22 U.S.C. § 2314 — Furnishing of defense articles or related

Page 783 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2314 Subsec. (a)(2). Pub. L. 95–92 substituted provisions prohibiting assistance to countries other than the countries specified in par. (1) except with respect to costs incurred under section 2321j(b) of this title or as otherwise required by law, for provisions setting forth limitations on amounts available for fiscal years 1976 and 1977 to carry out the purposes of this part with re- spect to assistance to international organizations and countries not designated in former par. (1). Subsec. (a)(3). Pub. L. 95–92 substituted provisions re- lating to the authority of sections 2360(a) and 2364(a) of this title, for provisions setting forth limitations on the number of countries eligible for assistance under this part in fiscal years 1976 and 1977. Subsec. (a)(4). Pub. L. 95–92 substituted provisions au- thorizing availability until expended of amounts appro- priated under this subsection, for provisions relating to the authority of sections 2360(a) and 2364(a) of this title to increase appropriated amounts and making inappli- cable to emergency assistance under section 2314(a) of this title limitations on appropriated funds under this section. Subsec. (a)(5) to (8). Pub. L. 95–92 struck out pars. (5) to (8) which provided for appropriations for administra- tive and related expenses for fiscal years 1976 and 1977, restricted use of funds with respect to sophisticated weapons systems, authorized appropriated amounts to remain available until expended, and required assist- ance to Turkey under this part to be subject to section 2370(x) of this title, respectively. 1976—Subsec. (a). Pub. L. 94–329 designated existing provisions as par. (1), substituted provisions author- izing appropriations for the purpose of this part of $196,700,000 for fiscal 1976 and $177,300,000 for fiscal 1977, with limitations in expenditures for the specified coun- tries, and authorizing an increase of not more than 10% of the specified amounts if the President finds it nec- essary for the purpose of this part, for provisions au- thorizing appropriations not to exceed $600,000,000 for fiscal 1975 with provisos limiting assistance under this part to thirty-one countries except for training in the United States, and prohibiting the furnishing of sophis- ticated weapons systems to underdeveloped countries unless the President determined that such systems were important to national security, and added pars. (2) to (8). 1974—Subsec. (a). Pub. L. 93–559 substituted ‘‘$600,000,000 for the fiscal year 1975’’ for ‘‘$512,500,000 for the fiscal year 1974’’ and designated existing provision as item (1) and added item (2). 1973—Subsec. (a). Pub. L. 93–189 substituted ‘‘$512,500,000 for the fiscal year 1974’’, for ‘‘$500,000,000 for the fiscal year 1972’’ and ‘‘thirty-one countries’’ for ‘‘forty countries’’. 1972—Subsec. (a). Pub. L. 92–226 substituted ‘‘$500,000,000 for the fiscal year 1972’’ for ‘‘$350,000,000 for the fiscal year 1970, and $350,000,000 for the fiscal year 1971’’. 1969—Subsec. (a). Pub. L. 91–175 substituted ‘‘$350,000,000 for the fiscal year 1970, and $350,000,000 for the fiscal year 1971’’ for ‘‘$375,000,000 for the fiscal year 1969,’’ and inserted provisions cost-sharing expenses of United States participation in the military head- quarters and related agencies program. 1968—Subsec. (a). Pub. L. 90–554 substituted ‘‘1969’’ and ‘‘$375,000,000’’ for ‘‘1968’’ and ‘‘$510,000,000’’, respec- tively, struck out provisions which made $24,100,000 of authorization available for fiscal year 1968, for cost- sharing expenses, and which prohibited other available funds from being used for cost-sharing expenses, and prohibited use of appropriated funds for weapons sys- tems expenditures without Presidential determination of importance to national security and report to Con- gress, respectively. 1967—Subsec. (a). Pub. L. 90–137 substituted provi- sions authorizing appropriation of $510,000,000 for fiscal year 1968 for provisions authorizing appropriation of $875,000,000 for fiscal year 1967 in addition to such amounts as may be otherwise authorized to support Vi- etnamese forces and other free world forces in Vietnam, made $24,100,000 of such authorization available for fis- cal year 1968 for cost-sharing expenses, and prohibited other available funds from being used for such cost- sharing expenses. 1966—Subsec. (a). Pub. L. 89–583 substituted provi- sions authorizing appropriation of $875,000,000 for fiscal year 1967 in addition to such amounts as may be other- wise authorized to support Vietnamese forces and other free world forces in Vietnam and limiting assistance to forty countries in any fiscal year for provisions author- izing appropriation of $1,170,000,000 for fiscal year 1966 and prescribing availability of minimum of $200,000,000 for use in Vietnam for fiscal year 1965 unless otherwise determined by the President and so reported to Com- mittees on Foreign Relations and Appropriations of the Senate and to the Speaker of the House. 