ANNUAL NET ASSESSMENTS

SEC. 731. ANNUAL NET ASSESSMENTS Section 113(j) of title 10, United States Code, is amended— (1) by inserting “(1)” after “(j)”; (2) by striking out the second sentence; and (3) by adding at the end the following: “(2) Each such report shall— “(A) include a comparison of the defense capabilities and programs of the armed forces of the United States and its allies with the armed forces of potential adversaries of the United States and allies of the United States; “(B) include an examination of the trends experienced in those capabilities and programs during the five years immediately preceding the year in which the report is transmitted and an examination of the expected trends in those capabilities 102 STAT. 2004and programs during the five years covered by the Five-Year Defense Program submitted to Congress during that year pursuant to section 114(g) of this title; “(C) reflect, in the overall assessment and in the strategic and regional assessments, the defense capabilities and programs of the armed forces of the United States specified in the budget submitted to Congress under section 1105 of title 31 in the year in which the report is submitted and in the five-year defense program submitted in such year; and “(D) identify the deficiencies in the defense capabilities of the armed forces of the United States in such budget and such five-year defense program. “(3) The Secretary shall transmit to Congress the report required for each year under paragraph (1) at the same time that the President submits the budget to Congress under section 1105 of title 31 in that year. Such report shall be transmitted in both classified and unclassified form.”.