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NATIONAL DEFENSE AUTHORIZATION
ACT FOR FISCAL YEAR 1998
CONFERENCE REPORT
to accompany
H.R. 1119

October 23, 1997
105th Congress 1st Session
HOUSE OF REPRESENTATIVES

Report 105-340
                      DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS            
                                    TITLE I--PROCUREMENT                          
  
.........
           Information system security program                                     
       The budget request included $10.2 million to procure information    
   system security devices.                                                
       The House bill would support the budget request.                       
       The Senate amendment would authorize an increase of $5.5 million to 
   support minimum production requirements for 400 Airterm KY 100 devices. 
       The conferees agree to authorize an increase of $3.5 million for    
   Airterm KY 100 devices.                                                 
           Ground based common sensors                                             
       The budget request included $26.8 million for ground based common   
   sensors.                                                                
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to eliminate funding in fiscal year 1998 based  
   on the Army decision to reschedule the initial operational test and     
   evaluation for this program.                                            
           Shortstop                                                               
       The budget request included no funds for the Shortstop electronic   
   protection system (SEPS).                                               
       The House bill would authorize an increase of $9.0 million to       
   procure 42 additional SEPS needed in Korea.                             
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize $6.0 million for SEPS devices      
   needed by U.S. forces in Korea.                                         
  
.........
           EA 6 Series                                                             
    The budget request included $86.8 million for EA 6B modifications.     
       The House bill would authorize an increase of $68.0 million,        
   including $50.0 million for 10 wing center sections (WCS) and $18.0     
   million to continue the turbine engine blade containment system (TEBS). 
       The Senate amendment would authorize an increase of $25.0 million to
   incorporate a low risk, affordable upgrade to the EA 6B in conjunction  
   with modifications already underway to counter the new family of        
   threats.                                                                
       The conferees agree to authorize an increase of $25.0 million to    
   replace the WCS of 5 additional EA 6Bs. The increase of $25.0 million   
   for WCS is partially offset by a $10.0 million reduction for late       
   obligations, resulting in a net increase of $15.0 million for EA 6B     
   modifications. The conferees urge the Secretary of the Navy to provide  
   funds to complete the WCS modifications in the fiscal year 1999 budget  
   request.    
  
.........
              Pioneer logistic support                                                
       The budget request included $4.0 million for support of Pioneer     
   unmanned aerial vehicle (UAV).                                          
       The Senate amendment would authorize an increase of $3.0 million to 
   continue common automatic recovery system (CARS) logistic support in the
   Procurement, Defense-Wide account.                                      
    The House bill would authorize the budget request.                     
       The conferees agree to authorize an increase of $3.0 million for    
   logistic support in the Weapons Procurement, Navy Pioneer budget line   
   item.                                                                   
.........
           C 130J                                                                  
       The budget request included $49.9 million for the procurement of one
   C 130J aircraft.                                                        
       The House bill would authorize an increase of $522.6 million for an 
   additional nine aircraft.                                               
       The Senate amendment would authorize an increase of $371.1 million  
   for five additional aircraft and associated logistic support.           
       The conferees agree to authorize a total of $527.5 million for eight
   additional C 130J aircraft and support as shown below:                  
                                       C 130 PROGRAMS                                      
                                   [Dollars in millions]                                   
          Type     Budget request            House bill             Senate bill         Conference agreement    
                  Quantity    Amount    Quantity     Amount    Quantity     Amount    Quantity      Amount  
KC 130J                                       +3     +179.7                                 +2      +120.0  
WC 130J                                                              +3     +177.0          +2      +132.8  
EC 130J                                       +1      +49.9          +1      +70.5          +1       +74.6  
C 130J                   1      49.9          +5     +293.0          -1      -49.9          -1       -49.9  
C 130J ANG                                                           +2      +95.8          +4      +226.0  
 Logistics:                                                                  +29.7                          
                ----------  --------  ----------  ---------  ----------  ---------  ----------  ----------  
Total                    1      49.9          +9     +522.6          +5     +371.1          +8      +527.5  
           Predator Unmanned Aerial Vehicle                                        
       The budget request included $116.5 million for 15 Predator unmanned 
   aerial vehicles (UAV).                                                  
       The House bill would authorize an increase of $30.0 million for the 
   procurement of attrition UAV and spares.                                
    The Senate amendment would authorize the budget request.               
    The conferees agree to authorize an increase of $25.0 million.         
.........
           Defense Airborne Reconnaissance Program                                 
       Procurement for the Defense Airborne Reconnaissance Program (DARP)  
   is contained in a number of procurement lines, distributed among the    
   individual services and the defense-wide procurement account. The budget
   request included:                                                       
       (1) $67.1 million in Aircraft Procurement, Air Force (APAF) line 60;
       (2) $141.5 million in APAF, line 73;                                  
       (3) $12.8 million in Other Procurement, Air Force (OPAF), line 111; 
   and                                                                     
     (4) $97.5 million in Procurement, Defense-wide (PDW), line     7.     
       The conferees agree to authorize increases in DARP procurement as   
   shown below:                                                            
              DEFENSE AIRBORNE RECONNAISSANCE PROCUREMENT PROGRAMS             
                            [In millions of dollars]                           
                             Program  Budget request        Proposed change     Conference agreement    
                                                            House     Senate            
Rivet Joint mods                                  61.1                            61.1  
Rivet Joint technology transfer                              20.0       20.0       5.6  
Combat Sent mods                                   6.0                             6.0  
RC 135 re-engining                                           52.0                 27.4  
RJ Sensors and spares                                                             35.0  
SR 71 mods                                                               9.0       9.0  
                                      ----------------  ---------  ---------  --------  
Subtotal--APAF 60                                 67.1       72.0       29.0     144.1  
                                      ================  =========  =========  ========  
Budget Request                                   141.5                           141.5  
RC 135 re-engining                                                      54.8         0  
Senior Glass                                                            13.0      24.0  
SYERS                                                         5.0                  5.0  
                                      ----------------  ---------  ---------  --------  
Subtotal--APAF 73                                141.5        5.0       67.8     170.5  
                                      ================  =========  =========  ========  
DARP RC 135                                       12.8                            12.8  
RJ Sensors and spares                                        35.0                       
                                      ----------------  ---------  ---------  --------  
Subtotal--OPAF 111                                12.8       35.0                 12.8  
                                      ================  =========  =========  ========  
DARP                                              97.4                            97.4  
Common automatic recovery system                                         5.0            
                                      ----------------  ---------  ---------  --------  
Subtotal--PDW 7                                   97.4                   5.0      97.4  
           Theater airborne warning system                                         
       The budget request included no funds for the Theater Airborne       
   Warning System (TAWS) program, which is designed to equip the existing  
   fleet of Rivet Joint aircraft with a medium-wave infrared sensor for    
   ballistic missile detection.                                            
       The House bill and Senate amendment would authorize an increase of  
   $20.0 million for the TAWS program.                                     
