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fense articles as the President determines necessary to help modernize the defense capabilities of such countries. Such excess defense 524 articles may be transferred without cost to the recipient countries. Transfers to recipient countries under this subsection shall be consistent with the policy framework for the Eastern Mediterranean region established in section 620C of this Act. 525

(b) LIMITATIONS ON TRANSFERS.-The President may transfer excess 524 defense articles under this section only if

(1) the equipment is drawn from existing stocks of the Department of Defense;

(2) no funds available to the Department of Defense for the procurement of defense equipment are expended in connection with the transfer; and

(3) the President determines that the transfer of the excess defense articles will not have an adverse impact on the military readiness of the United States.

(c) NOTIFICATION TO COMMITTEES OF CONGRESS.-The President may not transfer excess 524 defense articles under this section until 30 days after he has notified the Committees on Armed Services and Foreign Relations of the Senate and the Committees on Armed Services and Foreign Affairs of the House of Representatives of the proposed transfer. This notification shall include a certification of the need for the transfer and an assessment of the impact of the transfer on the military readiness of the United States.

(d) WAIVER OR REQUIREMENT FOR REIMBURSEMENT OF DOD ExPENSES. Section 632(d) shall not apply with respect to transfers of excess 524 defense articles under this section.

(e) DEFINITION.-As used in subsection (a), the term "member countries of the North Atlantic Treaty Organization (NATO) on the southern flank of NATO" means Greece, Italy, Portugal, Spain, and Turkey.

(f) 521 DURATION OF AUTHORITY.-The authority of this section shall be effective during fiscal years 1992 through 1996.

Sec. 517.526 Modernization of Military Capabilities of Certain Major Illicit Drug Producing Countries. (a) AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.-Subject to the limitations in this section, the President may transfer to a country

(1) which is a major illicit drug producing country (as defined in section 481(i)(2)) in Latin America and the Caribbean,

(2) which has a democratic government, and

(3) whose armed forces do not engage in a consistent pattern of gross violations of internationally recognized human rights (as defined in section 502B(d)(1)),

such excess defense articles as may be necessary to carry out subsection (b).

(b) PURPOSE.-Excess defense articles may be transferred under subsection (a) only for the purpose of encouraging the military forces of an eligible country in Latin America and the Caribbean to participate with local law enforcement agencies in a comprehensive

525 Sec. 934 of the National Defense Authorization Act for Fiscal Years 1990 and 1991 (Public Law 101-189; 103 Stat. 1352) added the last sentence.

526 22 U.S.C. 2321k. Sec. 5 of the International Narcotics Control Act of 1989 (Public Law 101231; 103 Stat. 1957) added sec. 517.

national antinarcotics program, conceived and developed by the government of that country, by conducting activities within that country and on the high seas to prevent the production, processing, trafficking, transportation, and consumption of illicit narcotic or psychotropic drugs or other controlled substances (as defined in section 481(i)(3)).

(c) USES OF EXCESS DEFENSE ARTICLES.-Excess defense articles may be furnished to a country under subsection (a) only if that country ensures that those excess defense articles will be used primarily 527 in support of antinarcotics activities. 528

(d) ROLE OF THE SECRETARY OF STATE.-The Secretary of State shall determine the eligibility of countries to receive excess defense articles under subsection (a). In accordance with section 4601 of the International Narcotics Control Act of 1988,529 the Secretary shall ensure that the transfer of excess defense articles under subsection (a) is coordinated with other antinarcotics enforcement programs assisted by the United States Government.

(e) DOLLAR LIMITATION.-The aggregate value of excess defense articles transferred to a country under subsection (a) in any fiscal year may not exceed $10,000,000.530

(f) CONDITIONS ON TRANSFERS.-The President may transfer excess defense articles under this section only if—

(1) they are drawn from existing stocks of the Department of Defense;

(2) funds available to the Department of Defense for the procurement of defense equipment are not expended in connection with the transfer; and

(3) the President determines that the transfer of the excess defense articles will not have an adverse impact on the military readiness of the United States.

(g) TERMS OF TRANSFERS.-Excess defense articles may be transferred under this section without cost to the recipient country.

(h) WAIVER OF REQUIREMENT FOR REIMBURSEMENT OF DOD ExPENSES. Section 632(d) does not apply with respect to transfers of excess defense articles under this section.

(i) 531 NOTIFICATION TO CONGRESS.—

527 Sec. 15 of the International Narcotics Control Act of 1990 (Public Law 101-623; 104 Stat. 3357) struck out "only" and inserted in lieu thereof "primarily".

528 The Office of the Secretary of Defense, Department of Defense, issued three unnumbered determinations on December 16, 1991 (56 F.R. 66021; December 20, 1991), making available for counter-narcotics enforcement programs the following:

to the Government of Colombia-four excess Landing Craft Utility (LCU), valued at $571,000;

to the Government of Colombia-209,000 excess meals ready to eat (MREs);

to the Government of Peru-57,000 excess meals ready to eat (MREs).