1965—Pub. L. 89–171 substituted ‘‘1966’’ and ‘‘$1,170,000,000’’ for ‘‘1965’’ and ‘‘$1,055,000,000’’, respec- tively. 1964—Subsec. (a). Pub. L. 88–633 substituted ‘‘1965’’ and ‘‘$1,055,000,000’’ for ‘‘1964’’ and ‘‘$1,000,000,000’’, re- spectively, and required not less than $200,000,000 to be available for fiscal year 1965 for use in Vietnam unless the President determined and reported otherwise to Congressional committees. 1963—Subsec. (a). Pub. L. 88–205 substituted ‘‘fiscal year 1964’’ and ‘‘$1,000,000,000, which’’, for ‘‘the fiscal years 1962 and 1963’’ and ‘‘$1,700,000,000 for each such fis- cal year, which sum’’, respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of this title. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. § 2313. Transferred Editorial Notes CODIFICATION Section, Pub. L. 87–195, pt. II, § 505(a), (b), Sept. 4, 1961, 75 Stat. 436, as amended, was renumbered §§ 502, 507(c) of Pub. L. 87–195 by Pub. L. 90–137, pt. II, § 201(d)(1), (l), Nov. 14, 1967, 81 Stat. 456, 457, and trans- ferred to sections 2302 and 2319 of this title. § 2314. Furnishing of defense articles or related training or other defense service on grant basis (a) Conditions of eligibility In addition to such other provisions as the President may require, no defense articles or re- lated training or other defense service shall be furnished to any country on a grant basis unless it shall have agreed that— (1) it will not, without the consent of the President— (A) permit any use of such articles or re- lated training or other defense service by anyone not an officer, employee, or agent of that country, (B) transfer, or permit any officer, em- ployee, or agent of that country to transfer such articles or related training or other de- fense service by gift, sale, or otherwise, or Page 784 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2314 (C) use or permit the use of such articles or related training or other defense service for purposes other than those for which fur- nished; (2) it will maintain the security of such arti- cles or related training or other defense serv- ice, and will provide substantially the same degree of security protection afforded to such articles or related training or other defense service by the United States Government; (3) it will, as the President may require, per- mit continuous observation and review by, and furnish necessary information to, representa- tives of the United States Government with regard to the use of such articles or related training or other defense service; and (4) unless the President consents to other disposition, it will return to the United States Government for such use or disposition as the President considers in the best interests of the United States, such articles or related train- ing or other defense service which are no longer needed for the purposes for which fur- nished. (b) Limitation on amount; exceptions No defense articles shall be furnished on a grant basis to any country at a cost in excess of $3,000,000 in any fiscal year unless the President determines— (1) that such country conforms to the pur- poses and principles of the Charter of the United Nations; (2) that such defense articles will be utilized by such country for the maintenance of its own defensive strength, or the defensive strength of the free world; (3) that such country is taking all reason- able measures, consistent with its political and economic stability, which may be needed to develop its defense capacities; and (4) that the increased ability of such country to defend itself is important to the security of the United States. (c) Reduction and termination of grants to coun- tries able to maintain adequate military forces without undue economic strain The President shall regularly reduce and, with such deliberate speed as orderly procedure and other relevant considerations, including prior commitments, will permit, shall terminate all further grants of military equipment and sup- plies to any country having sufficient wealth to enable it, in the judgment of the President, to maintain and equip its own military forces at adequate strength, without undue burden to its economy. (d) Termination of assistance; report of violation by President; conditions for reinstatement (1) Assistance and deliveries of assistance under this part to any country shall be termi- nated as hereinafter provided, if such country uses defense articles or defense services fur- nished under this chapter, the Mutual Security Act of 1954, or any predecessor Foreign Assist- ance Act, in substantial violation (either in terms of quantities or in terms of the gravity of the consequences regardless of the quantities in- volved) of any agreement entered into pursuant to any such Act (A) by using such articles or services for a purpose not authorized under