§ 2314. Furnishing of defense articles or related training or other defense service on grant basis

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. 1961

   Pub. L. 87–195 · 75 Stat. 424

   Enacted · 22 U.S.C. § 2314

   Pub. L. 87–195, pt. II, § 505, formerly § 506, Sept. 4, 1961, 75 Stat. 436

   Source evidence

   Code source credit
   Pub. L. 87–195, pt. II, § 505, formerly § 506, Sept. 4, 1961, 75 Stat. 436

2. 1962

   Foreign Assistance Act of 1962

   Pub. L. 87–565 · 76 Stat. 255

   Added · 22 U.S.C. § 2314(c); 22 U.S.C. § 2314(d)

   Pub. L. 87–565 added subsecs. (c) and (d)

   Source evidence

   Code amendment note
   Subsecs. (c), (d). Pub. L. 87–565 added subsecs. (c) and (d).

3. 1966

   Foreign Assistance Act of 1966

   Pub. L. 89–583 · 80 Stat. 795

   Added · 22 U.S.C. § 2314(e)

   Pub. L. 89–583 added subsec. (e)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 89–583 added subsec. (e).

4. 1972

   Foreign Assistance Act of 1971

   Pub. L. 92–226 § 201(b) · 86 Stat. 20

   Substituted · 22 U.S.C. § 2314(b)(2)

   Pub. L. 92–226, § 201(b), substituted “or” for “and”

   Source evidence

   Code amendment note
   Subsec. (b)(2). Pub. L. 92–226, § 201(b), substituted “or” for “and”.

   Enacted provision · exact public law section
   (b) In section 505(b) (2), relating to conditions of eligibility, strike 22 USC 2314. out “and” and insert in lieu thereof “or”.

5. 1972

   Foreign Assistance Act of 1971

   Pub. L. 92–226 § 201(c) · 86 Stat. 20

   Repealed · 22 U.S.C. § 2314(e)

   Pub. L. 92–226, § 201(c), repealed provisions respecting conditions of eligibility requiring agreements for use of foreign currencies from sale of surplus commodities for common defense including internal security

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 92–226, § 201(c), repealed provisions respecting conditions of eligibility requiring agreements for use of foreign currencies from sale of surplus commodities for common defense including internal security.

   Enacted provision · exact public law section
   (c) Section 505(e), relating to conditions of eligibility, is repealed. Repeal. 80 Stat. 803, 81 Stat. 456. 83 Stat. 820. 22 USC 2318.

6. 1973

   Foreign Assistance Act of 1973

   Pub. L. 93–189 § 12(b)(3) · 87 Stat. 714

   Added · 22 U.S.C. § 2314(e); 22 U.S.C. § 2314(f)

   Pub. L. 93–189 added subsecs. (e) and (f)

   Source evidence

   Code amendment note
   Subsecs. (e), (f). Pub. L. 93–189 added subsecs. (e) and (f).

   Enacted provision · exact public law section
   (3) Section 505 is amended by adding the following new subsections 75 Stat. 436; 81 Stat. 456. 22 USC 2314. Transfer of defense articles. at the end thereof: “(e) In considering a request for approval of any transfer of any weapon, weapons system, munitions, aircraft, military boat, military vessel, or other implement of war to another country’, the President shall not give his consent under subsection (a)(1) or (a)(4) to the transfer unless the United States itself would transfer the defense article under consideration to that country, and prior to the date he intends to give his consent to the, transfer, the President notifies the Presidential notification of Speaker of the House and congressional committee. Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate in writing of each such intended consent, the justification for giving such consent, the defense article for which he intends to give his consent to be so transferred, and the foreign country to which that defense article is to be transferred. In addition, the President shall not give his consent under subsection (a)(1) or (a)(4) to the transfer of any significant defense articles on the United States Munitions List unless the foreign country requesting consent to transfer agrees to demilitarize such defense articles prior to transfer, or the. proposed recipient foreign country provides a commitment in writing to the United States Government that it will not transfer such defense, articles, if not demilitarized, to any other foreign country or person without first obtaining the consent of the President. “(f) Effective July 1, 1974, no defense article, shall be furnished to any country on a grant basis unless such country shall have, agreed that the net proceeds of sale received by such country in disposing of any weapon, weapons system, munition, aircraft, military boat, military vessel, or other implement of war received under this chapter will be paid to the United States Government and shall be available to pay all official costs of the United States Government payable in the currency of that country, including all costs relating to the financing of international educational and cultural exchange activities in which that country participates under the programs authorized by the Mutual Educational and Cultural Exchange Act of 1961.” 75 Stat. 527. 22 USC 2451 note. 75 Stat. 437; 81 Stat. 457; 86 Stat. 25. 22 USC 2318.

7. 1976

   International Security Assistance and Arms Export Control Act of 1976

   Pub. L. 94–329 § 203(b) · 90 Stat. 729

   Inserted · 22 U.S.C. § 2314(a)

   Pub. L. 94–329, § 203(b), inserted “or related training or other defense service” after “articles” wherever appearing

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 94–329, § 203(b), inserted “or related training or other defense service” after “articles” wherever appearing.

   Enacted provision · exact public law section
   (b) Section 305(a) of the Foreign Assistance Act of 1961 is 22 USC 2314 and note. amended, effective July 1, 1976, by inserting immediately after “articles” each time it appears “or related training or other defense service.”.

8. 1976

   International Security Assistance and Arms Export Control Act of 1976

   Pub. L. 94–329 § 304(a) · 90 Stat. 729

   Changed · 22 U.S.C. § 2314(d)

   Pub. L. 94–329, § 304(a), provided that either the President, by so stating in a writing to Congress, or Congress, by joint resolution, terminate assistance upon determining a violation, specified conditions for reinstatement of assistance, and denied the President the power, where a violation has been determined, of granting assistance on the basis of national security

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 94–329, § 304(a), provided that either the President, by so stating in a writing to Congress, or Congress, by joint resolution, terminate assistance upon determining a violation, specified conditions for reinstatement of assistance, and denied the President the power, where a violation has been determined, of granting assistance on the basis of national security.

   Enacted provision · exact public law section
   (a) Section 505(d) of the Foreign Assistance Act of 1961 is amended to read as follows: “(d) (1) Assistance and deliveries of assistance under this chapter to any country shall be terminated as hereinafter provided, if such country uses defense articles or defense services furnished under this 68 Stat. 832. 22 USC 1751 note. Act, the Mutual Security Act of 1954, or any predecessor Foreign Assistance Act, in substantial violation (either in terms of quantities or in terms of the gravity of the consequences regardless of the quantities involved) of any agreement entered into pursuant to any such Act (A) by using such articles or services for a purpose not authorized 22 USC 2302. under section 502 or. if such agreement provides that such articles or services may only be used for purposes more limited than those authorized under section 502, for a purpose not authorized under such agreement; (B) by transferring such articles or services to, or permitting any use of such articles or services by, anyone not an officer, employee, or agent of the recipient country without the consent of the President; or (C) by failing to maintain the security of such articles or services. “(2) (A) Assistance and deliveries of assistance shall be terminated pursuant to paragraph (1) of this subsection if the President so determines and so states in writing to the Congress, or if the Congress so finds by joint resolution. “(B) The President shall report to the Congress promptly upon the receipt of information that a violation described in paragraph (1) of this subsection may have occurred. “(3) Assistance to a country shall remain terminated in accordance with paragraph (1) of this subsection until such time as— “(A) the President determines that the violation has ceased; and “(B) the country concerned has given assurances satisfactory to the President that such violation will not recur. “(4) The authority contained in section 614(a) of this Act may not be used to waive the provisions of this section with respect to further assistance under this chapter.”.

