eligible foreign country, subject to payment in advance of the value thereof (within the meaning of section 644(m)) in United States dollars by the foreign country. Credits and the proceeds of guaranteed loans made available to such countries pursuant to the Arms Export Control Act shall not be used for such payments. Collections under this chapter shall be credited to the currently applicable appropriation, account, or fund of the agency providing such services and commodities and shall be available for the purposes for which such appropriation, account, or fund is authorized to be used.

(b) The Assistant Secretary of State for Democracy, Human Rights, and Labor 773 shall be consulted in the 774 determinations of the foreign countries that will be furnished assistance under this chapter and determinations of the nature of assistance to be furnished to each such country.

(c) 775 (1) Arms and ammunition may be provided under this chapter only if they are directly related to antiterrorism assistance. (2) The value (in terms of original acquisition cost) of all equipment and commodities provided under this chapter in any fiscal year shall not exceed 30 percent of the funds made available to carry out this chapter for that fiscal year.

(d) This chapter does not apply to information exchange activities conducted by agencies of the United States Government under other authority for such purposes.

(f) 776 [Repealed-1996]

Sec. 574.777 *** [Repealed-1996]

773 Sec. 163(e)(2) of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law 103-236; 108 Stat. 405), amended the title designation by striking out "Human Rights and Humanitarian Affairs", and inserting in lieu thereof "Democracy, Human Rights, and Labor".

774 Sec. 328(a)(1) of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-132; 110 Stat. 1257) struck out "development and implementation of the antiterrorism assistance program under this chapter, including" at this point.

775 Subsec. (c), redesignated from subsec. (d) by sec. 121(b)(3) of Public Law 104-164 (110 Stat. 1428), was amended and restated by sec. 328(a)(2) of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-132; 110 Stat. 1257). Portions were amended and restated earlier by sec. 213(b) of Public Law 101-604 (104 Stat. 3086), sec. 507 of Public Law 99-399 (100 Stat. 873).

In view of amendments to this subsection by Public Law 104-132, amendments contained in sec. 121(b)(4) of Public Law 104-164 (110 Stat. 1428) cannot be executed. Sec. 121(b)(4) of that Public Law required:

“(b) LIMITATIONS.-Section 573 of such Act (22 U.S.C. 2349aa-2) is amended- **

"(4) in subsection (c) (as redesignated)

"(A) by striking paragraphs (1) and (2);

"(B) by redesignating paragraphs (3) through (5) as paragraphs (1) through (3), respectively; and

"(C) by amending paragraph (2) (as redesignated) to read as follows:

"(2)(A) Except as provided in subparagraph (B), funds made available to carry out this chapter shall not be made available for the procurement of weapons and ammunition.

"(B) Subparagraph (A) shall not apply to small arms and ammunition in categories I and III of the United States Munitions List that are integrally and directly related to antiterrorism training provided under this chapter if, at least 15 days before obligating those funds, the President notifies the appropriate congressional committees specified in section 634A of this Act in accordance with the procedures applicable to reprogramming notifications under such section. "(C) The value (in terms of original acquisition cost) of all equipment and commodities provided under this chapter in any fiscal year may not exceed 25 percent of the funds made available to carry out this chapter for that fiscal year.".

776 Subsec. (f) was added by sec. 501(c) of Public Law 99-83 (99 Stat. 221), and struck out by sec. 328(a)(3) of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104132; 110 Stat. 1257). It had read as follows:

"(f) Funds made available to carry out this chapter may not be used for personnel compensation or benefits.".

777 Formerly at 22 U.S.C. 2349aa-3. Sec. 121(c) of Public Law 104-164 (110 Stat. 1428) repealed sec. 574, which had required reports to Congress on antiterrorism assistance.

Sec. 574.778 Authorizations of Appropriations. (a) There are authorized to be appropriated to the President to carry out this chapter $72,000,000 for fiscal year 2001 and $73,000,000 for fiscal year 2002.

(b) Amounts appropriated under this section are authorized to remain available until expended.

