
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: 22USC2314]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 32--FOREIGN ASSISTANCE
 
              SUBCHAPTER II--MILITARY ASSISTANCE AND SALES
 
                      Part II--Military Assistance
 
Sec. 2314. Furnishing of defense articles or related training or 
        other defense service on grant basis
        

(a) Conditions of eligibility

    In addition to such other provisions as the President may require, 
no defense articles or related training or other defense service shall 
be furnished to any country on a grant basis unless it shall have agreed 
that--
        (1) it will not, without the consent of the President--
            (A) permit any use of such articles or related training or 
        other defense service by anyone not an officer, employee, or 
        agent of that country,
            (B) transfer, or permit any officer, employee, or agent of 
        that country to transfer such articles or related training or 
        other defense service by gift, sale, or otherwise, or
            (C) use or permit the use of such articles or related 
        training or other defense service for purposes other than those 
        for which furnished;

        (2) it will maintain the security of such articles or related 
    training or other defense service, and will provide substantially 
    the same degree of security protection afforded to such articles or 
    related training or other defense service by the United States 
    Government;
        (3) it will, as the President may require, permit continuous 
    observation and review by, and furnish necessary information to, 
    representatives of the United States Government with regard to the 
    use of such articles or related training or other defense service; 
    and
        (4) unless the President consents to other disposition, it will 
    return to the United States Government for such use or disposition 
    as the President considers in the best interests of the United 
    States, such articles or related training or other defense service 
    which are no longer needed for the purposes for which furnished.

(b) Limitation on amount; exceptions

    No defense articles shall be furnished on a grant basis to any 
country at a cost in excess of $3,000,000 in any fiscal year unless the 
President determines--
        (1) that such country conforms to the purposes and principles of 
    the Charter of the United Nations;
        (2) that such defense articles will be utilized by such country 
    for the maintenance of its own defensive strength, or the defensive 
    strength of the free world;
        (3) that such country is taking all reasonable measures, 
    consistent with its political and economic stability, which may be 
    needed to develop its defense capacities; and
        (4) that the increased ability of such country to defend itself 
    is important to the security of the United States.

(c) Reduction and termination of grants to countries able to maintain 
        adequate military forces without undue economic strain

    The President shall regularly reduce and, with such deliberate speed 
as orderly procedure and other relevant considerations, including prior 
commitments, will permit, shall terminate all further grants of military 
equipment and supplies to any country having sufficient wealth to enable 
it, in the judgment of the President, to maintain and equip its own 
military forces at adequate strength, without undue burden to its 
economy.

(d) Termination of assistance; report of violation by President; 
        conditions for reinstatement

    (1) Assistance and deliveries of assistance under this part to any 
country shall be terminated as hereinafter provided, if such country 
uses defense articles or defense services furnished under this chapter, 
the Mutual Security Act of 1954, or any predecessor Foreign Assistance 
Act, in substantial violation (either in terms of quantities or in terms 
of the gravity of the consequences regardless of the quantities 
involved) of any agreement entered into pursuant to any such Act (A) by 
using such articles or services for a purpose not authorized under 
section 2302 of this title or, if such agreement provides that such 
articles or services may only be used for purposes more limited than 
those authorized under section 2302 of this title, for a purpose not 
authorized under such agreement; (B) by transferring such articles or 
services to, or permitting any use of such articles or services by, 
anyone not an officer, employee, or agent of the recipient country 
without the consent of the President; or (C) by failing to maintain the 
security of such articles or services.
    (2)(A) Assistance and deliveries of assistance shall be terminated 
pursuant to paragraph (1) of this subsection if the President so 
determines and so states in writing to the Congress, or if the Congress 
so finds by joint resolution.
    (B) The President shall report to the Congress promptly upon the 
receipt of information that a violation described in paragraph (1) of 
this subsection may have occurred.
    (3) Assistance to a country shall remain terminated in accordance 
with paragraph (1) of this subsection until such time as--
        (A) the President determines that the violation has ceased; and
        (B) the country concerned has given assurances satisfactory to 
    the President that such violation will not recur.

    (4) The authority contained in section 2364(a) of this title may not 
be used to waive the provisions of this section with respect to further 
assistance under this part.

