§ 2344. Methods of payment for acquisitions and transfers by the United States

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1980

   North Atlantic Treaty Organization Mutual Support Act of 1979

   Pub. L. 96–323 § 2(a) · 94 Stat. 1016

   Enacted · 10 U.S.C. § 2344

   Added Pub. L. 96–323, § 2(a), Aug. 4, 1980, 94 Stat. 1017, § 2324

   Source evidence

   Code source credit
   Added Pub. L. 96–323, § 2(a), Aug. 4, 1980, 94 Stat. 1017, § 2324

   Enacted provision · exact public law section
   (a) Title 10, United States Code, is amended by inserting after chapter 137 the following new chapter: “CHAPTER 138— NORTH ATLANTIC TREATY ORGANIZATION ACQUISITION AND CROSS-SERVICING AGREEMENTS “Sec. “2321. Authority to acquire logistic support, supplies, and services for United States armed forces in Europe. “2322. Cross-servicing agreements. “2323. Law applicable to acquisition and cross-servicing agreements. “2324. Methods of payment for acquisitions and transfers by the United States. “2325. Liquidation of accrued credits and liabilities. “2326. Crediting of receipts. “2327. Limitation on amounts that may be obligated or accrued by the United States. “2328. Inventories of supplies not to be increased. “2329. Regulations. “2330. Annual reports. “2331. Definitions. “§2321. Authority to acquire logistic support, supplies, and services for United States armed forces in Europe “Subject to section 2323 of this title and subject to the availability of appropriations, the Secretary of Defense may acquire from the Governments of North Atlantic Treaty Organization countries and from North Atlantic Treaty Organization subsidiary bodies logistic support, supplies, and services for elements of the armed forces deployed in Europe and adjacent waters. “§2322. Cross-servicing agreements “Subject to section 2323 of this title and to the availability of appropriations, and after consultation with the Secretary of State, the Secretary of Defense may enter into agreements with the Government of any North Atlantic Treaty Organization country and with any North Atlantic Treaty Organization subsidiary body under which the United States agrees to provide logistic support, supplies, and services to military forces of such country or subsidiary body deployed in Europe and adjacent waters in return for the reciprocal provision of logistic support, supplies, and services by such country or subsidiary body to elements of the armed forces deployed in Europe and adjacent waters. “§2323. Law applicable to acquisition and cross-servicing agreements “(a) Except as provided in subsection (b), acquisition of logistic support, supplies, and services under section 2321 of this title and agreements entered into under section 2322 of this title shall be made in accordance with chapter 137 of this title and the provisions of this 10 USC 2301 et seq. chapter. “(b) Sections 2207, 2304(g), 2306(a), 2306(b), 2306(e), 2306(f), and 2313 of this title, section 3741 of the Revised Statutes (41 U.S.C. 22), and 10 USC 2207, 2304, 2306, 2313. section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 2168) shall not apply to acquisitions made under the authority of section 2321 of this title or to agreements entered into under section 2322 of this title. “§2324. Methods of payment for acquisitions and transfers by the United States “(a) Logistics support, supplies, and services may be acquired or transferred by the United States under the authority of this chapter on a reimbursement basis or by replacement-in-kind or exchange of supplies or services of an identical or substantially identical nature. “(b) (1) In entering into agreements with the Government of Reciprocal pricing principles. another North Atlantic Treaty Organization country for the acquisition or transfer of logistic support, supplies, and services on a reimbursement basis, the Secretary of Defense shall negotiate for adoption of the following pricing principles for reciprocal application: “(A) The price charged by a supplying country for logistics support, supplies, and services specifically procured by the supplying country from its contractors for a recipient country shall be no less favorable than the price for identical items or services charged by such contractors to the armed forces of the supplying country, taking into account price differentials due to delivery schedules, points of delivery, and other similar considerations. “(B) The price charged a recipient country for supplies furnished by a supplying country from its inventory, and the price charged a recipient country for logistics support and services furnished by the officers, employees, or governmental agencies of a supplying country, shall be the same as the price charged for identical supplies, support, or services acquired by an armed force of the supplying country from such governmental sources. “(2) To the extent that the Secretary of Defense is unable to obtain mutual acceptance by the other country involved of the reciprocal pricing principles for reimbursable transactions set forth in paragraph (1)— “(A) the United States may not acquire from such country any logistic support, supply, or service not governed by such reciprocal pricing principles unless the United States forces commander acquiring such support, supply, or service determines (after price analysis) that the price thereof is fair and reasonable; and “(B) transfers by the United States to such country under this Act of any logistic support, supply, or service that is not governed by such reciprocal pricing principles shall be subject to the pricing provisions of the Arms Export Control Act (22 U.S.C. 2751 et seq.). “(3) To the extent that indirect costs (including charges for plant Waiver. and production equipment), administrative surcharges, and contract administration costs with respect to any North Atlantic Treaty Organization country are not waived by operation of the reciprocal pricing principles of paragraph (1), the Secretary of Defense may, on a reciprocal basis, agree to waive such costs. “(4) The pricing principles set forth in paragraph (2) and the waiver authority provided in paragraph (3) shall also apply to agreements with North Atlantic Treaty Organization subsidiary bodies under this chapter. “§ 2325. Liquidation of accrued credits and liabilities “Credits and liabilities of the United States accrued as a result of acquisitions and transfers of logistic support, supplies, and services under the authority of this chapter shall be liquidated not less often than once every three months by direct payment to the entity supplying such support, supplies, or services by the entity receiving such support, supplies, or services. “§2326. Crediting of receipts “Any receipt of the United States as a result of an agreement entered into under this chapter shall be credited to applicable appropriations, accounts, and funds of the Department of Defense. “§2327. Limitation on amounts that may be obligated or accrued by the United States “(a) Except during a period of active hostilities involving the North Atlantic Treaty Organization, the total amount of reimbursable liabilities that the United States may accrue under this chapter (before the computation of offsetting balances) may not exceed $100,000,000 in any fiscal year, and of such amount not more than $25,000,000 in liabilities may be accrued for the acquisition of supplies (other than petroleum, oils, and lubricants). “(b) Except during a period of active hostilities involving the North Atlantic Treaty Organization, the total amount of reimbursable credits that the United States may accrue under this chapter (before the computation of offsetting balances) may not exceed $100,000,000 in any fiscal year. “§ 2328. Inventories of supplies not to be increased “Inventories of supplies for elements of the armed forces may not be increased for the purpose of transferring supplies under the authority of this Act to military forces of any North Atlantic Treaty Organization country or any North Atlantic Treaty Organization subsidiary body. “§2329. Regulations Copies, transmittal to Congress. “The Secretary of Defense shall prescribe regulations to implement this chapter and shall, not later than sixty days before the effective date of such regulations, transmit copies of such regulations to the Congress. No agreement to make an acquisition or transfer under the authority provided by this chapter may be entered into until such regulations take effect. “§2330. Annual reports Submittal to Congress. “The Secretary of Defense shall submit to the Congress not later than February 1 of each year a report containing— “(1) a description of each agreement entered into under the authority of this chapter that was in effect during the fiscal year preceding the fiscal year in which such report is submitted; “(2) a report of the dollar value of each reimbursable acquisition or transfer of logistic support, supplies, or services by the United States (by appropriation, account, or fund) during such fiscal year under each such agreement; “(3) a report of nonreimbursable acquisitions and transfers of logistic support and services by the United States (by appropriation, account, and fund) during such fiscal year under each such agreement; and “(4) a description of each agreement entered into (or expected to be entered into) under the authority of this chapter that is expected to be in effect during the fiscal year in which such report is submitted, together with a report of the estimated total dollar value of acquisitions and transfers by the United States (by appropriation, account, or fund) expected to be made during such fiscal year under each such agreement. “§2331. Definitions “In this chapter: “(1) ‘Logistic support, supplies, and services’ means food, billeting, transportation, petroleum, oils, lubricants, clothing, communications services, medical services, ammunition, base operations support (and construction incident to base operations support), storage services, use of facilities, training services, spare parts and components, repair and maintenance services, and port services. “(2) ‘North Atlantic Treaty Organization subsidiary bodies’ means— “(A) any organization within the meaning of the term ‘subsidiary bodies’ in article I of the multilateral treaty on the Status of the North Atlantic Treaty Organisation, National Representatives and International Staff, signed at Ottawa on September 20, 1951 (TIAS 2992; 5 UST1087); and “(B) any international military headquarters or organization to which the Protocol on the Status of International Military Headquarters Set Up Pursuant to the North Atlantic Treaty, signed at Paris on August 28, 1952 (TIAS 2978; 5 UST 870), applies.”.

