Legislation on Foreign Relations Through ...

3611], 103 Stat. 1954, approved December 13, 1989; Public Law 101-510 [National Defense Authorization for Fiscal Year 1991, H.R. 4739], 104 Stat. 1485, approved November 5, 1990; Public Law 101-513 [Foreign Oper ations, Export Financing, and Related Programs Appropriations Act, 1991; H.R. 5114], 104 Stat. 1979, approved November 5, 1990; Public Law 102-25 [Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991; S. 725], 105 Stat. 75, approved April 6, 1991; Public Law 102-138 [Foreign Relations Authorization Act, Fiscal Years 1992 and 1993; H.R. 1415], 105 Stat. 647, approved October 28, 1991; Public Law 102-182 [title III-Chemical and Biological Weapons Control and Warfare Elimination Act of 1991; H.R. 1724], 105 Stat. 1233 at 1245; approved December 4, 1991; sec. 545 of H.R. 2621 as passed by the House on June 19, 1991, enacted by reference in Public Law 102-145 [H.J. Res. 360; 105 Stat. 968, approved October 28, 1991; Public Law 102-228 [Conventional Forces in Europe Treaty Implementation Act of 1991; H.R. 3807], 105 Stat. 1691, approved December 12, 1991; Public Law 102-391 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993; H.R. 5368], 106 Stat. 1633, approved October 6, 1992; Public Law 102-429 [Export Enhancement Act of 1992; H.R. 5739], 106 Stat. 2186, approved October 21, 1992; Public Law 102-484 [National Defense Authorization Act for Fiscal Year 1993, H.R. 5006], 106 Stat. 2315, approved October 23, 1992; Public Law 102-583 [International Narcotics Control Act of 1992; H.R. 6187], 106 Stat. 4914, approved November 2, 1992; Public Law 103-87 [Foreign Operations, Export Financing, and Related Programs Appropria. tions Act, 1994; H.R. 2295], 107 Stat. 931, approved September 30, 1993; Public Law 103-199 (FRIENDSHIP Act; H.R. 3000], 107 Stat. 2317, approved December 17, 1993; Public Law 103-236 [Foreign Relations Authorization Act, Fiscal Years 1994 and 1995; H.R. 2333], 108 Stat. 382, approved April 30, 1994; Public Law 103-306 (Foreign Operations, Export Fi nancing, and Related Programs Appropriations Act, 1995; H.R. 4426], 108 Stat. 1608, approved August 23, 1994; Public Law 103-437 (United States Code Technical Amendments; H.R. 4777], 108 Stat. 4581, approved November 2, 1994

AN ACT To consolidate and revise foreign assistance legislation relating to

reimbursable military exports.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Arms Export Control Act".1

Chapter 1-FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND RESTRAINTS

Section 1.2 The Need for International Defense Cooperation and Military Export Controls.-As declared by the Congress in the Arms Control and Disarmament Act, an ultimate goal of the United States continues to be a world which is free from the scourge of war and the dangers and burdens of armaments; in

1The new title, "Arms Export Control Act,” was added in lieu of "The Foreign Military Salce Act" by sec. 201 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 734). Sec. 201 further stated that "any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act.".

222 U.S.C. 2751. See also sec. 1097 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1489), relating to an annual report on the proliferation of missiles and essential components of nuclear, biological, and chemical weapons; sec. 1605 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1845), establishing the Joint Committee for Review of Counterproliferation Programs of the United States; and sec. 1503 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2916), relating to a report of the findings of the Counterproliferation Program Review Committee, in Legislation on Foreign Relations Through 1994, vol. I-B.