(e) Consent by President to transfer

    In considering a request for approval of any transfer of any weapon, 
weapons system, munitions, aircraft, military boat, military vessel, or 
other implement of war to another country, the President shall not give 
his consent under subsection (a)(1) or (a)(4) of this section to the 
transfer unless the United States itself would transfer the defense 
article under consideration to that country. In addition, the President 
shall not give his consent under subsection (a)(1) or (a)(4) of this 
section to the transfer of any significant defense articles on the 
United States Munitions List unless the foreign country requesting 
consent to transfer agrees to demilitarize such defense articles prior 
to transfer, or the proposed recipient foreign country provides a 
commitment in writing to the United States Government that it will not 
transfer such defense articles, if not demilitarized, to any other 
foreign country or person without first obtaining the consent of the 
President.

(f) Disposition of defense articles furnished on a grant basis; net 
        proceeds to be paid over to the United States

    Effective July 1, 1974, no defense article shall be furnished to any 
country on a grant basis unless such country shall have agreed that the 
net proceeds of sale received by such country in disposing of any 
weapon, weapons system, munition, aircraft, military boat, military 
vessel, or other implement of war received under this part will be paid 
to the United States Government and shall be available to pay all 
official costs of the United States Government payable in the currency 
of that country, including all costs relating to the financing of 
international educational and cultural exchange activities in which that 
country participates under the programs authorized by the Mutual 
Educational and Cultural Exchange Act of 1961 [22 U.S.C. 2451 et seq.]. 
In the case of items which were delivered prior to 1985, the President 
may waive the requirement that such net proceeds be paid to the United 
States Government if he determines that to do so is in the national 
interest of the United States.

(g) Discrimination on basis of race, religion, national origin, or sex 
        prohibited

    (1) It is the policy of the United States that no assistance under 
this part should be furnished to any foreign country, the laws, 
regulations, official policies, or governmental practices of which 
prevent any United States person (as defined in section 7701(a)(30) of 
title 26) from participating in the furnishing of defense articles or 
defense services under this part on the basis of race, religion, 
national origin, or sex.
    (2)(A) No agency performing functions under this part shall, in 
employing or assigning personnel to participate in the performance of 
any such function, whether in the United States or abroad, take into 
account the exclusionary policies or practices of any foreign government 
where such policies or practices are based upon race, religion, national 
origin, or sex.
    (B) Each contract entered into by any such agency for the 
performance of any function under this part shall contain a provision to 
the effect that no person, partnership, corporation, or other entity 
performing functions pursuant to such contract, shall, in employing or 
assigning personnel to participate in the performance of any such 
function, whether in the United States or abroad, take into account the 
exclusionary policies or practices of any foreign government where such 
policies or practices are based upon race, religion, national origin, or 
sex.
    (3) The President shall promptly transmit reports to the Speaker of 
the House of Representatives and the chairman of the Committee on 
Foreign Relations of the Senate concerning any transaction in which any 
United States person (as defined in section 7701(a)(30) of title 26) is 
prevented by a foreign government on the basis of race, religion, 
national origin, or sex, from participating in the furnishing of 
assistance under this part, or education and training under part V of 
this subchapter, to any foreign country. Such reports shall include (A) 
a description of the facts and circumstances of any such discrimination, 
(B) the response thereto on the part of the United States or any agency 
or employee thereof, and (C) the result of such response, if any.
    (4)(A) Upon the request of the Committee on Foreign Relations of the 
Senate or the Committee on Foreign Affairs of the House of 
Representatives, the President shall, within 60 days after receipt of 
such request, transmit to both such committees a statement, prepared 
with the assistance of the Assistant Secretary of State for Democracy, 
Human Rights, and Labor, with respect to the country designated in such 
request, setting forth--
        (i) all the available information about the exclusionary 
    policies or practices of the government of such country when such 
    policies or practices are based upon race, religion, national 
    origin, or sex and prevent any such person from participating in a 
    transaction involving the furnishing of any assistance under this 
    part or any education and training under part V of this subchapter;
        (ii) the response of the United States thereto and the results 
    of such response;
        (iii) whether, in the opinion of the President, notwithstanding 
    any such policies or practices--
            (I) extraordinary circumstances exist which necessitate a 
        continuation of such assistance or education and training 
        transaction, and, if so, a description of such circumstances and 
        the extent to which such assistance or education and training 
        transaction should be continued (subject to such conditions as 
        Congress may impose under this section), and
            (II) on all the facts it is in the national interest of the 
        United States to continue such assistance or education and 
        training transaction; and

        (iv) such other information as such committee may request.

