Sec. 2.6 Coordination With Foreign Policy. (a) Nothing contained in this Act shall be construed to infringe upon the powers or functions of the Secretary of State.

(b)7 Under the direction of the President, the Secretary of State (taking into account other United States activities abroad, such as military assistance, economic assistance, and food for peace program) shall be responsible for the continuous supervision and general direction of sales, leases, financing, cooperative projects, and exports under this Act, including, but not limited to, determining(1) whether there will be a sale to or financing for a country and the amount thereof;

(2) whether there will be a lease to a country;

(3) whether there will be a cooperative project and the scope thereof; and

(4) whether there will be delivery or other performance under the sale, lease, cooperative project, or export,

to the end that sales, financing, leases, cooperative projects, and exports will be integrated with other United States activities and to the end that the foreign policy of the United States would be best served thereby.

(c) The President shall prescribe appropriate procedures to assure coordination among representatives of the United States Government in each country, under the leadership of the Chief of the United States Diplomatic Mission. The Chief of the diplomatic mission shall make sure that recommendations of such representatives pertaining to sales are coordinated with political and economic considerations, and his comments shall accompany such recommendations if he so desires.

Sec. 3.8 Eligibility.-(a) No defense article or defense service shall be sold or leased by the United States Government under

622 U.S.C. 2752. See also Presidential determinations, in notes at section 38.

7 Subsec. (b) was amended and restated by sec. 115(b) of Public Law 99-83 (99 Stat. 201). It previously read as follows:

"(b) Under the direction of the President, the Secretary of State, taking into account other United States activities abroad, such as military assistance, economic assistance, and food for freedom, shall be responsible for the continuous supervision and general direction of sales, leases, and exports under this Act, including, but not limited to, determining whether there shall be a sale to a country and the amount thereof, whether there shall be a lease to a country, and whether there shall be delivery or other performance under such sale, lease, or export, to the end that sales, leases, and exports are integrated with other United States activities and the foreign policy of the United States is best served thereby.".

822 U.S.C. 2753. Sec. 906 of the FREEDOM Support Act (Public Law 102-511; 106 Stat. 3356) provided the following.

"SEC. 906. ELIGIBILITY OF BALTIC STATES FOR NONLETHAL DEFENSE ARTICLES.

"(a) ELIGIBILITY.-Estonia, Latvia, and Lithuania shall each be eligible

"(1) to purchase, or to receive financing for the purchase of, nonlethal defense articles"(A) under the Arms Export Control Act (22 U.S.C. 2751 et seq.), without regard to section 3(a)(1) of that Act, or

"(B) under section 503 of the Foreign Assistance Act of 1961 (22 U.S.C. 2311), without regard to the requirement in subsection (a) of that section for a Presidential finding; and

"(2) to receive nonlethal excess defense articles transferred under section 519 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321m), without regard to the restrictions in subsection (a) of that section.

"(b) DEFINITIONS.-As used in this section

(1) the term 'defense article' has the same meaning given to that term in section 47(3) of the Arms Export Control Act (22 U.S.C. 2794(3)); and

"(2) the term 'excess defense article' has the same meaning given to that term in section 644(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).".

"The words "or leased" were added by sec. 109(bX2XA) of the International Security and De velopment Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1526).

this Act to any country or international organization, 10 and no agreement shall be entered into for a cooperative project (as defined in section 27 of this Act), unless

(1) 11 the President finds that the furnishing of defense articles and defense services to such country or international organization will strengthen the security of the United States and promote world peace;

(2) the country or international organization shall have agreed not to transfer title to, or possession of, any defense article or related training or other defense service 12 so furnished to it, or produced in a cooperative project (as defined in section 27 of this Act), 13 to anyone not an officer, employee, or agent of that country or international organization (or the North Atlantic Treaty Organization or the specific member countries (other than the United States) in the case of a cooperative project) 14 and not to use or permit the use of such article or related training or other defense service 12 for purposes other than those for which furnished 15 unless the consent of the President has first been obtained;

(3) 16 the country or international organization shall have agreed that it will maintain the security of such article or service 17 and will provide substantially the same degree of security protection afforded to such article or service 17 by the United States Government; and

(4)16 the country or international organization is otherwise eligible to purchase or lease 18 defense articles or defense services. 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 paragraph (2) to the transfer unless the United States itself would transfer the defense article under consideration to that country.19 In addition, the President

10 The words "and no agreement of this Act)", were added by sec. 115(bX2XA) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 201).

