
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC4542]

 
                         TITLE 10--ARMED FORCES
 
                            Subtitle B--Army
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
                        CHAPTER 433--PROCUREMENT
 
Sec. 4542. Technical data packages for large-caliber cannon: 
        prohibition on transfers to foreign countries; exception
        
    (a) General Rule.--Funds appropriated to the Department of Defense 
may not be used--
        (1) to transfer to a foreign country a technical data package 
    for a defense item being manufactured or developed in an arsenal; or
        (2) to assist a foreign country in producing such a defense 
    item.

    (b) Exception.--The Secretary of the Army may use funds appropriated 
to the Department of Defense to transfer a technical data package, or to 
provide assistance, described in subsection (a) if--
        (1) the transfer or provision of assistance is to a friendly 
    foreign country (as determined by the Secretary of Defense in 
    consultation with the Secretary of State);
        (2) the Secretary of the Army determines that such action--
            (A) would have a clear benefit to the preservation of the 
        production base for the production of cannon at the arsenal 
        concerned; and
            (B) would not transfer technology (including production 
        techniques) considered unique to the arsenal concerned, except 
        as provided in subsection (e); and

        (3) the Secretary of Defense enters into an agreement with the 
    country concerned described in subsection (c) or (d).

    (c) Coproduction Agreements.--An agreement under this subsection 
shall be in the form of a Government-to-Government Memorandum of 
Understanding and shall include provisions that--
        (1) prescribe the content of the technical data package or 
    assistance to be transferred to the foreign country participating in 
    the agreement;
        (2) require that production by the participating foreign country 
    of the defense item to which the technical data package or 
    assistance relates be shared with the arsenal concerned;
        (3) subject to such exceptions as may be approved under 
    subsection (f), prohibit transfer by the participating foreign 
    country to a third party or country of--
            (A) any defense article, technical data package, technology, 
        or assistance provided by the United States under the agreement; 
        and
            (B) any defense article produced by the participating 
        foreign country under the agreement; and

        (4) require the Secretary of Defense to monitor compliance with 
    the agreement and the participating foreign country to report 
    periodically to the Secretary of Defense concerning the agreement.

    (d) Cooperative Project Agreements.--An agreement under this 
subsection is a cooperative project agreement under section 27 of the 
Arms Export Control Act (22 U.S.C. 2767) which includes provisions 
that--
        (1) for development phases describe the technical data to be 
    transferred and for the production phase prescribe the content of 
    the technical data package or assistance to be transferred to the 
    foreign country participating in the agreement;
        (2) require that at least the United States production of the 
    defense item to which the technical data package or assistance 
    relates be carried out by the arsenal concerned; and
        (3) require the Secretary of Defense to monitor compliance with 
    the agreement.

    (e) Licensing Fees and Royalties.--The limitation in subsection 
(b)(2)(B) shall not apply if the technology (or production technique) 
transferred is subject to nonexclusive license and payment of any 
negotiated licensing fee or royalty that reflects the cost of 
development, implementation, and prove-out of the technology or 
production technique. Any negotiated license fee or royalty shall be 
placed in the operating fund of the arsenal concerned for the purpose of 
capital investment and technology development at that arsenal.
    (f) Transfers to Third Parties.--A transfer described in subsection 
(c)(3) may be made if--
        (1) the defense article, technical data package, or technology 
    to be transferred is a product of a cooperative research and 
    development program or a cooperative project in which the United 
    States and the participating foreign country were partners; or
        (2) the President--
            (A) complies with all requirements of section 3(d) of the 
        Arms Export Control Act (22 U.S.C. 2753(d)) with respect to such 
        transfer; and
            (B) certifies to Congress, before the transfer, that the 
        transfer would provide a clear benefit to the production base of 
        the United States for large-caliber cannon.

