[Federal Register Volume 83, Number 49 (Tuesday, March 13, 2018)]
[Notices]
[Pages 10843-10845]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-05035]


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DEPARTMENT OF DEFENSE

Office of the Secretary

[Transmittal No. 17-79]


Arms Sales Notification

AGENCY: Defense Security Cooperation Agency, Department of Defense.

ACTION: Arms sales notice.

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SUMMARY: The Department of Defense is publishing the unclassified text 
of an arms sales notification.

FOR FURTHER INFORMATION CONTACT: Pamela Young, (703) 697-9107, 
[email protected] or Kathy Valadez, (703) 697-9217, 
[email protected]; DSCA/DSA-RAN.

SUPPLEMENTARY INFORMATION: This 36(b)(1) arms sales notification is 
published to fulfill the requirements of section 155 of Public Law 104-
164 dated July 21, 1996. The following is a copy of a letter to the 
Speaker of the House of Representatives, Transmittal 17-79 with 
attached Policy Justification and Sensitivity of Technology.

    Dated: March 8, 2018.
Aaron Siegel,
Alternate OSD Federal Register Liaison Officer, Department of Defense.
BILLING CODE 5001-06-P

[[Page 10844]]

[GRAPHIC] [TIFF OMITTED] TN13MR18.000

BILLING CODE 5001-06-C
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act, as amended
    (i) Prospective Purchaser: Government of Japan
    (ii) Total Estimated Value:

Major Defense Equipment *................  $40 million
Other....................................   $5 million
                                          ------------------------------
  Total..................................  $45 million
 

    (iii) Description and Quantity or Quantities of Articles or 
Services under Consideration for Purchase:
    Major Defense Equipment (MDE):
    Twenty-four (24) MK 15 Phalanx Close-in Weapon System (CIWS) Block 
IB Baseline 1 to MK 15 Phalanx Block IB Baseline 2 Conversion Kits.
    Non-MDE:
    Also included is support equipment, spare parts, publications, 
software and associated support, and logistical support services, and 
other related elements of logistical and program support.
    (iv) Military Department: Navy (JA-P-NBE)
    (v) Prior Related Cases, if any: None
    (vi) Sales Commission, Fee, etc., Paid, Offered, or Agreed to be 
Paid: None
    (vii) Sensitivity of Technology Contained in the Defense Article or 
Defense Services Proposed to be Sold: See Attached Annex
    (viii) Date Report Delivered to Congress: March 2, 2018

[[Page 10845]]

    * As defined in Section 47(6) of the Arms Export Control Act.

POLICY JUSTIFICATION

Japan--MK 15 Phalanx Close-in Weapon System (CIWS) Block IB Baseline 2 
Conversion Kits

    The Government of Japan has requested to buy twenty-four (24) MK 15 
Phalanx Close-in Weapon System (CIWS) Block IB Baseline 1 to MK 15 
Phalanx Block IB Baseline 2 conversion kits. Also included is support 
equipment, spare parts, publications, software and associated support, 
and logistical support services, and other related elements of 
logistical and program support. The estimated total case value is $45 
million.
    This proposed sale will contribute to the foreign policy and 
national security of the United States by improving the security of a 
major ally that has been, and continues to be, a force for political 
stability and economic progress in the Asia-Pacific region.
    The proposed sale will improve Japan's capability in current and 
future defensive efforts. Japan will use the enhanced capability as a 
deterrent to regional threats and to strengthen homeland defense.
    The proposed sale of this equipment and support will not alter the 
basic military balance in the region.
    The principal contractor will be Raytheon Missile Systems, Tucson, 
AZ. There are no known offset agreements proposed in connection with 
this potential sale.
    Implementation of this proposed sale will not require the permanent 
assignment of additional U.S. Government or contractor representatives 
in Japan.
    There will be no adverse impact on U.S. defense readiness as a 
result of this proposed sale.
Transmittal No. 17-79
Notice of Proposed Issuance of Letter of Offer Pursuant to Section 
36(b)(1) of the Arms Export Control Act
Annex
Item No. vii
    (vii) Sensitivity of Technology:
    1. The CIWS Block IB Baseline 2 represents an increase in threat 
acquisition and firepower accuracy over previous Block 1 Baseline 
configurations. The Baseline 2 variant includes a radar improvement 
upgrade and an electro-optical sensor to improve weapon system 
performance against low-observable, sea-skimming threats, and provides 
improved capability to concentrate hard-kill ordnance in a tighter 
pattern on the threat. The CIWS mount and spare hardware are 
UNCLASSIFIED. The radar improvement/upgrade is the most sensitive 
portion of the Baseline 2 configuration.
    2. The CIWS Block 1B Baseline 2 systems and upgrade kits will 
result in the transfer of a highly accurate close-in engagement 
technology and ship self-defense capability. The equipment, hardware, 
and the majority of documentation are UNCLASSIFIED. The embedded 
software and operational performance are classified CONFIDENTIAL. The 
seeker/electro-optical control section and the target detector are 
UNCLASSIFIED, but contain a sensitive state-of-the-art technology. 
Technical Manuals used to support the operation and provisioning of 
organizational-level maintenance are CONFIDENTIAL. The technical and 
operational data identified above is classified to protect 
vulnerabilities, design and performance parameters, and similar 
critical information.
    3. If a technologically advanced adversary were to obtain knowledge 
of specific hardware, the information could be used to develop 
countermeasures which might reduce weapons system effectiveness or be 
used in the development of a system with similar or advanced 
capabilities.
    4. A determination has been made that Japan can provide 
substantially the same degree of protection for sensitive technology 
being released as the U.S. Government. This proposed sustainment 
program is necessary to the furtherance of the U.S. foreign policy and 
national security objectives outlined in the policy justification.
    5. All defense articles and services listed in this transmittal are 
authorized for release and export to the Government of Japan.

[FR Doc. 2018-05035 Filed 3-12-18; 8:45 am]
 BILLING CODE 5001-06-P