    (B) In the event a statement with respect to an assistance or 
training transaction is requested pursuant to subparagraph (A) of this 
paragraph but is not transmitted in accordance therewith within 60 days 
after receipt of such request, such assistance or training transaction 
shall be suspended unless and until such statement is transmitted.
    (C)(i) In the event a statement with respect to an assistance or 
training transaction is transmitted under subparagraph (A) of this 
paragraph, the Congress may at any time thereafter adopt a joint 
resolution terminating or restricting such assistance or training 
transaction.
    (ii) Any such resolution shall be considered in the Senate in 
accordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976.
    (iii) The term ``certification'', as used in section 601 of such 
Act, means, for the purposes of this paragraph, a statement transmitted 
under subparagraph (A) of this paragraph.

(Pub. L. 87-195, pt. II, Sec. 505, formerly Sec. 506, Sept. 4, 1961, 75 
Stat. 436; Pub. L. 87-565, pt. II, Sec. 201(a), Aug. 1, 1962, 76 Stat. 
259; Pub. L. 89-583, pt. II, Sec. 201(b), Sept. 19, 1966, 80 Stat. 803; 
renumbered Sec. 505, Pub. L. 90-137, pt. II, Sec. 201(e), Nov. 14, 1967, 
81 Stat. 456 and amended Pub. L. 92-226, pt. II, Sec. 201(b), (c), Feb. 
7, 1972, 86 Stat. 25; Pub. L. 93-189, Sec. 12(b)(3), Dec. 17, 1973, 87 
Stat. 721; Pub. L. 94-329, title II, Secs. 203(b), 204(b)(2), title III, 
Secs. 302(a), 304(a), June 30, 1976, 90 Stat. 735, 736, 751, 754; Pub. 
L. 95-105, title I, Sec. 109(a)(4), Aug. 17, 1977, 91 Stat. 846; Pub. L. 
99-83, title I, Sec. 123(b), Aug. 8, 1985, 99 Stat. 205; Pub. L. 99-514, 
Sec. 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 101-513, title III, Nov. 
5, 1990, 104 Stat. 1998; Pub. L. 103-236, title I, Sec. 162(e)(2), Apr. 
30, 1994, 108 Stat. 405; Pub. L. 103-437, Sec. 9(a)(6), Nov. 2, 1994, 
108 Stat. 4588.)

                       References in Text

    This chapter, referred to in subsec. (d)(1), was in the original 
``this Act'', meaning Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as 
amended, known as the Foreign Assistance Act of 1961. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 2151 of this title and Tables.
    The Mutual Security Act of 1954, referred to in subsec. (d)(1), is 
act Aug. 26, 1954, ch. 937, 68 Stat. 832, as amended by acts July 8, 
1955, ch. 301, 69 Stat. 283; July 18, 1956, ch. 627, Secs. 2-11, 70 
Stat. 555; Aug. 14, 1957, Pub. L. 85-141, 71 Stat. 355; June 30, 1958, 
Pub. L. 85-477, ch. 1, Secs. 101-103, ch. II, Secs. 201-205, ch. III, 
Sec. 301, ch. IV, Sec. 401, ch. V, Sec. 501, 72 Stat. 261; July 24, 
1959, Pub. L. 86-108, Sec. 2, ch. 1, Sec. 101, ch. II, Secs. 201-205(a)-
(i), (k)-(n), ch. III, Sec. 301, ch. IV, Sec. 401(a)-(k), (m), 73 Stat. 
246; May 14, 1960, Pub. L. 86-472, ch. I to V, 74 Stat. 134, which was 
principally classified to chapter 24 (Sec. 1750 et seq.) of this title 
and which was repealed by act July 18, 1956, ch. 627, Sec. 8(m), 70 
Stat. 559, Pub. L. 85-141, Secs. 2(e) 3, 4(b), 11(d), Aug. 14, 1957, 71 
Stat. 356, Pub. L. 86-108, ch. II, Secs. 205(j), ch. IV, 401(1), July 
24, 1959, 73 Stat. 250, Pub. L. 86-472, ch. II, Secs. 203(d), 204(k), 
May 14, 1960, 74 Stat. 138, Pub. L. 87-195, pt. III, Sec. 642(a)(2), 
Sept. 4, 1961, 75 Stat. 460, Pub. L. 94-329, title II, Sec. 212(b)(1), 
June 30, 1976, 90 Stat. 745, Pub. L. 104-127, title II, Sec. 228, Apr. 
4, 1996, 110 Stat. 963, except for sections 1754, 1783, 1796, 1853, 
1928, and 1937 of this title. For complete classification of this Act to 
the Code, see Short Title note set out under section 1754 of this title 
and Tables.
    The Mutual Educational and Cultural Exchange Act of 1961, referred 
to in subsec. (f), is Pub. L. 87-256, Sept. 21, 1961, 5 Stat. 527, as 
amended, which is classified principally to chapter 33 (Sec. 2451 et. 
seq.) of this title. For complete classification of this Act to the 
Code, see Short Title note set out under section 2451 of this title and 
Tables.
    Section 601 of the International Security Assistance and Arms Export 
Control Act of 1976, referred to in subsec. (g)(4)(C)(ii), is section 
601 of Pub. L. 94-329, which was not classified to the Code.


