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Title 22 — Foreign Relations and Intercourse

Part II · Chapter 32 — Foreign Assistance

§ 2311. General authority

Statutory text

(a)

Defense articles and services; noncombatant personnel; transfer of funds

The President is authorized to furnish military assistance, on such terms and conditions as he may determine, to any friendly country or international organization, the assisting of which the President finds will strengthen the security of the United States and promote world peace and which is otherwise eligible to receive such assistance, by—

(1)

acquiring for any source and providing (by loan or grant) any defense article or defense service;

(2)

assigning or detailing members of the Armed Forces of the United States and other personnel of the Department of Defense to perform duties of a noncombatant nature; or

(3)

transferring such of the funds appropriated or otherwise made available under this part as the President may determine for assistance to a recipient country, to the account in which funds for the procurement of defense articles and defense services under section 21 and section 22 of the Arms Export Control Act [22 U.S.C. 2761 and 2762] have been deposited for such recipient, to be merged with such deposited funds, and to be used solely to meet obligations of the recipient for payment for sales under that Act [22 U.S.C. 2751 et seq.].

Sales which are wholly paid from funds transferred under paragraph (3) or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act [22 U.S.C. 2763] shall be priced to exclude the costs of salaries of members of the Armed Forces of the United States (other than the Coast Guard).

(b)

Terms and conditions

In addition to such other terms and conditions as the President may determine pursuant to subsection (a), defense articles may be loaned thereunder only if—

(1)

there is a bona fide reason, other than the shortage of funds, for providing such articles on a loan basis rather than on a grant basis;

(2)

there is a reasonable expectation that such articles will be returned to the agency making the loan at the end of the loan period, unless the loan is then renewed;

(3)

the loan period is of fixed duration not exceeding five years, during which such article may be recalled for any reason by the United States;

(4)

the agency making the loan is reimbursed for the loan based on the amount charged to the appropriation for military assistance under subsection (c); and

(5)

the loan agreement provides that (A) if the defense article is damaged while on loan, the country or international organization to which it was loaned will reimburse the United States for the cost of restoring or replacing the defense article, and (B) if the defense article is lost or destroyed while on loan, the country or international organization to which it was loaned will pay to the United States an amount equal to the replacement cost (less any depreciation in the value) of the defense article.

(c)

Appropriation charges; exceptions

(1)

In the case of any loan of a defense article or defense service made under this section, there shall be a charge to the appropriation for military assistance for any fiscal year while the article or service is on loan in an amount based on—

(A)

the out-of-pocket expenses authorized to be incurred in connection with such loan during such fiscal year; and

(B)

the depreciation which occurs during such year while such article is on loan.

(2)

The provisions of this subsection shall not apply—

(A)

to any particular defense article or defense service which the United States Government agreed, prior to , to lend; and

(B)

to any defense article or defense service, or portion thereof, acquired with funds appropriated for military assistance under this chapter.

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. Pub. L. 87–195 · 75 Stat. 424

    Enacted · 22 U.S.C. § 2311

    Pub. L. 87–195, pt. II, § 503, Sept. 4, 1961, 75 Stat. 435

    Source evidence

    Code source credit
    Pub. L. 87–195, pt. II, § 503, Sept. 4, 1961, 75 Stat. 435

  2. Foreign Assistance Act of 1964

    Pub. L. 88–633 § 201(a) · 78 Stat. 1009

    Added · 22 U.S.C. § 2311(e)

    Pub. L. 88–633 added subsec. (e)

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 88–633 added subsec. (e).

    Enacted provision · exact public law section
    (a) Amend section 503, which relates to general authority, as 75 Stat. 435. 22 USC 2311. follows: (1) In subsection (c) strike out “and” at the end thereof and in subsection (d) strike out the period at the end thereof and substitute “; and”. (2) Add the following new subsection (e): “(e) guarantying, insuring, coinsuring, and reinsuring any individual, corporation, partnership, or other association doing business in the United States against political and credit risks of nonpayment arising in connection with credit sales financed by such individual, corporation, partnership or other association for defense articles and defense services procured in the United States by such friendly country or international organization.”

  3. Foreign Assistance Act of 1965

    Pub. L. 89–171 · 79 Stat. 653

    Struck · 22 U.S.C. § 2311(b)

    Pub. L. 89–171 struck out “in foreign countries” after “facilities”

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 89–171 struck out “in foreign countries” after “facilities”.

  4. Foreign Assistance Act of 1967

    Pub. L. 90–137 § 201(b)(1) · 81 Stat. 445

    Substituted · 22 U.S.C. § 2311(a)

    Pub. L. 90–137, § 201(b)(1), substituted “or grant” for “, lease, sale, exchange, grant, or any other means”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 90–137, § 201(b)(1), substituted “or grant” for “, lease, sale, exchange, grant, or any other means”.

    Enacted provision · exact public law section
    (1) Subsection (a) is amended by striking out “, lease, sale, exchange, grant, or any other means” and substituting “or grant”.

  5. Foreign Assistance Act of 1967

    Pub. L. 90–137 § 201(b)(2) · 81 Stat. 445

    Substituted · 22 U.S.C. § 2311(d)

    Pub. L. 90–137, § 201(b)(2), substituted a period for “; and”

    Source evidence

    Code amendment note
    Subsec. (d). Pub. L. 90–137, § 201(b)(2), substituted a period for “; and”.

    Enacted provision · exact public law section
    (2) Subsection (d) is amended by striking out “; and” and substituting a period.