See also sec. 564 of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1994 (Public Law 103-236; 108 Stat. 484) relating to prohibiting sales and leases to those participating in or supporting the Arab boycott of Israel, in Legislation on Foreign Relations Through 1994, vol. II.

b. The Arms Export Control Act

Public Law 90–629 [H.R. 15681], 82 Stat. 1320, approved October 22, 1968, as amended by Public Law 91-672 [H.R. 15628], 84 Stat. 2053, approved January 12, 1971; Public Law 92-226 [Foreign Assistance Act of 1971, S. 2819], 86 Stat. 20, 32, approved February 7, 1972; Public Law 93-189 [Foreign Assistance Act of 1973, S. 1443], 87 Stat. 714, approved December 17, 1973; Public Law 93-559 [Foreign Assistance Act of 1974, S. 3394], 88 Stat. 1795, 1813, approved December 31, 1974; Public Law 94-329 [International Security Assistance and Arms Export Control Act of 1976, H.R. 13680], 90 Stat. 729, approved June 30, 1976; Public Law 95-92 [International Security Assistance Act of 1977, H.R. 6884], 91 Stat. 614, approved August 4, 1977; Public Law 95-105 [Foreign Relations Authorization Act, Fiscal Year 1978; H.R. 6689], 91 Stat. 844 at 846, approved August 17, 1977; Public Law 95-384 [International Security Assistance Act of 1978, S. 3075], 92 Stat. 730, approved September 26, 1978; Public Law 96–70 [Panama Canal Act of 1979; H.R. 111], 93 Stat. 452 at 499, approved September 27, 1979; Public Law 96-72 [Export Administration Act of 1979, S. 737], 93 Stat. 503 at 535, approved September 29, 1979; Public Law 96-92 [International Security Assistance Act of 1979; H.R. 3173], 93 Stat. 701, approved October 29, 1979; Public Law 96-533 [International Security and Development Cooperation Act of 1980; H.R. 6942], 94 Stat. 3131, approved December 16, 1980; Public Law 97-113 [International Security and Development Cooperation Act of 1981; S. 1196], 95 Stat. 1519, approved December 29, 1981; Public Law 97–392 (H.R. 6758], 96 Stat. 1962, approved December 29, 1982; Public Law 98-151 [Further Continuing Appropriations, 1984; H.J. Res. 413], 97 Stat. 964, approved November 14, 1983; Public Law 98-473 [Continuing Appropriations Act, 1985; H.J. Res. 648], 98 Stat. 1837, approved October 12, 1984; Public Law 99-64 [Export Administration Amendments Act of 1985, S. 883], 99 Stat. 156, approved July 12, 1985; Public Law 9983 [International Security and Development Cooperation Act of 1985, S. 960], 99 Stat. 190, approved August 8, 1985; Public Law 99-139 [Act to amend Sec. 51(b) of the Arms Export Control Act, S. 1726], 99 Stat. 562, approved October 30, 1985; Public Law 99-247 [Act to amend the Arms Export Control Act to require that congressional vetoes of certain arms export proposals be enacted into law, S. 1831], 100 Stat. 9, approved February 12, 1986; Public Law 99-399 [Omnibus Diplomatic Security and Antiterrorism Act of 1986; H.R. 4151], 100 Stat. 853, approved August 27, 1986; Public Law 99-433 [Department of Defense Reorganization Act of 1986, H.R. 3622], 100 Stat. 992, approved October 1, 1986; Public Law 99591 [Continuing Appropriations Act, 1987; H.J. Res. 738], 100 Stat. 3341, approved October 30, 1986; Public Law 99-661 [National Defense Authorization Act for Fiscal Year 1987, S. 2638], 100 Stat. 3816, approved November 14, 1986; Public Law 100-71 [Supplemental Appropriations Act, 1987; H.R. 1827], 101 Stat. 391, approved July 11, 1987; Public Law 100-202 [Continuing Appropriations Act, 1988; H.J. Res. 395], 101 Stat. 1329, approved December 22, 1987; Public Law 100-204 [Foreign Relations Authorization Act, 1988 and 1989; H.R. 1777], 101 Stat. 1331, approved December 22, 1987; Public Law 100-456 [National Defense Authorization Act, 1989; H.R. 4481], 102 Stat. 1918, approved September 29, 1988; Public Law 100-461 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1989; H.R. 4637], 102 Stat. 2268, approved October 1, 1988; Public Law 101-165 [Department of Defense Appropriations Act, 1990; H.R. 3072], 103 Stat. 1112, approved November 21, 1989; Public Law 101-167 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990; H.R. 3743], 103 Stat. 1195, approved November 21, 1989; Public Law 101-222 [Anti-Terrorism and Arms Export Amendments Act of 1989, H.R. 91], 103 Stat. 1892, approved December 12, 1989; Public Law 101-231 [International Narcotics Control Act of 1989, H.R.