2. 1981

   Defense Officer Personnel Management Act Technical Corrections Act

   Pub. L. 97–22 § 11(a)(8) · 95 Stat. 124

   Substituted · 10 U.S.C. § 2344(b)(2)(B)

   Pub. L. 97–22 substituted “this chapter” for “this Act”

   Source evidence

   Code amendment note
   Subsec. (b)(2)(B). Pub. L. 97–22 substituted “this chapter” for “this Act”.

   Enacted provision · exact public law section
   (8) Sections 2324(b)(2)(B) and 2328 are amended by striking out “this Act” and inserting in lieu thereof “this chapter”.

3. 1985

   Department of Defense Authorization Act, 1986

   Pub. L. 99–145 title XIII § 1304(a)(1) · 99 Stat. 583

   Changed · 10 U.S.C. § 2344

   Pub. L. 99–145 renumbered section 2324 of this title as this section

   Source evidence

   Code amendment note
   Pub. L. 99–145 renumbered section 2324 of this title as this section.

   Enacted provision · exact public law section
   (1) Sections 2321, 2322, 2323 (as amended by section 961(b)), 98 Stat. 2597, 2598. 10 USC 2324–2328. Repeal. 10 USC 2330, 2331. 2324, 2325, 2326, 2327, and 2328 are redesignated as sections 2341 through 2348, respectively.

4. 1986

   Department of Defense Authorization Act, 1987

   Pub. L. 99–661 div. A title XI § 1104(b) · 100 Stat. 3816

   Inserted · 10 U.S.C. § 2344(b)(1); 10 U.S.C. § 2344(b)(3)

   Pub. L. 99–661 inserted “or other foreign country” after “country”

   Source evidence

   Code amendment note
   Subsec. (b)(1), (3). Pub. L. 99–661 inserted “or other foreign country” after “country”.

   Enacted provision · exact public law section
   (b) 10 USC 2344. Methods of Payment.— Section 2344(b) of such title is amended— (1) by inserting “or other foreign country” after “country” in the material preceding subparagraph (A) of paragraph (1); and (2) by inserting “or other foreign country” in paragraph (3) after “country”.

5. 1989

   National Defense Authorization Act for Fiscal Years 1990 and 1991

   Pub. L. 101–189 div. A title IX · 103 Stat. 1352

   1. Substituted · 10 U.S.C. § 2344(a)

      Pub. L. 101–189, §§ 931(e)(1), 938(a), substituted “equal value” for “identical or substantially identical nature”

   2. Substituted · 10 U.S.C. § 2344(a)

      Pub. L. 101–189, §§ 931(e)(1), 938(a), substituted “this subchapter” for “this chapter”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 101–189, §§ 931(e)(1), 938(a), substituted “equal value” for “identical or substantially identical nature” and “this subchapter” for “this chapter”.