       The conferees agree to authorize an increase of $5.6 million for the
   demonstration phase of the TAWS program. If this phase of the program   
   proves to be successful, the conferees would be supportive of moving    
   into the procurement phase in order to equip the Rivet Joint fleet with 
   this capability.                                                        
.........
           Advanced SEAL delivery system                                           
       The budget request included $43.2 million for the special operations
   Advanced SEAL Delivery System program.                                  
    The House bill and Senate amendment would authorize the budget request.
       The conferees agree to a total authorization of $8.9 million and the
   transfer of $34.3 million to PE 116404BB, as discussed in Title II of   
   this conference agreement.    
..........
                               SUBTITLE D--AIR FORCE PROGRAMS                     
..............
..........
                       Analysis of requirements for replacement of engines on      
           military aircraft derived from Boeing 707 aircraft (sec. 133)           
       The Senate amendment contained a provision (sec. 142) that would    
   require a study of re-engining priorities, options, and benefits for    
   military aircraft derived from Boeing 707 type aircraft.                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would clarify the          
   requirements for the study.                                             
                                  SUBTITLE E--OTHER MATTERS                       
..........                   
            NATO Joint Surveillance/Target Attack Radar System (sec. 142)          
       The Senate amendment contained a provision (sec. 144) that would    
   allow the Secretary of Defense to initiate contracts for Phase I of a   
   NATO Alliance Ground Surveillance (NATO AGS) capability based on the    
   Joint Surveillance/Target Attack Radar System (JSTARS) following the    
   conclusion of a cooperative project agreement for a NATO AGS. The Senate
   amendment would also authorize the transfer of funds from U.S. JSTARS to
   the NATO AGS program, and would allow for the modification of two Air   
   Force JSTARS aircraft into a NATO configuration.                        
    The House bill contained no similar provision.                         
    The House recedes.                                                     
..............
                   TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION          
.............
           Information systems technology, superiority, and security               
       The budget request included $544.4 million for information systems  
   and information technology research, development, test, and evaluation. 
   Of that amount, $306.0 million was for information security research,   
   development, test, and evaluation.                                      
       The House bill would authorize the following increases to the budget
   request:                                                                
       (1) $2.0 million in PE 63006A for tactical internet command and     
   control protection;                                                     
       (2) $6.7 million in PE 65604A for information operations/warfare    
   survivability analysis of command, control, communications, and         
   computers/information electronic warfare systems;                       
       (3) $1.6 million in PE 33150A for development and application of    
   information protection measures for the Army's component of the global  
   command and control systems for the U.S. European Command; and          
       (4) $2.7 million in PE 33140F for the Air Force information         
   protection program.                                                     
       The House report (H. Rept. 105 132) would also direct the Secretary 
   of Defense to provide to the congressional defense committees, with the 
   submission of the fiscal year 1999 budget request, an assessment of the 
   progress in the Department's information systems security program that  
   addresses the current status of the program, specific actions being     
   taken on the recommendations of the 1996 Defense Science Board Task     
   Force on Information Warfare-Defense, and additional actions that should
   be taken to assure the increased security and integrity of the Defense  
   information infrastructure. The House report would also require the     
   Secretary to address measures necessary to assure the integrity of those
   elements of the National Information Infrastructure on which the Defense
   Information Infrastructure depends, and to identify any additional      
   resources and legislative authority which might be required.            
    The Senate amendment would authorize the budget request.               
       The House recedes from its recommendation for additional funding.   
   The conferees, however, share the views expressed in the House report   
   regarding the need to treat information technology as a vital strategic 
   resource, and the need to address the potential vulnerabilities of the  
   information infrastructure. The conferees direct the Secretary of       
   Defense to submit to the congressional defense committees the assessment
   of the Department's information systems security program as discussed in
   the House report.                                                       
..........
           All source analysis system                                              
       The budget request included $24.0 million to continue development of
   the All Source Analysis System (ASAS).                                  
       The House bill would authorize an increase of $3.5 million for      
   software upgrades.                                                      
       The Senate amendment would authorize an increase of $3.2 million to 
   expand advanced fusion technology efforts.                              
    The House recedes. 
...........
           Tactical exploitation of national capabilities                          
       The budget request included $107.2 million for the various Tactical 
   Exploitation of National Capabilities (TENCAP) and related research and 
   development projects within the military services' Tactical Intelligence
   and Related Activities aggregation and the Joint Military Intelligence  
   Program.                                                                
       The House bill would authorize a decrease in these individual       
   accounts by approximately 10 percent.                                   
    The Senate amendment would authorize the budget request.               
    The House recedes.                                                     
       The conferees agree that the tactical ``operationalization'' of     
   space has become relatively commonplace within military doctrine,       
   planning, and execution, and that specialized TENCAP projects to inform,
   educate, and provide improved space-related capabilities should be      
   reviewed for possible reduction or reorientation. While the conferees   
   fully support the TENCAP program, they believe there may be a need to   
   begin to reduce and phase out the specialized projects to exploit space 
   and national capabilities. Such exploitation should be the focus of new 
   programs from the outset of their development.                          
