1. PERU July 2009

2. Introduction to Security Assistance

3. Security Assistance  Economic & military assistance to allied and friendly governments  Foreign policy/national security objectives  Defense articles/services/training  Sales/leases & grants/loans

4. State Department Security Assistance Responsibilities  General direction  Program determination  Program integration

5. DAS Management & Negotiations Regional Security DAS Defense Trade Controls & Regional Security Assistant Secretary, Bureau of Political-Military Affairs DTC/L Licensing Divisions DTC/C Compliance Regional Security and Arms Transfers (RSAT) DTC/P Policy Arms Transfer DAS Plans, Programs, & OPS Directorate Defense Trade Controls (DDTC) State Department Bureau of Political-Military Affairs

6.  Program supervision  Requirements determination  Procurement of equipment/services  Movement and delivery of military end-items  Establishment of priorities DoD Responsibilities

7. Department of Defense MILDEPs Under SECDEF (Policy) Under SECDEF (Policy) DSCA J-5 EUCOM PACOM SOUTHCOM CENTCOM Secretary of Defense –––––––––––––––––––––––– Deputy Secretary of Defense Secretary of Defense –––––––––––––––––––––––– Deputy Secretary of Defense Asst SECDEF (Global Security Affairs) Asst SECDEF (Global Security Affairs) Dir, International Cooperation Under SECDEF (Acquisition, Technology, & Logistics) Under SECDEF (Acquisition, Technology, & Logistics) AFRICOM NORTHCOM Joint Staff

8. Defense Security Cooperation Agency  Direct, administer, and supervise DoD security assistance programs  Develop and promulgate DoD security assistance procedures  Administer the following DoD SC programs:  Humanitarian Assistance  Humanitarian Mine Action Program  Warsaw Initiative  Combating Terrorism Fellowship Program  Regional Centers for Security Studies DoDD 5105.65

9. The Major Security Assistance Programs  Foreign Military Sales (FMS)*  Foreign Military Financing Program (FMFP)*  International Military Education and Training (IMET)*  Direct Commercial Sales (DCS)  Economic Support Fund (ESF)  Peacekeeping Operations (PKO) * DoD administered

10. Foreign Military Sales (FMS) Sales authorized by the AECA from DoD stock or through DoD procurement of defense articles and services (including training)

11. 0803 U.S. FMS and FMS Construction Agreements/Deliveries 12.7 13.5 18.3 19.5 8.3 96000102040795 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 33 Dollars in billions Fiscal Years Agreements Deliveries Source: DSCA: Historical Facts Book, as of 30 September 2007 9.8 14 12.5 9.2 11.7 8.1 15.6 9798 13.2 8.6 16.9 11.2 99 10.6 11 12.1 12.6 12.4 10.4 05 9.8 11.5 06 12.8 12.2 29.2

12. Foreign Military Financing Program (FMFP) Furnishes FMS financial grants or loans authorized by the AECA to enable eligible foreign governments to purchase U.S. defense articles and services (including training)

13. FY 2009 FMFP Allocations ($ in millions) Israel Egypt Jordan Other Near East Sub-Total Europe/Eurasia South/Central Asia Sub-Total $2,550.000 1,300.000 335.000 124.155 $4,309.155 94.700 304.370 $399.070 West Hemisphere Africa E. Asia and Pacific Sub-Total FMFP Admin Total Alloc. $119.300 8.255 50.300 $177.855 51.420 $4,937.500 Proposed FY2009 supplemental -- $98.400M FY2010 proposal -- $5,274.390M

14. International Military Education and Training (IMET) Military training authorized by the FAA on a grant basis to foreign military and related civilian personnel for training both in the U.S. and in overseas facilities

15. FY 2003-2009 IMET Programs ($ in millions) Funding Levels No. Of Countries No. Of Students FY 09 $91.00 138 na FY 03 $70.00 126 10,736 FY 04 $91.16 104 11,832 FY 05 $89.01 102 7,981 FY 06 $ 85.88 107 7,998 FY 07 $ 85.88 127 8,622 FY 08 $85.18 140 7,998 Proposed FY2009 supplemental -- $2.000M FY2010 proposal -- $110.283M

16. Direct Commercial Sales (DCS) Commercial export sales authorized by the AECA to be licensed by State Department

17. Economic Support Fund (ESF)  Flexible economic grant assistance authorized by the FAA to countries selected for their special political and security interests to the U.S.  Managed by USAID  Possible ESF programs include  Balance of payments support  Commodity import support  Development and capital projects  Technical assistance  General budget support  Flexible economic grant assistance authorized by the FAA to countries selected for their special political and security interests to the U.S.  Managed by USAID  Possible ESF programs include  Balance of payments support  Commodity import support  Development and capital projects  Technical assistance  General budget support