   Enacted provision · exact public law
   TITLE IX— MATTERS RELATING TO NATO MEMBER NATIONS AND OTHER ALLIES Part A— Conventional Force Reductions in Europe SEC. 901. FRAMEWORK FOR DETERMINING CONVENTIONAL FORCE REQUIREMENTS IN A CHANGING THREAT ENVIRONMENT (a) Evaluation of Effect of Warsaw Pact Reductions and of Possible CFE Agreement.— The Secretary of Defense shall submit Reports. to the congressional defense committees a report providing the Secretary’s evaluation of the effect upon requirements of the United States for conventional forces and for military spending that could be anticipated under the following assumptions: (1) The full implementation of the unilateral force reductions Union of Soviet Socialist Republics. in, and subsequent reorganization of, forces of the Soviet Union described by the President of the Soviet Union on December 7, 1988, and the unilateral force reductions subsequently announced by the other members of the Warsaw Pact. (2) Entry into force of a conventional arms control agreement establishing rough parity in conventional forces in Europe be-tween forces of the North Atlantic Treaty Organization and the Warsaw Pact at equal levels (at approximately 85 to 90 percent of NATO’s current inventory) of tanks, artillery, armored troop carriers, combat helicopters, and land-based combat aircraft. (b) Matters To Be Included in Evaluation.— In carrying out the evaluation required by subsection (a) of the unilateral force reductions referred to in paragraph (1) of that subsection and the potential effect of an agreement referred to in paragraph (2) of that subsection, the Secretary shall include in the evaluation (at a minimum) the following (stated for both the near-term and mid-term): (1) An assessment of the threat to NATO under the assumptions specified in each of paragraphs (1) and (2) of subsection (a). (2) The effect on the defense strategy of the United States for meeting its NATO commitments in the changing threat environment, including the effect on the ability of NATO to defend against an attack by the Warsaw Pact (A) on short warning, or (B) during a crisis in Europe. (3) The effect on— (A) the mix of active and reserve forces of the United States; (B) the ratio of (i) conventional forces of the United States deployed in the European theater, to (ii) conventional forces of the United States deployed in the continental United States; and (C) air and sea lift requirements. (3) The effect on operational military concepts of the United States and NATO (such as Follow-on Forces Attack (FOFA), AirLand Battle, Maritime Strategy, and Rapid Reinforcement) that were initially developed to counter the large advantage of the Warsaw Pact in conventional land forces in the European theater. (4) The effect on equipment requirements of the United States for meeting its commitments to NATO in the 1990s. (c) Time for Submission.— The report required by subsection (a) shall be submitted concurrently with the submission to Congress of the President’s budget for fiscal year 1991 pursuant to section 1105 of title 31, United States Code. The report shall be submitted in both classified and unclassified form. SEC. 902. IMPLICATIONS OF MUTUAL REDUCTIONS IN CONVENTIONAL FORCES IN EUROPE BY NATO AND WARSAW PACT MEMBER NATIONS (a) Commendation of President’s Conventional Arms Reduction Initiative.— Congress commends and supports the President’s conventional arms control initiative announced in Brussels on May 29, 1989, in which the President proposed, and the North Atlantic Treaty Organization (NATO) agreed, that NATO expand its negotiating position at the negotiations on reductions in conventional forces in Europe (begun in Vienna on March 9, 1989, and known as the “CPE Talks”) to include— (1) substantial reductions by each side to equal ceilings of helicopters and combat aircraft; and (2) a reduction to a common ceiling of United States military personnel stationed in Western Europe and Soviet military personnel stationed in Eastern Europe. (b) Presidential Report.— (1) Not later than six months after the date of the enactment of this Act, the President shall submit to Congress an unclassified report, with classified annexes as necessary, on the foreign policy and military implications to NATO and to the Warsaw Pact of significant reductions of conventional forces by NATO and Warsaw Pact countries to a ceiling which is the same for both sides. (2) The report shall address possible force reduction scenarios for a second round of CFE negotiations and shall be based upon two different assumptions with regard to the level of reductions in personnel and equipment to be made. Under the first assumption, personnel and equipment would be reduced to a level 25 percent below current NATO levels. Under the second assumption, personnel and equipment would be reduced to a level 50 percent below current NATO levels. (3) The report shall include the following: (A) A comprehensive net assessment of the current balance between NATO forces and Warsaw Pact forces and of the overall trends in that balance, including an assessment of the trends in active and reserve forces and in total equipment holdings in stationed and indigenous forces. (B) A description of the likely alternative force postures that could be adopted by member nations of both alliances (particularly by the United States and the Soviet Union) under each of the assumptions analyzed, together with a description of the possible effects of restructuring of both NATO and Warsaw Pact forces in Europe for defensive purposes. (C) A statement of the costs (or savings) to the United States, over at least a seven-year period, estimated to be associated with each force posture described under subparagraph (B), together with an analysis of how those costs (or savings) were determined. (D) An analysis of the implications for NATO strategy, security, and military policy under each of the reduction levels referred to in paragraph (2), including a net assessment of the resulting balance between NATO forces and Warsaw Pact forces. (E) An assessment of the effects under each of the reduction levels referred to in paragraph (2) (including the alternative force postures under each assumption) upon the stability of the conventional balance of forces in Europe. (F) An assessment of the ability of NATO to defend Europe under each of the assumed reduction levels in the event of an attack by the Warsaw Pact (i) on short warning, or (ii) during a crisis in Europe. (G) An assessment of the effects under each of the reduction levels referred to in paragraph (2) on— (i) the short-range nuclear force requirements of NATO; (ii) the requirements of the United States for POMCUS and war-reserve stocks; (iii) the requirements of NATO for airlift, and sealift based in the United States and for reinforcing units from the United States; and (iv) the ability of the United States to meet global military requirements. SEC. 903. REPORT ON VERIFICATION MEASURES FOR POSSIBLE CONVENTIONAL ARMS CONTROL AGREEMENT (a) Report.— The President shall submit to Congress a report on President of U.S. the types of measures that would be required to verify the proposal for reductions in conventional forces in Europe adopted by the member nations of the North Atlantic Treaty Organization (NATO) on May 30, 1989. (b) Matters To Be Included in Report.— The President shall include in the report under subsection (a) the following: (1) A discussion of the types of information that it would be necessary for the parties to such an agreement to exchange for such verification. (2) A discussion of the range of options under consideration by the executive branch for defining what constitutes a militarily significant violation of a conventional arms control agreement. (3) A description of the national technical means, on-site inspections, and other cooperative measures that would be necessary to detect violations of such an agreement, including— (A) an analysis of the measures that would be required to monitor (i) the withdrawal and demobilization of military personnel, and (ii) the withdrawal and (if required by the agreement) the destruction of military equipment provided for in any such agreement; and (B) the President’s judgment on those on-site inspections and confidence building measures under consideration that are the most acceptable, and the least acceptable, to the NATO alliance and the Warsaw Pact, including an assessment of the counterintelligence aspects of such measures for NATO. (4) A discussion of the procedures the NATO alliance would follow in the event of a violation of such an agreement by a member of the Warsaw Treaty Organization. (c) Data Base Analysis.— (1) The report under subsection (a) shall also include a comprehensive analysis of— (A) the uncertainties in the data bases to be used by United States intelligence with respect to the military forces of NATO member nations and Warsaw Pact member nations located in the proposed areas of reduction; (B) the uncertainties in the estimates of the trends in such forces; and (C) the differences in the data bases and counting rules used by the United States, the allies of the United States, and the Warsaw Pact member nations. (2) The analysis under paragraph (1) shall address separately the uncertainties in the estimates of each of the following: (A) Active forces. (B) Reserve forces. (C) Equipment subject to reductions and ceilings. (D) Indigenous farces. (E) Stationed forces. (d) Submission of Report.— The report required by subsection (a) shall be submitted not later than March 1, 1990. The report shall include such comments and recommendations as the President determines appropriate. The report shall be submitted in both classified and unclassified versions. Part B— Burden Sharing SEC. 911. REDUCTION IN AUTHORIZED END STRENGTH FOR THE NUMBER OF MILITARY PERSONNEL IN EUROPE (a) Reduction Required.— Section 1002(c)(1) of the Department of Defense Authorization Act, 1985 (22 U.S.C. 1928 note), is amended by striking out “326,414” and inserting in lieu thereof “311,855”. (b) Effective Date.— The amendment made by subsection (a) 22 USC 1928 note. shall take effect on September 30, 1991. SEC. 912. ACTIVE-DUTY FORCES IN EUROPE OF MEMBER NATIONS OF NATO (a) Findings.— Congress makes the following findings: (1) Member nations of the North Atlantic Treaty Organization (NATO), at the initiative of the President, have presented to the nations of the Warsaw Pact a comprehensive proposal concerning reductions in conventional forces in Europe for consideration in the negotiations on Conventional Armed Forces in Europe (CFE). (2) An agreement based on that proposal would significantly enhance security and stability in Europe and the cause of peace worldwide. (3) Irrespective of developments in the CFE negotiations, several member nations of NATO are considering making significant unilateral reductions over the next several years in the number of their active-duty forces in Europe. (4) Such unilateral reductions in active-duty forces before an agreement on CFE enters into force would— (A) undercut efforts by NATO to improve its conventional defense posture in Europe, increase reliance by NATO on the threat of the early use of nuclear weapons to deter aggression, and undermine the NATO arms control negotiating posture in the CFE negotiations; and (B) exacerbate longstanding burdensharing tensions among member nations of NATO. (5) Despite shifts in relative economic power from the United States to some of the major allies of the United States, the costs of mutual defense continue to be borne disproportionately by the United States. (6) Adjustments in burdensharing are long overdue. (b) Definitions.