529 For text see page 976.

530 Sec. 3(f(2) of the International Narcotics Control Act of 1990 (Public Law 101-623; 104 Stat. 3353) waived this limitation with respect to Bolivia, Colombia, and Peru for fiscal year 1991. Sec. 4 of the same Act required the President to determine that these countries had met several criteria before assistance or excess defense articles may be provided. For full text, see page 942.

531 The Department of Defense provided the following notification on March 1, 1991 (56 F.R. 9348, March 6, 1991):

"... that during Fiscal Year 1991 the United States Government will transfer to the Government of Mexico 18,178 M-1 Carbines (to be utilized by the Mexican Navy/Marines) and 30,000 M-1 (to be utilized by the Mexican Army).

"These items are required to ensure that Mexico is afforded the opportunity of rapidly obtaining M-1 Carbines at no cost. These weapons are needed to enable the military forces in Mexico

Continued

(1) ADVANCE NOTICE.-The President may not transfer excess defense articles under this section until 30 days after the President has provided notice of the proposed transfer to the committees specified in paragraph (2). This notification shall include_

(A) a certification of the need for the transfer;

(B) an assessment of the impact of the transfer on the military readiness of the United States; and

(C) a statement of the value of the excess defense articles to be transferred.

(2) COMMITTEES TO BE NOTIFIED.-Notice shall be provided pursuant to paragraph (1) to the Committee on Armed Services, the Committee on Foreign Affairs, and the Committee on Appropriations of the House of Representatives and the Committee on Armed Services, the Committee on Foreign Relations, and the Committee on Appropriations of the Senate. Sec. 518.532 Natural Resources and Wildlife Management.(a) AUTHORITY TO TRANSFER NONLETHAL EXCESS DEFENSE ARTICLES AND SMALL ARMS.-Subject to the limitations in this section, the President may transfer nonlethal excess defense articles and small arms to friendly countries and to international organizations and private and voluntary organizations for the purposes contained in section 119 of this Act.

(b) LIMITATION ON TRANSFERS.-Transfers under this section shall be subject to the limitations contained in section 516(b).

(c) TRANSPORTATION.-The Department is authorized to transport nonlethal excess defense articles and small arms made available pursuant to this section without charge on a space available basis.

to participate with local law enforcement agencies in a comprehensive national anti-narcotics enforcement program, by conducting activities within Mexico and on the high seas to prevent the production, processing, trafficking, transportation, and consumption of illicit drugs or other controlled substances.

"The Director, Defense Security Assistance Agency, Mr. Teddy G. Allen certifies that the M-1 Carbines are needed by Mexico and determines that there will be no adverse impact on U.S. military readiness as a result of these transfers.".

The Department of Defense provided the following notification on May 28, 1991 (56 F.R. 25071; June 3, 1991; amended June 5, 1991; 56 F.R. 26799; June 11, 1991):

"*** that during Fiscal Year 1991 the United States Government will transfer to the Government of Paraguay a variety of individual equipment items, first aid kits and vehicles. "These items are required to enable the military forces in Paraguay to participate in a comprehensive national anti-narcotics enforcement program, by conducting activities within Paraguay to prevent the production, processing, trafficking, transportation, and consumption of illicit drugs or other controlled substances. They will be provided at no cost with the exception of transportation charges.".

In a determination of July 23, 1991 (56 F.R. 35851; July 29, 1991), the Department of Defense provided notification:

***** that during Fiscal Year 1991 the United States Government will transfer to the Government of Colombia excess support equipment for OV-10 aircraft. The total value of the items is estimated to be $35,612. The original acquisition value of the items was $71,333.

"This action is required to ensure that Colombia is afforded the opportunity of obtaining these needed items at no cost. The items are needed to enable the military forces in Colombia to participate in a comprehensive national anti-narcotics enforcement program, by conducting activities within Colombia to prevent the production, processing, trafficking, transportation, and consumption of illicit drugs or other controlled substances.".

Each determination further provided that:

"In accordance with section 517(c) FAA the recipient country will agree in the associated Letter of Offer and Acceptance that it will ensure that these items will be used primarily in support of anti-narcotics activities.".

332 22 U.S.C. 23211. Sec. 533(f) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2015), added sec. 518.

(d) WAIVER OF REQUIREMENTS FOR REIMBURSEMENT OF DOD ExPENSES.-Section 632(d) shall not apply with respect to transfers of nonlethal excess defense articles and small arms under this section or the transportation of such articles as authorized by subsection (c).

