2 such numbered certification". 3 SEC. 205. NOTIFICATION OF UPGRADES TO DIRECT COM 4 5 MERCIAL SALES. Section 36(c) of the Arms Export Control Act (22 6 U.S.C. 2776(c)) is amended by adding at the end the fol 7 lowing new paragraph: 8 "(4) The provisions of subsection (b)(5) shall apply 9 to any equipment, article, or service for which a numbered 10 certification has been transmitted to Congress pursuant 11 to paragraph (1) in the same manner and to the same 12 extent as that subsection applies to any equipment, article, 13 or service for which a numbered certification has been 14 transmitted to Congress pursuant to subsection (b)(1). 15 For purposes of such application, any reference in sub16 section (b)(5) to ‘a letter of offer' or 'an offer' shall be 17 deemed to be a reference to ‘a contract'.". 18 SEC. 206. EXPANDED PROHIBITION ON INCENTIVE PAY 19 20 MENTS. (a) IN GENERAL.-Section 39A(a) of the Arms Ex 21 port Control Act (22 U.S.C. 2779a(a)) is amended— 22 2 2 2 2 2 23 24 (2) by inserting "or export" after "sale". (b) DEFINITION OF UNITED STATES PERSON.—Sec 25 tion 39A(d)(3)(B)(ii) of the Arms Export Control Act (22 F:\M6\GILMAN\GILMAN.060 7 H.L.C. 1 U.S.C. 2779a(d)(3)(B)(ii)) is amended by inserting "or by 2 an entity described in clause (i)" after "subparagraph 3 (A)". 4 SEC. 207. ADMINISTRATIVE FEES FOR LEASING OF DE 5 6 FENSE ARTICLES. Section 61(a) of the Arms Export Control Act (22 7 U.S.C. 2796(a)) is amended in paragraph (4) of the first 8 sentence by inserting after "including reimbursement for 9 depreciation of such articles while leased," the following: 10 a fee for the administrative services associated with proc11 essing such leasing.". 12 TITLE III-STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES 13 14 15 SEC. 301. ADDITIONS TO UNITED STATES WAR RESERVE 16 17 STOCKPILES FOR ALLIES. Paragraph (2) of section 514(b) of the Foreign As18 sistance Act of 1961 (22 U.S.C. 2321h(b)(2)) is amended 19 to read as follows: “(2)(A) The value of such additions to stockpiles of defense articles in foreign countries shall not exceed $340,000,000 for fiscal year 1999 and $60,000,000 for fiscal year 2000. (B)(i) Of the amount specified in subpara graph (A) for fiscal year 1999, not more than |