— For purposes of this section: (1) The term “active-duty forces in Europe” means those active-duty military personnel assigned to permanent duty ashore in European member nations of NATO, except that such term does not include INF-related forces. (2) The term “INF-related forces” means those active-duty military personnel assigned to permanent duty ashore in European member nations of NATO who are to be demobilized or withdrawn from Europe as a result of the elimination of the intermediate-range nuclear weapons of the United States pursuant to the Treaty between the United States of America and the Union of Soviet Socialist Republics on the Elimination of their Intermediate-range and Shorter-range Missiles, signed on December 8, 1987 (commonly referred to as the “INF Treaty”). (3) The term “U.S. end-strength level in Europe” means the actual number of active-duty forces in Europe of the Armed Forces of the United States at the end of a fiscal year. (4) The term “allied forces end-strength level in Europe” means the actual number of active-duty forces in Europe of the armed forces of member nations of NATO (other than the United States) in Europe at the end of a fiscal year. (c) Baseline Report on Active-Duty Forces in Europe.— (1) Not later than 60 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives a report on the number of the active-duty forces in Europe of the member nations of NATO. The report shall identify the following (1) The U.S. end-strength level in Europe for fiscal year 1989. (2) The allied forces end-strength level in Europe for fiscal year 1989. (3) The actual number of active-duty forces in Europe of the armed forces of each member nation of NATO (other than the United States) at the end of fiscal year 1989. (4) The ratio (expressed in terms of a percentage) of— (A) the U.S. end-strength level in Europe; to (B) the allied forces end-strength level in Europe. (d) U.S.-Allied Forces Ratio.— (1) The ratio identified for fiscal year 1989 under subsection (c)(4) is hereinafter in this section referred to as the “baseline U.S.-allied forces ratio”. (2) The ratio identified in an annual report under subsection (e) is hereinafter in this section referred to as the “U.S.-allied forces ratio”. (e) Annual Report on Maintaining Active-Duty Forces in Europe.— (1) During each of the fiscal years 1991, 1992, and 1993, the Secretary of Defense shall prepare a report identifying for the preceding fiscal year the following: (A) The U.S. end-strength level in Europe for the fiscal year covered by the report. (B) The allied forces end-strength level in Europe for such fiscal year. (C) The ratio (expressed in terms of a percentage) of the U.S. end-strength level in Europe to the allied forces end-strength level in Europe for the fiscal year covered by the report. (2) The Secretary shall include in each such report the following: (A) A statement of whether there has been any change in the U.S.-allied forces ratio for such fiscal year compared with— (i) the baseline U.S.-allied forces ratio; and (ii) after fiscal year 1991, the U.S-allied forces ratio for the fiscal year immediately preceding the fiscal year covered by such report. (B) In the case of a change in the U.S.-allied forces ratio for such fiscal year, a description of the amount of such change and any explanation of the cause for such change. (C) A discussion of any action taken by the United States during such fiscal year to encourage member nations of NATO (other than the United States) to increase the number of their active-duty forces in Europe and the results of that action. (3)(A) Except as provided in subparagraph (B), the report required by paragraph (1) shall be submitted to the congressional defense committees, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives not later than April 1 of each fiscal year referred to in such paragraph. (8) The Secretary shall be considered to have complied with subparagraph (A) in a fiscal year if the Secretary includes the information required by paragraphs (1) and (2) in the report submit-ted in such year pursuant to section 1002(d)(2) of the Department of Defense Authorization Act, 1985 (22 U.S.C. 1928 note). (f) Limitation on Obligation of Funds.— (1) If the Secretary of Defense states in a report prepared under subsection (e) that the U.S.-allied forces ratio for the fiscal year covered by such report is greater than the baseline U.S.-allied forces ratio by more than one-tenth of one percentage point— (A) the President shall undertake appropriate diplomatic initiatives President of U.S. to persuade the member nations of NATO (other than the United States) to increase the number of their active-duty forces in Europe so that the U.S.-allied forces ratio no longer exceeds the baseline U.S. allied forces ratio; and (B) funds appropriated to or for the use of the Department of Defense may not be obligated or expended for the next fiscal year to support active-duty forces in Europe of the Armed Forces of the United States at an end-strength level that would cause the U.S-allied forces ratio in such fiscal year to exceed the baseline U.S.-allied forces ratio by more than one-tenth of one percentage point. (2) The President may waive the provisions of paragraph (1) if the President determines that such action is critical to the national security of the United States. The President shall immediately President of U.S. notify Congress of such a waiver and the reasons for such waiver. (3) Paragraph (1) shall not apply in the event of a declaration of war or an armed attack on any member nation of NATO or in the event that a comprehensive arms reduction agreement enters into force as a result of the negotiations on Conventional Armed Forces in Europe (CFE). (g) End-Strength Permanent Ceiling.— Nothing in this section shall be construed to permit the obligation or expenditure of funds to support an end-strength level of members of the Armed Forces of the United States assigned to permanent duty ashore in European member nations of NATO at any level in excess of the permanent ceiling specified in section 1002(c)(1) of the Department of Defense Authorization Act, 1985 (22 U.S.C. 1928 note). SEC. 911 CONTRIBUTIONS BY JAPAN TO GLOBAL SECURITY (a) Findings.— Congress finds— (1) that extraordinary political, economic, and social changes have occurred in Japan since World War II; and (2) that, as a result of such changes, Japan is capable of assuming increased responsibility for its own security. (b) Sense of Congress.— It is the sense of Congress that, in view of the changes referred to in subsection (a), Japan should— (1) assume increased responsibility for its own security; (2) offset the direct costs incurred by the United States in deploying military forces for the defense of Japan, including costs (other than pay and allowances) related to the presence of United States military personnel in Japan; and (3) make a contribution to the common defense that is more commensurate with its economic status by taking the following actions: (A) Increasing expenditures for its Official Development Assistance program and its defense programs so that, by 1992, the level of spending by Japan on those programs (stated as a percentage of gross national product) will approximate the average of the levels of spending by the member nations of the North Atlantic Treaty Organization (NATO) on official development assistance and defense programs (stated as a percentage of their respective gross national products). (B) Devoting any increase in its spending for such Official Development Assistance program primarily to the Republic of the Philippines and to countries in regions of importance to global stability outside of East Asia, particularly to countries in Latin America, the Caribbean area, and the Mediterranean area. (C) Devoting any increase in spending for that program primarily to untied grants and increasing the portion of total expenditures made in that program for those multilateral financial institutions of which Japan is a member. (D) Designating those nations that are to be recipients of increased development assistance referred to in subparagraphs (A) through (C) after consultation with Japan’s security partners. (E) Completing, after consultation with the United States, the 5-year defense program of Japan for fiscal years 1986 through 1990 and, at the earliest possible date after the completion of that program, fulfilling the pledge made by the Prime Minister of Japan in May 1981 to defend the territory, airspace, and sea lanes of Japan to a distance of 1,000 nautical miles. (F) Acquiring “off-the-shelf” military equipment from the United States (including completely equipped, long-range early warning aircraft, additional AEGIS weapon systems, refueling aircraft, munitions, and spare parts) in developing the capabilities called for in Japan’s current and subsequent 5-year defense programs. (c) Negotiations and Consultations.— At the earliest practicable date after the enactment of this Act, the President shall— (1) enter into negotiations with Japan for the purpose of achieving an agreement under which Japan agrees to make contributions sufficient in value to meet the direct cost of deploying United States forces for the defense of Japan; and (2) issue an invitation to the Government of Japan and other governments of Pacific allies of the United States to engage in annual multilateral consultations on security concerns, consistent with the constitutions and national defense requirements of the respective countries. (d) Reports.— (1) In order that Congress may determine whether further action is appropriate, not later than April 1, 1990, the President shall submit to the congressional committees described in paragraph (3) an initial report on the status and results of— (A) the negotiations with Japan referred to in subsection (c)(1); and (B) the invitation required under subsection (c)(2), including any consultations resulting from such invitation. (2) Not later than one year after the date of the enactment of this Act, the President shall submit to such congressional committees a second report on the status and results of the matters referred to in paragraph (1). (3) The congressional committees referred to in this subsection are the congressional defense committees, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives. SEC. 914. REPORT ON COSTS ASSOCIATED WITH OVERSEAS DEPENDENTS (a) Report Required.— The Secretary of Defense shall submit a report to the Committees on Armed Services of the Senate and House of Representatives on practicable options available to the Department of Defense to reduce costs associated with maintaining overseas— (1) dependents of members of the Armed Forces; and (2) dependents of civilian employees of the Department of Defense. (b) Elements of Repost.