  6. Foreign Assistance Act of 1967

    Pub. L. 90–137 § 201(b)(3) · 81 Stat. 445

    Struck · 22 U.S.C. § 2311(e)

    Pub. L. 90–137, § 201(b)(3), struck out subsec. (e) which related to the guaranty and insuring against political and credit risks in connection with credit sales for defense articles and services procured in the United States. See Codification note above

    Source evidence

    Code amendment note
    Subsec. (e). Pub. L. 90–137, § 201(b)(3), struck out subsec. (e) which related to the guaranty and insuring against political and credit risks in connection with credit sales for defense articles and services procured in the United States. See Codification note above.

    Enacted provision · exact public law section
    (3) Subsection (e) is amended as follows: (A) Subsection (e) is redesignated as section 525. (B) In such new section 525, strike out “guarantying, insuring, coinsuring, and reinsuring” and substitute “Guaranties.—(a) Until June 30, 1968, the President may guarantee, insure, coinsure, and reinsure”. (C) In such new section 525(a), strike out “such” the second place it appears and substitute “any”.

  7. Foreign Assistance Act of 1973

    Pub. L. 93–189 § 12(b)(1) · 87 Stat. 714

    1. Amended · 22 U.S.C. § 2311

      Pub. L. 93–189 designated existing provisions as subsec. (a)

    2. Struck · 22 U.S.C. § 2311

      Pub. L. 93–189 struck out references to making financial contributions to multilateral programs for the acquisition or construction of facilities for collective defense and providing financial assistance for expenses incident to participation by the United States government in regional or collective defense organizations

    3. Added · 22 U.S.C. § 2311

      Pub. L. 93–189 added subsecs. (b) and (c)

    Source evidence

    Code amendment note
    Pub. L. 93–189 designated existing provisions as subsec. (a), struck out references to making financial contributions to multilateral programs for the acquisition or construction of facilities for collective defense and providing financial assistance for expenses incident to participation by the United States government in regional or collective defense organizations, and added subsecs. (b) and (c).

    Enacted provision · exact public law section
    (1) Section 503 is amended to read as follows: “Sec. 503. General Authority.— (a) The President is authorized to furnish military assistance, on such terms and conditions as he may determine, to any friendly country or international organization, the assisting of which the President finds will strengthen the security of the United States and promote world peace and which is otherwise eligible to receive such assistance, by— “(1) acquiring from any source and providing (by loan or grant) any defense article or defense service; or “(2) assigning or detailing members of the Armed Forces of the United States and other personnel of the Department of Defense to perform duties of a noncombatant nature. “(b) In addition to such other terms and conditions as the President may determine pursuant to subsection (a), defense articles may be loaned thereunder only if— “(1) there is a bona fide reason, other than the shortage of funds, for providing such articles on a loan basis rather than on a grant basis; “(2) there is a reasonable expectation that such articles will be returned to the agency making the loan at the end of the loan period, unless the loan is then renewed; “(3) the loan period is of fixed duration not exceeding five years, during which such article may be recalled for any reason by the United States; “(4) the agency making the loan is reimbursed for the loan based on the amount charged to the appropriation for military assistance under subsection (c); and “(5) arrangements are made with the agency making the loan to be reimbursed in the event such article is lost or destroyed while on loan, such reimbursement being made first out of any funds available to carry out this chapter and based on the depreciated value of the article at the time of loss or destruction. “(c) (1) In the case of any loan of a defense article or defense service made under this section, there shall be a charge to the appropriation for military assistance for any fiscal year while the article or service is on loan in an amount based on— “(A) the out-of-pocket expenses authorized to be incurred in connection with such loan during such fiscal year; and “(B) the depreciation which occurs during such year while such article is on loan, “(2) The provisions of this Subsection shall not apply— “(A) to any particular defense article or defense service which the United States Government agreed, prior to the date of enactment of this subsection, to lend; and “(B) to any defense article or defense service, or portion thereof, acquired with funds appropriated for military assistance under this Act.”

  8. International Security and Development Cooperation Act of 1980

    Pub. L. 96–533 title I § 112(a) · 94 Stat. 3131

    Added · 22 U.S.C. § 2311(a)(3)

    Pub. L. 96–533 added par. (3)

    Source evidence

    Code amendment note
    Subsec. (a)(3). Pub. L. 96–533 added par. (3).

    Enacted provision · exact public law section
    (a) Section 503(a) of the Foreign Assistance Act of 1961 is amended— (1) by striking out “or” at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof”; or”; and (3) by inserting at the end thereof the following new paragraph: “(3) transferring such of the funds appropriated or otherwise made available under this chapter as the President may determine for assistance to a recipient specified in section 504(a)(1) of Post, p. 3139. this Act, within the dollar limitations of that section, to the account in which funds for the procurement of defense articles and defense services under section 21 and section 22 of the Arms 22 USC 2761, 2762. Export Control Act have been deposited for such recipient, to be merged with such deposited funds, and to be used solely to meet obligations of the recipient for payment for sales under that Act.”.

  9. Pub. L. 97–113 § 110(c) · 95 Stat. 1519

    Substituted · 22 U.S.C. § 2311(a)(3)

    Pub. L. 97–113, § 110(c), substituted “country” for “specified in section 2312(a)(1) of this title, within the dollar limitations of that section”

    Source evidence

    Code amendment note
    Subsec. (a)(3). Pub. L. 97–113, § 110(c), substituted “country” for “specified in section 2312(a)(1) of this title, within the dollar limitations of that section”.

    Enacted provision · exact public law section
    (c) Section 503(a)(3) of such Act is amended by striking out “specified in section 504(a)(1) of this Act, within the dollar limitations of that section,” and inserting in lieu thereof “country,”.