(e) NOTIFICATION TO COMMITTEES OF CONGRESS.-The President may not transfer nonlethal excess defense articles and small arms under this section until 30 days after he has notified the Committees on Appropriations of the proposed transfer. This notification shall include a certification of the need for the transfer and an assessment of the impact of the transfer on the military readiness of the United States. Transfers under this section shall also be subject to the notification requirements of section 516(c) of this Act.

Sec. 519.533 Additional Authorities Relating to Modernization of Military Capabilities. (a) AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.-Notwithstanding any other provision of law (except title V of the National Security Act of 1947) and subject to subsection (b), the President may transfer to countries for whom a foreign military financing program was justified for the fiscal year in which the transfer is authorized, such nonlethal excess defense articles as the President determines necessary to help modernize the defense capabilities of such countries, in accordance with the provisions of this section.

(b) LIMITATIONS ON TRANSFERS.-The President may transfer nonlethal excess defense articles under this section only if—

(1) the equipment is drawn from existing stocks of the Department of Defense;

(2) no funds available to the Department of Defense for the procurement of defense equipment are expended in connection with the transfer;

533 22 U.S.C. 2321m. Sec. 596 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2061), added a new sec. 519 and, as continued for fiscal year 1992 by Public Law 102-145, as amended, provided the following:

"EXCESS DEFENSE ARTICLES

"SEC. 596. (a) The Congress finds that impending changes in the United States armed forces are likely to result in increased availability of excess defense articles to meet security assistance requirements. The Congress urges the President to make maximum use of available excess defense articles as a cost-effective supplement to funded security assistance programs to meet the legitimate defense requirements of eligible allies and friends. Accordingly, the President is urged to establish policies and procedures to ensure that excess assets are applied against such requirements. Accordingly, the Foreign Assistance Act of 1961 is amended as follows:

"(c) In section 31(d) of the Arms Export Control Act, insert the following after the word 'law'', and of any defense articles with respect to which the President submits a certification under section 36(b) of this Act.'.

"(d) During fiscal year 1991, the provisions of section 573(e) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, shall be applicable, for the period specified therein, to excess defense articles made available under sections 516 and 519 of the Foreign Assistance Act of 1961.".

Subsec. (d) was made inapplicable for fiscal year 1992 by sec. 118 of the Further Continuing Appropriations, Fiscal Year 1992, however, and sec. 583 of H.R. 2621 as passed by the Senate on June 19, 1991 was enacted by reference, providing the following:

"During fiscal year 1992, the provisions of section 573(e) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, shall be applicable, for the period specified therein, to excess defense articles made available under sections 516 and 519 of the Foreign Assistance Act of 1961.".

(3) the President determines that the transfer of the nonlethal excess defense articles will not have an adverse impact on the military readiness of the United States; and

(4) the President determines that transferring the articles under the authority of this section is preferable to selling them, after taking into account the potential proceeds from, and likelihood of, such sales, and the comparative foreign policy benefits that may accrue to the United States as the result of either a transfer or sale.

(c) NOTIFICATION TO CONGRESS.-The President shall notify the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate, and the Committees on Appropriations, Armed Services, and Foreign Affairs of the House of Representatives fifteen days before transferring nonlethal excess defense articles under subsection (a), in accordance with the regular notification procedures of those committees.

(d) WAIVER OF REQUIREMENT FOR REIMBURSEMENT OF DOD ExPENSES.-Section 632(d) shall not apply with respect to transfers of nonlethal excess defense articles under this section.

(e) ANNUAL REPORT.-Commencing in 1991, not later than December 15 of each year, the President shall transmit to the committees described in subsection (c) a report with respect to the previous fiscal year which contains

(1) a list of the countries to which the President has furnished nonlethal excess defense articles under the authority of this section; and

(2) the value of the excess nonlethal defense articles that were furnished to each such country.

(f) TRANSPORTATION AND RELATED COSTS. (1) Except as provided in paragraph (2), funds available to the Department of Defense shall not be expended for crating, packing, handling and transportation of nonlethal excess defense articles transferred under the authority of this section.

(2) Notwithstanding section 632(d) or any other provision of law, the President may direct the crating, packing, handling and transport of nonlethal excess defense articles without charge to a country if

(A) that country has an agreement providing the United States with base rights in that country;

(B) that country is eligible for assistance from the International Development Association; and

(C) the nonlethal excess defense articles are being provided to that country under the authority of this section.

Chapter 3-Foreign Military Sales 534

*

Sec. 521.535 Administration of Sales Programs Involving Defense Articles and Services.-* * [Repealed-1968] Sec. 522.535 Sales from Stock. * * * [Repealed-1968] Sec. 523.535 Procurement of Sales.-[Repealed-1968]

534 The new chapter heading was added by sec. 201(o)(2) of the FA Act of 1967.

535 Secs. 521, 522, and 523 were repealed by sec. 45(a) of the Foreign Military Sales Act (Public Law 90-629).

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