       Therefore, the conferees direct the Secretary of Defense to submit a
   report to the congressional defense and intelligence committees by March
   15, 1998, describing the Secretary's assessment of the continuing       
   utility of the TENCAP program, and recommendations for evolving or      
   phasing out the existing TENCAP program.                                
..............
           Marine Corps advanced technology demonstration                          
       The budget request included $34.2 million to support the Marine     
   Corps advanced technology demonstration (ATD).                          
       The House bill would authorize an increase of $19.8 million to      
   support the Commandant's Warfighting Laboratory. The House bill would   
   also provide $5.0 million for a low-cost, close-range unmanned aerial   
   vehicle (UAV) project.                                                  
       The Senate amendment would authorize an increase of $15.0 million   
   for the Commandant's Warfighting Laboratory.                            
       The conferees agree to authorize an increase of $19.5 million in PE 
   63640M. Of this amount, $17.5 million is for the Commandant's           
   Warfighting Laboratory and $2.0 million is for the common automatic     
   recovery system for a total of $53.7 million in this program element.   
................       
            Defense Reconnaissance Support Activities                              
       The budget request included $49.4 million in PE 35159I for Defense  
   Reconnaissance Support Activities.                                      
       The House bill would direct the Department of Defense to            
   discontinue, not later than October 1, 1999, the Defense Space          
   Reconnaissance Program (DSRP) and close the Defense Space Program Office
   (DSPO).                                                                 
       The Senate amendment contained no such direction and would authorize
   the budget request.                                                     
    The House recedes.                                                     
       The conferees agree that there appears to be an overly bureaucratic 
   management of space reconnaissance support to military operations. The  
   DSPO was established in 1981 to provide management support and oversight
   of programs which improve satellite reconnaissance support to the       
   operational military commander. DSPO was established as an overt liaison
   between the then unacknowledged National Reconnaissance Office (NRO) and
   the military services. After public acknowledgment of the NRO, the      
   Director of the NRO: (1) established direct support to military operations 
   as a core function of the Office; and (2) created the NRO position of Deputy      
   Director, Military Support to manage this function and the DSPO organization.
       The conferees believe the Department needs to review the need for   
   continuing the DSPO in light of the NRO's public acknowledgment and its 
   stated military support mission. Further, the conferees believe that the
   position of Deputy Under Secretary of Defense for Space provides the    
   additional civilian oversight necessary to ensure the effective         
   application of space support to the military services.                  
       Therefore, the conferees believe the Secretary of Defense should    
   determine whether there is a need to retain the DSPO management         
   organization and the DSRP program it manages. The conferees note that   
   such a determination could benefit from the advice of the Task Force on 
   Defense Reform. The conferees direct the Secretary to report to the     
   congressional defense and intelligence committees on the results of his 
   determination by March 1, 1998.                                         
           Special operations tactical systems development                         
       The budget request included $73.1 million to support special        
   operations tactical systems development (PE 116404BB).                  
    The House bill would authorize the budget request.                     
       The Senate amendment would authorize an increase of $2.7 million to 
   support special operations tactical systems.                            
       The conferees agree to authorize the transfer of $36.4 million from 
   special operations shipbuilding procurement to the advanced SEAL        
   delivery system (ASDS) to address funding shortfalls. The conferees are 
   concerned about the significant problems associated with development and
   management over the life of the ASDS program. The conferees have been   
   notified of the program shortfalls and corrective actions implemented by
   the Navy to bring this program back on track. The conferees agree to    
   support the Navy request to use available procurement funds to support  
   proposed corrective actions and expect the Navy to improve its oversight
   of this important program. The conferees are aware that a realignment of
   funds will be made in the fiscal year 1999 budget request to complete   
   ASDS 1. The conferees direct that, prior to February 15, 1998, the      
   Secretary of the Navy report to the congressional defense committees on 
   the total projected costs of the ASDS, the estimated date of            
   construction completion, and adjusted plans for sea trials and initial  
   operating capability. In addition, the report shall include the Future  
   Years Defense Program funding for the ASDS program.                     
       The conferees agree to authorize a total of $109.5 million in PE    
   116404BB.      
           Special operations intelligence systems development                     
       The budget request included $4.9 million to support special         
   operations intelligence systems development.                            
       The House bill would authorize an increase of $3.0 million to       
   support the mission familiarization virtual reality project and an      
   additional increase of $5.0 million for the special operations forces   
   intelligence vehicle.                                                   
       The Senate amendment would authorize an increase of $4.0 million to 
   develop the joint threat warning system.                                
       The conferees agree to authorize an increase of $6.0 million for    
   special operations system development. Of this amount, $3.0 million is  
   for the special operations forces intelligence vehicle and $3.0 million 
   is for the joint threat warning system. 
                        ITEMS OF SPECIAL INTEREST                        
................    
           Interferometric synthetic aperture radar                                
       Forward deployed U.S. armed forces have a need for up-to-date and   
   highly accurate maps that provide three-dimensional location of targets,
   including altitude, latitude, and longitude, and for reconstruction of  
   terrain in a three-dimensional setting for planning combat missions. The
   conferees understand that an airborne interferometric synthetic aperture
   radar (IFSAR) has the potential to provide imagery of one foot          
   resolution and digital terrain elevation data (DTED) at DTED level 4.   
       The conferees understand that the Army and the Defense Advanced     
   Research Projects Agency recently demonstrated an airborne IFSAR during 
   operations in support of U.S. ground forces in Bosnia. The test system  
   is relatively small and for test purposes was flown on a business jet,  
   which proved satisfactory in Bosnia. To operate in a major regional     
   contingency, however, U.S. armed forces would require a larger, more    
   capable system, flying at higher altitudes.                             
       The conferees direct the Secretary of Defense and the Intelligence  
   community to study the costs, feasibility, and potential capability     
   gains of placing an IFSAR on a U 2 or high altitude endurance unmanned  
   aerial vehicle, and to report the results of this analysis to the       
   congressional defense committees with the submission of the fiscal year 
   1998 budget request.                                                    
.................