  10. Pub. L. 97–113 title I · 95 Stat. 1519

    Substituted · 22 U.S.C. § 2311(b)(5)

    Pub. L. 97–113 substituted provision respecting payment of restoration or replacement costs for defense articles on loan for provision for making such a loan only if arrangements were made with the agency making the loan for reimbursement in the event the article was lost or destroyed while on loan, the reimbursement of which was to be made first out of any funds available to carry out this part and based on the depreciated value of the article at the time of loss or destruction

    Source evidence

    Code amendment note
    Subsec. (b)(5). Pub. L. 97–113 substituted provision respecting payment of restoration or replacement costs for defense articles on loan for provision for making such a loan only if arrangements were made with the agency making the loan for reimbursement in the event the article was lost or destroyed while on loan, the reimbursement of which was to be made first out of any funds available to carry out this part and based on the depreciated value of the article at the time of loss or destruction.

    Enacted provision · exact public law
    TITLE I— MILITARY SALES AND RELATED PROGRAMS Sec. 101. reports to the congress (a) (1) Section 3(d)(1) of the Arms Export Control Act is 22 USC 2753. amended— (A) in the text preceding subparagraph (A) by striking out “to a transfer of a defense article, or related training or other defense service, sold under this Act and may not give his consent to such a transfer under section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961” and inserting in lieu thereof “, or under 22 USC 2314. section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961, to a transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or any defense article or related training or other defense service valued (in terms of its original acquisition cost) at $50,000,000 or more,”; (B) by amending subparagraph (B) to read as follows: “(B) a description of the article or service proposed to be transferred, including its acquisition cost,”; (C) in subparagraph (C) by striking out “defense article or related training or other defense service” and inserting in lieu thereof “article or service”; and (D) in the last sentence by striking out “defense articles, or related training or other defense services,” and inserting in lieu thereof “articles or services”. (2) Section 3(d)(3) of such Act is amended by striking out all that follows “The President may not give his consent” through “section 38 of this Act,” and inserting in lieu thereof “to the transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of its original acquisition cost) at $50,000,000 or more, the export of which has been licensed or approved under section 38 of this Act,”. 22 USC 2778. (3) Section 3(d)(4) of such Act is amended— (A) by inserting “or” at the end of subparagraph (B); (B) by striking out “; or” at the end of subparagraph (C) and inserting in lieu thereof a period; and (C) by striking out subparagraph (D). (b) (1) Section 28(a) of such Act is amended by striking out “five” and inserting in lieu thereof “fifteen”. (2) Section 28(b) of such Act is amended by striking out “the issuance of a letter of offer in accordance with such request would be subject to the requirements of section 36(b) of this Act” and inserting in lieu thereof “the request involves a proposed sale of major defense equipment for $7,000,000 or more or of any other defense articles or defense services for $25,000,000 or more”. (c) The first sentence of section 36(b)(1) of such Act is amended— (1) by striking out “$25,000,000” and inserting in lieu thereof “$50,000,000”; and (2) by striking out “$7,000,000” and inserting in lieu thereof “$14,000,000”. (d) Section 36(c) of such Act is amended in the first sentence of paragraph (1)— (1) by striking out “$7,000,000” and inserting in lieu thereof “$14,000,000”; and (2) by striking out “$25,000,000” and inserting in lieu thereof “$50,000,000”. (e) Section 36(d) of such Act is amended by striking out “(c)” and inserting in lieu thereof “(c)(1)”. Sec. 102. proposed transfers or sales to the north atlantic treaty organization, japan, australia, or new zealand (a) Section 3(d)(2) of the Arms Export Control Act is amended— (1) by striking out “(2) Unless” and inserting in lieu thereof “(2)(A) Except as provided in subparagraph (B), unless”; and (2) by adding at the end thereof the following: “(B) In the case of a proposed transfer to the North Atlantic Treaty Organization, or any member country of such Organization, Japan, Australia, or New Zealand, unless the President states in the certification submitted pursuant to paragraph (1) of this subsection that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States, such consent shall not become effective until fifteen calendar days after the date of such submission and such consent shall become effective then only if the Congress does not adopt, within such fifteen-day period, a concurrent resolution disapproving the proposed transfer.”. (b) (1) Section 36(b)(1) of such Act is amended in the fifth sentence by striking out “if the Congress, within thirty calendar days after receiving such certification,” and inserting in lieu thereof the following: “, with respect to a proposed sale to the North Atlantic Treaty Organization, any member country of such Organization, Japan, Australia, or New Zealand, if the Congress, within fifteen calendar days after receiving such certification, or with respect to a proposed sale to any other country or organization, if the Congress within thirty calendar days after receiving such certification,”. (2) Section 36(b)(2) of such Act is amended by inserting before the period at the end thereof a comma and the following: “except that for purposes of consideration of any resolution with respect to the North Atlantic Treaty Organization, any member country of such Organization, Japan, Australia, or New Zealand, it shall be in order in the Senate to move to discharge a committee to which such resolution was referred if such committee has not reported such resolution at the end of five calendar days after its introduction”. Sec. 103. personnel performing defense services Section 21(c)(2) of the Arms Export Control Act is Report to Congress. 22 USC 2761. amended to read as follows: “(2) Within forty-eight hours of the existence of, or a change in status of significant hostilities or terrorist acts or a series of such acts, which may endanger American lives or property, involving a country in which United States personnel are performing defense services pursuant to this Act or the Foreign Assistance Act of 1961, the 22 USC 2151 note. President shall submit to the Speaker of the House of Representatives and to the President pro tempore of the Senate a report, in writing, classified if necessary, setting forth— “(A) the identity of such country; “(B) a description of such hostilities or terrorist acts; and “(C) the number of members of the United States Armed Forces and the number of United States civilian personnel that may be endangered by such hostilities or terrorist acts.”. Sec. 104. charges for use and nonrecurring research, development, and production costs Section 21(e)(2) of the Arms Export Control Act is amended by inserting “standardization with the Armed Forces of Japan, Australia, or New Zealand in furtherance of the mutual defense treaties between the United States and those countries,” immediately after “standardization,”. Sec. 105. foreign military sales authorization and aggregate ceilings (a) Section 31(a) of the Arms Export Control Act is 22 USC 2771. amended by striking out “$500,000,000 for the fiscal year 1981” and inserting in lieu thereof “$800,000,000 for the fiscal year 1982 and $800,000,000 for the fiscal year 1983”. (b) Section 31(b) of such Act is amended to read as follows: “(b) (1) The total amount of credits (or participations in credits) extended under section 23 of this Act shall not exceed $800,000,000 for 22 USC 2763. the fiscal year 1982 and $800,000,000 for the fiscal year 1983. “(2) The total principal amount of loans guaranteed under section 24(a) of this Act shall not exceed $3,269,525,000 for the fiscal year 22 USC 2764. 