11 In 1994, the President determined that the furnishing, sale, and/or lease of defense articles and services to the Governments of the Czech Republic (Presidential Determination No. 94-9 of January 5, 1994, 59 F.R. 2929), the Slovak Republic (94–10 of January 5, 1994; 59 F.R. 2931); Eritrea (94-15 of February 18, 1994; 59 F.R. 10047); Albania, Bulgaria, Estonia, Latvia, Lithuania, Romania (94-18 of March 22, 1994; 59 F.R. 14737); and South Africa (94-29 of June 27, 1994; 59 F.R. 35211) would strengthen the security of the United States and promote world peace.

12 Sec. 203(a) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 735) added the words "or related training or other defense service". 13 Sec. 115(bX2XBXi) of Public Law 99-83 (99 Stat. 201), added the words "or produced * * * of this Act".

14 Sec. 115(bX2XBXii) of Public Law 99-83 (99 Stat. 201), added the words "(or the North Atlantic Treaty Organization or the specific member countries (other than the United States) in the case of a cooperative project)".

15 Sec. 25(2) of the FA Act of 1973 struck out "and" at the end of par. (2) and added the words to this point beginning with "and not to use or permit".

16 Sec. 25(2XB) of the FA Act of 1973 added par. (3) and redesignated former par. (3) as par. (4).

17 The words "or service" were added by sec. 115(bX2Xc) of Public Law 99-83 (99 Stat. 201). Sec. 1102(3XC) of Public Law 99-145 (99 Stat. 710) made this same amendment.

18 The words "or lease" were added by sec. 109(bX2XB) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1526).

19 Sec. 204(bX1) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 736) amended sec. 3 by striking out the following language after

Continued

shall not give his consent under paragraph (2) 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.20 The President shall promptly submit a report to the Speaker of the House of Representatives and to the Committee on Foreign Relations of the Senate on the implementation of each agreement entered into pursuant to clause (2) of this subsection.

(b) 21 *** [Repealed-1977]

(c)(1)(A) 22 No credits (including participations in credits) may be issued and no guaranties may be extended for any foreign country under this Act as hereinafter provided, if such country uses defense articles or defense services furnished under this Act, or any predecessor 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 (i) by using such articles or services for a purpose not authorized under section 4 or, if such agreement provides that such articles or services may only be used for purposes more limited than those authorized under section 4 for a purpose not authorized under such agreement; (ii) 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 (iii) by failing to maintain the security of such articles or services.

(B) No cash sales or deliveries pursuant to previous sales may be made with respect to any foreign country under this Act as hereinafter provided, if such country uses defense articles or defense services furnished under this Act, or any predecessor Act, in substantial violation (either in terms of quantity or in terms of the gravity of the consequences regardless of the quantities involved) of any agreement entered into pursuant to any such Act by using such articles or services for a purpose not authorized under section 4 or, if such agreement provides that such articles or services may only be used for purposes more limited than those authorized under section 4, for a purpose not authorized under such agreement.

"country": ", and prior to the date he intends to give his consent to the transfer, the President notifies the 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".

20 The words to this point, beginning with "In considering a request for approval" were added by sec. 25(2XC) of the FA Act of 1973.

21 Subsec. (b), as amended by sec. 1 of Public Law 91-71, was repealed by sec. 15 of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 622). It had concerned U.S. military assistance to a country which had seized an American fishing vessel outside a 12-mile limit.

22 Sec. 304(bX1) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 754) amended subsec. (c), which formerly read as follows:

"(c) Except as otherwise provided in subsection (d), any foreign country which hereafter uses defense articles or defense services furnished such country under this Act, in substantial violation of any provision of this Act or any agreement entered into under this Act, shall be immediately ineligible for further cash sales, credits, or guarantees.".

(2) 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)(A) A country shall be deemed to be ineligible under subparagraph (A) of paragraph (1) of this subsection, or both subparagraphs (A) and (B) of such paragraph in the case of a violation described in both such paragraphs, if the President so determines and so reports in writing to the Congress, or if the Congress so determines by joint resolution.