                               Amendments

    1994--Subsec. (g)(4)(A). Pub. L. 103-437 substituted ``Foreign 
Affairs'' for ``International Relations'' in introductory provisions.
    Pub. L. 103-236 substituted ``Democracy, Human Rights, and Labor'' 
for ``Human Rights and Humanitarian Affairs'' in introductory 
provisions.
    1990--Subsec. (f). Pub. L. 101-513 substituted ``1985'' for ``1975'' 
in second sentence.
    1986--Subsec. (g)(1), (3). Pub. L. 99-514 substituted ``Internal 
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for 
purposes of codification was translated as ``title 26'' thus requiring 
no change in text.
    1985--Subsec. (f). Pub. L. 99-83 inserted provisions relating to 
waiver for items delivered prior to 1975.
    1977--Subsec. (g)(4)(A). Pub. L. 95-105 substituted ``Assistant 
Secretary of State'' for ``Coordinator'' in provisions preceding cl. 
(i).
    1976--Subsec. (a). Pub. L. 94-329, Sec. 203(b), inserted ``or 
related training or other defense service'' after ``articles'' wherever 
appearing.
    Subsec. (d). Pub. L. 94-329, Sec. 304(a), provided that either the 
President, by so stating in a writing to Congress, or Congress, by joint 
resolution, terminate assistance upon determining a violation, specified 
conditions for reinstatement of assistance, and denied the President the 
power, where a violation has been determined, of granting assistance on 
the basis of national security.
    Subsec. (e). Pub. L. 94-329, Sec. 204(b)(2), struck out provisions 
relating to the President's notification of his consent to transfer war 
implements to another country, in writing, to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of the Senate 
indicating his justification for the transfer and the particular war 
implement transferred.
    Subsec. (g). Pub. L. 94-329 added subsec. (g).
    1973--Subsecs. (e), (f). Pub. L. 93-189 added subsecs. (e) and (f).
    1972--Subsec. (b)(2). Pub. L. 92-226, Sec. 201(b), substituted 
``or'' for ``and''.
    Subsec. (e). Pub. L. 92-226, Sec. 201(c), repealed provisions 
respecting conditions of eligibility requiring agreements for use of 
foreign currencies from sale of surplus commodities for common defense 
including internal security.
    1966--Subsec. (e). Pub. L. 89-583 added subsec. (e).
    1962--Subsecs. (c), (d). Pub. L. 87-565 added subsecs. (c) and (d).

                         Change of Name

    Committee on Foreign Affairs of House of Representatives treated as 
referring to Committee on International Relations of House of 
Representatives by section 1(a) of Pub. L. 104-14, set out as a note 
preceding section 21 of Title 2, The Congress.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-236 applicable with respect to officials, 
offices, and bureaus of Department of State when executive orders, 
regulations, or departmental directives implementing the amendments by 
sections 161 and 162 of Pub. L. 103-236 become effective, or 90 days 
after Apr. 30, 1994, whichever comes earlier, see section 161(b) of Pub. 
L. 103-236, as amended, set out as a note under section 2651a of this 
title.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-83 effective Oct. 1, 1985, see section 1301 
of Pub. L. 99-83, set out as a note under section 2151-1 of this title.


                    Effective Date of 1976 Amendment

    Section 203(b) of Pub. L. 94-329 provided that the amendment made by 
that section is effective July 1, 1976.

                         Delegation of Functions

    For delegation of functions of President under this section, see Ex. 
Ord. No. 12163, Sept. 29, 1979, 44 F.R. 56673, as amended, set out as a 
note under section 2381 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2753, 2776, 2780 of this 
title.