sec- tion 2302 of this title or, if such agreement pro- vides that such articles or services may only be used for purposes more limited than those au- thorized under section 2302 of this title, for a purpose not authorized under such agreement; (B) by transferring such articles or services to, or permitting any use of such articles or serv- ices by, anyone not an officer, employee, or agent of the recipient country without the con- sent of the President; or (C) by failing to main- tain 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 sub- section may have occurred. (3) Assistance to a country shall remain termi- nated in accordance with paragraph (1) of this subsection until such time as— (A) the President determines that the viola- tion has ceased; and (B) the country concerned has given assur- ances satisfactory to the President that such violation will not recur. (4) The authority contained in section 2364(a) of this title may not be used to waive the provi- sions of this section with respect to further as- sistance under this part. (e) Consent by President to transfer In considering a request for approval of any transfer of any weapon, weapons system, muni- tions, aircraft, military boat, military vessel, or other implement of war to another country, the President shall not give his consent under sub- section (a)(1) or (a)(4) to the transfer unless the United States itself would transfer the defense article under consideration to that country. In addition, the President shall not give his con- sent under subsection (a)(1) or (a)(4) to the transfer of any significant defense articles on the United States Munitions List unless the for- eign 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 demili- tarized, to any other foreign country or person without first obtaining the consent of the Presi- dent. (f) Disposition of defense articles furnished on a grant basis; net proceeds to be paid over to the United States Effective July 1, 1974, no defense article shall be furnished to any country on a grant basis un- less such country shall have agreed that the net proceeds of sale received by such country in dis- posing of any weapon, weapons system, muni- tion, aircraft, military boat, military vessel, or other implement of war received under this part 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 re- Page 785 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2314 lating to the financing of international edu- cational and cultural exchange activities in which that country participates under the pro- grams authorized by the Mutual Educational and Cultural Exchange Act of 1961 [22 U.S.C. 2451 et seq.]. In the case of items which were deliv- ered prior to 1985, 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. (g) Discrimination on basis of race, religion, na- tional origin, or sex prohibited (1) It is the policy of the United States that no assistance under this part should be furnished to any foreign country, the laws, regulations, offi- cial policies, or governmental practices of which prevent any United States person (as defined in section 7701(a)(30) of title 26) from participating in the furnishing of defense articles or defense services under this part on the basis of race, re- ligion, national origin, or sex. (2)(A) No agency performing functions under this part shall, in employing or assigning per- sonnel to participate in the performance of any such function, whether in the United States or abroad, take into account the exclusionary poli- cies or practices of any foreign government where such policies or practices are based upon race, religion, national origin, or sex. (B) Each contract entered into by any such agency for the performance of any function under this part shall contain a provision to the effect that no person, partnership, corporation, or other entity performing functions pursuant to such contract, shall, in employing or assign- ing personnel to participate in the performance of any such function, whether in the United States or abroad, take into account the exclu- sionary policies or practices of any foreign gov- ernment where such policies or practices are based upon race, religion, national origin, or sex. (3) The President shall promptly transmit re- ports to the Speaker of the House of Representa- tives and the chairman of the Committee on Foreign Relations of the Senate concerning any transaction in which any United States person (as defined in section 7701(a)(30) of title 26) is prevented by a foreign government on the basis of race, religion, national origin, or sex, from participating in the furnishing of assistance under this part, or education and training under part V of this subchapter, to any foreign coun- try. Such reports shall include (A) a description of the facts and circumstances of any such dis- crimination, (B) the response thereto on the part of the United States or any agency or em- ployee thereof, and (C) the result of such