1982 and $3,269,525,000 for the fiscal year 1983. “(3) Of the aggregate total of credits (or participations in credits) under section 23 of this Act, and of the total principal amount of loans guaranteed under section 24(a) of this Act, not less than $1,400,000,000 for the fiscal year 1982 and not less than $1,400,000,000 for the fiscal year 1983 shall be available only for Israel, of which not less than $550,000,000 for each such year shall be available as credits under section 23 of this Act. “(4) Of the amount available under paragraph (2) of this subsection for loan guaranties under section 24(a) of this Act, not less than $280,000,000 for fiscal year 1982 and not less than $280,000,000 for the fiscal year 1983 shall be available only for Greece. “(5) The principal amount of loans guaranteed under section 24(a) of this Act for the fiscal year 1982, and for the fiscal year 1983 with respect to Egypt, Greece, Sudan, Somalia, and Turkey shall (if and to the extent each such country so desires) be repaid in not more than twenty years, following a grace period of ten years on repayment of principal. “(6) Of the total amount of credits (or participations in credits) 22 USC 2763. extended under section 23 of this Act for the fiscal years 1982 and 1983, not less than $200,000,000 for each such year shall be available only for Egypt, and Egypt shall be released from its contractual liability to repay the United States Government with respect to such credits and participations in credits. “(7) Of the total amount of credits (or participations in credits) extended under section 23 of this Act for the fiscal years 1982 and 1983, not less than $50,000,000 for each such year shall be available only for the Sudan, and the Sudan shall be released from its contractual liability to repay the United States Government with respect to such credits and participations in credits.”. (c) Section 31(c) of such Act is amended— (1) in the first sentence by striking out “fiscal year 1981” and inserting in lieu thereof “fiscal year 1982 and for the fiscal year 1983”; (2) in the last sentence by striking out “$500,000,000” and inserting in lieu thereof “$550,000,000”; and (3) in the last sentence by inserting “each” immediately before “such year”. Sec. 106. repeal of ceiling on commercial sales Section 38(b)(3) of the Arms Export Control Act is repealed. Sec. 107. periodic review of items on the munitions list Section 38 of the Arms Export Control Act is amended by adding at the end thereof the following new subsection: “(f) The President shall periodically review the items on the United States Munitions List to determine what items, if any, no longer Report to Congress. warrant export controls under this section. The results of such reviews shall be reported to the Speaker of the House of Representatives and to the Committee on Foreign Relations and the Committee on Banking, Housing, and Urban Affairs of the Senate. Such a report shall be submitted at least 30 days before any item is removed from the Munitions List and shall describe the nature of any controls to be 54 USC app. 2401 note. imposed on that item under the Export Administration Act of 1979.”. Sec. 108. special defense acquisition fund (a) The Arms Export Control Act is amended by adding at the end thereof the following new chapter: “CHAPTER 5— SPECIAL DEFENSE ACQUISITION FUND “Sec. 51. Special Defense Acquisition Fund.— (a) (1) Under the direction of the President and in consultation with the Secretary of State, the Secretary of Defense shall establish a Special Defense Acquisition Fund (hereafter in this chapter referred to as the ‘Fund’), to be used as a revolving fund separate from other accounts, under the control of the Department of Defense, to finance the acquisition of defense articles and defense service in anticipation of their transfer 22 USC 2151 note. pursuant to this Act, the Foreign Assistance Act of 1961, or as otherwise authorized by law, to eligible foreign countries and international organizations, and may acquire such articles and services with the funds in the Fund as he may determine. Acquisition under this chapter of items for which the initial issue quantity requirements for United States Armed Forces have not been fulfilled and are not under current procurement contract shall be emphasized when compatible with security assistance requirements for the transfer of such items. “(2) Nothing in this chapter may be construed to limit or impair any responsibilities conferred upon the Secretary of State or the Secretary of Defense under this Act or the Foreign Assistance Act of 1961. 22 USC 2151 note. “(b) The Fund shall consist of— “(1) collections from sales made under letters of offer issued pursuant to section 21(a)(1) of this Act representing the actual 22 USC 2761. value of defense articles not intended to be replaced in stock, “(2) collections from sales representing the value of asset use charges (including contractor rental payments for United States Government-owned plant and production equipment) and charges for the proportionate recoupment of nonrecurring research, development, and production costs, and “(3) collections from sales made under letters of offer (or transfers made under the Foreign Assistance Act of 1961) of defense articles and defense services acquired under this chapter, representing the value of such items calculated in accordance with paragraph (2) or (3) of section 21(a) or section 22 of this Act or section 644(m) of the Foreign Assistance Act of 1961, as 22 USC 2761, 2762. 22 USC 2403. appropriate, together with such funds as may be authorized and appropriated or otherwise made available for the purposes of the Fund. “(c) (1) The size of the Fund may not exceed such dollar amount as is prescribed in section 138(g) of title 10, United States Code. For purposes of this limitation, the size of the Fund is the amounts in the Fund plus the value (in terms of acquisition cost) of the defense articles acquired under this chapter which have not been transferred from the Fund in accordance with this chapter. “(2) Amounts in the Fund shall be available for obligation in any fiscal year only to such extent or in such amounts as are provided in advance in appropriation Acts. “Sec. 52. Use and Transfer of Items Procured by the Fund.— (a) No defense article or defense service acquired by the Secretary of Defense under this chapter may be transferred to any foreign country or international organization unless such transfer is authorized by this Act, the Foreign Assistance Act of 1961, or other law. 22 USC 2151 note. “(b) The President may authorize the temporary use by the United States Armed Forces of defense articles and defense services acquired under this chapter prior to their transfer to a foreign country or international organization, if such is necessary to meet national defense requirements and the United States Armed Forces bear the costs of operation and maintenance of such articles or services while in their use and the costs of restoration or replacement upon the termination of such use. “(c) Except as provided in subsection (b) of this section, the Fund may be used to pay for storage, maintenance, and other costs related to the preservation and preparation for transfer of defense articles and defense services acquired under this chapter prior to their transfer, as well as the administrative costs of the Department of Defense incurred in the acquisition of such items to the extent not reimbursed pursuant to section 43(b) of this Act. 22 USC 2792. “Sec. 53. Annual Reports to Congress.