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scribed in paragraph (1) in the same manner as such requirements apply to an administering body described in section

708(c)(1) of this Act. (d) ELIGIBLE ACTIVITIES.-Amounts deposited in a Fund shall be used only to provide grants to conserve, maintain, and restore the tropical forests in the beneficiary country, through one or more of the following activities:

(1) Establishment, restoration, protection, and maintenance of parks, protected areas, and reserves.

(2) Development and implementation of scientifically sound systems of natural resource management, including land and ecosystem management practices.

(3) Training programs to increase the scientific, technical, and managerial capacities of individuals and organizations involved in conservation efforts.

(4) Restoration, protection, or sustainable use of diverse animal and plant species.

(5) Research and identification of medicinal uses of tropical forest plant life to treat human diseases, illnesses, and health related concerns.

(6) Development and support of the livelihoods of individuals living in or near a tropical forest in a manner consistent with

protecting such tropical forest. (e) GRANT RECIPIENTS. —

(1) IN GENERAL.-Grants made from a Fund shall be made to

(A) nongovernmental environmental, forestry, conservation, and indigenous peoples organizations of, or active in, the beneficiary country;

(B) other appropriate local or regional entities of, or active in, the beneficiary country; or

(C) in exceptional circumstances, the government of the beneficiary country. (2) PRIORITY.—In providing grants under paragraph (1), priority shall be given to projects that are run by nongovernmental organizations and other private entities and that involve local communities in their planning and execution. (f) REVIEW OF LARGER GRANTS.-Any grant of more than $100,000 from a Fund shall be subject to veto by the Government of the United States or the government of the beneficiary country.

(g) ELIGIBILITY CRITERIA. - In the event that a country ceases to meet the eligibility requirements set forth in section 805(a), as determined by the President pursuant to section 805(b), then grants from the Fund for that country may only be made to nongovernmental organizations until such time as the President determines that such country meets the eligibility requirements set forth in section 805(a). SEC. 810.1174 TROPICAL FOREST FUND.

(a) ESTABLISHMENT.—Each beneficiary country that enters into a Tropical Forest Agreement under section 809 shall be required to establish a Tropical Forest Fund to receive payments of interest on

1174 22 U.S.C. 2431h.

new obligations undertaken by the beneficiary country under this part.

(b) REQUIREMENTS RELATING TO OPERATION OF FUND.—The following terms and conditions shall apply to the Fund in the same manner as such terms as conditions apply to an Enterprise for the Americas Fund under section 707 of this Act:

(1) The provision relating to deposits under subsection (b) of such section.

(2) The provision relating to investments under subsection (c) of such section.

(3) The provision relating to disbursements under subsection

(d) of such section. SEC. 811.1175 BOARD.

(a) ENTERPRISE FOR THE AMERICAS BOARD.-The Enterprise for the Americas Board established under section 610(a) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1738i(a)) shall, in addition to carrying out the responsibilities of the Board under section 610(c) of such Act, carry out the duties described in subsection (c) of this section for the purposes of this part. (b) ADDITIONAL MEMBERSHIP.

(1) IN GENERAL.—The Enterprise for the Americas Board shall be composed of an additional four members appointed by the President as follows:

(A) Two representatives from the United States Government, including a representative of the International Forestry Division of the United States Forest Service.

(B) Two representatives from private nongovernmental environmental, scientific, forestry, or academic organizations with experience and expertise in preservation, maintenance, sustainable uses, and restoration of tropical for

ests. (2) CHAIRPERSON.—Notwithstanding section 610(b)(2) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 1738i(b)(2)), the Enterprise for the Americas Board shall be headed by a chairperson who shall be appointed by the President and shall be the representative from the Department

of State appointed under section 610(b)(1)(A) of such Act”. 1176 (c) DUTIES.— The duties described in this subsection are as follows:

(1) Advise the Secretary of State on the negotiations of Tropical Forest Agreements. (2) Ensure, in consultation with

(A) the government of the beneficiary country;

(B) nongovernmental organizations of the beneficiary country;

(C) nongovernmental organizations of the region (if appropriate);

(D) environmental, scientific, forestry, and academic leaders of the beneficiary country; and

1175 22 U.S.C. 2431i.

1176 Sec. 3 of Public Law 107–26 (115 Stat. 206) struck out “from among the representatives appointed under section 610(b)(1/A) of such Act or paragraph (1)A) of this subsection” and inserted in lieu thereof “and shall be the representative from the Department of State appointed under section 610(b)(1XA) of such Act".

(E) environmental, scientific, forestry, and academic leaders of the region (as appropriate), that a suitable ad

ministering body is identified for each Fund. (3) Review the programs, operations, and fiscal audits of

each administering body. SEC. 812.1177 CONSULTATIONS WITH THE CONGRESS.

The President shall consult with the appropriate congressional committees on a periodic basis to review the operation of the Facility under this part and the eligibility of countries for benefits from the Facility under this part. SEC. 813.1178 ANNUAL REPORTS TO THE CONGRESS.