(B) Notwithstanding a determination by the President of ineligibility under subparagraph (B) of paragraph (1) of this subsection, cash sales and deliveries pursuant to previous sales may be made if the President certifies in writing to the Congress that a termination thereof would have significant adverse impact on United States security, unless the Congress adopts or has adopted a joint resolution pursuant to subparagraph (A) of this paragraph with respect to such ineligibility.

(4) A country shall remain ineligible 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.

(d) 23 (1) 24 The President may not give his consent under paragraph (2) of subsection (a) or under the third sentence of such subsection, or under section 505(a)(1) or 505(a)(4) of the Foreign Assistance Act of 1961, to a transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or any defense article or related training or other defense service valued (in terms of its original acquisition cost) at $50,000,000 or more,25 unless 26 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

(A) 24 the name of the country or international organization proposing to make such transfer,

23 Sec. 204(a) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 735) added subsccs. (e) and (f). Sec. 304(b)2) of the same Act repealed subsec. (d) and redesignated subsecs. (e) and (f) as (d) and (e). Previously, subsec. (d) read as follows:

"(d) A country shall remain ineligible in accordance with subsection (c) of this section until such time as the President determines that such violation has ceased, that the country concerned has given assurances satisfactory to the President that such violation will not recur, and that, if such violation involved the transfer of sophisticated weapons without the consent of the President, such weapons have been returned to the country concerned.".

24 Sec. 16 of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 622) added the designation (1)", redesignated former pars. (1) through (5) as subpars. (A) through (E), and added a new par. (2).

25 The words to this point beginning with "or under section 505(aX1) * * ** were inserted in lieu of similar text by sec. 101(aX1XA) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1519). Previously, the President was required to submit a certification to Congress on all transfers of these items regardless of their value.

26 The words ", 30 days prior to giving such consent,", which previously appeared at this point were struck out by sec. 16(1) of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 622).

(B) 24, 27 a description of the article or service proposed to be transferred, including its acquisition cost,

(C) 24 the name of the proposed recipient of such article or service, 28

(D) 24 the reasons for such proposed transfer, and

(E) 24 the date on which such transfer is proposed to be made.

Any certification submitted to Congress pursuant to this paragraph shall be unclassified, except that information regarding the dollar value and number of articles or services 28 proposed to be transferred may be classified if public disclosure thereof would be clearly detrimental to the security of the United States.

(2) 24 (A) Except as provided in subparagraph (B),29 unless the President states in the certification submitted pursuant to paragraph (1) of this subsection that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States, such consent shall not become effective until 30 calendar days after the Idate of such submission and such consent shall become effective then only if the Congress does not enact,30 within such 30-day period, a joint resolution, as provided for in sections 36(b)(2) and 36(b)(3) of this Act 31 prohibiting the proposed transfer.

(B) 29 In the case of a proposed transfer to the North Atlantic Treaty Organization, or any member country of such Organization, Japan, Australia, or New Zealand, unless the President states in the certification submitted pursuant to paragraph (1) of this subsection that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States, such consent shall not become effective until fifteen calendar days after the date of such submission and such consent shall become effective then only if the Congress does not enact,30 within such fifteen-day period, a law prohibiting the proposed transfer.

(3) 32 The President may not give his consent to the transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service valued (in terms of its original acquisition cost) at $50,000,000 or more, the export of which has been licensed or ap

27 Subpar. (B) was amended and restated by sec. 101(aX1XB) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1519). It formerly read as follows: "(B) 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".

28 The words "defense" and "related training or other defense", which formerly appeared before the words "article" and "service", respectively, were deleted by sec. 101(a)(1) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1519).

20 Sec. 102(a) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1520) inserted the subpar. (A) designation, added the words to this point in subpar. (A), and added a new subpar. (B).

30 Public Law 99-247 (100 Stat. 9) replaced the language "adopt ** concurrent resolution disapproving" with the current text.

31 Sec. 577 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989 (Public Law 100-461; 102 Stat. 2268-45), added text to this point beginning with "Joint resolution", in lieu of "law".

32 Sec. 101(a) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3131) redesignated existing par. (3) as par. (4) and added this new par. (3). Par. (4) was originally added as par. (3) by sec. 17 of the International Security Assistance Act of 1977 (Public Law 95-92; 91 Stat. 622).