— (a) Not later than December 31 of each year, the President shall submit to the Congress a comprehensive report on acquisitions of defense articles and defense services under this chapter. Each such report shall include— “(1) a description of each contract for the acquisition of defense articles or defense services under this chapter which was entered into during the preceding fiscal year; “(2) a description of each contract for the acquisition of defense articles or defense services under this chapter which the President anticipates will be entered into during the current fiscal year; “(3) a description of each defense article or defense service acquired under this chapter which was transferred to a foreign country or international organization during the preceding fiscal year; and “(4) an evaluation of the impact of the utilization of the authority of this chapter on United States defense production and the readiness of the United States Armed Forces. “(b) As part of the annual written report to the Congress required by section 139(a) of title 10, United States Code, regarding procurement schedules for each weapon system for which funding authorization is required, the President shall provide a report estimating the likely procurements to be made through the Fund.”. (b) Section 138 of title 10, United States Code, is amended by adding immediately following subsection (f) the following new subsection: “(g) The size of the Special Defense Acquisition Fund established Ante, p. 1522. pursuant to chapter 5 of the Arms Export Control Act may not exceed $300,000,000 in fiscal year 1982 and may not exceed $600,000,000 in fiscal year 1983 or any fiscal year thereafter.”. Sec. 109. leasing of defense articles (a) The Arms Export Control Act, as amended by section 108 of this Act, is further amended by adding at the end thereof the following new chapter: “CHAPTER 6— LEASES OF DEFENSE ARTICLES “Sec. 61. Leasing Authority.— (a) The President may lease defense articles in the stocks of the Department of Defense to an eligible foreign country or international organization if— “(1) he determines that there are compelling foreign policy and national security reasons for providing such articles on a lease basis rather than on a sales basis under this Act; “(2) he determines that the articles are not for the time needed for public use; and “(3) the country or international organization has agreed to pay in United States dollars all costs incurred by the United States Government in leasing such articles, including reimbursement for depreciation of such articles while leased, the costs of restoration or replacement if the articles are damaged while leased, and the replacement cost (less any depreciation in the value) of the articles if the articles are lost or destroyed while leased. The requirement of paragraph (3) shall not apply to leases entered into for purposes of cooperative research or development, military exercises, or communications or electronics interface projects, or to any defense article which has passed three-quarters of its normal service life. “(b) Each lease agreement under this section shall be for a fixed duration of not to exceed five years and shall provide that, at any time during the duration of the lease, the President may terminate the lease and require the immediate return of the leased articles. “(c) Defense articles in the stocks of the Department of Defense may be teased or loaned to a foreign country or international organization only under the authority of this chapter or chapter 2 of part II of the Foreign Assistance Act of 1961, and may not be leased to 22 USC 2311. a foreign country or international organization under the authority of section 2667 of title 10, United States Code. “Sec. 62. Reports to the Congress.— (a) Not less than 30 days 22 USC 2796a. before entering into or renewing any agreement with a foreign country or international organization to lease any defense article under this chapter, or to loan any defense article under chapter 2 of part II of the Foreign Assistance Act of 1961, for a period of one year or longer, the President shall transmit to the Speaker of the House of Representatives, and to the chairman of the Committee on Foreign Relations of the Senate and the chairman of the Committee on Armed Services of the Senate, a written certification which specifies— “(1) the country or international organization to which the defense article is to be leased or loaned; “(2) the type, quantity, and value (in terms of replacement cost) of the defense article to be leased or loaned; “(3) the terms and duration of the lease or loan; and “(4) a justification for the lease or loan, including an explanation of why the defense article is being leased or loaned rather than sold under this Act. “(b) The President may waive the requirements of this section (and Waiver. in the case of an agreement described in section 63, may waive the provisions of that section) if he determines, and immediately reports to the Congress, that an emergency exists which requires that the lease or loan be entered into immediately in the national security interests of the United States. “Sec. 63. Legislative Review.— (a) (1) In the case of any agreement 22 USC 2796b. involving the lease under this chapter, or the loan under chapter 2 of part II of the Foreign Assistance Act of 1961, to any foreign country or international organization for a period of one year or longer of any defense articles which are either (i) major defense equipment valued (in terms of its replacement cost less any depreciation in its value) at $14,000,000 or more, or (ii) defense articles valued (in terms of their replacement cost less any depreciation in their value) at $50,000,000 or more, the agreement may not be entered into or renewed if the Congress, within 30 calendar days after receiving the certification with respect to that proposed agreement pursuant to section 62(a), adopts a concurrent resolution stating that it objects to the proposed lease or loan. “(2) This section shall not apply with respect to a loan or lease to the North Atlantic Treaty Organization, any member country of that Organization, Japan, Australia, or New Zealand. “(b) Any resolution under subsection (a) shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976. 90 Stat. 765. “(c) For the purpose of expediting the consideration and adoption of concurrent resolutions under subsection (a), a motion to proceed to the consideration of any such resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. “Sec. 64. Application of Other Provisions of Law.— Any reference to sales of defense articles under this Act in any provision of law restricting the countries or organizations to which such sales may be made shall be deemed to include a reference to leases of defense articles under this chapter.”