re- sponse, if any. (4)(A) Upon the request of the Committee on Foreign Relations of the Senate or the Com- mittee on Foreign Affairs of the House of Rep- resentatives, the President shall, within 60 days after receipt of such request, transmit to both such committees a statement, prepared with the assistance of the Assistant Secretary of State for Democracy, Human Rights, and Labor, with respect to the country designated in such re- quest, setting forth— (i) all the available information about the exclusionary policies or practices of the gov- ernment of such country when such policies or practices are based upon race, religion, na- tional origin, or sex and prevent any such per- son from participating in a transaction involv- ing the furnishing of any assistance under this part or any education and training under part V of this subchapter; (ii) the response of the United States thereto and the results of such response; (iii) whether, in the opinion of the President, notwithstanding any such policies or prac- tices— (I) extraordinary circumstances exist which necessitate a continuation of such as- sistance or education and training trans- action, and, if so, a description of such cir- cumstances and the extent to which such as- sistance or education and training trans- action should be continued (subject to such conditions as Congress may impose under this section), and (II) on all the facts it is in the national in- terest of the United States to continue such assistance or education and training trans- action; and (iv) such other information as such com- mittee may request. (B) In the event a statement with respect to an assistance or training transaction is re- quested pursuant to subparagraph (A) of this paragraph but is not transmitted in accordance therewith within 60 days after receipt of such re- quest, such assistance or training transaction shall be suspended unless and until such state- ment is transmitted. (C)(i) In the event a statement with respect to an assistance or training transaction is trans- mitted under subparagraph (A) of this para- graph, the Congress may at any time thereafter adopt a joint resolution terminating or restrict- ing such assistance or training transaction. (ii) Any such resolution shall be considered in the Senate in accordance with the provisions of section 601(b) of the International Security As- sistance and Arms Export Control Act of 1976. (iii) The term ‘‘certification’’, as used in sec- tion 601 of such Act, means, for the purposes of this paragraph, a statement transmitted under subparagraph (A) of this paragraph. (Pub. L. 87–195, pt. II, § 505, formerly § 506, Sept. 4, 1961, 75 Stat. 436; Pub. L. 87–565, pt. II, § 201(a), Aug. 1, 1962, 76 Stat. 259; Pub. L. 89–583, pt. II, § 201(b), Sept. 19, 1966, 80 Stat. 803; renumbered § 505, Pub. L. 90–137, pt. II, § 201(e), Nov. 14, 1967, 81 Stat. 456 and amended Pub. L. 92–226, pt. II, § 201(b), (c), Feb. 7, 1972, 86 Stat. 25; Pub. L. 93–189, § 12(b)(3), Dec. 17, 1973, 87 Stat. 721; Pub. L. 94–329, title II, §§ 203(b), 204(b)(2), title III, §§ 302(a), 304(a), June 30, 1976, 90 Stat. 735, 736, 751, 754; Pub. L. 95–105, title I, § 109(a)(4), Aug. 17, 1977, 91 Stat. 846; Pub. L. 99–83, title I, § 123(b), Aug. 8, 1985, 99 Stat. 205; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 101–513, title III, Nov. 5, 1990, 104 Stat. 1998; Pub. L. 103–236, title I, § 162(e)(2), Apr. 30, 1994, 108 Stat. 405; Pub. L. 103–437, § 9(a)(6), Nov. 2, 1994, 108 Stat. 4588.) Page 786 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2314a Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (d)(1), was in the original ‘‘this Act’’, meaning Pub. L. 87–195, Sept. 4, 1961, 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. The Mutual Security Act of 1954, referred to in sub- sec. (d)(1), is act Aug. 26, 1954, ch. 937, 68 Stat. 832, as amended by acts July 8, 1955, ch. 301, 69 Stat. 283; July 18, 1956, ch. 627, §§ 2–11, 70 Stat. 555; Aug. 14, 1957, Pub. L. 85–141, 71 Stat. 355; June 30, 1958, Pub. L. 85–477, ch. 1, §§ 101–103, ch. II, §§ 201–205, ch. III, § 301, ch. IV, § 401, ch. V, § 501, 72 Stat. 261; July 24, 1959, Pub. L. 86–108, § 2, ch. 1, § 101, ch. II, §§ 201–205(a)–(i), (k)–(n), ch. III, § 301, ch. IV, § 401(a)–(k), (m), 73 Stat. 246; May 14, 1960, Pub. L. 86–472, ch. I to V, 74 Stat. 134, which was principally classified to chapter 24 (§ 1750 et seq.) of this title and which was repealed by act July 18, 1956, ch. 627, § 8(m), 70 Stat. 559, Pub. L. 85–141, §§ 2(e) 3, 4(b), 11(d), Aug. 14, 1957, 71 Stat. 356, Pub. L. 86–108, ch. II, §§ 205(j), ch. IV, 401(1), July 24, 1959, 73 Stat. 250, Pub. L. 86–472, ch. II, §§ 203(d), 204(k), May 14, 1960, 74 Stat. 138, Pub. L. 87–195, pt. III, § 642(a)(2), Sept. 4, 1961, 75 Stat. 460, Pub. L. 94–329, title II, § 212(b)(1), June 30, 1976, 90 Stat. 745, Pub. L. 104–127, title II, § 228, Apr. 4, 1996, 110 Stat. 963, except for sections 1754, 1783, 1796, 1853, 1928, and 1937 