9. 1976

   International Security Assistance and Arms Export Control Act of 1976

   Pub. L. 94–329 § 204(b)(2) · 90 Stat. 729

   Struck · 22 U.S.C. § 2314(e)

   Pub. L. 94–329, § 204(b)(2), struck out provisions relating to the President’s notification of his consent to transfer war implements to another country, in writing, to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate indicating his justification for the transfer and the particular war implement transferred

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 94–329, § 204(b)(2), struck out provisions relating to the President’s notification of his consent to transfer war implements to another country, in writing, to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate indicating his justification for the transfer and the particular war implement transferred.

   Enacted provision · exact public law section
   (2) The first sentence of section 505(e) of the Foreign Assistance 22 USC 2314. Act of 1961 is amended by striking out “, and prior” and all that follows thereafter through “transferred” the second time it appears.

10. 1976

    International Security Assistance and Arms Export Control Act of 1976

    Pub. L. 94–329 title II · 90 Stat. 729

    Added · 22 U.S.C. § 2314(g)

    Pub. L. 94–329 added subsec. (g)

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 94–329 added subsec. (g).

    Enacted provision · exact public law
    TITLE II— ARMS EXPORT CONTROLS Sec. 201. change in title (a) The first section of the Foreign Military Sales Act is amended by striking out “ ‘The Foreign Military Sales Act” and inserting in lieu thereof “the ‘Arms Export Control Act”. (b) Any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act. Sec. 202. arms sales policy (a) Section 1 of the Foreign Military Sales Act is amended by striking out the last paragraph and inserting tn lieu thereof the following new paragraphs: “It shall be the policy of the 1 unfed States to exert leadership in the world community to bring about arrangements for reducing the international trade in implements of war and to lessen the danger of outbreak of regional conflict and the burdens of armaments. United States programs for or procedures governing the export, sale, and grant of defense, articles and defense services to foreign countries and international organizations shall be administered in a manner which will carry out this policy. “It is the sense of the Congress that the President should seek to initiate multilateral discussions for the purpose of reaching agreements among the principal arms suppliers and arms purchasers and other countries with respect to the control of the international trade in armaments. It is further the sense of Congress that the President should work actively with all nations to cheek and control the international sale and distribution of conventional weapons of death and destruction and to encourage regional arms control arrangements. In furtherance of this policy, the President should undertake a concerted effort to convene an international conference of major arms-supplying and arms-purchasing nations which shall consider measures to limit conventional arms transfers in the interest of international peace and stability. “It is the sense of the Congress that the aggregate value of defense articles and defense services— “(1) which are sold under section 21 or section 22 of this Act; or “(2) which are licensed or approved for export under section 38 of this Art to, for the use, or for benefit of the armed forces, police, intelligence, or other internal security forces of a foreign country or international organization under a commercial sales contract; in any fiscal year should not exceed current levels.”. (b) (1) The President shall conduct a comprehensive study of the Study. 22 USC 2751 note. arms sales policies and practices of the United States Government, including policies mid practices with respect to commercial arms sales, in order to determine whether such policies and practices should be changed. Such study shall examine the rationale for arms sales to foreign countries, the benefits to the United States of such arms sales, the risks to world peace as a result of such anus sales, trends in arms sales by the United States and other countries, and steps which might be taken by the United States to provide for limitations on arms sales. In addition, such study shall include an evaluation of the impact of United States arms sales policies on the economic and social development of foreign countries and consideration of steps which might be taken by the United States to encourage the maximum use of the resources of the developing countries for economic and social development purposes. (2) Not later than the end of the one-year period beginning on the Report to Congress. date of enactment, of this section, the President shall submit to the Congress a report setting forth in detail (A) the findings made and conclusions reached as a result of the study conducted pursuant to paragraph (1) of this subsection, together with such recommendations for legislation as the President deems appropriate, (B) the efforts made by the United States during the five years immediately preceding the submission of such report to initiate and otherwise encourage arms sales limitations, and (C) the efforts being made by the United States at the time of the submission of such report to initiate and otherwise encourage arms sales limitations in accordance with the policies stated in the amendment made by subsection (a) of this section. Sec. 203. transfer of defense services (a) Section 3(a)(2) of the Foreign Military Sales Act is amended, effective July 1, 1976, by inserting immediately after 22 USC 2753 and note. “article” each time it appears “or related training or other defense service”. (b) Section 305(a) of the Foreign Assistance Act of 1961 is 22 USC 2314 and note. amended, effective July 1, 1976, by inserting immediately after “articles” each time it appears “or related training or other defense service.”. Sec. 204. approval for transfer of defense articles (a) Section 3 of the Foreign Military Sales Act is amended 22 USC 2753. by adding at the end thereof the following new subsections: “(e) The President may not give his consent under paragraph (2) Written certification, submittal to Speaker of the House and congressional committee. 22 USC 2314. of subsection (a) or under the third sentence of such subsection 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 unless, 30 days prior to giving such consent, the President submits to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate a written certification with respect to such proposed transfer containing— “(1) the name of the country or international organization proposing to make such transfer, “(2) a description of the defense article or related training or other defense service proposed to be transferred, including the original acquisition cost of such defense article or related training or other defense service, “(3) the name of the proposed recipient of such defense article or related training or other defense service, “(4) the reasons for such proposed transfer, and “(5) the date on which such transfer is proposed to be made. Any certification submitted to Congress pursuant to this subsection shall be unclassified, except that information regarding the dollar value and number of defense articles, or related training or other defense services, proposed to be transferred may be classified if public disclosure thereof would be clearly detrimental to the security of the United States. “(f) If the President receives any information that a transfer of any defense article, or related training or other defense service, has been made without his consent as required under this section or under section 505 of the Foreign Assistance Act of 1961, he shall report such information immediately to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate.”. (b) (1) The second sentence of subsection (a) of section 3 of the 22 USC 2753. Foreign Military Sales Act is amended by striking out “, and prior” and ail that follows thereafter through “transferred” the second time it appears. (2) The first sentence of section 505(e) of the Foreign Assistance 22 USC 2314. Act of 1961 is amended by striking out “, and prior” and all that follows thereafter through “transferred” the second time it appears. Sec. 205. sales from stocks Section 21 of the Foreign Military Sales Act is amended to read as follows: “Sec. 21. Sales From Stocks.