36111, 103 Stat. 1954, approved December 13, 1989; Public Law 101-510 [National Defense Authorization for Fiscal Year 1991, H.R. 4739], 104 Stat. 1485, approved November 5, 1990; Public Law 101-513 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991; H.R. 5114], 104 Stat. 1979, approved November 5, 1990; Public Law 102-25 [Persian Gulf Conflict Supplemental Authorization and Personnel Benefits Act of 1991; S. 725], 105 Stat. 75, approved April 6, 1991; Public Law 102-138 [Foreign Relations Authorization Act, Fiscal Years 1992 and 1993; H.R. 1415], 105 Stat. 647, approved October 28, 1991; Public Law 102-182 [title III-Chemical and Biological Weapons Control and Warfare Elimination Act of 1991; H.R. 1724], 105 Stat. 1233 at 1245; approved December 4, 1991; sec. 545 of H.R. 2621 as passed by the House on June 19, 1991, enacted by reference in Public Law 102-145 (H.J. Res. 360; 105 Stat. 968, approved October 28, 1991; Public Law 102-228 [Conventional Forces in Europe Treaty Implementation Act of 1991; H.R. 3807], 105 Stat. 1691, approved December 12, 1991; Public Law 102-391 (Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993; H.R. 5368], 106 Stat. 1633, approved October 6, 1992; Public Law 102-429 [Export Enhancement Act of 1992; H.R. 5739), 106 Stat. 2186, approved October 21, 1992; Public Law 102-484 [National Defense Authorization Act for Fiscal Year 1993, H.R. 5006), 106 Stat. 2315, approved October 23, 1992; Public Law 102-583 [International Narcotics Control Act of 1992; H.R. 6187], 106 Stat. 4914, approved November 2, 1992; Public Law 103-87 [Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994; H.R. 2295], 107 Stat. 931, approved September 30, 1993; Public Law 103-199 [FRIENDSHIP Act; H.R. 3000], 107 Stat. 2317, approved December 17, 1993; Public Law 103-236 [Foreign Relations Authorization Act, Fiscal Years 1994 and 1995; H.R. 2333], 108 Stat. 382, approved April 30, 1994; Public Law 103-306 (Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995; H.R. 4426], 108 Stat. 1608, approved August 23, 1994; Public Law 103-437 (United States Code Technical Amendments; H.R. 4777], 108 Stat. 4581, approved November 2, 1994

AN ACT To consolidate and revise foreign assistance legislation relating to

reimbursable military exports.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Arms Export Control Act".1

Chapter 1-FOREIGN AND NATIONAL SECURITY POLICY OBJECTIVES AND RESTRAINTS

1The new title, "Arms Export Control Act," was added in lieu of "The Foreign Military Sales Act" by sec. 201 of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 734). Sec. 201 further stated that "any reference to the Foreign Military Sales Act shall be deemed to be a reference to the Arms Export Control Act.".

