security cooperation that strengthens joint capabilities, enhances the ability to share information and technology safely, and integrates defense industrial bases and supply chains will contribute to the security of each nation as well as peace and stability in the Indo-Pacific region. 3. Australia, United Kingdom, and United States submarine security activities (a) Authorization To transfer submarines (1) In general Subject to paragraph (6), the President may transfer not more than two Virginia class submarines from the inventory of the Navy to the Government of Australia on a sale basis under section 21 of the Arms Export Control Act ( 22 U.S.C. 2761 ). (2) Costs of transfer Any expense incurred by the United States in connection with the transfer authorized by this subsection shall be charged to the Government of Australia. (3) Waiver of certification requirement The requirement for the Chief of Naval Operations to make a certification under section 8678 of title 10, United States Code, shall not apply to a transfer under this subsection. (4) Use of funds The Secretary of the Navy may use the proceeds of a transfer under this subsection— (A) for the acquisition of vessels to replace the vessels transferred to the Government of Australia