— (a) The President may sell defense articles and defense services from the stocks of the Department of Defense to any eligible country or international organization if such country or international organization agrees to pay in United States dollars— “(1) in the case of a defense, article not intended to be replaced at the time such agreement is entered into, not less than the actual value thereof; “(2) in the case of a defense article intended to be replaced at the time such agreement is entered into, the estimated cost of replacement of such article, including the contract or production costs less any depreciation in the value of such article; or “(3) in the ease of the sale of a defense service, the full cost to the United States Government of furnishing such service. “(b) Except as provided by subsection (d) of this section, payment shall be made in advance or, if the President determines it to be in the national interest, upon delivery of the defense article or rendering of the defense service. “(c) Personnel performing defense services sold under this Act may not perform any duties of a combatant nature, including any duties related to training, advising, or otherwise providing assistance regarding combat activities, outside the United States in connection with the performance of those defense services. “(d) If the President determines it to be in the national interest, pursuant to subsection (b) of this section, billings for sales made under letters of offer issued under this section after the enactment of this subsection may be dated and issued upon delivery of the defense article or rendering of the defense service and shall be due and payable upon receipt thereof by the purchasing country or international organization. Interest shall be charged on any net amount due and payable which is not paid within sixty days after the date of such billing. The rate of interest charged shall be a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding short-term obligations of the United States as of the last day of the month preceding the billing and shall be computed from the date of billing. The President may extend such sixty-day period to one hundred and twenty days if he determines that emergency requirements of the purchaser for acquisition of such defense articles or defense services exceed the ready availability to the purchaser of funds sufficient to pay the United States in full for them within such sixty-day period and submits that determination to the Congress together with a special emergency request for the authorization and appropriation of additional funds to finance such purchases under this Act. “(e) (1) After September 30, 1976, letters of offer for the sale of defense articles or for the sale of defense services that are issued pursuant to this section or pursuant to section 22 of this Act shall include 22 USC 2762. appropriate charges for— “(A) administrative services, calculated on an average percentage basis to recover the full estimated costs of administration of sales made under this Act to all purchasers of such articles and services; “(B) any use of plant and production equipment in connection with such defense articles; and “(C) a proportionate amount of any nonrecurring costs of research, development, and production of major defense equipment. “(2) The, President may reduce or waive the charge or charges Reduction or waiver. which would otherwise be considered appropriate under paragraphs (1)(B) and (1)(C) for particular sales that would, if made, significantly advance United States Government interests in North Atlantic Treaty Organization standardization, or foreign procurement in the United States under coproduction arrangements. “(f) Any contracts entered into between the United States and a foreign country under the authority of this section or section 22 of tills Act shall be prepared in a manner which will permit them to be made available for public inspection to the fullest extent possible consistent with the national security of the United States. “(g) In carrying out section 814 of the Act of October 7, 1975 NATO standardization agreements. 89 Stat. 540. (Public Law 94–106), the President may enter into North Atlantic Treaty Organization standardization agreements for the cooperative furnishing of training on a bilateral or multilateral basis, if the financial principles of such agreements are based on reciprocity. Such agreements shall include reimbursement for all direct costs but may exclude reimbursement for indirect costs, administrative surcharges, and costs of billeting of trainees (except to the extent that members of the United States Armed Forces occupying comparable accommodations are charged for such accommodations by the United States). Each such agreement shall be transmitted promptly to the Speaker Transmittal to Speaker of the House and congressional committees. of the House, of Representatives and the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate.”. Sec. 206. sales from stocks affecting united states combat readiness Section 21 of the Foreign Military Sales Act, as amended Ante, p. 736. by section 205 of this Act, is further amended by adding at the end thereof the following new subsection: “(h) (1) Sales of defense articles and defense services which could have significant adverse effect on the combat readiness of the Armed Forces of the United States shall be kept to an absolute minimum. Written statement, transmittal to Speaker of the House and congressional committees. The President shall transmit to the Speaker of the House of Representatives and the Committees on Armed Services and Foreign Relations of the Senate on the same clay a written statement giving a complete explanation with respect to any proposal to sell, under this section, any defense articles or defense services if such sale could have a significant adverse effect on the combat readiness of the Armed Forces of the United States. Each such statement shall lie unclassified except to the extent that public disclosure of any item of information contained therein would be clearly detrimental to the security of the United States. Any necessarily classified information shall be confined to a supplemental report. Each such statement shall include an explanation relating to only one such proposal to sell and shall set forth— “(A) the country or international organization to which the sale is proposed to be made; “(B) the amount of the proposed sale; “(C) a description of the defense article or service proposed to be sold; “(D) a full description of the impact which the proposed sale will have on the Armed Forces of the United States; and “(E) a justification for such proposed sale, including a certification that such sale is important to the security of the United States. A certification described in subparagraph (E) shall take effect on the date on which such certification is transmitted and shall remain in effect for not to exceed one year. “(2) No delivery may be made under any sale which is required to be reported under paragraph (1) of this subsection unless the certification required to be transmitted by paragraph (E) of paragraph (1) is in effect.”. Sec. 207. procurement for cash sales (a) Section 22(u) of the Foreign Military Sales Act is amended by adding at the end thereof the following: “Interest shall be charged on any net amount by which any such country or international organization is in arrears under all of its outstanding unliquidated Interest rate. dependable undertakings, considered collectively. The rate of interest, charged shall be a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the current average market yield on outstanding short-term obligations of the United States as of the last, day of the month preceding the net arrearage and shall be computed from the date of net arrearage.”. (b) Section 22(b) of the Foreign Military Sales Act is amended by striking out the first sentence and inserting in lieu thereof the following: “The President may, if he determines it to be in the national interest, issue letters of offer under this section which provide for billing upon delivery of the defense article or rendering of the defense service and for payment within one hundred and twenty days after the date of billing. This authority may be exercised, however, only if the President also determines that the emergency requirements of the purchaser for acquisition of such defense articles and services exceed the ready availability to the purchaser of funds sufficient to make payments on a dependable undertaking basis and submits both determinations to the Congress together with a special emergency request for authorization and appropriation of additional funds to finance such purchases under this Act.”. Sec. 208. extension of payment period for credit sales (a) Paragraph (1) of section 23 of the Foreign Military Sales Act is amended by striking out “ten years” and inserting in lieu 22 USC 2763. thereof “twelve years”. (b) The amendment made by subsection (a) shall apply with respect 22 USC 2763 note. to financing under agreements entered into on or after the date of enactment of this Act for the procurement of defense articles to be delivered, or defense services to be rendered, after such date. Sec. 209. annual estimate and justification for sales program (a) Immediately after section 24 of the Foreign Military Sales Act, add the following new section: “Sec. 25. Annual Estimate and Justification for Sales Program.— (a) The President shall transmit to the Congress, as a part of the presentation materials for security assistance programs proposed for each fiscal year, a report, which sets forth— “(1) an estimate of the amount of sales expected to be made to each country under sections 21 and 22 of this Act, including a 22 USC 2761, 2762. detailed explanation of the foreign policy and United States national security considerations involved in expected sales to each country; “(2) an estimate of the amount of credits and guaranties expected to be extended to each country under sections 23 and 24 of this Act; 22 USC 2763, 2764. “(3) a list of all findings which are in effect on the date of such transmission made by the President pursuant to section 3(a)(1) of this Act, together with a full and complete justification for each such finding, explaining how sales to earn country with respect to which such finding has been made will strengthen the security of the United States and promote world peace; and “(4) an arms control impact statement for each purchasing country, including (A) an analysis of the relationship between expected sales to each country and arms control efforts relating to that country, and (B) the impact of such expected sales on the stability of the region that includes the purchasing country. “(b) Not later than thirty days following the receipt of a request Information, submittal to congressional committee. made by the Committee on Foreign Relations of the Senate or the Committee on International Relations of the House of Representatives for additional information with respect to any estimate submitted pursuant to subsection (a), the President shall submit such information to such committee. “(c) The President shall make every effort to submit all of the information required by this section wholly in unclassified form. In the event the President submits any such information in classified form, he shall submit such classified information in an addendum and shall also submit simultaneously a detailed summary, in unclassified form, of such classified information.”