222 Ú.S.C. 2751. See also sec. 1097 of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1489), relating to an annual report on the proliferation of missiles and essential components of nuclear, biological, and chemical weapons; sec. 1605 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103-160; 107 Stat. 1845), establishing the Joint Committee for Review of Counterproliferation Programs of the United States; and sec, 1503 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2916), relating to a report of the findings of the Counterproliferation Program Review Committee, in Legislation on Foreign Relations Through 1994, vol. I-B.

which the use of force has been subordinated to the rule of law; and in which international adjustments to a changing world are achieved peacefully. In furtherance of that goal, it remains the policy of the United States to encourage regional arms control and disarmament agreements and to discourage arms races.

The Congress recognizes, however, that the United States and other free and independent countries continue to have valid requirements for effective and mutually beneficial defense relationships in order to maintain and foster the environment of international peace and security essential to social, economic, and political progress. Because of the growing cost and complexity of defense equipment, it is increasingly difficult and uneconomic for any country, particularly a developing country, to fill all of its legitimate defense requirements from its own design and production base. The need for international defense cooperation among the United States and those friendly countries to which it is allied by mutual defense treaties is especially important, since the effectiveness of their armed forces to act in concert to deter or defeat aggression is directly related to the operational compatibility of their defense equipment.

Accordingly, it remains the policy of the United States to facilitate the common defense by entering into international arrangements with friendly countries which further the objective of applying agreed resources of each country to programs and projects of cooperative exchange of data, research, development, production, procurement, and logistics support to achieve specific national defense requirements and objectives of mutual concern. To this end, this Act authorizes sales by the United States Government to friendly countries having sufficient wealth to maintain and equip their own military forces at adequate strength, or to assume progressively larger shares of the costs thereof, without undue burden to their economies, in accordance with the restraints and control measures specified herein and in furtherance of the security objectives of the United States and of the purposes and principles of the United Nations Charter.

It is the sense of the Congress that all such sales be approved only when they are consistent with the foreign policy interests of the United States, the purposes of the foreign assistance program of the United States as embodied in the Foreign Assistance Act of 1961, as amended, the extent and character of the military requirement, and the economic and financial capability of the recipient country, with particular regard being given, where appropriate, to proper balance among such sales, grant military assistance, and economic assistance as well as to the impact of the sales on programs of social and economic development and on existing or incipient arms races.3

3 A paragraph, as amended by sec. 4 of Public Law 91-672 and which had previously appeared at this point, was repealed by sec. 734(aX10) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1560). It formerly read as follows:

"It is further the sense of Congress that sales and guaranties under sections 21, 22, 23, and 24, shall not be approved where they would have the effect of arming military dictators who are denying the growth of fundamental rights or social progress to their own people: Provided, That the President may waive this limitation when he determines it would be important to the security of the United States, and promptly so reports to the Speaker of the House of Representatives and the Committee on Foreign Relations in the Senate.".

It shall be the policy of the United 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 check 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;

(2) which are licensed or approved for export under section 38 of this Act 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.4

It is the sense of the Congress that the President maintain adherence to a policy of restraint in conventional arms transfers and that, in implementing this policy worldwide, a balanced approach should be taken and full regard given to the security interests of the United States in all regions of the world and that particular attention should be paid to controlling the flow of conventional arms to the nations of the developing world. To this end, the President is encouraged to continue discussions with other arms suppliers in order to restrain the flow of conventional arms to less developed countries.5

4 Sec. 202(a) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 734) amended sec. 1 by striking out the last paragraph and adding the language beginning with "It shall be the policy of the United States". The last paragraph of sec. 1 formerly read as follows: "In order to reduce the role of the United States Government in the furnishing of defense articles and defense services to foreign countries and international organizations, and return such transactions to commercial channels, the United States Government shall reduce its sales, credit sales, and guaranties of such articles, and defense services as soon as, and to the maximum extent, practicable.".

"This paragraph was added by sec. 15(a) of the International Security Assistance Act of 1978 (92 Stat. 739). Sec. 15(b) of the same Act required a report from the President to the Congress by December 31, 1979, concerning the implications of the multilateral discussions referred to in the paragraph.

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