— In preparing the report required by subsection (a), the Secretary shall specifically address, at a minimum, the following: (1) Whether expansion of incentives for unaccompanied tours of duty overseas would be effective in increasing the number of such tours and whether such an expansion of incentives would be cost effective. (2) Whether more frequent rotation of overseas personnel without dependents would result in overall savings as compared to current rotation practices. (3) Whether an increase in the use of local contractors at overseas stations to provide services currently being provided by Department of Defense personnel would result in overall savings to the United States. (4) The cost implications for United States families at over-seas stations resulting from an increase in the use of local contractors. (5) Whether costs associated with the support of overseas dependents would change from a reduction in personnel under a conventional forces in Europe (CFE) agreement. (6) Whether the granting of fewer exceptions to the length of overseas duty tours would reduce permanent change of station costs. (7) The extent to which overseas facilities could be consolidated and centralized to reduce administrative and overhead costs. (8) The extent to which reductions in family support services at overseas stations could be made without materially affecting the standard of living of the personnel assigned to duty at such stations. (9) Whether reductions in overseas family support costs would likely result in increased costs in programs in the United States. (10) The extent to which dependents would be likely to accompany members of the Armed Forces and civilian employees of the Department of Defense to overseas stations in the absence of each of the various types of special assistance and benefits currently provided to overseas dependents. (11) The effect that a reduction or termination of the various types of the special assistance and benefits for overseas dependents would have on combat readiness, morale, and retention. (b) Time for Submission.— The report required by subsection (a) shall be submitted not later than February 1, 1990. SEC. 915. UNITED STATES-REPUBLIC OF KOREA SECURITY RELATION-SHIP AND OTHER SECURITY MATTERS IN EAST ASIA (a) Findings.— Congress makes the following findings: (1) Since the end of the Korean conflict, the Republic of Korea has made tremendous progress in rebuilding its economic and military strength. (2) Despite this progress, an indigenous military balance has not yet been achieved on the Korean peninsula, and the Democratic People’s Republic of Korea continues to pose a serious threat to the security of the Republic of Korea. (3) The alliance between the United States and the Republic of Korea has contributed greatly to the security of both countries. (4) The Republic of Korea has dedicated a large share of its national resources to its security, as shown by the fact that defense expenditures comprise approximately one-third of the national budget of the Republic of Korea. (5) The United States has contributed a large amount of national resources, including approximately 44,000 military personnel, to protecting the security interests that it shares with the Republic of Korea. (6) The presence of United States military personnel in the Republic of Korea contributes to the preservation of peace on the Korean peninsula, serves as a military deterrent, and is a tangible manifestation of the commitment of the United States to the defense of the Republic of Korea. (7) In accordance with its obligations under the 1954 Mutual Defense Treaty with the Republic of Korea, the United States remains committed to the security and territorial integrity of the Republic of Korea. (b) Sense of Congress on the United States-Republic of Korea Security Relationship.— (1) It is the sense of Congress that— (A) the United States should review the missions, force structure, and locations of its military forces in the Republic of Korea and East Asia; (B) the Republic of Korea should assume increased responsibility for its own security; (C) the Republic of Korea should offset more of the direct costs incurred by the United States in deploying military forces for the defense of the Republic of Korea; and (D) the United States and the Republic of Korea should consult on the feasibility and desirability of partial, gradual reductions of United States military forces in the Republic of Korea. (2) In order that Congress may determine whether further action is appropriate, not later than April 1, 1990, the President shall submit to the congressional committees described in subsection (d) an initial report on the status and results of any consultations held by the United States and the Republic of Korea on the matter referred to in paragraph (1)(D). (3) Not later than one year after the date of the enactment of this Act, the President shall submit to such congressional committees a second report on the status and results of the consultations referred to in paragraph (1)(D). (c) Report on Military Presence in East Asia.— (1) Not later than April 1, 1990, the President shall submit to the congressional committees described in subsection (d) a report on the military presence of the United States in East Asia, including the Republic of Korea. The President shall include in such report a strategic plan relating to the continued United States military presence in East Asia. (2) The report required by this subsection shall specifically include the following: (A) An assessment of the implications of recent developments People’s Republic of China. in the Soviet Union and the People’s Republic of China for United States and allied security planning in East Asia. (B) Identification of any changes in the missions, force structure, and locations of United States forces in East Asia that could strengthen the capabilities of such forces and lower the costs of maintaining such forces. (C) A discussion of ways in which increased defense responsibilities and costs presently borne by the United States can be transferred to the allies of the United States in East Asia. (D) Identification of the additional actions that the Republic of Korea can take to contribute more to its own security. (E) A discussion of the feasibility of restructuring United Japan. States military forces stationed in Okinawa with the objective of improving civil-military relations and increasing United States training opportunities. (F) A discussion of the status and prospects of negotiations Republic of the Philippines. between the United States and the Republic of the Philippines on the continued use of United States military installations in the Republic of the Philippines. (G) An assessment of whether a requirement still exists for a regional security role for United States forces stationed in the Republic of Korea. (3) The report required by this subsection shall also include a five-year plan with respect to the United States military presence in the Republic of Korea, including a discussion of the feasibility and desirability of the following: (A) Partial, gradual reductions in the number of United States military personnel stationed in the Republic of Korea. (B) Larger offsets by the Republic of Korea for the direct costs incurred by the United States in deploying military forces in defense of the Republic of Korea. (C) The relocation of United States military personnel and facilities within the Republic of Korea that can be made to reduce friction between such personnel and the people of the Republic of Korea. (D) Changes in the United Nations and United States-Republic of Korea bilateral command arrangements that would facilitate a transfer of certain military missions and command to the Republic of Korea. (E) Confidence-building measures that could be promoted in northeast Asia to lessen tensions in the region. (F) Additional actions the Republic of Korea could take to assume more responsibility for its own security. (d) Congressional Committees To Receive Reports.— The congressional committees referred to in this section are the congressional defense committees, the Committee on Foreign Relations of the Senate, and the Committee on Foreign Affairs of the House of Representatives. Part C— Expenditures in Europe SEC. 921. LIMITATION ON EXPENDITURES FOR RELOCATION OF FUNCTIONS LOCATED AT TORREJON AIR BASE. MADRID. SPAIN (a) Limitation.— During the period beginning on June 27, 1989, and ending on October 1, 1993, not more than $360,000,000 may be obligated or expended from funds available to the Department of Defense for the purpose of relocating functions of the Department of Defense located at Torrejon Air Base, Madrid, Spain, on June 15, 1989, to any other location outside the United States. (b) Counting of NATO Infrastructure Contributions.— For purposes of subsection (a), contributions for the North Atlantic Treaty Organization Infrastructure program pursuant to section 2806 of title 10, United States Code, that are used (directly or indirectly) for the purpose of relocations described in subsection (a) shall be included in determining the amount expended on such relocations. (c) Counting of Repayments for NATO Infrastructure Family Housing Commitments.— (1) All amounts which the United States is obligated to pay under a housing reimbursement agreement described in paragraph (2) shall be deemed to be amounts obligated for purposes of subsection (a), regardless of when the agreement is entered into or when payments pursuant to the agreement are to be made. (2) A housing reimbursement agreement for purposes of paragraph (1) is an agreement calling for the United States to make a series of annual payments as repayment for advances for the cost of construction, through the NATO Infrastructure program, of military family housing in connection with the relocations described in subsection (a). (d) Exclusion for Personnel Expenses.— There shall be excluded from the determination of amounts expended on relocations described in subsection (a) amounts spent for expenses associated with permanent change of station moves and other personnel-related expenses. SEC. 922. SENSE OF CONGRESS CONCERNING UNITED STATES MILITARY FACILITIES IN NATO MEMBER COUNTRIES (a) NATO Policy.— It is the sense of Congress that the North Atlantic Treaty Organization (NATO) should adopt as its policy the following views expressed by the North Atlantic Assembly in its 1987 report entitled “NATO in the 1990s”: (1) The member nations of NATO should examine further measures that could be taken to relieve the United States from the burdens of its military presence in Europe. (2) Such nations should consider the provision of base facilities for allied forces and equipment as a part of their national contributions to Western security. (3) Such nations should not expect compensation for providing facilities that the NATO alliance decides are essential to implement NATO security strategy. (4) All wealthier member nations of NATO should assist Portugal, Greece, and Turkey to ensure that NATO remains politically, economically, and militarily strong in its southern region as well as in its central and northern regions. (b) United States Payment for Use of Base Facilities in NATO Countries.— It is further the sense of Congress that the United States should not provide economic or security assistance to any NATO member nation as compensation or rent for the use of base facilities in that nation. Part D— Cooperative Agreements SEC. 931. CODIFICATION OF CERTAIN ALLIED COOPERATIVE AGREEMENTS STATUTES (a) Statutory Reorganization.— Chapter 138 of title 10, United States Code, is amended— (1) by striking out the chapter heading and inserting in lieu thereof the following: “CHAPTER 138— COOPERATIVE AGREEMENTS WITH NATO ALLIES AND OTHER COUNTRIES “Subchapter “I. Acquisition and Cross-Servicing Agreements “II. Other Cooperative Agreements “SUBCHAPTER I— ACQUISITION AND CROSS-SERVICING AGREEMENTS”; and (2) by adding at the end the following: “SUBCHAPTER II— OTHER COOPERATIVE AGREEMENTS “Sec. “2350a. Cooperative research and development projects: allied Countries. “2350b. Cooperative projects under Arms Export Control Act: acquisition of defense equipment “2350c. Cooperative military airlift agreements: allied countries. “2350d Cooperative logistic support agreements: NATO countries. “2350e. NATO Airborne Warning and Control System (AWACS) program: authority of Secretary of Defense. “2350f. Procurement of communications support and related supplies and services. “§ 2350a. Cooperative research and development projects: allied countries “(a) Authority To Engage in Cooperative R&D Projects.