. (b) Section 634(d) of the Foreign Assistance Act of 1961 is 22 USC 2394. amended by striking out “and military sales under this or any other Act” in the fourth sentence. Sec. 210. military sales authorization (a) Section 31(a) of the Foreign Military Sales Act is amended by striking out “not to exceed $405,000,000 for the fiscal year 1975” and inserting in lien thereof “not to exceed $1,039,000,000 for the fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977”. (b) Section 31(b) of such Act is amended to read as follows: “(b) The aggregate total of credits, or participations in credits, extended pursuant to this Act and of the, principal amount of loans 22 USC 2764. guaranteed pursuant to section 24(a) shall not exceed $2,374,700,000 for the fiscal year 1976, of which not less than $1,500,000,000 shall be available only for Israel, and shall not exceed $2,022,100,000 for the fiscal year 1977, of which not less than $1,000,000,000 shall be available only for Israel.”. (c) (1) Section 31 of such Act is further amended by adding at the end thereof the following new subsections: “(c) Funds made, available for the fiscal years 1976 and 1977 under subsection (a) of this section shall be obligated to finance the procurement of defense articles and defense services by Israel on a long-term repayment basis either by the extension of credits, without regard 22 USC 2763. to the limitations contained in section 23, or by the issuance of guaranties under section 24. Repayment shall be hi not less than twenty years, following a grace period of ten years on repayment of principal. Israel shall be released from one-half of its contractual liability to repay the United States Government with respect to defense articles and defense services so financed for each such year. “(d) The aggregate acquisition cost, to the United States of excess defense articles ordered by the President in any fiscal year after fiscal year 1976 for delivery to foreign countries or international organizations under the authority of chapter 2 of part II of the Foreign 22 USC 2311 et seq. Assistance Act of 1961 or pursuant to sales under this Act may not exceed $100,000,000 (exclusive of ships and their on-board stores and supplies transferred in accordance with law).”. (2) Subsections (a), (b), (c), and (e) of section 8 of the Act entitled “An Act to amend the Foreign Military Sales Act and for other purposes”, approved January 12, 1971 (Public Law 91–672; 84 Repeal. 22 USC 2321b and notes. Transfer of funds. Stat. 2053), are repealed effective July 1, 1976. All funds in the suspense account referred to in subsection (a) of such section on July 1, 1976, shall be transferred to the general fund of the Treasury. Sec. 211. reports on commercial and governmental military exports; congressional action (a) Section 36 of the Foreign Military Sales Act is amended to read as follows: “Sec. 36. Reports on Commercial and Governmental Military Exports; Congressional Action.— (a) 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 not more than thirty days after the end of each quarter an unclassified report (except that any material which was transmitted in classified form under subsection (b)(1) or (c)(1) of this section may be contained in a classified addendum to such report, and any letter of offer referred to in paragraph (1) of this subsection may be listed in such, addendum unless such letter of offer has been the subject of an unclassified certification Contents. pursuant to subsection (b)(1) of this section) containing— “(1) a listing of all letters of offer to sell any major defense equipment for $1,006,000 or more under this Act to each foreign country and international organization, by category, if such letter’s of offer have not been accepts or canceled; “(2) a listing of all such letters of offer that have been accepted during the fiscal year in which such report is submitted, together with the total value of all defense articles and defense services sold to each foreign country and international organization during such fiscal year; “(3) the cumulative dollar amounts, by foreign country and international organization, of sales credit agreements under section 23 and guaranty agreements under section 24 made during the 22 USC 2763, 2764. fiscal year in which such report is submitted; “(4) a numbered listing of all licenses and approvals for the export to each foreign country and international organization during such fiscal year of commercially sold major defense equipment, by category, sold for $1,000,000 or more, together with the total value of all defense, articles and defense services so licensed for each foreign country and international organization, setting forth with respect to the listed major defense equipment— “(A) the items to be exported under the license, “(B) the quantity and contract price of each such item to be furnished, and “(C) the name and address of the ultimate user of each such item; “(5) projections of the dollar amounts, by foreign country and international organization, of cash sales expected to be made under sections 21 and 22, credits to be extended under section 23, 22 USC 2761, 2762. and guaranty agreements to lie made under section 24 in the quarter of the fiscal year immediately following the quarter for which such report is submitted; “(6) a projection with respect to all cash sales expected to be made and credits expected to be extended to each country and organization for the remainder of the fiscal year in which such report is transmitted; “(7) an estimate of the number of officers and employees of the United States Government and of United States civilian contract personnel present in each such country at the end of that quarter for assignments in implementation of sales and commercial exports under this Act; and “(8) an analysis and description of the services being performed by officers and employees of the United States Government under section 21(a) of this Act, including the number of personnel so employed. For each letter of offer to sell under paragraphs (1) and (2), the report, shall specify (i) the foreign country or international organization to which the defense article or service is offered or was sold, as the case may be; (ii) the dollar amount of the offer to sell or the sale and the number of defense articles offered or sold, as the case may be; (iii) a description of the defense article or service offered or sold, as the case may be; and (iv) the United States Armed Force or other agency of the United States which is making the offer to sell or the sale, as the case may be. “(b) (1) In the case of any letter of offer to sell any defense articles Certification, submittal to Speaker of the House and congressional committee. or services under this Act for $25,000,000 or more, or any major defense equipment for $7,000,000 or more, before such letter of offer is issued, the President shall submit to the Speaker of the House of Representatives and to the chairman of the Committee on Foreign Relations of the Senate a numbered certification with respect to such offer to sell containing the information specified in clauses (i) through Statement, transmittal to congressional committee. (iv) of subsection (a). In addition, the President shall, upon the request of subcommittee or the Committee on International Relations of the House of Representatives, transmit promptly to both such committees a statement setting forth, to the extent specified in such request— “(A) a detailed description of the defense articles or services to be offered, including a brief description of the capabilities of any defense article to be offered; “(B) an estimate of the number of officers and employees of the United States Government and of United States civilian contract personnel expected to be needed in such country to carry out the proposed sale; “(C) the name of each contractor expected to provide the defense article or defense service proposed to be sold (if known on the date of transmittal of such statement); “(D) an analysis of the arms control impact pertinent to such offer to sell, prepared in consultation with the Secretary of Defense; “(E) the reasons why the foreign country or international organization to which the sale is proposed to be made needs the defense articles or services which are the subject of such sale and a description of how such country or organization intends to use such defense articles or services; “(F) an analysis by the President of the impact of the proposed sale on the military stocks and the military preparedness of the United States; “(G) the reasons why the proposed sale is in the national interest of the United States; “(H) an analysis by the President of the impact of the proposed sale on the military capabilities of the foreign country or international