To authorize appropriations for
fiscal year 1999 for military activities of the Department of Defense, to prescribe
military personnel strengths for fiscal year 1999, and for other purposes
Public Law 105-261
Enacted 17 October 1998
The following is the section
of this Public Law relevant to Taiwan.
text of Public Law 105-261
DIVISION A--DEPARTMENT OF
TITLE XII--MATTERS RELATING TO OTHER NATIONS
Subtitle D-Other Matters
- Sec. 1235. Transfers of Naval Vessels to
certain foreign countries.
- (a) TRANSFERS OF VESSELS BY GRANT - The Secretary
of the Navy 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) To the Government of Argentina, the NEWPORT
class tank landing ship NEWPORT (LST 1179).
- (2) To the Government of Greece-
- (A) the KNOX class frigate HEPBURN (FF 1055); and
- (B) the ADAMS class guided missile destroyers
STRAUSS (DDG 16), SEMMS (DDG 18), and WADDELL (DDG 24).
- (3) To the Government of Portugal, the STALWART
class ocean surveillance ship ASSURANCE (T-AGOS 5).
- (4) To the Government of Turkey, the KNOX class
frigates PAUL (FF 1080), MILLER (FF 1091), and W.S. SIMMS (FF 1059).
- (b) TRANSFERS OF VESSELS BY SALE.-The Secretary of
the Navy is authorized to transfer vessels to foreign countries on a sales basis under
section 21 of the Arms Export Control Act (22 U.S.C. 2761) as follows:
- (1) To the Government of Brazil, the NEWPORT class
tank landing ships CAYUGA (LST 1186) and PEORIA (LST 1183).
- (2) To the Government of Chile-
- (A) the NEWPORT class tank landing ship SAN
BERNARDINO (LST 1189); and
- (B) the auxiliary repair dry dock WATERFORD (ARD
- (3) To the Government of Greece-
- (A) the OAK RIDGE class medium dry dock ALAMAGORDO
(ARDM 2); and
- (B) the KNOX class frigates VREELAND (FF 1068) and
TRIPPE (FF 1075).
- (4) To the Government of Mexico-
- (A) the auxiliary repair dry dock SAN ONOFRE (ARD
- (B) the KNOX class frigate PHARRIS (FF 1094).
- (5) To the Government of the Philippines, the
STALWART class ocean surveillance ship TRIUMPH (T-AGOS 4).
- (6) To the Government of Spain, the NEWPORT class
tank landing ships HARLAN COUNTY (LST 1196) and BARNSTABLE COUNTY (LST 1197).
- (7) To the Taipei Economic and Cultural
Representative Office in the United States (the Taiwan instrumentality that is designated
pursuant to section 10(a) of the Taiwan Relations Act)-
- (A) the KNOX class frigates PEARY (FF 1073),
JOSEPH HEWES (FF 1078), COOK (FF 1083), BREWTON (FF 1086), KIRK (FF 1987), and BARBEY (FF
- (B) the NEWPORT class tank landing ships MANITOWOC
(LST 1180) and SUMTER (LST 1181);
- (C) the floating dry dock COMPETENT (AFDM 6); and
- (D) the ANCHORAGE class dock landing ship
PENSACOLA (LSD 38).
- (8) To the Government of Turkey-
- (A) the OLIVER HAZARD PERRY class guided missile
frigates MAHLON S. TISDALE (FFG 27), REID (FFG 30), and DUNCAN (FFG 10); and
- (B) the KNOX class frigates REASONER (FF 1063),
FANNING (FF 1076), BOWEN (FF 1079), MCCANDLESS (FF 1084), DONALD BEARY (FF 1085),
AINSWORTH (FF 1090), THOMAS C. HART (FF 1092), and CAPODANNO (FF 1093).
- (9) To the Government of Venezuela, the medium
auxiliary floating dry dock bearing hull number AFDM 2.