778 22 U.S.C. 2349aa-4. Redesignated from sec. 575 to sec. 574 by sec. 121(d) of Public Law 104-164 (110 Stat. 1428). Sec. 401 of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 854) struck out funding levels of "$9,840,000 for the fiscal year 1986 and $14,680,000 for the fiscal year 1987" and inserted in lieu thereof "$72,000,000 for fiscal year 2001 and $73,000,000 for fiscal year 2002.". Previously, authorization for fiscal year 1986 was enacted by sec. 501(a) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 219). The authorization for fiscal year 1987 of $14,680,000 was inserted in lieu of the amount of $9,840,000 (originally enacted by Public Law 99-83) by sec. 401 of Public Law 99-399 (100 Stat. 862). Previous authorizations include: fiscal year 1984-$5,000,000; fiscal year 1985-no authorization; fiscal year 1986-$9,840,000; fiscal year 1987-$14,680,000; fiscal years 1988 through 2000-no authorization; fiscal year 2001-$72,000,000; fiscal year 2002— $73,000,000.

Title II of the Kenneth M. Ludden Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2002 (Public Law 107-115; 115 Stat. 2132), provided the following:

"NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED PROGRAMS

"For necessary expenses for nonproliferation, anti-terrorism and related programs and activities, $313,500,000, to carry out the provisions of chapter 8 of part II of the Foreign Assistance Act of 1961 for anti-terrorism assistance, chapter 9 of part II of the Foreign Assistance Act of 1961, section 504 of the FREEDOM Support Act, section 23 of the Arms Export Control Act or the Foreign Assistance Act of 1961 for demining activities, the clearance of unexploded ordnance, the destruction of small arms, and related activities, notwithstanding any other provision of law, including activities implemented through nongovernmental and international organizations, section 301 of the Foreign Assistance Act of 1961 for a voluntary contribution to the International Atomic Energy Agency (IAEA) and a voluntary contribution to the Korean Peninsula Energy Development Organization (KEDO), and for a United States contribution to the Comprehensive Nuclear Test Ban Treaty Preparatory Commission: Provided, That the Secretary of State shall inform the Committees on Appropriations at least 15 days prior to the obligation of funds for the Comprehensive Nuclear Test Ban Treaty Preparatory Commission: Provided further, That of this amount not to exceed $14,000,000, to remain available until expended, may be made available for the Nonproliferation and Disarmament Fund, notwithstanding any other provision of law, to promote bilateral and multilateral activities relating to nonproliferation and disarmament: Provided further, That such funds may also be used for such countries other than the Independent States of the former Soviet Union and international organizations when it is in the national security interest of the United States to do so following consultation with the appropriate committees of Congress: Provided further, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being denied its right to participate in the activities of that Agency: Provided further, That of the funds made available for demining and related activities, not to exceed $500,000, in addition to funds otherwise available for such purposes, may be used for administrative expenses related to the operation and management of the demining program.".

See also in that Act: sec. 506-Prohibition on Financing Nuclear Goods (115 Stat. 2140); sec. 515-Notification Requirements (115 Stat. 2142); sec. 517-Independent States of the Former Soviet Union (115 Stat. 2143); sec. 558-Assistance for the Middle East (115 Stat. 2160); and sec. 565-Korean Peninsula Energy Development Organization (115 Stat. 2163).

Sec. 328(b) of the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104132; 110 Stat. 1257) provided the following:

"(b) ASSISTANCE TO FOREIGN COUNTRIES TO PROCURE EXPLOSIVES DETECTION DEVICES AND OTHER COUNTERTERRORISM TECHNOLOGY.-(1) Subject to section 575(b), up to $3,000,000 in any fiscal year may be made available

"(A) to procure explosives detection devices and other counterterrorism technology; and "(B) for joint counterterrorism research and development projects on such technology conducted with NATO and major non-NATO allies under the auspices of the Technical Support Working Group of the Department of State.

"(2) As used in this subsection, the term 'major non-NATO allies' means those countries designated as major non-NATO allies for purposes of section 2350a(i)(3) of title 10, United States Code.

"(c) ASSISTANCE TO FOREIGN COUNTRIES.-Notwithstanding any other provision of law (except section 620A of the Foreign Assistance Act of 1961) up to $1,000,000 in assistance may be provided to a foreign country for counterterrorism efforts in any fiscal year if—

"(1) such assistance is provided for the purpose of protecting the property of the United States Government or the life and property of any United States citizen, or furthering the apprehension of any individual involved in any act of terrorism against such property or persons; and

"(2) the appropriate committees of Congress are notified not later than 15 days prior to the provision of such assistance.".