           High altitude endurance unmanned vehicle program (sec. 216)             
       The Senate amendment contained a provision (sec. 213) that would    
   impose a cost cap on the High Altitude Endurance Unmanned Aerial Vehicle
   (HAE UAV) program at the levels requested in the fiscal year 1998 budget
   request.                                                                
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would clarify the reporting
   requirement of the provisions and the certification requirements for the
   program. 
................                                           
                                  SUBTITLE D--OTHER MATTERS                       
................   
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
................                         
           Tactical unmanned aerial vehicles                                       
       The House bill contained a provision (sec. 213) that would prohibit 
   the obligation of funds for the Outrider Advanced Concept Technology    
   Demonstration (ACTD) program.                                           
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees are disappointed with the progress of the Outrider    
   ACTD program to date. The conferees believe that the program has        
   suffered irreparably from unstable and ambiguous joint requirements and 
   note that the program appears to be on a path to failure with respect to
   its operational capabilities. In the future, the conferees will look    
   less favorably on ACTD programs that are not limited demonstrations of  
   mature technologies, but rather thinly veiled attempts to evade the     
   regular order of the acquisition process.                               
       Accordingly, the conferees agree to authorize $45.0 million for     
   completion of the Outrider ACTD development and user activities, but not
   procurement of operational Outrider systems. Moreover, the conferees    
   agree to authorize these Outrider ACTD activities in PE 63003A, Advanced
   Aviation Technology program.       
................                         
                            TITLE III--OPERATION AND MAINTENANCE                  
.............
                        ITEMS OF SPECIAL INTEREST                        
           Arms control implementation                                             
       The budget request included $315.1 million for arms control         
   implementation programs in the military services and the Department of  
   Defense. This request is based on anticipated dates of implementation of
   the various arms control treaties.                                      
       The House bill would authorize a decrease of $25.5 million, which   
   would result in an $11.2 million reduction to the On Site Inspection    
   Agency (OSIA) operations and maintenance account and a $14.3 million    
   reduction to the Defense Special Weapons Agency (DSWA) verification     
   demonstration technology program (PE 63711H). These reductions were due 
   to slippage in the entry into force of the Open Skies Treaty, the       
   Strategic Arms Reduction Treaty II, the Comprehensive Test Ban Treaty   
   (CTBT), and non-implementation of the Bilateral Destruction Agreement   
   (BDA).                                                                  
       The Senate amendment would authorize a decrease of $20.0 million,   
   which would result in a $10.0 million reduction to the OSIA operations  
   and maintenance account and a $10.0 million reduction to the DSWA       
   verification demonstration technology program.                          
       The conferees agree to authorize a decrease of $25.5 million to the 
   budget request for arms control implementation for fiscal year 1998, as 
   follows: $11.2 million for the OSIA operations and maintenance account; 
   and $14.3 million for the DSWA verification technology demonstration    
   program (PE 63711H).                                                    
       The conferees direct the Department of Defense to provide the       
   congressional defense committees with a program plan for the nuclear    
   control technology research program (PE 63711H) in support of the CTBT, 
   and include the estimated costs. The Department should also include in  
   the report its assessment of recommendations by the National Research   
   Council on research deemed to be necessary to meet nuclear test         
   monitoring goals, and how the nuclear arms control technology activity  
   meets congressionally mandated objectives. The conferees are willing to 
   provide adequate funding for programs that would enable the United      
   States to independently monitor and detect nuclear test activities      
   worldwide and fulfill its obligations under a comprehensive test ban, if
   and when that treaty enters into force, and do not wish the funding     
   reduction to nuclear control technology activities (PE 63711H) to be    
   misconstrued.     
..............
           National imagery and mapping agency                                     
       The budget request included $680.3 million in Operations and        
   Maintenance, Defensewide, for the Joint Military Intelligence Program   
   portion of the National Imagery and Mapping Agency (NIMA).              
       The House bill would authorize the following: (1) a reduction of    
   $30.0 million for production and customer support on the grounds that   
   migration to the Digital Processing System should have resulted in      
   significant reductions in operations and maintenance costs; (2) a       
   reduction of $10.0 million for mission support in anticipation of       
   significant cost reductions as a result of various mission and          
   organization consolidations; (3) a reduction of $15.0 million to        
   accelerate the downsizing of NIMA's personnel consistent with the       
   Digital Processing System phase-out; and (4) a reduction of $23.2       
   million for continued research and development efforts for an           
   interferometric synthetic aperture radar (IFSAR) mission on board the   
   Space Shuttle to collect Digital Terrain Elevation Data (DTED) level 2  
   information for mapping because of a belief that other, more            
   cost-effective, commercial alternatives to the IFSAR mission exist.     
    The Senate amendment would authorize the budget request.               
       The conferees agree to authorize the following reductions, as       
   reflected in the Classified and Intelligence line within Operations and 
   Maintenance, Defensewide: $35.0 million in production; $11.0 million in 
   mission support; $15.0 million in management and customer support; and  
   $3.2 million for the Shuttle IFSAR mission, with the remaining funding  
   to be used to fund commercial alternatives to the shuttle DTED mapping  
   mission if the NIMA Director determines that such alternatives are cost-
   and mission-effective, or to continue preparation for the shuttle       
   mission. The conferees also agree to authorize the budget request for   
   NIMA civilian personnel. The conferees direct the Director of NIMA to   
   submit the personnel plan specified in the House report (H. Rept. 105   
   132).                                                                   
................
                                  SUBTITLE F--OTHER MATTERS                       
................
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
................
                      Prohibition on use of Special Operations Command budget for  
           base operation support                                                  
       The House bill contained a provision (sec. 375) that would amend    
   section 167(f) of title 10, United States Code, to prohibit the use of  
   funds provided for the Special Operations Command for base operations   
   support expenses incurred at military installations.                    
