ment of Defense which is set aside, reserved, or in any way earmarked or intended for future use by any foreign country may be made available to or for use by any foreign country unless such transfer is authorized under this Act or the Arms Export Control Act, or any subsequent corresponding legislation, and the value of such transfer is charged against funds authorized under such legislation or against the limitations specified in such legislation, as appropriate, for the fiscal period in which such defense article is transferred. For purposes of this subsection, "value" means the acquisition cost plus crating, packing, handling, and transportation costs incurred in carrying out this section.

(b)(1) The value of defense articles to be set aside, earmarked, reserved, or intended for use as war reserve stocks for allied or other foreign countries (other than for purposes of the North Atlantic Treaty Organization or in the implementation of agreements with Israel) 682 in stockpiles located in foreign countries may not exceed

reserve material, including the acquisition, storage, or maintenance of any war reserve equipment, secondary items, or munitions, if such article or material is set aside, reserved, or in any way earmarked or intended for future use by any foreign country under this Act or such section. "(b) The cost of any such article or material set aside, reserved, or in any way earmarked or intended by the Department of Defense for future use by, for, or on behalf of the country referred to in section 401(a)(1) of Public Law 89-367 (80 Stat. 37) shall be charged against the limitation specified in such section or any subsequent corresponding legislation, for the fiscal year in which such article or material is set aside, reserved, or otherwise earmarked or intended; and the cost of any such article or material set aside, reserved or in any way earmarked or intended for future use by, for, or on behalf of any other foreign country shall be charged against funds authorized under this chapter or the fiscal year in which such article or material is set aside, reserved, or otherwise earmarked. No such article or material may be made available to or for use by any foreign country unless such article or material has been charged against the limitation specified in such section, or any subsequent corresponding legislation, or against funds authorized under this chapter, as appropriate.".

Section 1303(b) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1669) struck out subsec. (e) to this section. Subsec. (e) formerly read as follows:

"(e) The President shall promptly report to the Congress each new stockpile, or addition to an existing stockpile, described in this section of defense articles valued in excess of $10,000,000 in any fiscal year.".

Sec. 112 of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 850) provided the following: "SEC. 112. TRANSFER OF CERTAIN OBSOLETE OR SURPLUS DEFENSE ARTICLES IN THE WAR RESERVE STOCKPILES FOR ALLIES TO ISRAEL. "(a) TRANSFERS TO ISRAEL.—

"(1) AUTHORITY.-Notwithstanding section 514 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h), the President is authorized to transfer to Israel, in return for concessions to be negotiated by the Secretary of Defense, with the concurrence of the Secretary of State, any or all of the items described in paragraph (2).

"(2) ITEMS COVERED.-The items referred to in paragraph (1) are munitions, equipment, and material such as armor, artillery, automatic weapons ammunition, and missiles that— "(A) are obsolete or surplus items;

"(B) are in the inventory of the Department of Defense;
"(C) are intended for use as reserve stocks for Israel; and

"(D) as of the date of the enactment of this Act, are located in a stockpile in Israel. "(b) CONCESSIONS.-The value of concessions negotiated pursuant to subsection (a) shall be at least equal to the fair market value of the items transferred. The concessions may include cash compensation, services, waiver of charges otherwise payable by the United States, and other items of value.

"(c) ADVANCE NOTIFICATION OF TRANSFER.-Not less than 30 days before making a transfer under the authority of this section, the President shall transmit to the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives a notification of the proposed transfer. The notification shall identify the items to be transferred and the concessions to be received.

"(d) EXPIRATION OF AUTHORITY.-No transfer may be made under the authority of this section 3 years after the date of the enactment of this Act.".

682 Sec. 531B(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 732), inserted "or in the implementation of agreements with Israel" after "North Atlantic Treaty Organization".

in any fiscal year an amount that 683 is specified in security assistance authorizing legislation for that fiscal year.

(2) 684 (A) The value of such additions to stockpiles of defense articles in foreign countries shall not exceed $50,000,000 for fiscal year 2001.

(B) 685 Of the amount specified in subparagraph (A), not more than $50,000,000 may be made available for stockpiles in the Republic of Korea.

683 Section 587(b)(1) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101-167; 103 Stat. 1253), struck out "greater than" and inserted in lieu thereof "that" at this point.

684 Sec. 102(c)(1) of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 845) amended and restated para. (2). The para. had previously provided not to exceed $60 million for fiscal year 2000 in subpara. (A), and not more than $40 million for stockpiles in the Republic of Korea and $20 million for stockpiles in Thailand in subpara. (B).