(a) IN GENERAL.-Not later than December 31 of each year, the President shall prepare and transmit to the Congress an annual report concerning the operation of the Facility for the prior fiscal year. Such report shall include

(1) a description of the activities undertaken by the Facility during the previous fiscal year;

(2) a description of any Agreement entered into under this part;

(3) a report on any Funds that have been established under this part and on the operations of such Funds; and

(4) a description of any grants that have been provided by administering bodies pursuant to Agreements under this part. (b) SUPPLEMENTAL VIEWS IN ANNUAL REPORT.—Not later than December 15 of each year, each member of the Board shall be entitled to receive a copy of the report required under subsection (a). Each member of the Board may prepare and submit supplemental views to the President on the implementation of this part by December 31 for inclusion in the annual report when it is transmitted to Congress pursuant to this section.

1177 22 U.S.C. 243lj. 1178 22 U.S.C. 2431k.

b. The Arms Export Control Act

CONTENTS

Page Chapter 1-Foreign and National Security Policy Objectives and Restraints .. 371

Section 1–The Need for International Defense Cooperation and Military
Export Controls

371 Section 2-Coordination With Foreign Policy

373 Section 3—Eligibility

374 Section 4Purposes for Which Military Sales by the United States Are Authorized

381 Section 5—Prohibition Against crimination

382 Section 6_Foreign Intimidation and Harassment of Individuals in the United States

383 Chapter 2–Foreign Military Sales Authorizations

384 Section 21—Sales From Stocks

384 Section 22—Procurement for Cash Sales

392 Section 23—Credit Sales

394 Section 24-Guaranties

398 Section 25—Annual Estimate and Justification for Sales Program

399 Section 26—Security Assistance Surveys

402 Section 27-Authority of President to Enter into Cooperative Projects with Friendly Foreign countries

403 Chapter 2A–Foreign Military Construction Sales

406 Section 29-Foreign Military Construction Sales

406 Chapter 2B-Sales to United States Companies for Incorporation Into End Items

407 Section 30—General Authority

407 Chapter 2C–Exchange of Training and Related Support

408 Section 30A–Exchange of Training and Related Support

408 Chapter 3—Military Export Controls

408 Section 31-Authorization and Aggregate Ceiling on Foreign Military Sales Credits

408 Section 33— Restraint in Arms Sales to Sub-Saharan Africa

412 Section 34Foreign Military Sales Credit Standards

412 Section 35-Foreign Military Sales to Less Developed Countries

412 Section 36-Reports on Commercial and Governmental Military Exports; Congressional Action

412 Section 37—Fiscal Provisions Relating to Foreign Military Sales Credits . 426 Section 38—Control of Arms Exports and Imports

426 Section 39-Fees of Military Sales Agents and Other Payments

437 Section 39A-Prohibition on Incentive Payments

438 Section 40—Transactions With Countries Supporting Acts of International Terrorism

439 Section 40A–Transactions With Countries Not Fully Cooperating With United States Antiterrorism Efforts

446 Chapter 3A-End-Use Monitoring of Defense Articles and Defense Services 447

Section 404 End-Use Monitoring of Defense Articles and Defense Services

447 Chapter 4—General, Administrative, and Miscellaneous Provisions

448 Section 41-Effective Date

448 Section 42-General Provisions

448 Section 43–Administrative Expenses

450 Section 44—Statutory Construction

450 Section 45-Statutes Repealed and Amended

451 Section 46—Savings Provisions

451 Section 47-Definitions

451 Chapter 5—Special Defense Acquisition Fund

453 453 454

455 455 457 458 458

458 459 459

461

Section 51—Special Defense Acquisition Fund

Section 52–Use and Transfer of Items Procured by the Fund
Chapter 6—Leases of Defense Articles and Loan Authority for Cooperative
Research and Development Purposes

Section 61–Leasing Authority
Section 62—Reports to the Congress
Section 63—Legislative Review
Section 64-Application of Other Provisions of Law
Section 65—Loan of Materials, Supplies, and Equipment for Research

and Development Purposes
Chapter 7-Control of Missiles and Missile Equipment Technology

Section 71-Licensing
Section 72—Denial of the Transfer of Missile Equipment or Technology

by United States Persons
Section 73—Transfers of Missile Equipment or Technology by Foreign

Persons
Section 73A—Notification of Admittance of MTCR Adherents
Section 73B-Authority Relating to MTCR Adherents.

Section 74-Definitions
Chapter 8Chemical or Biological Weapons Proliferation

Section 81-Sanctions Against Certain Foreign Persons
Chapter 9—Transfer of Certain CFE Treaty-Limited Equipment to NATO
Members

Section 91–Purpose
Section 92–CFE Treaty Obligations
Section 93—Authorities
Section 94-Notifications and Reports to Congress

Section 95—Definitions
Chapter 10—Nuclear Nonproliferation Controls

Section 101–Nuclear Enrichment Transfers
Section 102—Nuclear Reprocessing Transfers, Illegal Exports for Nuclear

Explosive Devices, Transfers of Nuclear Explosive Devices, and Nuclear

462 466 466 466 468 468

471 471 471 472 473 473 474 474

Detonations
Section 103—Definition of Nuclear Explosive Device

475
481

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