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
       The conferees note that Congress established the Special Operations 
   Command, including a separate major force budget program (MFP 11), to   
   correct serious deficiencies in special operations capabilities and to  
   ensure special operations combat readiness. The conferees believe that  
   the regular practice of using MFP 11 funds for base operations support  
   would be in conflict with the original intent for these funds. However, 
   the conferees recognize the need to provide the Commander-in-Chief of   
   the Special Operations Command with the flexibility to use these funds  
   in this manner should the necessity arise. Therefore, the conference    
   agreement does not contain this provision. However, the conferees intend
   to monitor this issue closely to ensure that MFP 11 funds are used in a 
   manner consistent with the intentions of Congress and agree to revisit  
   the issue should the need arise.    
...............
               SUBTITLE D--DEPARTMENT OF DEFENSE INTELLIGENCE-RELATED MATTERS     
                     Transfer of certain military department programs from TIARA  
           budget aggregation (sec. 931)                                           
       The Senate amendment contained a provision (sec. 904) that would    
   transfer specified programs from the Tactical Intelligence and Related  
   Activities (TIARA) aggregation to other accounts of the military services.                                                      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would: (1) retain the      
   directed TIARA program transfers as specified in the original Senate    
   provision; (2) require an assessment by the Secretary of Defense as to  
   the adequacy and currency of current criteria for judging which programs
   belong in the TIARA aggregation; and (3) provide the Secretary with     
   discretion to defer any directed transfer based on the outcome of his   
   assessment.                                                             
                      Report on coordination of access of commanders and deployed  
           units to intelligence collected and analyzed by the intelligence        
           community (sec. 932)                                                    
       The Senate amendment contained a provision (sec. 1061) that would   
   require the Secretary of Defense to report to the Congress regarding the
   specific steps taken or that are being taken to ensure adequate         
   coordination of operational intelligence support for combatant          
   commanders and deployed units.                                          
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
                      Protection of imagery, imagery intelligence, and geospatial  
           information and data (sec. 933)                                         
       The Senate amendment contained a provision (sec. 1062) that would   
   amend sections 455 and 467 of title 10, United States Code, to clarify  
   the authority of the Secretary of Defense to permit selective releases  
   of geospatial information representing little military value while      
   protecting the most sensitive information.                              
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           POW/MIA intelligence analysis (sec. 934)                                
       The Senate amendment contained a provision (sec. 1067) that would   
   direct the Director of Central Intelligence, in consultation with the   
   Secretary of Defense, to provide intelligence analytical support on     
   matter concerning missing persons to all departments and agencies of the
   Federal Government involved in such matters.                            
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
...............
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
...............
           Center for the Study of Chinese Military Affairs                        
       The House bill contained a provision (sec. 904) that would require  
   the Department of Defense to establish a Center for the Study of Chinese
   Military Affairs.                                                       
    The Senate amendment contained no similar provision.                   
    The House recedes.   
...............
                      Principal duty of Assistant Secretary of Defense for Special 
           Operations and Low Intensity Conflict                                   
       The Senate amendment contained a provision (sec. 901) that would    
   revise the original legislation concerning the principal duty of the    
   Assistant Secretary of Defense for Special Operations and Low Intensity 
   Conflict to put the emphasis on the Assistant Secretary's supervision of
   the budgetary, development, and acquisition activities of the Commander 
   in Chief of the Special Operations Command.                             
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
       The conferees are aware that the Secretary of Defense has           
   established a Task Force on Defense Reform that is, inter alia, focusing
   on the reform of the Office of the Secretary of Defense (OSD). In       
   another section, the conference agreement would require the Secretary of
   Defense to submit the Task Force's report with the comments and         
   recommendations of the Secretary of Defense to the Committee on Armed   
   Services of the Senate and the Committee on National Security of the    
   House of Representatives. The conferees believe that any changes to the 
   duties of senior OSD officials should take into account the             
   recommendations contained in that report.                               
................                                                  
                                TITLE X--GENERAL PROVISIONS                       
................                                                  
                               LEGISLATIVE PROVISIONS ADOPTED                     
                                SUBTITLE A--FINANCIAL MATTERS                     
................                                                  
           Incorporation of classified annex (sec. 1002)                           
       The House bill contained a provision (sec. 1002) that would         
   incorporate the classified annex prepared by the Committee on National  
   Security into this act.                                                 
    The Senate amendment contained no similar provision.                   
       The Senate recedes with a technical amendment providing that the    
   classified annex prepared by the committee of conference is incorporated
   into this act.                           
................
                           SUBTITLE B--NAVAL VESSELS AND SHIPYARDS                
................
                     Authority to enter into a long-term charter for a vessel in  
           support of the Surveillance Towed-Array Sensor (SURTASS) program (sec.  
           1022)                                                                   
       The House bill contained a provision (sec. 1022) that would         
   authorize the Secretary of the Navy to enter into a contract in         
   accordance with section 2401 of title 10, United States Code, for the   
   charter of the vessel RV CORY CHOUEST through fiscal year 2003 in       
   support of the SURTASS program.                                         
       The Senate amendment contained a provision (sec. 1011) that would   
   authorize the Navy to enter into a long-term lease for a vessel to      
   support the surveillance towed array sensor and low frequency active    
   programs through fiscal year 2004.                                      
    The Senate recedes.                                                    
................
                             SUBTITLE C--COUNTER-DRUG ACTIVITIES                  
       The budget request for drug interdiction and other counter-drug     
   activities of the Department of Defense totals $808.6 million. That     
   amount includes the $652.6 million in the drug interdiction account and 
   $156.0 million in the operating budgets of the military services for    
   authorized counter-drug operations. These amounts compare with the      
   $957.4 million authorized for these activities during fiscal year 1997; 
   $796.5 million for the drug interdiction account and $160.9 million in  
   the services' operating budgets. The reduction of $148.8 million equates
   to a real decline of 17.5 percent after accounting for inflation. The   
   conferees recommend an additional $14.3 million for the counter-drug    
   activities of the Department of Defense.                                
