PAYMENTS-IN-KIND FOR RELEASE OF UNITED STATES OVERSEAS MILITARY FACILITIES TO NATO HOST COUNTRIES.

SEC. 1305. PAYMENTS-IN-KIND FOR RELEASE OF UNITED STATES OVERSEAS MILITARY FACILITIES TO NATO HOST COUNTRIES. (a) Findings.— Congress makes the following findings: (1) The United States has invested $6,500,000,000 in military infrastructure in North Atlantic Treaty Organization (NATO) countries. (2) As part of an overall plan to reduce United States troop strength overseas, the Department of Defense plans to close, or reduce United States military presence at, 867 military sites outside the United States. (3) Most of the military sites outside the United States announced for closure are in Europe, where the United States has already closed 434 such sites while carrying out a reduction in troop strength in Europe from 323,432 in 1987 to approximately 100,000 by the end of fiscal year 1996. (4) When the United States closes military sites in Europe, it leaves buildings, roads, sewers, and other real property improvements behind. (5) Some of the European NATO allies have agreed to pay the United States for the residual value of the real property improvements left behind. (6) Although the United States military drawdown has been rapid since 1990, European allies have been slow to pay the United States the residual value of the sites released by the United States. 108 STAT. 2891 (7) As of 1994, the United States has recouped only $33,300,000 in cash, most of which was recovered in 1989. (8) Although the United States has released to Germany over 60 percent of the military sites planned for closure by the United States in that country and the current value of United States facilities to be returned to the German government is estimated at approximately $2,700,000,000, the German government has budgeted only $25,000,000 for fiscal year 1994 for payment of compensation for the United States investment in those facilities. (b) Policy.— It is the sense of Congress that— (1) the President should redouble efforts to recover the value of the United States investment in the military infrastructure in NATO countries; (2) the President should enter into negotiations with the government of each NATO host country with a presumption that payments to compensate the United States for the negotiated value of improvements will be made in cash and deposited in the Department of Defense Overseas Military Facility Investment Recovery Account; (3) the President should enter into negotiations for payments-in-kind only as a last resort and only after informing the Congress that negotiations for cash payments have not been successful; and (4) to the extent that in-kind contributions are received in lieu of cash payments in any fiscal year, the in-kind contributions should be used for projects that are identified priorities of the Department of Defense. (c) Requirements and Limitations Relating to Payments-in-Kind.— (1) Subsection (e) of section 2921 of the National Defense Authorization Act for Fiscal Year 1991 (10 U.S.C. 2687 note) is amended— (A) by inserting “(1)” after “Negotiations for Payments-in-Kind.—”; (B) by striking out “a written notice” and all that follows and inserting in lieu thereof “to the appropriate congressional committees a written notice regarding the intended negotiations.”; and (C) by adding at the end the following new paragraphs: “(2) The notice shall contain the following: “(A) A justification for entering into negotiations for payments-in-kind with the host country. “(B) The types of benefit options to be pursued by the Secretary in the negotiations. “(C) A discussion of the adjustments that are intended to be made in the future-years defense program or in the budget of the Department of Defense for the fiscal year in which the notice is submitted or the following fiscal year in order to reflect costs that it may no longer be necessary for the United States to incur as a result of the payments-in-kind to be sought in the negotiations. “(3) For purposes of this subsection, the appropriate congressional committees are— “(A) the Committee on Armed Services, the Committee on Appropriations, and the Defense Subcommittees of the Committee on Appropriations of the House of Representatives; and 108 STAT. 2892 “(B) the Committee on Armed Services, the Committee on Appropriations, and the Defense Subcommittees of the Committee on Appropriations of the Senate.”. (2) Such section is further amended by adding at the end the following new subsection: “(h) Congressional Oversight of Payments-In-Kind.— (1) Not less than 30 days before concluding an agreement for acceptance of military construction or facility improvements as a payment-in-kind, the Secretary of Defense shall submit to Congress a notification on the proposed agreement. Any such notification shall contain the following: “(A) A description of the military construction project or facility improvement project, as the case may be. “(B) A certification that the project is needed by United States forces. “(C) An explanation of how the project will aid in the achievement of the mission of those forces. “(D) A certification that, if the project were to be carried out by the Department of Defense, appropriations would be necessary for the project and it would be necessary to provide for the project in the next future-years defense program. “(2) Not less than 30 days before concluding an agreement for acceptance of host nation support or host nation payment of operating costs of United States forces as a payment-in-kind, the Secretary of Defense shall submit to Congress a notification on the proposed agreement. Any such notification shall contain the following: “(A) A description of each activity to be covered by the payment-in-kind. “(B) A certification that the costs to be covered by the payment-in-kind are included in the budget of one or more of the military departments or that it will otherwise be necessary to provide for payment of such costs in a budget of one or more of the military departments. “(C) A certification that, unless the payment-in-kind is accepted or funds are appropriated for payment of such costs, the military mission of the United States forces with respect to the host nation concerned will be adversely affected.”.