— The Secretary of Defense may enter into a memorandum of understanding (or other formal agreement) with one or more major allies of the United States for the purpose of conducting cooperative research and development projects on defense equipment and munitions. “(b) Requirement That Projects Improve Conventional Defense Capabilities.— (1) The Secretary of Defense may not enter into a memorandum of understanding (or other formal agreement) to conduct a cooperative research and development project under this section unless the Secretary determines that the proposed project will improve, through the application of emerging technology, the conventional defense capabilities of the North Atlantic Treaty Organization (NATO) or the common conventional defense capabilities of the United States and its major non-NATO allies. “(2) The authority of the Secretary to make a determination under paragraph (1) may only be delegated to the Deputy Secretary of Defense or the Under Secretary of Defense for Acquisition. “(c) Cost Sharing.— Each cooperative research and development project entered into under this section shall require sharing of the costs of the project between the participants on an equitable basis. “(d) Restrictions on Procurement of Equipment and Services.— (1) In order to assure substantial participation on the part of the major allies of the United States in cooperative research and development projects, funds made available for such projects may not be used to procure equipment or services from any foreign government, foreign research organization, or other foreign entity. “(2) A major ally of the United States may not use any military or economic assistance grant, loan, or other funds provided by the United States for the purpose of making that ally’s contribution to a cooperative research and development program entered into with the United States under this section. “(e) Cooperative Opportunities Document.— (1) (A) In order to ensure that opportunities to conduct cooperative research and development projects are considered at an early point during the formal development review process of the Department of Defense in connection with any planned project of the Department, the Under Secretary of Defense for Acquisition shall prepare an arms cooperation opportunities document with respect to that project for review by the Defense Acquisition Board at formal meetings of the Board. “(B) The Under Secretary shall also prepare an arms cooperation opportunities document for review of each new project for which a document known as a Mission Need Statement is prepared. “(2) An arms cooperation opportunities document referred to in paragraph (1) shall include the following: “(A) A statement indicating whether or not a project similar to the one under consideration by the Department of Defense is in development or production by one or more of the major allies of the United States. “(B) If a project similar to the one under consideration by the Department of Defense is in development or production by one or more major allies of the United States, an assessment by the Under Secretary of Defense for Acquisition as to whether that project could satisfy, or could be modified in scope so as to satisfy, the military requirements of the project of the United States under consideration by the Department of Defense. “(C) An assessment of the advantages and disadvantages with regard to program timing, developmental and life cycle costs, technology sharing, and Rationalization, Standardization, and Interoperability (RSI) of seeking to structure a cooperative development program with one or more major allies of the United States. “(D) The recommendation of the Under Secretary as to whether the Department of Defense should explore the feasibility and desirability of a cooperative development program with one or more major allies of the United States. “(f) Reports to Congress.— (1) Not later than March 1 of each year, the Under Secretary of Defense for Acquisition shall submit to the Speaker of the House of Representatives and the Committees on Armed Services and Appropriations of the Senate a report on cooperative research and development projects under this section. Each such report shall include— “(A) a description of the status, funding, and schedule of existing projects carried out under this section for which memo-randa of understanding (or other formal agreements) have been entered into; and “(B) a description of the purpose, funding, and schedule of any new projects proposed to be carried out under this section (including those projects for which memoranda of understanding (or other formal agreements) have not yet been entered into) for which funds have been included in the budget submitted to Congress pursuant to section 1105 of title 31 for the fiscal year following the fiscal year in which the report is submitted. “(2) The Secretary of Defense and the Secretary of State, when-ever they consider such action to be warranted, shall jointly submit to the Committees on Armed Services and Foreign Relations of the Senate and to the Committees on Armed Services and Foreign Affairs of the House of Representatives a report— “(A) enumerating those countries to be added to or deleted from the existing designation of countries designated as major non-NATO allies for purposes of this section; and “(B) specifying the criteria used in determining the eligibility of a country to be designated as a major non-NATO ally for purposes of this section. “(g) Side-by-Side Testing.— (1) It is the sense of Congress— “(A) that the Secretary of Defense should test conventional defense equipment, munitions, and technologies manufactured and developed by major allies of the United States to determine the ability of such equipment, munitions, and technologies to satisfy United States military requirements or to correct operational deficiencies; and “(B) that while the testing of nondevelopmental items and items in the late state of the development process are preferred, the testing of equipment, munitions, and technologies may be conducted to determine procurement alternatives. “(2) The Secretary of Defense may acquire equipment, munitions, and technologies of the type described in paragraph (1) for the purpose of conducting the testing described in that paragraph. “(3) The Deputy Director, Defense Research and Engineering (Test and Evaluation) shall notify the Speaker of the House of Representatives and the Committees on Armed Services and on Appropriations of the Senate of the Deputy Director’s intent to obligate funds made available to carry out this subsection not less than 30 days before such funds are obligated. “(4) The Secretary of Defense shall include in the annual report to Congress required by section 2457(d) of this title information on— “(A) the equipment, munitions, and technologies manufactured and developed by major allies of the United States that were evaluated under this subsection during the previous fiscal year; “(B) the obligation of any funds under this subsection during the previous fiscal year; and “(C) the equipment, munitions, and technologies that were tested under this subsection and procured during the previous fiscal year. “(h) Secretary To Encourage Similar Programs.— The Secretary of Defense shall encourage major allies of the United States to establish programs similar to the one provided for in this section. “(i) Definitions.— In this section: “(1) The term ‘cooperative research and development project’ means a project involving joint participation by the United States and one or more major allies of the United States under a memorandum of understanding (or other formal agreement) to carry out a joint research and development program— “(A) to develop new conventional defense equipment and munitions; or “(B) to modify existing military equipment to meet United States military requirements. “(2) The term ‘major ally of the United States’ means— “(A) a member nation of the North Atlantic Treaty Organization (other than the United States); or “(B) a major non-NATO ally. “(3) The term ‘major non-NATO ally’ means a country (other than a member nation of the North Atlantic Treaty Organization) that is designated as a major non-NATO ally for purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State.”. (b) Transfer of Existing Title 10 Sections.— (1) Section 2407 of title 10, United States Code (relating to acquisition of defense equipment under cooperative agreements), is transferred to the end of chapter 138 of such title (as amended by subsection (a)) and redesignated as section 2350b. (2) Section 2213 of such title (relating to cooperative military airlift agreements), is transferred to the end of chapter 138 of such title (as amended by paragraph (1)), redesignated as section 2350c, and amended in subsection (d) by striking out “chapter 138 of this title” and inserting in lieu thereof “subchapter I”. (c) Codification of Existing Non-Title 10 Section.— Chapter 138 of such title (as amended by subsection (b)) is further amended by adding at the end the following new section: “§ 2350d. Cooperative logistic support agreements: NATO countries “(a) General Authority.— (1) The Secretary of Defense may enter into bilateral or multilateral agreements known as Weapon System Partnership Agreements with one or more governments of other member countries of the North Atlantic Treaty Organization (NATO) participating in the operation of the NATO Maintenance and Supply Organization. Any such agreement shall be for the purpose of providing cooperative logistics support for the armed forces of the countries which are parties to the agreement. Any such agreement— “(A) shall be entered into pursuant to the terms of the charter of the NATO Maintenance and Supply Organization; and “(B) shall provide for the common logistic support of a specific weapon system common to the participating countries. “(2) Such an agreement may provide for— “(A) the transfer of logistics support, supplies, and services by the United States to the NATO Maintenance and Supply Organization; and “(B) the acquisition of logistics support, supplies, and services by the United States from that Organization. “(b) Authority of Secretary.— Under the terms of a Weapon System Partnership Agreement, the Secretary of Defense— “(1) may agree that the NATO Maintenance and Supply Organization may enter into contracts for supply and acquisition of logistics support in Europe for requirements of the United States, to the extent the Secretary determines that the procedures of such Organization governing such supply and acquisition are appropriate; and “(2) may share the costs of set-up charges of facilities for use by the NATO Maintenance and Supply Organization to provide cooperative logistics support and in the costs of establishing a revolving fund for initial acquisition and replenishment of supply stocks to be used by the NATO Maintenance and Supply Organization to provide cooperative logistics support. “(c) Sharing of Administrative Expenses.— Each Weapon System Partnership Agreement shall provide for joint management by the participating countries and for the equitable sharing of the administrative costs incident to the agreement. “(d) Application of Chapter 137.— Except as otherwise provided in this section, the provisions of chapter 137 of this title apply to a contract entered into by the Secretary of Defense for the acquisition of logistics support under a Weapon System Partnership Agreement. “(e) Application of Arms Export Control Act.