Drug Interdiction & Counter-drug Activities Operations and Maintenance  
          (In thousands of dollars; may not add due to rounding)                  
          Fiscal Year 1998 Drug and Counterdrug Request                $808,588
          Source Nation Support                183,031
          Detection and Monitoring                238,149
          Disruption of Drug Mafia Organizations                54,306
          Law Enforcement Agency                249,864
          Demand Reduction               83,238
    Increases:                                                             
          Riverine Interdiction Initiative                $4,200
          Gulf States Counterdrug Initiative                4,100
          Multi-Jurisdictional Task Force                1,000
          Southwest Border Fence Project                5,000
          Recommendation                 $822,888
          Ongoing initiatives                                                     
       In fiscal year 1997, the Congress authorized additional funding for 
   three counter-drug initiatives: the Mexico-Southwest Border Initiative; 
   the Caribbean and South American Initiative; and the Domestic           
   Counter-Narcotics Initiative. These initiatives were intended to provide
   enhanced capabilities to stem the flow of drugs into the United States  
   and disrupt narcotics operations within our own borders.                
       Although, the conferees are pleased with the initial progress that  
   has been made with these initiatives, the conferees are concerned about 
   the early difficulties in fulfilling some of the goals of the           
   Mexico-Southwest Border Initiative. Due to the delay caused by these    
   difficulties, the administration has requested an extension of the      
   authority to provide assistance to the Government of Mexico. That       
   authority was originally provided for a single year with the            
   understanding that future support would be provided from funds available
   to the Department of State pursuant to the Foreign Assistance Act of    
   1961. Unfortunately, the administration failed to provide the necessary 
   funds within the fiscal year 1998 budget request of the Department of   
   State. If it is the intent of the administration to turn such           
   international counter-drug activities of the United States over to the  
   Department of Defense for execution, the conferees believe that this    
   intent should be demonstrated within the budget request by shifting     
   funds from the State Department's counternarcotics budget to that of the
   Department of Defense. However, because the conferees understand the    
   value of this particular assistance and the need to explore all         
   available options to stem the flow of drugs across the Southwest border,
   the conferees agree to a provision (sec. 1032), that would extend for   
   one year the authority to provide additional support for counter-drug   
   activities of the government of Mexico. The total amount of support     
   provided pursuant to this authority would be limited to $8.0 million for
   the two year period from fiscal year 1997 to 1998. In providing this    
   support, the Secretary of Defense would be required to consult with the 
   Secretary of State.                                                     
       The conferees continue to support the Gulf States Counter-drug      
   Initiative (GSCI) and are pleased to note that the budget request       
   included $3.4 million for this program. However, the conferees are      
   concerned that this funding level does not adequately cover the costs   
   for required software maintenance, training, and network support.       
   Therefore, the conferees agree to authorize an increase of $4.1 million 
   to fund these activities.                                               
       The conferees agree to authorize an additional $1.0 million for the 
   Multi-Jurisdictional Task Force and an additional $5.0 million for      
   border fence construction.                                              
           Riverine interdiction initiative                                        
       The conferees agree to authorize an increase of $4.2 million to the 
   Department's counterdrug program for riverine operations and include a  
   provision (sec. 1033), that would grant a five year authorization to the
   Secretary of Defense, in consultation with the Secretary of State, to   
   assist the Peruvian and Colombian governments with the acquisition of   
   the requisite equipment to actively engage riverine counter-drug        
   activities. The amount of support that could be provided pursuant to    
   this authority would be limited to $9.0 million in fiscal year 1998 and 
   $20.0 million during any of the fiscal years 1999 through 2002. Funds   
   would be restricted from initial obligation until 60 days after the     
   Secretary of Defense, in consultation with the Secretary of State,      
   submits a detailed riverine counter-drug plan to congressional defense  
   committees. The Secretary would also be required to submit any revisions
   to this plan before obligating any funds for this initiative in the     
   subsequent years.                                                       
       The conferees direct the Department of Defense, in coordination with
   other federal agencies involved in counter-narcotic activities, to      
   develop an integrated regional plan to establish a riverine program that
   can be sustained by the source nations at the end of the five-year      
   period. The Department would be required to provide the details of this 
   plan to the Committees on Armed Services and Foreign Relations          
   of the Senate and the Committees on National Security and     
   International Relations of the House of Representatives before any      
   assistance is provided pursuant to this authority. This plan would      
   provide details as to how the riverine program fits into the overall    
   national drug strategy.                                                 
                     Use of National Guard for State drug interdiction and        
           counterdrug activities (sec. 1031)                                      
       The House bill contained a provision (sec. 1031) that would amend   
   section 112 of title 32, United States Code, to prohibit the use of     
   counter-drug funding for National Guard Civil-Military Activities.      
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would ensure that National
   Guard participation in counter-drug activities is directly related to   
   military training and readiness in accordance with section 2012(d) of   
   title 10, United States Code, and could support youth and charitable    
   organizations designated as eligible to receive such support by section 
   508 of title 32, United States Code. In addition, the provision would   
   direct the Secretary of Defense to submit an annual report to           
   congressional defense committees regarding the assistance provided, and 
   activities conducted, under State drug interdiction and counter-drug    
   activities plan.                                                        
                      Authority to provide additional support for counter-drug     
           activities of the Government of Mexico (sec. 1032)                      
       The Senate amendment contained a provision (sec. 1021) that would   
   extend for one year the authority to provide additional support for     
   counterdrug activities of the Government of Mexico.                     
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would extend for one year  
   the authority to provide additional support for counter-drug activities 
   of the Government of Mexico. The total amount of support provided       
   pursuant to this authority would be limited to $8.0 million for the two 
   year period from fiscal year 1997 to 1998. In providing this support,   
   the Secretary of Defense would be required to consult with the Secretary
   of State.                                                               
                      Authority to provide additional support for counter-drug     
           activities of Peru and Colombia (sec. 1033)                             
       The Senate amendment contained a provision (sec. 1022) which would  
   grant a five year authorization to the Secretary of Defense to assist   
   the Peruvian and Colombian governments with the acquisition of the      
   requisite equipment to actively engage in the Riverine Operations.      