- (c) TRANSFERS OF VESSELS ON A COMBINED LEASE-SALE
BASIS.- The Secretary of the Navy is authorized to transfer vessels to foreign countries
on a combined lease-sale basis under sections 61 and 21 of the Arms Export Control Act (22
U.S.C. 2796, 2761) and in accordance with subsection (d) as follows:
- (1) To the Government of Brazil, the CIMARRON
class oiler MERRIMACK (AO 179).
- (2) To the Government of Greece, the KIDD class
guided missile destroyers KIDD (DDG 993), CALLAGHAN (DDG 994), SCOTT (DDG 995), and
CHANDLER (DDG 996).
- (d) CONDITIONS RELATING TO COMBINED LEASE-SALE
TRANSFERS.- A transfer of a vessel on a combined lease-sale basis authorized by subsection
(c) shall be made in accordance with the following requirements:
- (1) The Secretary may initially transfer the
vessel by lease, with lease payments suspended for the term of the lease, if the country
entering into the lease for the vessel simultaneously enters into a foreign military sales
agreement for the transfer of title to the vessel.
- (2) The Secretary may not deliver to the
purchasing country title to the vessel until the purchase price of the vessel under such a
foreign military sales agreement is paid in full.
- (3) Upon payment of the purchase price in full
under such a sales agreement and delivery of title to the recipient country, the Secretary
shall terminate the lease.
- (4) If the purchasing country fails to make full
payment of the purchase price in accordance with the sales agreement by the date required
under the sales agreement-
- (A) the sales agreement shall be immediately
- (B) the suspension of lease payments under the
lease shall be vacated; and
- (C) the United States shall be entitled to retain
all funds received on or before the date of the termination under the sales agreement, up
to the amount of the lease payments due and payable under the lease and all other costs
required by the lease to be paid to that date.
- (5) If a sales agreement is terminated pursuant to
paragraph (4), the United States shall not be required to pay any interest to the
recipient country on any amount paid to the United States by the recipient country under
the sales agree-ment and not retained by the United States under the lease.
- (e) REQUIREMENT FOR PROVISION IN ADVANCE IN AN
APPROPRIATIONS ACT.-Authority to transfer vessels on a sale basis under subsection (b) or
a combined lease-sale basis under subsection (c) is effective only to the extent that
authority to effectuate such transfers, together with appropriations to cover the
associated cost (as defined in section 502 of the Congressional Budget of 1974 (2 U.S.C.
661a)), are provided in advance in an appropriations Act.
- (f) AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN
COSTS OF TRANSFERS.-There is established in the Treasury of the United States a special
account to be known as the Defense Vessels Trans-fer Program Account. There is hereby
authorized to be appropriated into that account such sums as may be necessary for the
costs (as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a))
of the lease-sale transfers authorized by subsection (c). Funds in that account are
available only for the purpose of covering those costs.
- (g) NOTIFICATION OF CONGRESS.-Not later than 30
days after the date of the enactment of this Act, the Secretary of the Navy shall submit
to Congress, for each naval vessel that is to be trans-ferred under this section before
January 1, 1999, the notifications required under section 516 of the Foreign Assistance
Act of 1961 (22 U.S.C. 2321j) and section 525 of the Foreign Operations, Export Financing,
and Related Programs Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2413).
- (h) GRANTS NOT COUNTED IN ANNUAL TOTAL OF
TRANSFERRED EXCESS DEFENSE ARTICLES.-The value of a vessel transferred to another country
on a grant basis under section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j)
pursuant to authority provided by subsection (a) shall not be counted for the purposes of
subsection (g) of that section in the aggregate value of excess defense articles
transferred to countries under that section in any fiscal year.
- (i) 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)(1) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2321j(e)(1)) in the case of a transfer authorized to be made on a grant
basis under subsection (a)).
- (j) REPAIR AND REFURBISHMENT IN UNITED STATES
SHIP-YARDS.- To the maximum extent practicable, the Secretary of the Navy shall require,
as a condition of the transfer of a vessel under this section, 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.
- (k) 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.