Previously, sec. 1231 of the Security Assistance Act of 1999 (title XII of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536)), amended and restated subsec. (b)(2), effectively striking out "$340,000,000 for fiscal year 1999 and" after "shall not exceed".

Sec. 584(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, enacted by reference in sec. 1000(a)(2) of Public Law 106-113; 113 Stat. 1535), struck out "$50,000,000 for each of the fiscal years 1996 and 1997, $60,000,000 for fiscal year 1998, and" after "shall not exceed" and inserted at the end of the sentence "and $60,000,000 for fiscal year 2000".

Previously, sec. 571(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1999 (sec. 101(d) of Public Law 105-277; 112 Stat. 2681), struck out "and" after "1997", inserted in lieu thereof a comma, and added ", and $340,000,000 for fiscal year 1999" at the end of the sentence. Sec. 572(b) of that Act added at the end of subpara. (B) the following: "Of the amount specified in subparagraph (A) for fiscal year 1999, not more than $320,000,000 may be made available for stockpiles in the Republic of Korea and not more than $20,000,000 may be made available for stockpiles in Thailand.".

Previously, sec. 575(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1998 (Public Law 105-118; 111 Stat. 2433), added "and $60,000,000 for fiscal year 1998" at the end of para. (2); and sec. 575(b) of that Act added the fiscal year 1998 stockpile limits for Korea and Thailand in subpara. (B).

Previously, sec. 531B(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 732), amended and restated subsec. (b)(2) generally.

Previously, sec. 535 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1995 (Public Law 103-306; 108 Stat. 1637), provided "a total of $200,000,000 for stockpiles in Israel for fiscal years 1994 and 1995, up to $40,000,000 may be made available for stockpiles in the Republic of Korea, and up to $10,000,000 may be made available for stockpiles in Thailand for fiscal year 1995".

Previously, sec. 535 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1994 (Public Law 103-87; 107 Stat. 955), decreased the stockpile for Israel to $200,000,000, and made available up to $72,000,000 for stockpiles in Korea, and up to $20,000,000 for stockpiles in Thailand.

Previously, sec. 569 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 (Public Law 102-391; 106 Stat. 1681), increased the stockpile limit, included allocations for Israel, and added text pertaining to stockpile allocations for the Republic of Korea.

Previous to that, sec. 573(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2042), increased the stockpile limit and added text pertaining to allocations for Israel.

Figures for stockpile limits for recent years include the following: fiscal year 1976$96,750,000; fiscal year 1977-$125,000,000; fiscal year 1978-$270,000,000; fiscal year 1979$90,000,000; fiscal year 1980-$95,000,000; fiscal year 1981-$85,000,000; fiscal year 1982$130,000,000; fiscal year 1983-$125,000,000; fiscal year 1984-$125,000,000; fiscal year 1985$248,000,000; fiscal year 1986-$360,000,000; fiscal year 1987-$125,000,000; fiscal year 1988$116,000,000; fiscal year 1989-$77,000,000; fiscal year 1990-$165,000,000; fiscal year 1991$378,000,000; fiscal year 1992-$378,000,000; fiscal year 1993-$389,000,000; fiscal year 1994$292,000,000; fiscal year 1995-$250,000,000; fiscal year 1996-$50,000,000; fiscal year 1997$50,000,000; fiscal year 1998-$60,000,000; fiscal year 1999-$340,000,000; fiscal year 2000$60,000,000; fiscal year 2001-$50,000,000.

685 Sec. 102(c)(1) of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 845) amended and restated para. (2). It had previously provided not to exceed $60 million for fiscal year 2000 in subpara. (A), and not more than $40 million for stockpiles in the Republic of Korea and $20 million for stockpiles in Thailand in subpara. (B).

Previously, sec. 1231 of the Security Assistance Act of 1999 (title XII of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 Continued

(c) 686 LOCATION OF STOCKPILES OF DEFENSE ARTICLES.

(1) LIMITATION.-Except as provided in paragraph (2), no stockpile of defense articles may be located outside the boundaries of a United States military base or a military base used primarily by the United States.

(2) EXCEPTIONS.-Paragraph (1) shall not apply with respect to stockpiles of defense articles located in the Republic of Korea, Thailand, any country that is a member of the North Atlantic Treaty Organization, any country that is a major nonNATO ally, or any other country the President may designate. At least 15 days before designating a country pursuant to the last clause of the preceding sentence, the President shall notify the congressional committees specified in section 634A(a) in accordance with the procedures applicable to reprogramming notifications under that section.