. (b) Such Act is further amended— (1) in section 2(b)— (A) by inserting “, leases,” immediately after “sales” both places it appears, (B) by inserting “whether there shall be a lease to a country,” immediately after “thereof,”, and (C) by inserting “, lease,” immediately after “sale” the second place it appears; (2) in section 3(a)— (A) in the text preceding paragraph (1) by inserting “or leased” immediately after “sold”, and (B) in paragraph (4) by inserting “or lease” immediately after “purchase”; and (3) in section 4 by inserting “or leased” immediately after “sold” in the first sentence. (c) Paragraph (5) of section 503(b) of the Foreign Assistance Act of 1961 is amended to read as follows: “(5) the loan agreement provides that (A) if the defense article is damaged while on loan, the country or international organization to which it was loaned will reimburse the United States for the cost of restoring or replacing the defense article, and (B) if the defense article is lost or destroyed while on loan, the country or international organization to which it was loaned will pay to the United States an amount equal to the replacement cost (less any depreciation in the value) of the defense article.”. (d) (1) Section 109 of the International Security and Development Cooperation Act of 1980 is repealed. (2) Section 36(a) of the Arms Export Control Act is amended— (A) by inserting “and” at the end of paragraph (8); (B) by striking out “; and” at the end of paragraph (9) and inserting in lieu thereof a period; and (C) by striking out paragraph (10). Sec. 110. military assistance (a) Section 504(a) of the Foreign Assistance Act of 1961 is amended to read as follows: “(a) (1) There are authorized to be appropriated to the President to carry out the purposes of this chapter not to exceed $238,500,000 for the fiscal year 1982 and not to exceed $238,500,000 for the fiscal year 1983. “(2) Amounts appropriated under this subsection are authorized to remain available until expended.”. (b) Section 506(a) of such Act is amended by striking out “$50,000,000” and inserting in lieu thereof “$75,000,000”. (c) Section 503(a)(3) of such Act is amended by striking out “specified in section 504(a)(1) of this Act, within the dollar limitations of that section,” and inserting in lieu thereof “country,”. (d) Section 516 of such Act is repealed. Sec. 111. stockpiling of defense articles for foreign countries Section 514(b)(2) of the Foreign Assistance Act of 1961 is 22 USC 2321h. amended by striking out “$85,000,000 for the fiscal year 1981” and inserting in lieu thereof “$130,000,000 for the fiscal year 1982 and $125,000,000 for the fiscal year 1983”. Sec. 112. international military assistance and sales program management Section 515 of the Foreign Assistance Act of 1961 is 22 USC 2321i. amended to read as follows: “Sec. 515. Overseas Management of Assistance and Sales Programs.— (a) In order to carry out his responsibilities for the management of international security assistance programs conducted under this chapter, chapter 5 of this part, and the Arms 22 USC 2347. 22 USC 2751 note. Export Control Act, the President may assign members of the Armed Forces of the United States to a foreign country to perform one or more of the following functions: “(1) equipment and services case management; “(2) training management; “(3) program monitoring; “(4) evaluation and planning of the host government’s military capabilities and requirements; “(5) administrative support; “(6) promoting rationalization, standardization, interoperability, and other defense cooperation measures among members of the North Atlantic Treaty Organization and with the Armed Forces of Japan, Australia, and New Zealand; and “(7) liaison functions exclusive of advisory and training assistance. “(b) Advisory and training assistance conducted by military personnel Advisory and training assistance. assigned under this section shall be kept to an absolute minimum. It is the sense of the Congress that advising and training assistance in countries to which military personnel are assigned under this section shall be provided primarily by other personnel who are not assigned under this section and who are detailed for limited periods to perform specific tasks. “(c) (1) The number of members of the Armed Forces assigned to a Military personnel strengths. foreign country under this section may not exceed six unless specifically authorized by the Congress. The President may waive this limitation if he determines and reports to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives, 30 days prior to the introduction of the additional military personnel, that United States national interests require that more than six members of the Armed Forces be assigned under this section to carry out international security assistance programs in a country not specified in this paragraph. For the fiscal year 1982 and the fiscal year 1983, Indonesia, the Republic of Korea, the Philippines, Thailand, Egypt, Jordan, Morocco, Saudi Arabia, Greece, Portugal, Spain, and Turkey are authorized to have military personnel strengths larger than six under this section to carry out international security assistance programs. “(2) The total number of members of the Armed Forces assigned under this section to a foreign country in a fiscal year may not exceed the number justified to the Congress for that country in the congressional presentation materials for that fiscal year, unless the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives are notified 30 days in advance of the introduction of the additional military personnel. “(d) Effective October 1, 1982, the entire costs (including salaries of United States military personnel) of overseas management of international security assistance programs under this section shall be charged to or reimbursed from funds made available to carry out this chapter, other than any such costs which are either paid directly for such defense services under section 21(a) of the Arms Export Control 22 USC 2761. Act or reimbursed from charges for services collected from foreign governments pursuant to section 21(e) and section 43(b) of that Act. “(e) Members of the Armed Forces assigned to a foreign country under this section shall serve under the direction and supervision of the Chief of the United States Diplomatic Mission to that country. “(f) The President shall continue to instruct United States diplomatic and military personnel in the United States missions abroad that they should not encourage, promote, or influence the purchase by any foreign country of United States-made military equipment, unless they are specifically instructed to do so by an appropriate official of the executive branch.”. Sec. 113. international military education and training Section 542 of the Foreign Assistance Act of 1961 is amended by striking out “$34,000,000 for the fiscal year 1981” and inserting in lieu thereof “$42,000,000 for the fiscal year 1982 and $42,000,000 for the fiscal year 1983”. Sec. 114. peacekeeping operations (a) Section 552(a) of the Foreign Assistance Act of 1961 is amended by striking out “$25,000,000 for the fiscal year 1981” and inserting in lieu thereof “$19,000,000 for the fiscal year 1982 and $19,000,000 for the fiscal year 1983”. (b) Section 552(c) of such Act is amended by striking out “(1)” and all that follows through “may not be transferred” and inserting in lieu thereof “the total amount so transferred in any fiscal year may not exceed $15,000,000”. Sec. 115. foreign intimidation and harassment of individuals in the united states Chapter 1 of the Arms Export Control Act is amended by adding at the end thereof the following new section: “Sec. 6. Foreign Intimidation and Harassment of Individuals in the United States.— No letters of offer may be issued, no credits or guarantees may be extended, and no export licenses may be issued under this Act with respect to any country determined by the President to be engaged in a consistent pattern of acts of intimidation or harassment directed against individuals in the United States. Report to Congress. The President shall report any such determination promptly to the Speaker of the House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate.”.