organization to winch such sale would be made; “(I) an analysis by the President of how the proposed sale would affect the relative military strengths of countries in the region to which the defense articles or services which are the subject of such sale would be delivered and whether other countries in the region have comparable kinds and amounts of defense articles or services; “(J) an estimate of the levels of trained personnel and maintenance facilities of the foreign country or international organization to which the sale would be made which are needed and available to utilize effectively the defense articles or services proposed to be sold; “(K) an analysis of the extent to which comparable kinds and amounts of defense articles or services are available from other countries; “(L) an analysis of the impact of the proposed sale on United States relations with the countries in the region to which the defense articles or services which are the subject of such sale would be delivered; and “(M) a detailed description of any agreement proposed to be entered into by the United States for the purchase or acquisition by the United States of defense articles, services, or equipment, or other articles, services, or equipment of the foreign country or international organization in connection with, or as consideration for, such letter of offer, including an analysis of the impact of such proposed agreement upon United States business concerns which might otherwise have provided such articles, services, or equipment, to the United States, an estimate of the costs to be incurred by the United States in connection with such agreement compared with costs which would otherwise have been incurred, an estimate of the economic impact and unemployment which would result from entering into such proposed agreement, and an analysis of whether such costs and such domestic economic impact justify entering into such proposed agreement. A certification transmitted pursuant to this subsection shall be unclassified, except that the information specified in clause (ii) and the details of the description specified in clause (iii) of subsection (a) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. The letter of offer shall not be issued if the Congress, within thirty calendar days after receiving such certification, adopts a concurrent resolution stating that it objects to the proposed sale, unless the President states in his certification that an emergency exists which inquires such sale in the national security interests of the United States. “(2) Any such resolution 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. Post, p, 765. “(3) For the purpose of expediting the consideration and adoption of concurrent resolutions under this subsection, 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. “(c) In the case of an application by a person (other than with Certification, transmittal to Speaker of the House and congressional committee. 22 USC 2761, 2762. regard to a sale under section 21 or section 22 of this Act) for a license for the export of any major defense equipment sold under a contract in the amount of $7,000,000 or more or of defense articles or defense services sold under a contract in the amount of $25,000,000 or more, not less than 30 days before issuing such license 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 an unclassified numbered certification with respect to such application specifying (1) the foreign country or international organization to which such export, will be made, (2) the dollar amount of the items to be exported, and (3) a description of the items to be exported. In Statement, transmittal to congressional committees. addition, the President shall, upon the request of such committee or the Committee on International Relations of the House of Representatives, transmit promptly to both such committees a statement setting forth, to the extent specified in such request, a description of the capabilities of the items to be exported, an estimate of the total number of United States personnel expected to be needed in the foreign country concerned in connection with the items to be exported and an analysis of the arms control impact pertinent to such application, prepared in consultation with the Secretary of Defense. A certification transmitted pursuant to this subsection shall lie unclassified, except that the information specified in paragraph (2) and the details of the description specified in paragraph (3) may be classified if the public disclosure thereof would be clearly detrimental to the security of the United States. “(d) In the case of an approval under section 38 of this Act of a Post, p. 744. United States commercial technical assistance, or manufacturing licensing agreement for or in a country not a member of the North Atlantic Treaty Organization which involves the manufacture abroad of any item of significant combat equipment on the United States Munitions List, before such approval is given, the President shall submit a certification with respect to such proposed commercial agreement in a manner similar to the certification required under subsection (c) containing comparable information, except that the last sentence of such subsection shall not apply to certifications submitted pursuant to this subsection.”. (b) The amendment made by subsection (a) of this section shall apply with respect to letters of offer for which a certification is transmitted pursuant to section 36(b) of the Arms Export Control Act on or after the date of enactment of this Act and to export licenses for Infra. which an application is filed under section 38 of such Act on or after such date. Sec. 212. control of licenses with respect to arms exports and imports (a) (1) Chapter 3 of the Foreign Military Sales Act is amended by adding at the end thereof the following new section: “Sec. 38. Control of Arms Exports and Imports.— (a) (1) In furtherance of world peace and the security and foreign policy of the United States, the President is authorized to control the import and the export of defense articles and defense services and to provide foreign policy guidance to persons of the United States involved in the Regulations. export and import of such articles and services. The President is authorized to designate those items which shall be considered as defense articles and defense services for the purposes of this section and to promulgate regulations for the import and export of such articles and services. The items so designated shall constitute the United States Munitions List. “(2) Decisions on issuing export licenses under this section shall be made in coordination with the Director of the United States Arms Control and Disarmament Agency and shall take into account the Director’s opinion as to whether the export of an article will contribute to an arms race, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements. “(b) (1) As prescribed in regulations issued under this section, every person (other than an officer or employee of the United States Government acting in an official capacity) who engages in the business of manufacturing, exporting, or importing any defense articles or defense services designated by the President under subsection (a)(1) shall register with the United States Government agency charged with the administration of this section, and shall pay a registration fee which shall be prescribed by such regulations. Such regulations shall prohibit the return to the United States for sale in the United States (other than for the Armed Forces of the United States and its allies or for any State or local law enforcement agency) of any military firearms or ammunition of United States manufacture furnished to foreign governments by the United States under this Act or any other foreign assistance or sales program of the United States, whether or not enhanced in value or improved in condition in a foreign country. This prohibition shall not extend to similar firearms that have been so substantially transformed as to become, in effect, articles of foreign manufacture. “(2) Except as otherwise specifically provided in regulations issued tinder subsection (a)(1), no defense articles or defense services designated by the President under subsection (a)(1) may be exported or imported without a license for such export or import, issued in accordance with this Act and regulations issued under this Act, except that no license shall be required for exports or imports made by or for an agency of the United States Government (A) for official use by a department or agency of the United States Government, or (B) for carrying out any foreign assistance or sales program authorized by law and subject to the control of the President by other means. “(3) No license may be issued under this Act for the export of any major defense equipment sold under a contract in the amount of $25,000,000 or more to any foreign country which is not a member of the North Atlantic Treaty Organization unless such major defense equipment was sold under this Act. “(c) Any person who willfully violates any provision of this section Penalties. Post, p. 767. or section 31), or any rule or regulation issued under either section, or who willfully, in a registration or license application or required report, makes any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading, shall upon conviction be fined not more than $100,00(1 or imprisoned not more than two years, or both. “(d) This section applies to and within the Canal Zone. “(e) In carrying out functions under this section with respect to the export of defense articles and defense services, the President is authorized to exercise the same powers concerning violations and enforcement which are conferred upon departments, agencies and officials by sections 6 (e), (d), (e), and (f) and 7 (a) and (c) of the Export Administration Act of 1069, subject to the same terms 50 USC app. 2405, 2406. and conditions as are applicable to such powers under such Act. Nothing in this subsection shall be construed as authorizing the withholding of information from the Congress.”