(d) No defense article transferred from any stockpile which is made available to or for use by any foreign country may be considered an excess defense article for the purpose of determining the value thereof.

Sec. 515.687 Overseas Management of Assistance and Sales Programs. (a) In order to carry out his responsibilities for the management of international security assistance programs conducted under this chapter, chapter 5 of this part, and the Arms Export Control Act, the President may assign members of the Armed Forces of the United States to a foreign country to perform one or more of the following functions:

(1) equipment and services case management;

(2) training management;

(3) program monitoring;

(H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536)), amended and restated subsec. (b)(2), effectively striking out "Of the amount specified in subparagraph (A) for fiscal year 1999, not more than $320,000,000 may be made available for stockpiles in the Republic of Korea and not more than $20,000,000 may be made available for stockpiles in Thailand." and the reference to fiscal year 2000 for the remaining text in subpara. (B). Previously, sec. 584(b) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2000 (H.R. 3422, enacted by reference in sec. 1000(a)(2) of Public Law 106113; 113 Stat. 1535), struck out "Of the amount specified in subparagraph (A) for each of the fiscal years 1996 and 1997, not more than $40,000,000 may be made available for stockpiles in the Republic of Korea and not more than $10,000,000 may be made available for stockpiles in Thailand. Of the amount specified in subparagraph (A) for fiscal year 1998, not more than $40,000,000 may be made available for stockpiles in the Republic of Korea and not more than $20,000,000 may be made available for stockpiles in Thailand." and inserted a sentence at the end of the subpara.

686 Sec. 531B(c) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1996 (Public Law 104-107; 110 Stat. 732) amended and restated subsec. (c). It formerly read as follows:

"(c) Except for stockpiles in existence on the date of enactment of the International Security Assistance and Arms Export Control Act of 1976 and for stockpiles located in the Republic of Korea, Thailand, or countries which are members of the North Atlantic Treaty Organization, or major non-NATO allies, no stockpile may be located outside the boundaries of a United States military base or a military base used primarily by the United States.".

The reference to Thailand was first added by title III of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1988 (Continuing Appropriations for 1988; Public Law 100-202; 101 Stat. 1329-147). The reference to the Republic of Korea was first added by sec. 6(a)(2) of the International Security Assistance Act of 1979 (Public Law 96-92; 93 Stat. 703). Sec. 573(a) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1991 (Public Law 101-513; 104 Stat. 2042), first added the reference to major non-NATO allies.

687 22 U.S.C. 2321i. Sec. 515, as amended by sec. 16 of FA Act of 1974, sec. 104 of Public Law 94-329, sec. 7(c) of Public Law 95-92, sec. 9 of Public Law 95-424, sec. 7 of Public Law 9592, and sec. 114 of Public Law 96-533, was comprehensively amended and restated by sec. 112 of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1527).

(4) evaluation and planning of the host government's military capabilities and requirements;

(5) administrative support;

(6) promoting rationalization, standardization, interoperability, and other defense cooperation measures; 688 and

(7) liaison functions exclusive of advisory and training assist

ance.

(b) Advisory and training assistance conducted by military personnel assigned under this section shall be kept to an absolute minimum. It is the sense of the Congress that advising and training assistance in countries to which military personnel are assigned under this section shall be provided primarily by other personnel who are not assigned under this section and who are detailed for limited periods to perform specific tasks.

(c)(1) The number of members of the Armed Forces assigned to a foreign country under this section may not exceed six unless specifically authorized by the Congress. The President may waive this limitation if he determines and reports to the Committee on Foreign Relations of the Senate and the Committee on Foreign Af fairs 663 of the House of Representatives, 30 days prior to the introduction of the additional military personnel, that United States national interests require that more than six members of the Armed Forces be assigned under this section to carry out international security assistance programs in a country not specified in this paragraph. Pakistan, Tunisia, El Salvador, Honduras, Colombia,689 Indonesia, the Republic of Korea, the Philippines, Thailand, Egypt, Jordan, Morocco, Saudi Arabia, Greece, Portugal, Spain, and Turkey are authorized to have military personnel strengths larger than six under this section to carry out international security assistance programs.

(2) The total number of members of the Armed Forces assigned under this section to a foreign country in a fiscal year may not exceed the number justified to the Congress for that country in the congressional presentation materials for that fiscal year, unless the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs 663 of the House of Representatives are notified 30 days in advance of the introduction of the additional military personnel.