Sec. 575.779 Administrative Authorities.-Except where expressly provided to the contrary, any reference in any law to part I of this Act shall be deemed to include reference to this chapter and any reference in any law to part II of this Act shall be deemed to exclude reference to this chapter.

Sec. 577.780 * * * * [Repealed-1985]

CHAPTER 9-NONPROLIFERATION AND EXPORT
CONTROL ASSISTANCE 781

SEC. 581.78
782 PURPOSES.

The purposes of assistance under this chapter are to halt the proliferation of nuclear, chemical, and biological weapons, and conventional weaponry, through support of activities designed

(1) to enhance the nonproliferation and export control capabilities of friendly countries by providing training and equipment to detect, deter, monitor, interdict, and counter proliferation;

(2) to strengthen the bilateral ties of the United States with friendly governments by offering concrete assistance in this area of vital national security interest;

(3) to accomplish the activities and objectives set forth in sections 503 and 504 of the FREEDOM Support Act (22 U.S.C. 5853, 5854), without regard to the limitation of those sections to the independent states of the former Soviet Union; and

(4) to promote multilateral activities, including cooperation with international organizations, relating to nonproliferation. SEC. 582.783 AUTHORIZATION OF ASSISTANCE.

Notwithstanding any other provision of law (other than section 502B or section 620A of this Act), the President is authorized to furnish, on such terms and conditions as the President may determine, assistance in order to carry out the purposes of this chapter. Such assistance may include training services and the provision of funds, equipment, and other commodities related to the detection, deterrence, monitoring, interdiction, and prevention or countering of proliferation, the establishment of effective nonproliferation laws and regulations, and the apprehension of those individuals involved in acts of proliferation of such weapons.

SEC. 583.784 TRANSIT INTERDICTION.

(a) ALLOCATION OF FUNDS.-In providing assistance under this chapter, the President should ensure that not less than one-quarter of the total of such assistance is expended for the purpose of enhancing the capabilities of friendly countries to detect and interdict proliferation-related shipments of cargo that originate from, and are destined for, other countries.

779 22 U.S.C. 2349aa-5. Redesignated from sec. 576 to sec. 575 by sec. 121(d) of Public Law 104-164 (110 Stat. 1428).

780 Formerly at 22 U.S.C. 2349aa-6. Sec. 577 was repealed by sec. 501(d) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 220). The authorities under this chapter would have expired on September 30, 1985.

781 Sec. 301 of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 851) added chapter 9, secs. 581-585.

782 22 U.S.C. 2349bb.

783 22 U.S.C. 2349bb-1.

784 22 U.S.C. 2349bb-2.

(b) PRIORITY TO CERTAIN COUNTRIES.-Priority shall be given in the apportionment of the assistance described under subsection (a) to any friendly country that has been determined by the Secretary of State to be a country frequently transited by proliferation-related shipments of cargo.

SEC. 584.785 LIMITATIONS.

The limitations contained in section 573(a) and (d) of this Act shall apply to this chapter.

SEC. 585.786 AUTHORIZATION OF APPROPRIATIONS.

(a) AUTHORIZATION OF APPROPRIATIONS.-There are authorized to be appropriated to the President to carry out this chapter $129,000,000 for fiscal year 2001 and $142,000,000 for fiscal year 2002.

(b) AVAILABILITY OF FUNDS.-Funds made available under subsection (a) may be used notwithstanding any other provision of law (other than section 502B or 620A) and shall remain available until expended.

(c) TREATMENT OF FISCAL YEAR 2001 APPROPRIATIONS.-Amounts made available by the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2001, under "Nonproliferation, Antiterrorism, Demining, and Related Programs” and “Assistance for the Independent States of the Former Soviet Union" accounts for the activities described in subsection (d) shall be considered to be made available pursuant to this chapter.

785 22 U.S.C. 2349bb-3.

786 22 U.S.C. 2349bb-4.

Secs. 302 through 304 of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 853) provided the following:

"SEC. 302. NONPROLIFERATION AND EXPORT CONTROL TRAINING IN THE UNITED STATES.

"Of the amounts made available for fiscal years 2001 and 2002 under chapter 9 of part II of the Foreign Assistance Act of 1961, as added by section 301, $2,000,000 is authorized to be available each such fiscal year for the purpose of training and education of personnel from friendly countries in the United States.