. (2) Section 2(b) of the Foreign Military Sales Act is amended— 22 USC 2752. (A) by inserting “and exports” immediately after “sales” both times it appears; and (B) by inserting “and whether there shall be delivery or other performance under such sale or export,” immediately after “thereof,”. (b) (1) Section 414 of the Mutual Security Act of 1954 is repealed. Repeal. 22 USC 1934 and note, 2778 note. Any reference to such section shall be deemed to be a reference to section 38 of the Arms Export Control Act and any reference to licenses issued under section 38 of the Arms Export Control Act shall be deemed to include a reference to licenses issued under section 414 of the Mutual Security Act of 1954. (2) All determinations, authorizations, regulations, orders, contracts, 22 USC 1934 note. agreements, and other actions issued, undertaken, or entered into under section 414 of the Mutual Security Act of 1954 shall continue in full force and effect until modified, revoked, or superseded by appropriate authority. Sec. 213. cancellation and suspension of licenses and contracts Section 42 of the Foreign Military Sales Act is amended 22 USC 2791. by adding at the end thereof the following new subsection: “(e) (1) Each contract for sale entered into under sections 21 and 22 of this Act shall provide that such contract may be canceled in whole 22 USC 2761, 2762. or in part, or its execution suspended, by the United States at any time under unusual or compelling circumstances if the national interest so requires. “(2) (A) Each export license issued under section 38 of this Act Ante, p. 744. shall provide that such license may be revoked, suspended, or amended by the Secretary of State, without prior notice, whenever the Secretary deems such action to be advisable. “(B) Nothing in this paragraph may be construed as limiting the regulatory authority of the President under this Act. “(3) There are authorized to be appropriated from time to time such sums as may be necessary (A) to refund moneys received from purchasers under contracts of sale entered into under sections 21 and 22 22 USC 2761, 2762. of this Act that are canceled or suspended under this subsection to the extent such moneys have previously teen disbursed to private contractors and United States Government agencies for work in progress, and (B) to pay such damages and costs that accrue from the corresponding cancellation or suspension of the existing procurement contracts or United States Government agency work orders involved.”. Sec. 214. administrative expenses Section 43 of the Foreign Military Sales Act is amended by designating the present section as subsection (a) and by adding at the end thereof the following new subsection: “(b) Administrative expenses incurred by any department or agency of the United States Government (including any mission or group) in carrying out functions under this Act which are primarily for the benefit of any foreign country shall be fully reimbursed from amounts received for sales under sections 21 and 22.”. Sec. 215. definitions Section 47 of the Foreign Military Sales Act is amended— (1) by striking out “and” at the end of paragraph (1); (2) by striking out the period at the end of paragraph (2) and inserting in lieu thereof a semicolon; and (3) by adding immediately after paragraph (2) the following new paragraphs: “(3) ‘defense article’, except as provided bi paragraph (7) of this section, includes— “(A) any weapon, weapons system, munition, aircraft, vessel, boat, or other implement of war, “(B) any property, installation, commodity, material, equipment, supply, or goods used for the purposes of making military sales, “(C) any machinery, facility, tool, material, supply, or other item necessary for the manufacture, production, processing, repair, servicing, storage., construction, transportation, operation, or use of any article listed in this paragraph, and “(D) any component or part of any article listed in this paragraph, but does not include merchant vessels or (as defined by the Atomic 42 USC 2014. Energy Act of 1954) source material, byproduct material, special nuclear material, production facilities, utilization facilities, or atomic weapons or articles involving Restricted Data; “(4) ‘defense service’, except as provided in paragraph (7) of this section, includes any service, test, inspection, repair, training, publication, technical or other assistance, or defense information (as defined 22 USC 2403. in section 644(e) of the Foreign Assistance Act of 1961), used for the purposes of making military sales; “(5) ‘training’ includes formal or informal instruction of foreign students in the United States or overseas by officers or employees of the United States, contract technicians, or contractors (including instruction at civilian institutions), or by correspondence courses, technical, educational, or information publications and media of all kinds, training aid, orientation, training exercise, and military advice to foreign military units and forces; “(6) ‘major defense equipment’ means any item of significant combat equipment on the United States Munitions List having a nonrecurring research and development cost of more than $50,000,000 or a total production cost of more than $200,000,000: and “(7) ‘defense articles and defense services’ means, with respect to commercial exports subject to the provisions of section 38 of this Act, Ante, p. 744. those items designated by the President pursuant to subsection (a)(1) of such section.”. Sec. 216. annual foreign sales report Section 657 of the Foreign Assistance Act of 1061 is 22 USC 2417. amended as follows: (1) The section caption is amended by inserting “and Military Exports” after “Foreign Assistance”. (2) Paragraph (1) of subsection (a) is amended to lead as follows: “(1) the aggregate dollar value of all foreign assistance (including military education and training), foreign military sales, sales credits, and guaranties provided or made by the United States Government by any means to all foreign countries and international organizations, and the aggregate dollar value of such assistance, sales, sales credits, and guaranties, by category, provided or made by the United States Government to or for each such country or organization during that fiscal year;”. (3) Paragraph (3) of subsection (a) is amended to read as follows: “(3) the aggregate dollar value and quantity of defense articles and defense services, and of military education and training, exported to each foreign country and international organization, by category, specifying whether the export was made by grant under chapter 2 or chapter 5 of part IF of this Act, by sale under chapter 2 of the Arms Export Control Act, by commercial sale licensed under chapter 3 of that Act, or by other authority; and”. (4) Paragraph (4) of subsection (a) is repealed. (5) Paragraph (5) of subsection (a) is amended— (A) by redesignating such paragraph as paragraph (4), and (B) by striking out “(4)” and inserting in lieu thereof “(3)”. Sec. 217. report on sales of excess defense articles Not later than February 28, 1977, the President shall Transmittal to Speaker of the House and congressional committee. 22 USC 2751 note. transmit to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate a full and complete report, regarding all sales made under the Arms Export Control Act during the period July 1, 1976, through December 31, 1976, of excess defense articles to foreign governments and international organizations (other than any such article sold solely for scrap). Such report shall set forth— (1) the number of such sales; (2) the total acquisition costs of the articles sold; (3) the total gross price paid for such articles exclusive of administrative, surcharges and costs of repairing, rehabilitation, or modifying such articles; (4) the data set forth under paragraphs (1), (2), and (3) totaled separately for those sales made at less than 33⅓ per centum of the acquisition costs thereof; and (5) the estimated total proceeds of soles of articles included under paragraph (4) if such articles had been sold instead through United States Government surplus property disposal operations and the percentage thereof that would have been paid out of such proceeds to meet direct expenses incurred in connection with such dispositions pursuant to law. Sec. 218. study of the effects of arms export control provisions (a) The Secretary of State, in consultation with the Secretary of Defense, shall conduct a comprehensive study of the effects of the enactment of the arms export control provisions contained in this title with a view to determining the consequences of such provisions on (1) the foreign policy of the United States, (2) the balance of payments of the United States, (3) the trade with foreign countries, (4) unemployment in the United States, and (5) weapons procurement by the Department of Defense. “(b) The Secretary of State shall submit the results of such study to the President and the Congress within one year after the date of enactment of this section, together with such comments and recommendations for legislation as he deems appropriate.