(d) Effective October 1, 1989,690 the entire costs (excluding 691 salaries of the United States military personnel other than the Coast Guard) 691 of overseas management of international security assistance programs under this section shall be charged to or reimbursed from funds made available to carry out this chapter or the

688 Sec. 143 of Public Law 104-164 (110 Stat. 1434) struck out "among members of the North Atlantic Treaty Organization and with the Armed Forces of Japan, Australia, and New Zealand" after "measures".

689 Sec. 125 of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 205), struck out "For the fiscal year 1982 and the fiscal year 1983" and inserted in lieu thereof "Pakistan, Tunisia, El Salvador, Honduras".

Sec. 4305(a) of Public Law 100-690 (102 Stat. 4273) added "Colombia" after "Honduras". 690 Section 9104(a) of the Department of Defense Appropriations Act, 1990 (Public Law 101165; 103 Stat. 1152) struck out "1982" and inserted in lieu thereof "1989".

691 Section 9104 of the Department of Defense Appropriations Act, 1990 (Public Law 101-165; 103 Stat. 1152) struck out "including" and inserted in lieu thereof "excluding". Sec. 556(c) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1993 (Public Law 102-391; 106 Stat. 1675), restated parentheses to make provision for the Coast Guard.

Arms Export Control Act,692 other than any such costs which are either paid directly for such defense services under section 21(a) of the Arms Export Control Act or reimbursed from charges for services collected from foreign governments pursuant to section 21(e) and section 43(b) of that Act.

(e) Members of the Armed Forces assigned to a foreign country under this section shall serve under the direction and supervision of the Chief of the United States Diplomatic Mission to that country.

(f) The President shall continue to instruct United States diplomatic and military personnel in the United States missions abroad that they should not encourage, promote, or influence the purchase by any foreign country of United States-made military equipment, unless they are specifically instructed to do so by an appropriate official of the executive branch.

Sec. 516.693 AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

(a) AUTHORIZATION.-The President is authorized to transfer excess defense articles under this section to countries for which receipt of such articles was justified pursuant to the annual congressional presentation documents for military assistance programs, or for programs under chapter 8 of part I of this Act, submitted under section 634 of this Act, or for which receipt of such articles was separately justified to the Congress, for the fiscal year in which the transfer is authorized.

692 Title III of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990 (Public Law 101-167; 103 Stat. 1213), added reference to the Arms Export Control Act at this point.

693 22 U.S.C. 2321j. Sec. 104(a) of Public Law 104-164 (110 Stat. 1424) amended and restated sec. 516.

The earlier form of sec. 516, relating to the modernization of defense capabilities of countries of NATO's southern flank, was added by sec. 1101 of Public Law 99-661 (100 Stat. 3960). Prior to that, sec. 516, added by sec. 105 of Public Law 94-329 and amended by sec. 7(b) of Public Law 95-384, sec. 5(c) of Public Law 96-92, and sec. 112(d) of Public Law 96-533, was repealed by sec. 110(d) of the International Security and Development Cooperation Act of 1981 (Public Law 97-113; 95 Stat. 1526). Sec. 516 had required the termination of authorities contained in this chapter (except for authorities in secs. 506, 514, and 515) as of September 30, 1982, except to the extent Congress might authorize military assistance in specified amounts for specified countries.

The Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 2146), provided the following:

"NOTIFICATION OF EXCESS DEFENSE EQUIPMENT

"SEC. 524. Prior to providing excess Department of Defense articles in accordance with section 516(a) of the Foreign Assistance Act of 1961, the Department of Defense shall notify the Committees on Appropriations to the same extent and under the same conditions as are other committees pursuant to subsection (f) of that section: Provided, That before issuing a letter of offer to sell excess defense articles under the Arms Export Control Act, the Department of Defense shall notify the Committees on Appropriations in accordance with the regular notification procedures of such Committees if such defense articles are significant military equipment (as defined in section 47(9) of the Arms Export Control Act) or are valued (in terms of original acquisition cost) at $7,000,000 or more, or if notification is required elsewhere in this Act for the use of appropriated funds for specific countries that would receive such excess defense articles: Provided further, That such Committees shall also be informed of the original acquisition cost of such defense articles.".

The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 (sec. 101(c) of title I of Public Law 104-208; 110 Stat. 3009), provided the following:

"MEDITERRANEAN EXCESS DEFENSE ARTICLES

"SEC. 535. For the four-year period beginning on October 1, 1996, the President shall ensure that excess defense articles will be made available under section 516 and 519 of the Foreign Assistance Act of 1961 consistent with the manner in which the President made available excess defense articles under those sections during the four-year period that began on October 1, 1992, pursuant to section 573(e) of the Foreign Operations, Export Financing, Related Programs Appropriations Act, 1990.".