— Any transfer of defense articles or defense services to a member country of the North Atlantic Treaty Organization or to the NATO Maintenance and Supply Organization for the purposes of a Weapon System Partnership Agreement shall be carried out in accordance with the Arms Export Control Act (22 U.S.C. 2751 et seq.). “(f) Supplemental Authority.— The authority of the Secretary of Defense under this section is in addition to the authority of the Secretary under subchapter I and any other provision of law.”. (d) Conforming Repeals.— The following provisions of law are repealed: (1) Section 1103 of the Department of Defense Authorization Act, 1980 (Public Law 99–145; 99 Stat. 713). 10 USC 2407 note. (2) Section 1102 and section 1105 of the National Defense Authorization Act for Fiscal Year 1987 (Public Law 99–661, 800 Stat. 3961, 3965). 10 USC 2407 note; 22 USC 2767a. (e) Conforming and Clerical Amendments.— (1) Sections 2342 through 2350 of title 10, United States Code, are amended by striking out “this chapter” each place it appears and inserting in lieu thereof “this subchapter”. (2) The items relating to chapter 138 in the table of chapters at the beginning of subtitle A, and at the beginning of part IV of subtitle A, of such title are amended to read as follows: “138. Cooperative Agreements with NATO Allies and Other Countries (3) The heading of section 2350b of such title (as redesignated by subsection (b)(1) is amended to read as follows: “§ 2350b. Cooperative projects under Arms Export Control Act: acquisition of defense equipment”. (4) The heading of section 2350c of such title (as redesignated by subsection (b)(2)) is amended to read as follows: “§ 2350c. Cooperative military airlift agreements; allied countries”. SEC. 932. EXTENSION AND CODIFICATION OF AUTHORITY PROVIDED THE SECRETARY OF DEFENSE IN CONNECTION WITH THE NATO AIRBORNE WARNING AND CONTROL SYSTEM (AWACS! PRO-GRAM (a) Extension and Codification.— (1) Chapter 138 of title 10, United States Code (as amended by section 931), is further amended by adding at the end the following new section: “§ 2350e. NATO Airborne Warning and Control System (AWACS) program: authority of Secretary of Defense “(a) Authority Under AWACS Program.— The Secretary of Defense, in carrying out an AWACS memorandum of understanding, may do the following: “(1) Waive reimbursement for the cost of the following functions performed by personnel other than personnel employed in the United States Air Force Airborne Warning and Control System (AWACS) program office: “(A) Auditing. “(B) Quality assurance. “(C) Codification. “(D) Inspection. “(E) Contract administration. “(F) Acceptance testing. “(G) Certification services. “(H) Planning, programming, and management services. “(2) Waive any surcharge for administrative services other-wise chargeable. “(3) In connection with that Program, assume contingent liability for— “(A) program losses resulting from the gross negligence of any contracting officer of the United States; “(B) identifiable taxes, customs duties, and other charges levied within the United States on the program; and “(C) the United States share of the unfunded termination liability. “(b) Contract Authority Limitation.— Authority under this section to enter into contracts shall be effective for any fiscal year only to such extent or in such amounts as are provided in appropriation Acts. “(c) Definition.— In this section, the term ‘AWACS memorandum of understanding’ means— “(1) the Multilateral Memorandum of Understanding Be-tween the North Atlantic Treaty Organization (NATO) Ministers of Defence on the NATO E-3A Cooperative Programme, signed by the Secretary of Defense on December 6, 1978; “(2) the Memorandum of Understanding for Operations and Support of the NATO Airborne Early Warning and Control Force, signed by the United States Ambassador to NATO on September 26, 1984; and “(3) any other follow-on support agreement for the NATO E-3A Cooperative Programme. “(d) Expiration.— The authority provided by this section expires on September 30, 1991.”. (b) Conforming Repeal.— Section 103 of the Department of Defense Authorization Act, 1982 (Public Law 97–86), is repealed. 10 USC 2407 note. SEC. 933. REVISION AND EXTENSION OF AUTHORITY FOR PROCUREMENT OF COMMUNICATIONS SUPPORT AND RELATED SUPPLIES AND SERVICES FROM OTHER NATIONS (a) Recodification of Section.— Section 2401a of title 10, United States Code, is transferred to the end of subchapter II of chapter 138 of such title, as added by section 931 and amended by section 932, and is redesignated as section 2350f. (b) Authority To Enter Into Bilateral and Multilateral Arrangements.— Subsection (a) of such section is amended— (1) by striking out “an arrangement with the Minister of Defense or other appropriate official of any allied country or with the North Atlantic Treaty Organization (NATO)” and inserting in lieu thereof “a bilateral arrangement with any allied country or allied international organization or may enter into a multilateral arrangement with allied countries and allied international organizations”; (2) by striking out “such country or NATO” and inserting in lieu thereof “the allied country or countries or allied inter-national organization or allied international organizations, as the case may be,”; and (3) by adding at the end the following new sentence: “The term of an arrangement entered into under this subsection may not exceed five years.”. (c) Liquidation of Credits and Liabilities.— Subsection (b) of such section is amended— (1) by inserting “(1)” after “(b)”; (2) by designating the second sentence as paragraph (3); (3) by inserting after the first sentence the following new sentence: “Liquidations may be made at such times as the parties in an arrangement may agree upon, but in no case may final liquidation in the case of an arrangement be made later than 30 days after the end of the term for which the arrangement was entered into.”; and (4) by inserting after paragraph (1), as designated by clause (1) of this subsection, the following new paragraph: “(2) Parties to an arrangement entered into under this section shall annually reconcile accrued credits and liabilities accruing under such agreement. Any liability of the United States resulting from a reconciliation shall be charged against the applicable appropriation available to the Department of Defense (at the time of the reconciliation) for obligation for communications support and related supplies and services.”. (d) Definitions.— Subsection (d) of such section is amended— (1) by striking out “In this section, the term ‘allied country’ means—” and inserting in lieu thereof “ In this section: “(1) The term ‘allied country’ means—”; (2) by redesignating clauses (1) and (2) as clauses (A) and (B), respectively; (3) by striking out “; or” at the end of clause (A), as redesignated by clause (2) of this subsection, and inserting in lieu thereof a semicolon; (4) by striking out the period at the end of clause (B), as redesignated by clause (2) of this subsection, and inserting in lieu thereof or”; and (5) by adding at the end the following: “(C) any other country designated as an allied country for purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State. “(2) The term ‘allied international organization’ means the North Atlantic Treaty Organization (NATO) or any other international organization designated as an allied international organization for the purposes of this section by the Secretary of Defense with the concurrence of the Secretary of State.”. (e) Clerical Amendment.— The table of sections at the beginning of chapter 141 of such title is amended by striking out the item relating to section 2401a. SEC 934. TWO-YEAR EXTENSION OF AUTHORITY TO PROVIDE EXCESS DEFENSE ARTICLES FOR THE MODERNIZATION OF DEFENSE CAPABILITIES OF COUNTRIES ON NATO SOUTHERN AND SOUTHEASTERN FLANKS Section 516(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(a)) is amended— (1) by striking out “during the fiscal years 1987, 1988, and 1989” in the first sentence and inserting in lieu thereof “during the fiscal years 1987 through 1991”; and (2) by adding at the end the following new sentence: “Transfers to recipient countries under this subsection shall be consistent with the policy framework for the Eastern Mediterranean region established in section 620C of this Act.”. SEC. 935. AUTHORITY FOR EXCHANGE TRAINING THROUGH SPECIFIED PROFESSIONAL MILITARY EDUCATION INSTITUTION OUTSIDE THE UNITED STATES (a) Authority.— The United States Army Russian Institute in Garmisch-Partenkirchen, Federal Republic of Germany, shall be treated for purposes of section 544 of the Foreign Assistance Act of 1961 (22 U.S.C. 2347c) as if it were located in the United States. (b) Expiration of Authority.— Subsection (a) shall cease to be in effect upon the enactment in foreign assistance authorizing legislation of an amendment to section 544 of the Foreign Assistance Act of 1961 that provides the same authority as is provided by subsection (a). SEC. 936. EXTENSION OF AUTHORITY TO PAY CERTAIN EXPENSES IN CONNECTION WITH BILATERAL AND REGIONAL COOPERATION PROGRAMS (a) Extension of Authority to Meetings, Etc., in Canada and Mexico.— Subsection (b)(1) of section 1051 of title 10, United States Code, is amended by inserting “or in connection with travel to Canada or Mexico” before the period at the end. (b) Three-Year Extension of Authority.— Subsection (g) of such section is amended by striking out “September 30, 1989” and inserting in lieu thereof “September 30, 1992”. SEC. 937. EXTENSION OF H–1 IMMIGRATION STATUS FOR CERTAIN NONIMMIGRANTS EMPLOYED IN COOPERATIVE RESEARCH AND DEVELOPMENT PROJECTS AND COPRODUCTION PROJECTS 8 USC 1101 note. The Attorney General shall provide for the extension through December 31, 1991, of nonimmigrant status under section 101(a)(15)(H)(i) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(15)(H)(i)) for an alien to perforin temporarily services relating to a cooperative research and development project or a coproduction project provided under a government-to-government agreement administered by the Secretary of Defense in the case of an alien who has had such status for a period of at least five years if such status has not expired as of the date of the enactment of this Act but would otherwise expire during 1989, 1990, or 1991, due only to the time limitations with respect to such status. SEC. 938. METHODS OF PAYMENT FOR ACQUISITIONS AND TRANSFERS BY THE UNITED STATES TO ALLIED COUNTRIES (a) Exchanges To Be for Supplies or Services of Identical Value.— Section 2344 of title 10, United States Code, is amended by striking out “identical or substantially identical nature” before the period at the end of subsection (a) and inserting in lieu thereof ‘equal value”. (b) Limitations on Exchanges.— Such section is further amended by adding at the end the following new subsection: “(c) In acquiring or transferring logistics support, supplies, or services under the authority of this chapter by exchange of supplies or services, the Secretary of Defense may not agree to or carry out the following: “(1) Transfers in exchange for property the acquisition of which by the Department of Defense is prohibited by law. “(2) Transfers of source, byproduct, or special nuclear mate-rials or any other material, article, data, or thing of value the transfer of which is subject to the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). “(3) Transfers of chemical munitions.”. (c) Application of Chapter 138.— Section 2350d(e) of title 10, United States Code, as enacted by section 931(c), is amended by inserting “this chapter and” after “in accordance with”.

