Page:United States Statutes at Large Volume 113 Part 2.djvu/1018

 113 STAT. 1501A-500 PUBLIC LAW 106-113—APPENDIX G (2) COVERED ITEMS.— The items referred to in paragraph (1) are munitions, equipment, and material such as tanks, trucks, artillery, mortars, general purpose bombs, repair parts, ammunition, barrier material, and ancillary equipment, if such items are— (A) obsolete or surplus items; (B) in the inventory of the Department of Defense; (C) intended for use as reserve stocks for Thailand; and (D) as of the date of the enactment of this Act, located in a stockpile in Thailand. (c) VALUATION OF CONCESSIONS. — The value of concessions negotiated pursuant to subsections (a) and (b) shall be at least equal to the fair market value of the items transferred. The concessions may include cash compensation, services, waiver of charges otherwise payable by the United States, and other items of value. (d) PRIOR NOTIFICATIONS OF PROPOSED TRANSFERS.— Not less than 30 days before making a transfer under the authority of this section, the President shall transmit to the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives a detailed notification of the proposed transfer, which shall include an identification of the items to be transferred and the concessions to be received. (e) TERMINATION OF AUTHORITY. —No transfer may be made under the authority of this section more than 3 years after the date of the enactment of this Act. Subtitle D—Defense Offsets Disclosure SEC. 1241. SHORT TITLE. This subtitle may be cited as the "Defense Offsets Disclosure Act of 1999". SEC. 1242. FINDINGS AND DECLARATION OF POLICY. (a) FINDINGS.— Congress makes the following findings: (1) A fair business environment is necessary to advance international trade, economic stability, and development worldwide, is beneficial for American workers and businesses, and is in the United States national interest. (2) In some cases, mandated offset requirements can cause economic distortions in international defense trade and undermine fairness and competitiveness, and may cause particular harm to small- and medium-sized businesses. (3) The use of offsets may lead to increasing dependence on foreign suppliers for the production of United States weapons systems. (4) The offset demands required by some purchasing countries, including some close allies of the United States, equal or exceed the value of the base contract they are intended to offset, mitigating much of the potential economic benefit of the exports. (5) Offset demands often unduly distort the prices of defense contracts. (6) In some cases. United States contractors are required to provide indirect offsets which can negatively impact nondefense industrial sectors.

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