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.

Full text of Public Law 105-261

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

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 5).
    • (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 30); and
      • (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 1088);
      • (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 terminated;
      • (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.