6. 1989

   National Defense Authorization Act for Fiscal Years 1990 and 1991

   Pub. L. 101–189 § 931(e)(1) · 103 Stat. 1352

   Substituted · 10 U.S.C. § 2344(b)(2)(B); 10 U.S.C. § 2344(b)(2)(4)

   Pub. L. 101–189, § 931(e)(1), substituted “this subchapter” for “this chapter”

   Source evidence

   Code amendment note
   Subsec. (b)(2)(B), (4). Pub. L. 101–189, § 931(e)(1), substituted “this subchapter” for “this chapter”.

   Enacted provision · exact public law section
   (1) Sections 2342 through 2350 of title 10, United States Code, are amended by striking out “this chapter” each place it appears and inserting in lieu thereof “this subchapter”.

7. 1989

   National Defense Authorization Act for Fiscal Years 1990 and 1991

   Pub. L. 101–189 § 938(b) · 103 Stat. 1352

   Added · 10 U.S.C. § 2344(c)

   Pub. L. 101–189, § 938(b), added subsec. (c)

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 101–189, § 938(b), added subsec. (c).

   Enacted provision · exact public law section
   (b) Limitations on Exchanges.— Such section is further amended by adding at the end the following new subsection:

8. 1991

   Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991

   Pub. L. 102–25 title VII § 701(f)(2) · 105 Stat. 75

   Substituted · 10 U.S.C. § 2344(c)

   Pub. L. 102–25 substituted “subchapter” for “chapter” in introductory provisions

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 102–25 substituted “subchapter” for “chapter” in introductory provisions.

   Enacted provision · exact public law section
   (2) Section 2344(c) is amended by striking out “chapter” and inserting in lieu thereof “subchapter”.

9. 1994

   National Defense Authorization Act for Fiscal Year 1995

   Pub. L. 103–337 div. A title XIII § 1317(d) · 108 Stat. 2663

   Inserted · 10 U.S.C. § 2344(b)(4)

   Pub. L. 103–337 inserted “and the United Nations Organization or any regional international organization of which the United States is a member” after “subsidiary bodies”

   Source evidence

   Code amendment note
   Subsec. (b)(4). Pub. L. 103–337 inserted “and the United Nations Organization or any regional international organization of which the United States is a member” after “subsidiary bodies”.

   Enacted provision · exact public law section
   (d) Method of Payment for Acquisitions and Transfers by the United States.— Section 2344(b)(4) of such title is amended by inserting after “North Atlantic Treaty Organization subsidiary bodies” the following: “and the United Nations Organization or any regional international organization of which the United States is a member”.

   Effective date note
   Amendment by Pub. L. 103–337 applicable with regard to any acquisition or transfer of logistic support, supplies, and services under authority of this subchapter that is initiated after Oct. 5, 1994, see section 1317(j) of Pub. L. 103–337, set out as a note under section 2341 of this title.

10. 2006

    National Defense Authorization Act for Fiscal Year 2006

    Pub. L. 109–163 div. A title XII § 1204 · 119 Stat. 3136

    Struck · 10 U.S.C. § 2344(b)(4)

    Pub. L. 109–163 struck out “of which the United States is a member” before “under this subchapter”

    Source evidence

    Code amendment note
    Subsec. (b)(4). Pub. L. 109–163 struck out “of which the United States is a member” before “under this subchapter”.

    Enacted provision · exact public law section
    SEC. 1204. AUTHORITY FOR DEPARTMENT OF DEFENSE TO ENTER INTO ACQUISITION AND CROSS-SERVICING AGREEMENTS WITH REGIONAL ORGANIZATIONS OF WHICH THE UNITED STATES IS NOT A MEMBER.   Subchapter I of chapter 138 of title 10, United States Code, is amended by striking “of which the United States is a member” in sections 2341(1), 2342(a)(1)(C), and 2344(b)(4).

9 of 11 references resolved to an enrolled provision · 2 partial