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Coordination and Review Section

22 USC 2314

TITLE 22--FOREIGN RELATIONS AND INTERCOURSE

CHAPTER 32--FOREIGN ASSISTANCE

SUBCHAPTER II--MILITARY ASSISTANCE AND SALES

Part II--Military Assistance

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Sec. 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 related 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 related training or
other defense service by anyone not an officer, employee, or
agent of that country,
(B) transfer, or permit any officer, employee, or agent of
that country to transfer such articles or related training or
other defense service by gift, sale, or otherwise, or
(C) use or permit the use of such articles or related
training or other defense service for purposes other than those
for which furnished;

(2) it will maintain the security of such articles or related
training or other defense service, 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, permit continuous
observation and review by, and furnish necessary information to,
representatives 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 training or other defense service
which are no longer needed for the purposes for which furnished.

(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 purposes 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 reasonable 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 countries 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 supplies 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 terminated as hereinafter provided, if such country
uses defense articles or defense services furnished under this chapter,
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 under
section 2302 of this title or, if such agreement provides that such
articles or services may only be used for purposes more limited than
those authorized 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 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 2364(a) of this title may not
be used to waive the provisions of this section with respect to further
assistance under this part.

(e) Consent by President to transfer

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) of this section 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 consent under subsection (a)(1) or (a)(4) of this
section 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) 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 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 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 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 [22 U.S.C. 2451 et seq.].
In the case of items which were delivered 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, national 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, official 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, religion,
national origin, or sex.
(2)(A) No agency performing functions under this part shall, in
employing or assigning personnel to participate in the performance of
any such function, whether in the United States or abroad, take into
account the exclusionary policies 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
assigning personnel to participate in the performance of any such
function, whether in the United States or abroad, take into account the
exclusionary policies or practices of any foreign government where such
policies or practices are based upon race, religion, national origin, or
sex.
(3) The President shall promptly transmit reports to the Speaker of
the House of Representatives 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 country. Such reports shall include (A)
a description of the facts and circumstances of any such discrimination,
(B) the response thereto on the part of the United States or any agency
or employee thereof, and (C) the result of such response, if any.
(4)(A) Upon the request of the Committee on Foreign Relations of the
Senate or the Committee on Foreign Affairs of the House of
Representatives, 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
request, setting forth--
(i) all the available information about the exclusionary
policies or practices of the government of such country when such
policies or practices are based upon race, religion, national
origin, or sex and prevent any such person from participating in a
transaction involving 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 practices--
(I) extraordinary circumstances exist which necessitate a
continuation of such assistance or education and training
transaction, and, if so, a description of such circumstances and
the extent to which such assistance or education and training
transaction 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 interest of the
United States to continue such assistance or education and
training transaction; and

(iv) such other information as such committee may request.

(B) In the event a statement with respect to an assistance or
training transaction is requested pursuant to subparagraph (A) of this
paragraph but is not transmitted in accordance therewith within 60 days
after receipt of such request, such assistance or training transaction
shall be suspended unless and until such statement is transmitted.
(C)(i) In the event a statement with respect to an assistance or
training transaction is transmitted under subparagraph (A) of this
paragraph, the Congress may at any time thereafter adopt a joint
resolution terminating or restricting 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 Assistance and Arms Export Control Act of 1976.
(iii) The term ``certification'', as used in section 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, Sec. 505, formerly Sec. 506, Sept. 4, 1961, 75
Stat. 436; Pub. L. 87-565, pt. II, Sec. 201(a), Aug. 1, 1962, 76 Stat.
259; Pub. L. 89-583, pt. II, Sec. 201(b), Sept. 19, 1966, 80 Stat. 803;
renumbered Sec. 505, Pub. L. 90-137, pt. II, Sec. 201(e), Nov. 14, 1967,
81 Stat. 456 and amended Pub. L. 92-226, pt. II, Sec. 201(b), (c), Feb.
7, 1972, 86 Stat. 25; Pub. L. 93-189, Sec. 12(b)(3), Dec. 17, 1973, 87
Stat. 721; Pub. L. 94-329, title II, Secs. 203(b), 204(b)(2), title III,
Secs. 302(a), 304(a), June 30, 1976, 90 Stat. 735, 736, 751, 754; Pub.
L. 95-105, title I, Sec. 109(a)(4), Aug. 17, 1977, 91 Stat. 846; Pub. L.
99-83, title I, Sec. 123(b), Aug. 8, 1985, 99 Stat. 205; Pub. L. 99-514,
Sec. 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, Sec. 162(e)(2), Apr.
30, 1994, 108 Stat. 405; Pub. L. 103-437, Sec. 9(a)(6), Nov. 2, 1994,
108 Stat. 4588.)

