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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. 17381(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 forests.

(2) CHAIRPERSON.-Notwithstanding section 610(b)(2) of the Agricultural Trade Development and Assistance Act of 1954 (7 U.S.C. 17381(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)(1)(A) of such Act".

(E) environmental, scientific, forestry, and academic leaders of the region (as appropriate), that a suitable administering 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. 2431j. 1178 22 U.S.C. 2431k.

b. The Arms Export Control Act

CONTENTS

Page

Chapter 1-Foreign and National Security Policy Objectives and Restraints ..
Section 1-The Need for International Defense Cooperation and Military
Export Controls

371

371

Section 2-Coordination With Foreign Policy

373

Section 3-Eligibility

374

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

381

Section 5-Prohibition Against Discrimination

382

Section 6 Foreign Intimidation and Harassment of Individuals in the
United States

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Section 25-Annual Estimate and Justification for Sales Program
Section 26-Security Assistance Surveys

399

402

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

403

Chapter 2A-Foreign Military Construction Sales
Section 29-Foreign Military Construction Sales

406

406

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

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

408

Section 33-Restraint in Arms Sales to Sub-Saharan Africa
Section 34-Foreign Military Sales Credit Standards

412

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.
Section 38-Control of Arms Exports and Imports

426

426

Section 39-Fees of Military Sales Agents and Other Payments
Section 39A-Prohibition on Incentive Payments

437

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 Section 40A End-Use Monitoring of Defense Articles and Defense Services

447

447

Chapter 4-General, Administrative, and Miscellaneous Provisions
Section 41-Effective Date

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Section 51-Special Defense Acquisition Fund

453

Section 52-Use and Transfer of Items Procured by the Fund

454

Chapter 6 Leases of Defense Articles and Loan Authority for Cooperative

Research and Development Purposes

455

Section 61-Leasing Authority

455

Section 62-Reports to the Congress

457

Section 63-Legislative Review

458

Section 64-Application of Other Provisions of Law

458

Section 65-Loan of Materials, Supplies, and Equipment for Research and Development Purposes

458

Chapter 7-Control of Missiles and Missile Equipment Technology

459

Section 71-Licensing

459

Section 72-Denial of the Transfer of Missile Equipment or Technology by United States Persons

461

Section 73-Transfers of Missile Equipment or Technology by Foreign

Persons

462

Section 73A-Notification of Admittance of MTCR Adherents
Section 73B-Authority Relating to MTCR Adherents.
Section 74-Definitions

466

466

466

Chapter 8 Chemical or Biological Weapons Proliferation
Section 81-Sanctions Against Certain Foreign Persons

468

468

Chapter 9 Transfer of Certain CFE Treaty-Limited Equipment to NATO
Members

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Section 102-Nuclear Reprocessing Transfers, Illegal Exports for Nuclear

Explosive Devices, Transfers of Nuclear Explosive Devices, and Nuclear
Detonations.

Section 103-Definition of Nuclear Explosive Device

475

481

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