11. 1977

    Foreign Relations Authorization Act, Fiscal Year 1978

    Pub. L. 95–105 title I § 109(a)(4) · 91 Stat. 844

    Substituted · 22 U.S.C. § 2314(g)(4)(A)

    Pub. L. 95–105 substituted “Assistant Secretary of State” for “Coordinator” in provisions preceding cl. (i)

    Source evidence

    Code amendment note
    Subsec. (g)(4)(A). Pub. L. 95–105 substituted “Assistant Secretary of State” for “Coordinator” in provisions preceding cl. (i).

    Enacted provision · exact public law section
    (4) Section 505(g) (4) (A) of such Act is amended by striking out “Coordinator” in the text preceding clause (i) and inserting in lieu thereof “Assistant Secretary of State”.

12. 1985

    International Security and Development Cooperation Act of 1985

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

    Inserted · 22 U.S.C. § 2314(f)

    Pub. L. 99–83 inserted provisions relating to waiver for items delivered prior to 1975

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 99–83 inserted provisions relating to waiver for items delivered prior to 1975.

    Enacted provision · exact public law section
    (b) Waiver of Net Proceeds.— Section 505(f) of such Act is 22 USC 2314. amended by adding at the end thereof the following: “In the case of items which were delivered prior to 1975, the President may waive the requirement that such net proceeds be paid to the United States Government if he determines that to do so is in the national interest of the United States.”.

13. 1986

    Tax Reform Act of 1986

    Pub. L. 99–514 § 2 · 100 Stat. 2085

    Substituted · 22 U.S.C. § 2314(g)(1); 22 U.S.C. § 2314(g)(3)

    Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text

    Source evidence

    Code amendment note
    Subsec. (g)(1), (3). Pub. L. 99–514 substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954”, which for purposes of codification was translated as “title 26” thus requiring no change in text.

    Enacted provision · exact public law section
    SEC. 2. INTERNAL REVENUE CODE OF 1986. (a) Redesignation of 1954 Code.— The Internal Revenue Title enacted August 16, 1954, as heretofore, hereby, or hereafter amended, may be cited as the “Internal Revenue Code of 1986”. (b) References in Laws, Etc.— Except when inappropriate, any reference in any law, Executive order, or other document— (1) to the Internal Revenue Code of 1954 shall include a reference to the Internal Revenue Code of 1986, and (2) to the Internal Revenue Code of 1986 shall include a reference to the provisions of law formerly known as the Internal Revenue Code of 1954.

14. 1990

    Pub. L. 101–513 title III · 104 Stat. 1979

    Substituted · 22 U.S.C. § 2314(f)

    Pub. L. 101–513 substituted “1985” for “1975” in second sentence

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 101–513 substituted “1985” for “1975” in second sentence.