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1754 of this title and Tables. The Mutual Educational and Cultural Exchange Act of 1961, referred to in subsec. (f), is Pub. L. 87–256, Sept. 21, 1961, 5 Stat. 527, which is classified principally to chapter 33 (§ 2451 et. seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2451 of this title and Tables. Section 601 of the International Security Assistance and Arms Export Control Act of 1976, referred to in sub- sec. (g)(4)(C)(ii), is section 601 of Pub. L. 94–329, which was not classified to the Code. AMENDMENTS 1994—Subsec. (g)(4)(A). Pub. L. 103–437 substituted ‘‘Foreign Affairs’’ for ‘‘International Relations’’ in in- troductory provisions. Pub. L. 103–236 substituted ‘‘Democracy, Human Rights, and Labor’’ for ‘‘Human Rights and Humani- tarian Affairs’’ in introductory provisions. 1990—Subsec. (f). Pub. L. 101–513 substituted ‘‘1985’’ for ‘‘1975’’ in second sentence. 1986—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. 1985—Subsec. (f). Pub. L. 99–83 inserted provisions re- lating to waiver for items delivered prior to 1975. 1977—Subsec. (g)(4)(A). Pub. L. 95–105 substituted ‘‘As- sistant Secretary of State’’ for ‘‘Coordinator’’ in provi- sions preceding cl. (i). 1976—Subsec. (a). Pub. L. 94–329, § 203(b), inserted ‘‘or related training or other defense service’’ after ‘‘arti- cles’’ wherever appearing. Subsec. (d). Pub. L. 94–329, § 304(a), provided that ei- ther the President, by so stating in a writing to Con- gress, or Congress, by joint resolution, terminate as- sistance upon determining a violation, specified condi- tions for reinstatement of assistance, and denied the President the power, where a violation has been deter- mined, of granting assistance on the basis of national security. Subsec. (e). Pub. L. 94–329, § 204(b)(2), struck out pro- visions relating to the President’s notification of his consent to transfer war implements to another coun- try, in writing, to the Speaker of the House of Rep- resentatives and the Committee on Foreign Relations of the Senate indicating his justification for the trans- fer and the particular war implement transferred. Subsec. (g). Pub. L. 94–329 added subsec. (g). 1973—Subsecs. (e), (f). Pub. L. 93–189 added subsecs. (e) and (f). 1972—Subsec. (b)(2). Pub. L. 92–226, § 201(b), sub- stituted ‘‘or’’ for ‘‘and’’. Subsec. (e). Pub. L. 92–226, § 201(c), repealed provisions respecting conditions of eligibility requiring agree- ments for use of foreign currencies from sale of surplus commodities for common defense including internal se- curity. 1966—Subsec. (e). Pub. L. 89–583 added subsec. (e). 1962—Subsecs. (c), (d). Pub. L. 87–565 added subsecs. (c) and (d). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–236 applicable with re- spect to officials, offices, and bureaus of Department of State when executive orders, regulations, or depart- mental 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. EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–83 effective Oct. 1, 1985, see section 1301 of Pub. L. 99–83, set out as a note under sec- tion 2151–1 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–329, title II, § 203(b), June 30, 1976, 90 Stat. 735, provided that the amendment made by that section is effective July 1, 1976. Executive Documents DELEGATION OF FUNCTIONS For delegation of functions of President under this section, see Ex. Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a note under section 2381 of this title. § 2314a. Repealed. Pub. L. 93–189, § 26(4), Dec. 17, 1973, 87 Stat. 731 Section, Pub. L. 91–672, § 9, Jan. 12, 1971, 84 Stat. 2055, related to transfer of defense articles to other countries under sections 2314(a)(1), (4) and 2753(a)(2) of this title and prerequisites for consent of President to transfer. §§ 2315 to 2317. Transferred Editorial Notes CODIFICATION Section 2315, Pub. L. 87–195, pt. II, § 507, Sept. 4, 1961, 75 Stat. 437, as amended, which related to sale of de- fense articles and services, manner of payment, price of non-excess defense articles, value of excess defense ar- ticles, contracts for procurement, undertakings, and fixed-price sales agreements, was renumbered §§ 522, 523 of Pub. L. 87–195 by Pub. L. 90–137, pt. II, § 201(f), (g), Nov. 14, 1967, 81 Stat. 456, and transferred to sections 2342 and 2343 of this title, respectively, which sections were subsequently repealed. Section 2316, Pub. L. 87–195, pt. II, § 508, Sept. 4, 1961, 75 Stat. 437, as amended, which related to reimburse- ments and transfers to separate fund account, was re- numbered § 524 of Pub. L. 87–195 by Pub. L. 90–137, pt. II, § 201(h), Nov. 14, 1967, 81 Stat. 456, and transferred to section 2344 of this title. Section 2317(a), Pub. L. 87–195, pt. II, § 509(a), Sept. 4, 1961, 75 Stat. 437; Pub. L. 88–633, pt. II, § 201(d), Oct. 7, 1964, 78 Stat. 1011, related to exchanges, and was re- pealed by Pub. L. 90–137, pt. II, § 201(i)(1), Nov. 14, 1967, 81 Stat. 457.