"SEČ. 303. SCIENCE AND TECHNOLOGY CENTERS.

"(a) AVAILABILITY OF FUNDS.-Of the amounts made available for the fiscal years 2001 and 2002 under chapter 9 of part II of the Foreign Assistance Act of 1961, as added by section 301, $59,000,000 for fiscal year 2001 and $65,000,000 for fiscal year 2002 are authorized to be available for science and technology centers in the independent states of the former Soviet Union. "(b) SENSE OF THE CONGRESS.-It is the sense of the Congress, taking into account section 1132 of H. R. 3427 of the One Hundred Sixth Congress (as enacted by section 1000(a)(7) of Public Law 106-113), that the practice of auditing entities receiving funds authorized under this section should be significantly expanded and that the burden of supplying auditors should be spread equitably within the United States Government.

"SEC. 304. TRIAL TRANSIT PROGRAM.

"(a) ALLOCATION OF FUNDS.—Of the amount made available for fiscal year 2001 under chapter 9 of the Foreign Assistance Act of 1961, as added by section 301, $5,000,000 is authorized to be available to establish a static cargo x-ray facility in Malta, if the Secretary of State first certifies to the appropriate committees of Congress that the Government of Malta has provided adequate assurances that such a facility will be utilized in connection with random cargo inspections by Maltese customs officials of container traffic transiting through the Malta Freeport.

"(b) REQUIREMENT OF WRITTEN ASSESSMENT.-In the event that a facility is established in Malta pursuant to subsection (a), the Secretary of State shall submit a written assessment to the appropriate committees of Congress not later than 270 days after such a facility commences operation detailing

"(1) statistics on utilization of the facility by Malta;

"(2) the contribution made by the facility to United States nonproliferation and export control objectives; and

"(3) the feasibility of establishing comparable facilities in other countries identified by the Secretary of State pursuant to section 583 of the Foreign Assistance Act of 1961, as added by section 301.

"(c) TREATMENT OF ASSISTANCE.-Assistance under this section shall be considered as assistance under section 583(a) of the Foreign Assistance Act of 1961 (relating to transit interdiction), as added by section 301.".

(d) COVERED ACTIVITIES.-The activities referred to in subsection (c) are

(1) assistance under the Nonproliferation and Disarmament Fund;

(2) assistance for science and technology centers in the independent states of the former Soviet Union;

(3) export control assistance; and

(4) export control and border assistance under chapter 11 of part I of the Foreign Assistance Act of 1961 (22 U.S.C. 2295 et seq.) or the FREEDOM Support Act (22 U.S.C. 5801 et seq.).

PART III

Chapter 1-General Provisions

Sec. 601.787 Encouragement of Free Enterprise and Private Participation.-(a) The Congress of the United States recognizes the vital role of free enterprise in achieving rising levels of production and standards of living essential to economic progress and development. Accordingly, it is declared to be the policy of the United States to encourage the efforts of other countries to increase the flow of international trade, to foster private initiative and competition, to encourage the development and use of cooperatives, credit unions, and savings and loan associations, to discourage monopolistic practices, to improve the technical efficiency of their industry, agriculture, and commerce, and to strengthen free labor unions; and to encourage the contribution of United States enterprise toward economic strength of less developed friendly countries, through private trade and investment abroad, private participation in programs carried out under this Act (including the use of private trade channels to the maximum extent practicable in carrying out such programs), and exchange of ideas and technical information on the matters covered by this subsection.

(b) In order to encourage and facilitate participation by private enterprise to the maximum extent practicable in achieving any of the purposes of this Act, the President shall

(1) make arrangements to find, and draw the attention of private enterprise to opportunities for investment and development in less developed countries and areas;

(2) establish an effective system for obtaining adequate information with respect to the activities of, and opportunities for, nongovernmental participation in the development process, and for utilizing such information in the planning, direction, and execution of programs carried out under this Act, and in the coordination of such programs with the ever-increasing developmental activities of nongovernmental United States institutions;

(3) 788 accelerate a program of negotiating treaties for commerce and trade, including tax treaties, which shall include provisions to encourage and facilitate the flow of private in

787 22 U.S.C. 2351.

788 Sec. 301(a)(2) of the FA Act of 1966 redesignated pars. (2), (3), (4), (5), and (6) as pars. (3), (4), (5), (6), and (7) respectively and added a new par. (2).