    (g) Notice and Reports to Congress.--(1) The Secretary of the Army 
shall submit to Congress a notice of each agreement entered into under 
this section.
    (2) The Secretary shall submit to Congress a semi-annual report on 
the operation of this section and of agreements entered into under this 
section.
    (h) Arsenal Defined.--In this section, the term ``arsenal'' means a 
Government-owned, Government-operated defense plant that manufactures 
large-caliber cannon.

(Added Pub. L. 99-500, Sec. 101(c) [title IX, Sec. 9036(b)(1)], Oct. 18, 
1986, 100 Stat. 1783-82, 1783-107, and Pub. L. 99-591, Sec. 101(c) 
[title IX, Sec. 9036(b)(1)], Oct. 30, 1986, 100 Stat. 3341-82, 3341-107; 
Pub. L. 99-661, div. A, title XII, Sec. 1203(a)(1), Nov. 14, 1986, 100 
Stat. 3968; amended Pub. L. 101-189, div. A, title VIII, Sec. 806, Nov. 
29, 1989, 103 Stat. 1489; Pub. L. 102-190, div. A, title X, 
Secs. 1061(a)(24), 1086, Dec. 5, 1991, 105 Stat. 1473, 1483.)

                          Codification

    Pub. L. 99-591 is a corrected version of Pub. L. 99-500.
    Pub. L. 99-500, Pub. L. 99-591, and Pub. L. 99-661 added identical 
sections.


                               Amendments

    1991--Subsec. (b)(1). Pub. L. 102-190, Sec. 1086(a), substituted 
``friendly foreign country'' for ``member nation of the North Atlantic 
Treaty Organization or a country designated as a major non-NATO ally''.
    Subsec. (c)(3). Pub. L. 102-190, Secs. 1061(a)(24)(A), 1086(b)(1), 
amended par. (3) identically, substituting ``subsection (f)'' for 
``subsection (d)'' in introductory provisions.
    Subsec. (f). Pub. L. 102-190, Secs. 1061(a)(24)(B), 1086(b)(2), 
amended subsec. identically, substituting ``subsection (c)(3)'' for 
``subsection (b)(3)'' in introductory provisions.
    1989--Subsec. (b)(1). Pub. L. 101-189, Sec. 806(a)(1), substituted 
``a member nation of the North Atlantic Treaty Organization or a country 
designated as a major non-NATO ally'' for ``a friendly foreign 
country''.
    Subsec. (b)(2)(B). Pub. L. 101-189, Sec. 806(a)(2), inserted ``, 
except as provided in subsection (e)'' after ``arsenal concerned''.
    Subsec. (b)(3). Pub. L. 101-189, Sec. 806(a)(3), inserted ``or (d)'' 
after ``subsection (c)''.
    Subsecs. (d), (e). Pub. L. 101-189, Sec. 806(b)(2), added subsecs. 
(d) and (e). Former subsecs. (d) and (e) redesignated (f) and (g), 
respectively.
    Subsec. (f). Pub. L. 101-189, Sec. 806(b)(1), redesignated subsec. 
(d) as (f). Former subsec. (f) redesignated (h).
    Subsec. (f)(1). Pub. L. 101-189, Sec. 806(c), inserted ``or a 
cooperative project'' after ``cooperative research and development 
program''.
    Subsecs. (g), (h). Pub. L. 101-189, Sec. 806(b)(1), redesignated 
subsecs. (e) and (f) as (g) and (h), respectively.


                             Effective Date

    Section 101(c) [title IX, Sec. 9036(c)] of Pub. L. 99-500 and Pub. 
L. 99-591, and section 1203(b) of Pub. L. 99-661 provided that: 
``Section 4542 of title 10, United States Code, as added by subsection 
(a), shall apply with respect to funds appropriated for fiscal years 
after fiscal year 1986.''


   Rule of Construction for Duplicate Authorization and Appropriation 
          Provisions of Public Laws 99-500, 99-591, and 99-661

    For rule of construction for certain duplicate provisions of Public 
Laws 99-500, 99-591, and 99-661, see Pub. L. 100-26, Sec. 6, Apr. 21, 
1987, 101 Stat. 274, set out as a note under section 2302 of this title.