    The House bill contained no similar provision.                         
       The House recedes with an amendment that would grant a five year    
   authorization to the Secretary of Defense, in consultation with the     
   Secretary of State, to assist the Peruvian and Colombian governments    
   with the acquisition of the requisite equipment to actively engage      
   riverine counter-drug activities. The amount of support that could be   
   provided pursuant to this authority would be limited to $9.0 million in 
   fiscal year 1998 and $20.0 million during any of the fiscal years 1999  
   through 2002.                                                           
                      Annual report on development and deployment of narcotics     
           detection technology (sec. 1034)                                        
       The House bill contained a provision (sec. 1033) that would require 
   the Director of the Office of National Drug Control Policy to submit a  
   report to the Congress and the President regarding the development and  
   deployment of narcotics detection technologies by federal agencies.     
    The Senate amendment contained no similar provision.                   
    The Senate recedes. 
 ...........   
                          SUBTITLE E--MATTERS RELATING TO TERRORISM               
                      Oversight of counterterrorism and antiterrorism programs and 
           activities of the United States (sec. 1051)                             
       The House bill contained a provision (sec. 1064) that would direct  
   the Office of Management and Budget to establish a reporting system and 
   collect information from executive agencies on their counterterrorism   
   and antiterrorism programs, activities, budgets, and expenditures; to   
   provide a report on executive branch activities and programs from 1995  
   through 1997 and submit the information to Congress. The provision would
   also require an annual report to Congress on this information.          
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would modify the          
   requirement to report to Congress on executive branch activities and    
   programs from 1995 through 1997, and require an annual report on        
   prospective U.S. government counterterrorism and antiterrorism          
   activities, programs, budgets, and expenditures.                        
                      Report on policies and practices relating to the protection  
           of members of the armed forces abroad from terrorist attack (sec. 1052) 
       The House bill contained a provision (sec. 1043) that would require 
   the Secretary of Defense to report on antiterrorism activities and      
   programs of the Department of Defense, to include a description of the  
   various programs, deficiencies in the programs, and actions taken by the
   Secretary to improve implementation of those programs.                  
       The Senate amendment contained two provisions regarding the policies
   and practices of the Department of Defense (DOD) in protecting members  
   of the armed forces against terrorist attack; one provision (sec. 1043) 
   that would require the Secretary of Defense to submit a report to       
   Congress that would assess the policies and practices of the Department 
   to protect U.S. Armed Forces from terrorist attack and assess the       
   procedures for determining accountability in the chain of command in the
   event a terrorist incident results in loss of life at a U.S. military facility  
   abroad; another provision (sec. 1053) that would direct the Secretary of
   Defense to take appropriate actions to ensure that units of the U.S.    
   Armed Forces engaged in peace operations have adequate troop protection 
   equipment for such operations.                                          
       The conferees agree to a single provision that would direct the     
   Secretary of Defense to take appropriate actions to ensure that U.S.    
   Armed Forces engaged in peace operations have the necessary equipment to
   adequately protect themselves; would direct the Secretary to designate a
   DOD official with responsibility for oversight of troop protection      
   equipment; would require the Secretary of Defense to submit a report to 
   Congress on antiterrorism programs and actions conducted by DOD, and the
   roles of the chain of command in providing force protection guidance and
   support to U.S. Armed Forces deployed overseas before and after the two 
   terrorist bombings against U.S. Armed Forces in Saudi Arabia in 1995 and
   1996.                                                                   
              
 ...........                                                
                                  SUBTITLE G--OTHER MATTERS                       
 ...........   
                             LEGISLATIVE PROVISIONS NOT ADOPTED                   
 ...........   
                     Assignment of Department of Defense personnel to assist      
           immigration and naturalization service and custom service               
       The House bill contained a provision (sec. 1032) that would         
   authorize the Secretary of Defense to assign up to 10,000 U.S. military 
   personnel to assist the Immigration and Naturalization Service and the  
   U.S. Customs Service in their border enforcement duties at the request  
   of the Attorney General or the Secretary of the Treasury.               
    The Senate amendment contained no similar provision.                   
    The House recedes.                                                     
                      Repeal of annual report requirement relating to training of  
           special operations forces with friendly foreign forces                  
       The House bill contained a provision (sec. 1042) that would amend   
   section 2011 of title 10, United States Code, to repeal the requirement 
   that the Department of Defense prepare an annual report relating to     
   training of U.S. Special Operations Forces with the forces              
   of friendly foreign governments.                                        
    The Senate bill contained no similar provision.                        
    The House recedes.                                                     
 ...........   
                      Protection of employees from retaliation for certain         
           disclosures of classified information                                   
       The Senate amendment contained a provision (sec. 1068) that would   
   amend the Whistleblower Protection Act to protect certain government    
   employees from reprisal for disclosing classified information to certain
   members or employees of Congress in the course of providing evidence of 
   violations of law or other wrongdoing.                                  
    The House bill contained no similar provision.                         
    The Senate recedes.                                                    
      The conferees note that existing law prohibits reprisals against    
   covered employees for disclosing information--whether classified or     
   not--to the Congress, if that information relates to violations of law  
   or regulation, gross mismanagement or waste, abuses of authority, or    
   dangers to public health or safety. The conferees direct the Secretary  
   of Defense to report to the Committee on Armed Services of the Senate   
   and the Committee on National Security of the House of Representatives  
   not later than March 1, 1998, on the following:                         
       (1) the mechanisms presently in law or regulation under which       
   federal or contractor employees may report violations of law, fraud,    
   waste, or abuse to the Congress or within the executive branch where    
   classified information is involved;                                     
       (2) the steps the Department of Defense has taken to ensure that    
   such employees are aware of those mechanisms; and                       
       (3) the protections in effect in law or regulation to ensure that   
   the employees who use these mechanisms are protected against reprisal.  
                   
..............
                                  SUBTITLE C--OTHER MATTERS                       
..............