18. FY 2009 ESF Allocations ($ in millions) Program Egypt Jordan West Bank/Gaza Lebanon M.E. Part. Init. Other N.E. Total N.E. Europe/Eurasia Africa Proposed FY2009 supplemental -- $2,874.500M FY2010 proposal -- $6,504.096M. Allocation $200.000 363.547 225.000 67.500 50.000 155.067 $1,061.114 $38.500 $514.910 Program Afghanistan Pakistan Other S/C Asia Total South/Central Asia Western Hemisphere East Asia/Pacific Other Global Total ESF Allocation Allocation $1,187.000 575.000 76.801 $1,838.801 $396.350 $163.900 $129.725 $4,143.300

19. Voluntary Peacekeeping Operations (PKO) Assistance authorized by the FAA to friendly countries and international organizations for peacekeeping programs which further U.S. national security interests

20. FY 2009 Voluntary Peacekeeping Operations (PKO) ($ in millions ) Dem. Rep. of Congo Trans-Sahara C/T Partnership Sudan Somalia Africa Regional Liberia Multinational Force & Observers (MFO-Sinai) Global Peace Operations Initiative (GPOI) Total Allocation Proposed FY2009 supplemental -- $50.000M FY2010 proposal – 296.400M $25.500 15.000 38.000 78.600 7.500 49.650 25.000 105.950 $345.200

21. FYs 2008-2010 S.A. Funding FMFP IMET ESF PKO Total Includes proposed FY2009 S.A. supplemental of $3,025M FY 09 $5,036M 93M 7,018M 395M $12,542M FY 08 $4,719M 85M 5,362M 261M $10,427M FY 10 $5,274M 110M 6,504M 296M $12,184M

22. Other SA Programs  Leases of defense articles and services  Excess defense articles sales/grants  Emergency drawdown authorities  Military emergencies  Other emergencies to include:  Counternarcotics  Disaster relief  Migration and refugee assistance  POW/MIA location and repatriation  Nonproliferation  Anti-terrorism  Third country transfers

23. Security Assistance Summary  Sales, leases, grants, & loans of defense articles & services (including training)  State Department supervised, DoD administered  Important element of U.S. foreign policy

24. Security Cooperation All DoD interactions with foreign defense establishments to build defense relationships that promote specific U.S. security interests, develop allied and friendly military capabilities for self-defense and multinational operations, and provide U.S. forces with peacetime and contingency access to a host nation. -- Joint Pub 1-02

25. Security Cooperation Programs  Encompass all Defense Department international activities  Variety of funding mechanisms  Variety of executing organizations  Each program may have unique policy guidance

26. Selected DoD Security Cooperation Programs  Combined Exercises  JCETs (Special Operations training)  Regional Defense Combating Terrorism Fellowship Program (CTFP)  Counternarcotics Assistance  Regional Centers  Equip and Train Iraq and Afghanistan  National Guard State Partnership Program  International Armaments Cooperation  Acquisition and Cross Servicing Agreements  Building Partner Capacity (Section 1206, NDAA for FY 07)  Humanitarian Assistance and Demining Assistance  Etc.

27. Selected SC Programs (Cont)  Department of State directed but DoD administered security assistance:  Foreign Military Sales  Foreign Military Financing Program  International Military Education and Training  Leasing  DoD drawdowns  Excess defense articles

28. Major DoD S.C. Program Funding  DoD Train and Equip Afghanistan  FY06 - ($500M) plus $2.0B  FY07 - $1.5B plus $5.9B  FY08 - $1.35B plus $1.4B  FY09 - $2.0B plus $3.6B  DoD Train and Equip Iraq  FY06 - ($500M) plus $3.0B  FY07 - $1.7B plus $3.8B  FY08 - $1.5B plus $1.5B  FY09 - $1.0B  Combating Terrorist Fellowship Program (CTFP)  FY06 & FY07 - $20M  FY08 - $25M  FY09 - $35M

29. SAA, 2009, P.L.111-32, 24 Jun 09 FMFP$1,294M to include: $260M for the Mexican Navy 69M for Lebanon 150M for Jordan (not avail until FY10) 260M for Egypt (not avail until FY10) 555M for Israel (not avail until FY10) IMET $2M for Iraq ESF$2,974M to include: $861M for Afghanistan 539M for Pakistan 439M for Iraq 551M for West Bank/Gaza 584M for other countries/programs PKO$185M to include: $15M for Dem. Rep. of Congo 2M for the MFO (Sinai) 168M for Somalia

30. Defense [ 10 U.S.C.] Defense [ 10 U.S.C.] State [22 U.S.C.] State [22 U.S.C.] Security Cooperation Programs C/T C/N Iraq/Afghan JCETs IACP ESF NADR INCLE PKO FMS FMFP IMET EDA Leases FMS FMFP IMET EDA Leases DCS Combined Exercises Combined Exercises HA/HDA

31. PERU July 2009