    Enacted provision · exact public law
    TITLE III— MILITARY ASSISTANCE Funds Appropriated to the President international military education and training For necessary expenses to carry out the provisions of section 541, $47,196,000: Provided, That none of the funds appropriated under this heading shall be made available for grant financed military education and training for any country whose annual per capita GNP exceeds $2,349 unless that country agrees to fund from its own resources the transportation cost and living allowances of its students: Provided further, That not less than $1,000,000 of the funds appropriated under this heading shall be made available for developing, initiating, conducting and evaluating courses and other programs for training foreign civilian and military officials in managing and administering military establishments and budgets, and for training foreign military and civilian officials in creating and maintaining effective military judicial systems and military codes of conduct, including observance of internationally recognized human rights: Provided further, That none of the funds appropriated under this hearing shall be available for Malaysia, Zaire, Liberia, Sudan, and Somalia: Provided further, That section 541 of the Foreign Assistance Act of 1961 is amended by inserting the following sentence immediately after the first sentence: “Such civilian personnel shall include foreign governmental personnel of ministries other than ministries of defense if the military education and training would (i) contribute to responsible defense resource management, (ii) foster greater respect for and understanding of the principle of civilian control of the military, or (iii) improve military justice systems and procedures in accordance with internationally recognized human rights.” foreign military financing program For expenses necessary for grants to enable the President to carry out the provisions of section 23 of the Arms Export Control Act, $4,663,420,800: Provided, That of the funds appropriated by this paragraph not less than $1,800,000,000 shall be available for grants only for Israel, and not less than $1,300,000,000 shall be available for grants only for Egypt: Provided further, That of the funds appropriated by this paragraph for Israel $1,695,000,000 shall be disbursed within thirty days of enactment of this Act or by October 31, 1990, whichever is later: Provided further, That to the extent that the Government of Israel requests that funds be used for such purposes, grants made available for Israel by this paragraph shall, as agreed by Israel and the United States, be available for advanced fighter aircraft programs or for other advanced weapons systems, as follows: (1) up to $150,000,000 shall be available for research and development in the United States; and (2) not less than $475,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development: Provided further, That funds made available under this heading shall be obligated upon apportionment in accordance with paragraph (5)(C) of title 31, United States Code, section 1501(a), and shall be nonrepayable notwithstanding any requirement in section 23 of the Arms Export Control Act: Provided further, That none of the funds made available under this heading shall be available to finance the procurement of defense articles, defense services, or design and construction services that are not sold by the United States Government under the Arms Export Control Act unless the foreign country proposing to make such procurements has first signed a grant agreement with the United States Government specifying the conditions under which such procurements may be financed with such funds. For expenses necessary for loans to enable the President to carry out the provisions of section 23 of the Arms Export Control Act, $403,500,000: Provided, That any funds made available by this paragraph, except as otherwise specified, may be made available at concessional rates of interest: Provided further, That the concessional rate of interest on Foreign Military Financing Program loans shall be not less than 5 per centum per year: Provided further, That all country and funding level changes in requested concessional financing allocations shall be submitted through the regular notification procedures: Provided further, That during fiscal year 1991, gross obligations for the principal amount of direct loans under this heading, exclusive of loan guarantee defaults, shall not exceed $403,500,000. If Turkey receives any funds under this heading on a grant basis then not less than $30,000,000 of the funds provided for Greece shall be made available as grants: Provided, That funds previously obligated for the Philippines under the heading “Foreign Military Credit Sales” but uncommitted on the date of enactment of this Act, shall be used at any time hereafter only to finance sales made under the Arms Export Control Act: Provided further, That the second sentence of section 505(f) of the Foreign Assistance Act of 1961 is amended by striking out “1975” and inserting “1985” in lieu thereof: Provided further, That of the funds appropriated under this heading not more than $2,887,000 shall be available for non-lethal assistance for Guatemala: Provided further, That funds made available under this heading for Guatemala shall be made available only through the regular notification procedures of the Committees on Appropriations: Provided further, That none of the funds appropriated under this heading shall be available for Zaire, Sudan, Liberia or Somalia: Provided further, That not more than $300,000,000 of the funds made available under this heading shall be available for use in financing the procurement of defense articles, defense services, or design and construction services that are not sold by the United States Government under the Arms Export Control Act to countries other than Israel and Egypt: Provided further, That only those countries for which assistance was justified for the “Foreign Military Sales Financing Program” in the fiscal year 1989 congressional presentation for security assistance programs may utilize funds made available under this heading for procurement of defense articles, defense services or design and construction services that are not sold by the United States Government under the Arms Export Control Act: Provided further, That any material assistance provided with funds appropriated under this heading for Haiti shall be limited to non-lethal items such as transportation and communications equipment and uniforms: Provided further, That funds made available under this heading for Haiti shall be made available only through the regular notification procedures of the Committees on Appropriations: Provided further, That funds appropriated under this heading shall be expended at the minimum rate necessary to make timely payment for defense articles and services: Provided further, That the Department of Defense shall conduct during the current fiscal year nonreimbursable audits of private firms whose contracts are made directly with foreign governments and are financed with funds made available under this heading (as well as subcontractors thereunder) as requested by the Defense Security Assistance Agency: Provided further, That not more than $27,920,800 of the funds appropriated under this heading may be obligated for necessary expenses, including the purchase of passenger motor vehicles for replacement only for use outside of the United States, for the general costs of administering military assistance and sales: Provided further, That of the funds appropriated under this heading not less than $43,000,000 shall be available for Morocco, $350,000,000 only shall be available for Greece, $500,000,000 only shall be available for Turkey and up to $100,000,000 shall be available for Portugal. foreign military sales debt reform Funds made available by the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988, for obligation and expenditure after October 1, 1988, subject to a Presidential budget request, under the heading “Foreign Military Sales Debt Reform”, subsection (h) “Interest Rate Reduction” shall be available, subject to the same conditions and provisos, only after October 1, 1991. guaranty reserve fund If during fiscal year 1991 the funds available in the Guaranty Reserve Fund (Fund) are insufficient to enable the Secretary of Defense (Secretary) to discharge his responsibilities, as guarantor of loans guaranteed pursuant to section 24 of the Arms Export Control Act (AECA) or pursuant to the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988, under the heading “Foreign Military Sales Debt Reform”, the Secretary shall issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary of the Treasury. Such notes or obligations may be redeemed by the Secretary from appropriations and other funds available, including repayments by the borrowers of amounts paid pursuant to guarantees issued under section 24 of the AECA. Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. The Secretary of the Treasury shall purchase any notes or other obligations issued hereunder and for that purpose he is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under the Second Liberty Bond Act, and the purposes for which securities may be issued under the Second Liberty Bond Act are extended to include any purchase of such notes or obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this heading. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as public debt transactions of the United States. special defense acquisition fund (limitation on obligations) Not to exceed $350,000,000 may be obligated pursuant to section 51(c)(2) of the Arms Export Control Act for the purposes of the Special Defense Acquisition Fund during fiscal year 1991, to remain available for obligation until September 30, 1993: Provided, That section 632(d) of the Foreign Assistance Act of 1961 shall be applicable to the transfer to countries pursuant to chapter 2 of part II of that Act of defense articles and defense services acquired under chapter 5 of the Arms Export Control Act. peacekeeping operations For necessary expenses to carry out the provisions of section 551, $32,800,000.

15. 1994

    Foreign Relations Authorization Act, Fiscal Years 1994 and 1995

    Pub. L. 103–236 title I § 162(e)(2) · 108 Stat. 382

    Substituted · 22 U.S.C. § 2314(g)(4)(A)

    Pub. L. 103–236 substituted “Democracy, Human Rights, and Labor” for “Human Rights and Humanitarian Affairs” in introductory provisions

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 103–236 substituted “Democracy, Human Rights, and Labor” for “Human Rights and Humanitarian Affairs” in introductory provisions.

    Enacted provision · exact public law section
    (2) in sections 502B(b) (22 U.S.C. 2304(b)), 502B(c)(1) (22 U.S.C. 2304(c)), and 505(g)(4)(A) (22 U.S.C. 2314(g)(4)(A)) by striking “Human Rights and Humanitarian Affairs” each place it appears and inserting “Democracy, Human Rights, and Labor”;

    Effective date note
    Amendment by Pub. L. 103–236 applicable with respect to officials, offices, and bureaus of Department of State when executive orders, regulations, or departmental directives implementing the amendments by sections 161 and 162 of Pub. L. 103–236 become effective, or 90 days after Apr. 30, 1994, whichever comes earlier, see section 161(b) of Pub. L. 103–236, as amended, set out as a note under section 2651a of this title.

16. 1994

    Pub. L. 103–437 § 9(a)(6) · 108 Stat. 4581

    Substituted · 22 U.S.C. § 2314(g)(4)(A)

    Pub. L. 103–437 substituted “Foreign Affairs” for “International Relations” in introductory provisions

    Source evidence

    Code amendment note
    Subsec. (g)(4)(A). Pub. L. 103–437 substituted “Foreign Affairs” for “International Relations” in introductory provisions.

    Enacted provision · exact public law section
    (6) sections 116, 502B(c)(1), 505(g)(4)(A), and 634A(a) of The Foreign Assistance Act of 1961 (22 U.S.C. 2151n, 2304(c)(1), 2314(g)(4)(A), 2394–1(a)).

11 of 16 references resolved to an enrolled provision · 5 partial