                      Report on future military capabilities and strategy of the   
           People's Republic of China (sec. 1226)                                  
       The House bill contained a provision (sec. 1203) that would require 
   the Department of Defense to prepare an assessment of the               
   future military capabilities and strategy of the People's     
   Republic of China.                                                      
    The Senate amendment contained no similar provision.                   
    The Senate recedes with a clarifying amendment.                        
                      Sense of Congress on need for Russian openness on the        
           Yamantau Mountain Project (sec. 1227)                                   
       The House bill contained a provision (sec. 1209) that would express 
   the sense of Congress for the need for more openness on the part of the 
   Russian government on the purpose of a massive underground facility at  
   Yamantau Mountain.                                                      
    The Senate amendment did not contain a similar provision.              
    The Senate recedes with a clarifying amendment.                        
       The United States and Russia have been working to establish a new   
   strategic relationship based on cooperation and openness, which has     
   resulted in the conclusion of several far-reaching arms control         
   agreements designed to further reduce bilateral threats and to limit the
   proliferation of weapons of mass destruction. Despite good faith efforts
   on both sides to comply with the letter and spirit of these agreements, 
   the conferees are concerned about reports that a massive underground    
   facility is currently under construction at Yamantau Mountain. In       
   seeking answers to questions about the purpose of the project at        
   Yamantau Mountain, it appears that the Russian Federation has           
   deliberately misled the United States about the purpose of this facility
   on a number of occasions. The facility appears to be designed to survive
   a nuclear war and appears to exceed reasonable defense requirements.    
       The Russian Federation has offered numerous stories about the       
   construction activities at Yamantau Mountain and the city of Mezhgorye  
   and the purpose of such activities. In 1991 and 1992, the commandant of 
   Beloretsk-15 and Beloretsk-16, People's Deputy Leonid A. Tskirkunov told
   two stories about these activities. First, he said they were building a 
   mining and ore-processing complex. Later, he changed that explanation to
   one of constructing an underground food and clothing warehouse. In 1992,
   a former communist official in the region, M.Z. Shakiorov, alleged that 
   the Russian Federation was building a shelter for its national          
   leadership, in case of war.                                             
       In 1996, sources from the Russian newspaper Segodnya claimed that   
   the facility was associated with a nuclear retaliatory command and      
   control system for strategic missiles known as ``Dead Hand.'' This claim
   was denied by General Igor Sergeyev, the Commander-in-Chief of the      
   Strategic Rocket Forces. In that same year, a Deputy of the State       
   Assembly, R. Zhukov, claimed the facility at Yamantau Mountain belonged 
   to the ``atomic scientists.''                                           
       The United States has learned that Russia's 1997 budget lists the   
   Yamantau Mountain project as a Ministry of Defense installation on a    
   closed territory. However, First Deputy of Defense Andre Kokoshin denied
   Ministry of Defense involvement with the activity.                      
       The conferees are concerned that the Russian Federation should be   
   more forthcoming in providing the United States with more information on
   the Yamantau Mountain Project. The sense of Congress expressed the need 
   for the Federation to provide the United States with a detailed         
   explanation of the purpose of the Yamantau Mountain Project, and that   
   the Russian Government allow the United States Delegations to visit the 
   facility, and facilities in the southern and northern settlements       
   located near Yamantau.                                                  
                      Assessment of the Cuban threat to United States national     
           security (sec. 1228)                                                    
       The Senate amendment contained a provision (sec. 1046) that would   
   require the Department of Defense to submit a report on an assessment of
   the threat posed by Cuba to U.S. national security.                     
    The House bill contained no similar provision.                         
    The House recedes with a clarifying amendment.                         
           Report on Helsinki Joint Statement (sec. 1229)                          
       The Senate amendment contained a provision (sec. 1045) that would   
   require the President to submit a report to Congress on the agreement   
   reached by the United States and the Russian Federation on future       
   reductions in nuclear forces and the United States approach to          
   implementing the Helsinki Joint Statement, to include verification      
   implications.                                                           
    The House bill contained no similar provision.                         
    The House recedes.                                                     
................
                              TITLE XXVIII--GENERAL PROVISIONS                    
                               LEGISLATIVE PROVISIONS ADOPTED                     
..........
..........
                      Prohibition against conveyance of property at Long Beach     
           Naval Station to China Ocean Shipping Company (sec. 2826)               
       The House bill contained a provision (sec. 2822) that would prohibit
   the Secretary of Defense from conveying, by sale, lease, or other       
   method, any portion of real property to be disposed under the Defense   
   Base Closure and Realignment Act of 1990 (part A of title XXIX of Public
   Law 101 510) to a state-owned shipping company. The section would also  
   preclude the Secretary, as a condition on each conveyance of real       
   property, from subsequently conveying the property to a state-owned     
   shipping company. The section would provide for a reversionary interest 
   of the United States in such property in the event of a conveyance to,  
   or use by, a state-owned shipping company.                              
    The Senate amendment contained no similar provision.                   
       The Senate recedes with an amendment that would specify that the    
   Secretary of Navy may not convey property at the former Naval Station,  
   Long Beach, California under the Defense Base Closure and Realignment   
   Act of 1990 (part A of title XXIX of Public Law 101 510) to the China   
   Ocean Shipping Company (COSCO) or any successor of the company. The     
   section would also preclude the Secretary, as a condition on each       
   conveyance of real property, from subsequently conveying that property  
   to that company. The section would provide for a reversionary interest  
   of the United States in such property in the event of a conveyance to,  
   or use by, COSCO. The provision would require the Secretary of Defense  
   and the Director of the Federal Bureau of Investigations to separately  
   prepare a report on the potential national security implications of     
   transferring the property to COSCO. It would also include the authority 
   for the President to waive the restriction if it is determined that the 
   transfer would not adversely impact national security or significantly  
   increase the counter intelligence burden on the United States           
   intelligence community. The waiver would be effective 30 days after the 
   President notifies the Speaker of the House and the President of the    
   Senate.     
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