; and (B) shall include each item on the list of approved items compiled by the Secretary of Defense pursuant to section 2(b)(4). (3) Exception The Secretary of State may exclude an item from the list described in paragraph (1)(A) if the Secretary of State submits to the appropriate congressional committees a determination that the costs of providing such items, including the potential costs of technology slippage, exceeds the costs to the United States of failing to arm Taiwan with such items, including the likelihood of being drawn into conflict with the People’s Republic of China. (4) Rule of construction The list compiled pursuant to section 2(b)(4) shall not be construed as limiting the type, timing, or quantity of items that may be requested by, or sold to, Taiwan under the Foreign Military Sales program. (5) Final determination of disputes The Department of Defense shall serve as the lead Federal agency for purposes of making final determinations when disputes arise between agencies about the appropriateness of specific items for sale to Taiwan. (b) Prioritized processing of Foreign Military Sales requests from Taiwan (1) Requirement The Secretary of Defense and the Secretary of State shall prioritize and expedite the processing of requests from Taiwan under the Foreign Military Sales program, and may not delay the processing of requests for bundling purposes. (2) Duration The requirement under paragraph (1) shall continue until the Secretary of Defense determines and certifies to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives that the threat to Taiwan has significantly abated. (3) Annual report Not later than 180 days after the date of the enactment of this Act, and annually thereafter for 10 years, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report describing steps taken to implement the requirement under paragraph (1). (c)