  11. International Security and Development Cooperation Act of 1985

    Pub. L. 99–83 title I § 123(a) · 99 Stat. 190

    Inserted · 22 U.S.C. § 2311(a)

    Pub. L. 99–83 inserted sentence relating to pricing of sales wholly paid from transferred funds

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 99–83 inserted sentence relating to pricing of sales wholly paid from transferred funds.

    Enacted provision · exact public law section
    (a) Military Assistance Costs.— Section 503(a) of the Foreign Assistance Act of 1961 is amended by adding the following sentence 22 USC 2311. after paragraph (3): “Sales which are wholly paid from funds transferred under paragraph (3) shall be priced to exclude the costs of salaries of members of the Armed Forces of the United States.”.

  12. Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989

    Pub. L. 100–461 title V § 586(a) · 102 Stat. 2268

    Inserted · 22 U.S.C. § 2311(a)

    Pub. L. 100–461 inserted in last sentence “or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act” after “under paragraph (3)” and “(other than the Coast Guard)” after “Armed Forces of the United States”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 100–461 inserted in last sentence “or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act” after “under paragraph (3)” and “(other than the Coast Guard)” after “Armed Forces of the United States”.

    Enacted provision · exact public law section
    (a) The last sentence of paragraph (3) of section 503(a) of 22 USC 2311. the Foreign Assistance Act of 1961 is amended by inserting immediately after the phrase “under paragraph (3)” the phrase “or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act”, and by inserting after “Armed Forces of the United States” the phrase “(other than the Coast Guard)”.

    Effective date note
    Pub. L. 100–461, title V, § 586(c), Oct. 1, 1988, 102 Stat. 2268–50, provided that: “This section [amending this section] shall be effective on October 1, 1989.”

11 of 14 references resolved to an enrolled provision · 3 partial

Editorial Notes

References in Text

The Arms Export Control Act, referred to in subsec. (a)(3), is Pub. L. 90–629, , 82 Stat. 1320, which is classified principally to chapter 39 (§ 2751 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables.

This chapter, referred to in subsec. (c)(2)(B), was in the original “this Act”, meaning Pub. L. 87–195, , 75 Stat. 424, known as the Foreign Assistance Act of 1961. For complete classification of this Act to the Code, see Short Title note set out under section 2151 of this title and Tables.

Codification

A guaranty provision, formerly subsec. (e) of this section, was renumbered section 525(a) of Pub. L. 87–195 by Pub. L. 90–137, pt. II, § 201(b)(3), , 81 Stat. 455, and classified to section 2345(a) of this title and repealed by Pub. L. 90–629, ch. 4, § 45(a), , 82 Stat. 1327.