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, as
amended, 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 subsec. (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, Secs. 2-11, 70
Stat. 555; Aug. 14, 1957, Pub. L. 85-141, 71 Stat. 355; June 30, 1958,
Pub. L. 85-477, ch. 1, Secs. 101-103, ch. II, Secs. 201-205, ch. III,
Sec. 301, ch. IV, Sec. 401, ch. V, Sec. 501, 72 Stat. 261; July 24,
1959, Pub. L. 86-108, Sec. 2, ch. 1, Sec. 101, ch. II, Secs. 201-205(a)-
(i), (k)-(n), ch. III, Sec. 301, ch. IV, Sec. 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 (Sec. 1750 et seq.) of this title
and which was repealed by act July 18, 1956, ch. 627, Sec. 8(m), 70
Stat. 559, Pub. L. 85-141, Secs. 2(e) 3, 4(b), 11(d), Aug. 14, 1957, 71
Stat. 356, Pub. L. 86-108, ch. II, Secs. 205(j), ch. IV, 401(1), July
24, 1959, 73 Stat. 250, Pub. L. 86-472, ch. II, Secs. 203(d), 204(k),
May 14, 1960, 74 Stat. 138, Pub. L. 87-195, pt. III, Sec. 642(a)(2),
Sept. 4, 1961, 75 Stat. 460, Pub. L. 94-329, title II, Sec. 212(b)(1),
June 30, 1976, 90 Stat. 745, Pub. L. 104-127, title II, Sec. 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, as
amended, which is classified principally to chapter 33 (Sec. 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 subsec. (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 introductory provisions.
Pub. L. 103-236 substituted ``Democracy, Human Rights, and Labor''
for ``Human Rights and Humanitarian 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 relating to
waiver for items delivered prior to 1975.
1977--Subsec. (g)(4)(A). Pub. L. 95-105 substituted ``Assistant
Secretary of State'' for ``Coordinator'' in provisions preceding cl.
(i).
1976--Subsec. (a). Pub. L. 94-329, Sec. 203(b), inserted ``or
related training or other defense service'' after ``articles'' wherever
appearing.
Subsec. (d). Pub. L. 94-329, Sec. 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.
Subsec. (e). Pub. L. 94-329, Sec. 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.
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, Sec. 201(b), substituted
``or'' for ``and''.
Subsec. (e). Pub. L. 92-226, Sec. 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.
1966--Subsec. (e). Pub. L. 89-583 added subsec. (e).
1962--Subsecs. (c), (d). Pub. L. 87-565 added subsecs. (c) and (d).

Change of Name

Committee on Foreign Affairs of House of Representatives treated as
referring to Committee on International Relations of House of
Representatives by section 1(a) of Pub. L. 104-14, set out as a note
preceding section 21 of Title 2, The Congress.


Effective Date of 1994 Amendment

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.


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 section 2151-1 of this title.


Effective Date of 1976 Amendment

Section 203(b) of Pub. L. 94-329 provided that the amendment made by
that section is effective July 1, 1976.

Delegation of Functions

Functions of President under this section, with exception of those
under subsec. (b) respecting countries that do not agree to conditions
set forth in subsec. (b), those respecting determinations under subsec.
(d)(2)(A), (3), and certain other specified exceptions, delegated to
Secretary of Defense by sections 1-301(a) and 1-701(d), (e)(2) of Ex.
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56675, 56677, as amended, set
out as a note under section 2381 of this title.
Functions of President under subsec. (a) relating to other
provisions which may be required by President, subsec. (a)(1) and (4)
relating to consent, subsec. (b) to the extent it pertains to countries
agreeing to conditions set forth therein, and subsecs. (d) to (g)
delegated to Secretary of State, with authorization to find whether
proposed transfer of defense article or related training or related
defense service would strengthen United States security and promote
world peace, by sections 1-201(a)(4)-(6) and 1-701(e)(1) of Ex. Ord. No.
12163.

Section Referred to in Other Sections

This section is referred to in sections 2753, 2776, 2780 of this
title.


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This page was last updated on November 13, 2000