Unclassified 1 BUREAU OF POLITICAL-MILITARY AFFAIRS DMAG Briefing September 28, 2011 Office of Regional Security and Arms Transfers Vangala Ram, Director

Unclassified2 Statutory Role of the Secretary of State The statutory role of the Secretary of State is contained in Section 622 of the FAA and Section 2 of the AECA. Under the authority of the President, the Secretary of State shall be responsible for: Continuous supervision and general direction of economic assistance, military assistance, military education and training, and sales and export programs; Determining whether there shall be a security assistance program, or a sale or export for a country and the value thereof; and Insuring such programs are effectively integrated both at home and abroad, and that the foreign policy of the United States is best served.

Statutory Role of the Secretary of Defense The statutory role of the Secretary of Defense is contained in Section 623 of the Foreign Assistance Act (FAA). The Secretary of Defense shall have primary responsibility for: Determination of military end-item requirements; Procurement of military equipment in a manner which permits its integration with service programs; Supervision of end-item use by the recipient countries; Supervision of the training of foreign military and related civilian personnel; Movement and delivery of military end-items; and The performance, within the DoD, of any other functions with respect to the furnishing of military assistance, education, and training. Unclassified3

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PM Bureau Organization Chart Andrew J. Shapiro Assistant Secretary Political-Military Affairs Tom Kelly Principal Deputy Assistant Secretary Jonita Whitaker Coordinator Office of the Foreign Policy Advisor Jay Greer Director Office of Congressional and Public Affairs Beth McCormick Deputy Assistant Secretary Robert S. Kovac Managing Director Defense Trade Controls Kevin Maloney Director Office of Defense Trade Controls Licensing Lisa Studtmann Director Office of Defense Trade Controls Compliance Charles Shotwell Director Office of Defense Trade Controls Policy Vangala Ram Director Office of Regional Security and Arms Transfers BG Walter Givhan Deputy Assistant Secretary Kevin O’Keefe Director Office of Plans, Policy and Analysis Colonel David Lucia Director Office of International Security Operations Jim Lawrence Acting Director Office of Weapons Removal and Abatement Sho Morimoto Chief of Staff Jane Petersen Special Assistant TBD Senior Advisor Security Negotiations and Agreements

Unclassified6 PM/RSAT Mission Provide the Secretary a globally integrated perspective on regional security and arms transfer issues Recommend appropriate action on applications for commercial arms sales, export licenses, and arms import licenses Conduct bilateral consultations with U.S. friends and allies on political-military affairs Coordinate the Department of State’s position on government-to-government military transfers Congressional Pre-consultations and Notifications

FMS vs. DCS from State Perspective  AECA gives President discretion to designate items FMS only  DCS- Fewer policy challenges due to commercial nature of transactions DoD validates release of technology No USG guarantee on items/program as with FMS  FMS- Many challenges due to military technology and political concerns Internal PM and T bureau processes State - NSC processes State - DoD consultation process Congress and the interagency  USG is ‘neutral’ in FMS vs. DCS Unclassified7

Arms Transfer Decision Making Unclassified8 LEGAL PM/RSAT DEPT. OF COMMERCE DEPT. OF JUSTICE Commercial FMS PRIVATE INDUSTRY REGIONAL BUREAUS LEGISLATIVE AFFAIRS NATIONAL SECURITY COUNCIL A/S POLITICAL-MILITARY AFFAIRS U/S ARMS CONTROL AND INT’L AFFAIRS Decision Input: Groundwork and Factors Weighing the Factors Decision as Appropriate DSCA MILDEP OSD JCS NDPC HUMAN RIGHTS COUNTRY TEAM OMB FUNCTIONAL BUREAUS POLICY PLANNING CONGRESS SECRETARY OF STATE

Unclassified9 What Governs Our Actions? U.S. Foreign Policy Goals Advancing: Security interests Democratic values Market principles Promoting: Our values and the rule of the law Protecting: U.S. security and vital geopolitical interests through timely security assistance and verifiable arms control

Unclassified10 Laws and Regulations Law Arms Export Control Act (AECA) Foreign Assistance Act (FAA) Regulations and Policies International Traffic in Arms Regulation (ITAR) Munitions List Security Assistance Guidance/Policy (Conventional Arms Transfer Policy) SAMM

Unclassified11 Defense articles and services shall be furnished or sold solely for: internal security; for preventing or hindering the proliferation of weapons of mass destruction and of the means of delivering such weapons; legitimate self-defense; to permit the recipient country to participate in regional or collective arrangements consistent with the Charter of the United Nations; or Public works in less developed friendly countries. Purpose of Arms Sales (Sec. 502 FAA and Sec. 4 AECA)

Unclassified12 Conventional Arms Transfer (CAT) Policy A codified U.S. arms transfers policy detailed in Presidential Decision Directive 34 (PDD-34, February 17, 1995) that promotes: Control, Restraint, & Transparency

NATO Day Formal Notification Period $25 Million Threshold (MDE) $100 Million Threshold (Non-MDE) Unclassified13 Congressional Notification All Other Countries 20-Day Informal Notification Period 30-Day Formal Notification Period $14 Million Threshold (MDE) $50 Million Threshold (Non-MDE)

Unclassified Recess Schedule Tentative Schedule. Source: DSCA

Unclassified15 Value of U.S. FMS Agreements per year

Future Trends and Issues 16Unclassified Static defense budgets??? Increasing competition Pressure to modernize Emphasis on upgrades More international cooperation Continued disparity in R&D Funding Allocation Heavy pressure for tech transfer/offsets Drive for greater transparency Limited discretionary FMF Accelerating technology generations Retransfer of “enhanced” technology

Unclassified17 Questions? Department of State PM/DDTC pmddtc.state.gov PM/RSAT fax Charles ‘Ken’ Comer FMS Team Lead, PM/RSAT