Amendments1964–1988 · 8 rounds

1988

Subsec. (a). Pub. L. 100–461 inserted in last sentence “or from funds made available on a non-repayable basis under section 23 of the Arms Export Control Act” after “under paragraph (3)” and “(other than the Coast Guard)” after “Armed Forces of the United States”.

1985

Subsec. (a). Pub. L. 99–83 inserted sentence relating to pricing of sales wholly paid from transferred funds.

1981

Subsec. (a)(3). Pub. L. 97–113, § 110(c), substituted “country” for “specified in section 2312(a)(1) of this title, within the dollar limitations of that section”.

Subsec. (b)(5). Pub. L. 97–113 substituted provision respecting payment of restoration or replacement costs for defense articles on loan for provision for making such a loan only if arrangements were made with the agency making the loan for reimbursement in the event the article was lost or destroyed while on loan, the reimbursement of which was to be made first out of any funds available to carry out this part and based on the depreciated value of the article at the time of loss or destruction.

1980

Subsec. (a)(3). Pub. L. 96–533 added par. (3).

1973

Pub. L. 93–189 designated existing provisions as subsec. (a), struck out references to making financial contributions to multilateral programs for the acquisition or construction of facilities for collective defense and providing financial assistance for expenses incident to participation by the United States government in regional or collective defense organizations, and added subsecs. (b) and (c).

1967

Subsec. (a). Pub. L. 90–137, § 201(b)(1), substituted “or grant” for “, lease, sale, exchange, grant, or any other means”.

Subsec. (d). Pub. L. 90–137, § 201(b)(2), substituted a period for “; and”.

Subsec. (e). Pub. L. 90–137, § 201(b)(3), struck out subsec. (e) which related to the guaranty and insuring against political and credit risks in connection with credit sales for defense articles and services procured in the United States. See Codification note above.

1965

Subsec. (b). Pub. L. 89–171 struck out “in foreign countries” after “facilities”.

1964

Subsec. (e). Pub. L. 88–633 added subsec. (e).

Statutory Notes and Related Subsidiaries

Effective Date of 1988 Amendment

Pub. L. 100–461, title V, § 586(c), , 102 Stat. 2268–50, provided that: “This section [amending this section] shall be effective on .”

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–83 effective , see section 1301 of Pub. L. 99–83, set out as a note under section 2151–1 of this title.

Transfer of Functions

For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of , as modified, set out as a note under section 542 of Title 6.

Reports to Congressional Committees

Pub. L. 100–461, title III, , 102 Stat. 2268–17 provided in part: “That the Committees on Appropriations shall be furnished on March 1 of each year a complete report of the status of military assistance funds appropriated by this or any future Act committed for the payment of any sales under the Arms Export Control Act [22 U.S.C. 2751 et seq.] as regards the individual sale, item description, and estimated sales price.”

Review of Military Assistance Program; Reduction and Elimination Plan; Submittal to Congress

Pub. L. 93–559, § 17, , 88 Stat. 1800, which set forth provisions respecting review of military assistance program and submittal to Congress of plan for reduction and elimination, was repealed by Pub. L. 95–384, § 29(c)(4), , 92 Stat. 747.

Executive Documents

Delegation of Functions

For delegation of functions of President under this section, see Ex. Ord. No. 12163, , 44 F.R. 56673, as amended, set out as a note under section 2381 of this title.

Findings by Secretary of State

The Secretary of State, in the implementation of the functions delegated to him under section 2314(a)(1), (4), and (e) of this title, was authorized by section 1–701(e)(1) of Ex. Ord. No. 12163, , 44 F.R. 56678, eff. , set out as a note under section 2381 of this title, to find, in the case of a proposed transfer of a defense article or a related training or a related defense service by a foreign country or international organization to a foreign country or international organization not otherwise eligible under subsec. (a) of this section, whether the proposed transfer would strengthen the security of the United States and promote world peace.

Credits

1961–1988 · 9 acts
  1. 1961Pub. L. 87–195, pt. II, § 503, , 75 Stat. 435
  2. 1964Pub. L. 88–633, § 201(a), , 78 Stat. 1011
  3. 1965Pub. L. 89–171, pt. II, § 201(a), , 79 Stat. 656
  4. 1967Pub. L. 90–137, pt. II, § 201(b), , 81 Stat. 455
  5. 1973Pub. L. 93–189, § 12(b)(1), , 87 Stat. 720
  6. 1980Pub. L. 96–533, title I, § 112(a), , 94 Stat. 3138
  7. 1981Pub. L. 97–113, title I, §§ 109(c), 110(c), , 95 Stat. 1526
  8. 1985Pub. L. 99–83, title I, § 123(a), , 99 Stat. 205
  9. 1988Pub. L. 100–461, title V, § 586(a), , 102 Stat. 2268–50.
Show as published

(Pub. L. 87–195, pt. II, § 503, , 75 Stat. 435; Pub. L. 88–633, § 201(a), , 78 Stat. 1011; Pub. L. 89–171, pt. II, § 201(a), , 79 Stat. 656; Pub. L. 90–137, pt. II, § 201(b), , 81 Stat. 455; Pub. L. 93–189, § 12(b)(1), , 87 Stat. 720; Pub. L. 96–533, title I, § 112(a), , 94 Stat. 3138; Pub. L. 97–113, title I, §§ 109(c), 110(c), , 95 Stat. 1526; Pub. L. 99–83, title I, § 123(a), , 99 Stat. 205; Pub. L. 100–461, title V, § 586(a), , 102 Stat. 2268–50.)

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