
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2765]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
          SUBCHAPTER II--FOREIGN MILITARY SALES AUTHORIZATIONS
 
Sec. 2765. Annual estimate and justification for sales program


(a) Report to Congress; contents

    Except as provided in subsection (d) \1\ of this section, no later 
than February 1 of each year, the President shall transmit to the 
appropriate congressional committees, as a part of the annual 
presentation materials for security assistance programs proposed for the 
next fiscal year, a report which sets forth--
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    \1\ See References in Text note below.
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        (1) an arms sales proposal covering all sales and licensed 
    commercial exports under this chapter of major weapons or weapons-
    related defense equipment for $7,000,000 or more, or of any other 
    weapons or weapons-related defense equipment for $25,000,000 or 
    more, which are considered eligible for approval during the current 
    calendar year, together with an indication of which sales and 
    licensed commercial exports are deemed most likely actually to 
    result in the issuance of a letter of offer or of an export license 
    during such year;
        (2) an estimate of the total amount of sales and licensed 
    commercial exports expected to be made to each foreign nation from 
    the United States;
        (3) the United States national security considerations involved 
    in expected sales or licensed commercial exports to each country, an 
    analysis of the relationship between anticipated sales to each 
    country and arms control efforts concerning such country and an 
    analysis of the impact of such anticipated sales on the stability of 
    the region that includes such country;
        (4) an estimate with regard to the international volume of arms 
    traffic to and from nations purchasing arms as set forth in 
    paragraphs (1) and (2) of this subsection, together with best 
    estimates of the sale and delivery of weapons and weapons-related 
    defense equipment by all major arms suppliers to all major recipient 
    countries during the preceding fiscal year;
        (5)(A) an estimate of the aggregate dollar value and quantity of 
    defense articles and defense services, military education and 
    training, grant military assistance, and credits and guarantees, to 
    be furnished by the United States to each foreign country and 
    international organization in the next fiscal year; and
        (B) for each country that is proposed to be furnished credits or 
    guaranties under this chapter in the next fiscal year and that has 
    been approved for cash flow financing (as defined in subsection (d) 
    \1\ of this section) in excess of $100,000,000 as of October 1 of 
    the current fiscal year--
            (i) the amount of such approved cash flow financing,
            (ii) a description of administrative ceilings and controls 
        applied, and
            (iii) a description of the financial resources otherwise 
        available to such country to pay such approved cash flow 
        financing;

        (6) an analysis and description of the services performed during 
    the preceding fiscal year by officers and employees of the United 
    States Government carrying out functions on a full-time basis under 
    this chapter for which reimbursement is provided under section 
    2792(b) of this title or section 2761(a) of this title, including 
    the number of personnel involved in performing such services;
        (7) the total amount of funds in the reserve under section 
    2764(c) of this title at the end of the fiscal year immediately 
    preceding the fiscal year in which a report under this section is 
    made, together with an assessment of the adequacy of such total 
    amount of funds as a reserve for the payment of claims under 
    guarantees issued pursuant to section 2764 of this title in view of 
    the current debt servicing capacity of borrowing countries, as 
    reported to the Congress pursuant to section 634(a)(5) of the 
    Foreign Assistance Act of 1961 [22 U.S.C. 2394(a)(5)];
        (8) a list of all countries with respect to which findings made 
    by the President pursuant to section 2753(a)(1) of this title are in 
    effect on the date of such transmission;
        (9) the progress made under the program of the Republic of Korea 
    to modernize its armed forces, the role of the United States in 
    mutual security efforts in the Republic of Korea and the military 
    balance between the People's Republic of Korea and the Republic of 
    Korea;
        (10) the amount and nature of Soviet military assistance to the 
    armed forces of Cuba during the preceding fiscal year and the 
    military capabilities of those armed forces;
        (11) the status of each loan and each contract of guaranty or 
    insurance theretofore made under the Foreign Assistance Act of 1961 
    [22 U.S.C. 2151 et seq.], predecessor Acts, or any Act authorizing 
    international security assistance, with respect to which there 
    remains outstanding any unpaid obligation or potential liability; 
    the status of each extension of credit for the procurement of 
    defense articles or defense services, and of each contract of 
    guaranty in connection with any such procurement, theretofore made 
    under this chapter with respect to which there remains outstanding 
    any unpaid obligation or potential liability;
        (12)(A) a detailed accounting of all articles, services, 
    credits, guarantees, or any other form of assistance furnished by 
    the United States to each country and international organization, 
    including payments to the United Nations, during the preceding 
    fiscal year for the detection and clearance of landmines, including 
    activities relating to the furnishing of education, training, and 
    technical assistance for the detection and clearance of landmines; 
    and
        (B) for each provision of law making funds available or 
    authorizing appropriations for demining activities described in 
    subparagraph (A), an analysis and description of the objectives and 
    activities undertaken during the preceding fiscal year, including 
    the number of personnel involved in performing such activities; and
        (13) such other information as the President may deem necessary.

(b) Congressional request for additional information

    Not later than thirty days following the receipt of a request made 
by any of the congressional committees described in subsection (e) of 
this section for additional information with respect to any information 
submitted pursuant to subsection (a) of this section, the President 
shall submit such information to such committee.

(c) Submission of information in unclassified form or classified 
        addendum with unclassified summary

    The President shall make every effort to submit all of the 
information required by subsection (a) or (b) of this section wholly in 
unclassified form. Whenever the President submits any such information 
in classified form, he shall submit such classified information in an 
addendum and shall also submit simultaneously a detailed summary, in 
unclassified form, of such classified information.

(d) \2\ ``Cash flow financing'' defined
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    \2\ So in original. Two subsecs. (d) have been enacted.
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    For the purposes of subsection (a)(5)(B) of this section, the term 
``cash flow financing'' means the dollar amount of the difference 
between the total estimated price of a Letter of Offer and Acceptance or 
other purchase agreement that has been approved for financing under this 
chapter or under section 503(a)(3) of the Foreign Assistance Act of 1961 
[22 U.S.C. 2311(a)(3)] and the amount of the financing that has been 
approved therefor; \3\
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    \3\ So in original. The semicolon probably should be a period.
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(d) \2\ Transmission of information to Congress

    The information required by subsection (a)(4) of this section shall 
be transmitted to the Congress no later than April 1 of each year.

(e) ``Appropriate congressional committees'' defined

    As used in this section, the term ``appropriate congressional 
committees'' means the Committee on Foreign Relations and the Committee 
on Appropriations of the Senate and the Committee on International 
Relations and the Committee on Appropriations of the House of 
Representatives.

(Pub. L. 90-629, ch. 2, Sec. 25, as added Pub. L. 94-329, title II, 
Sec. 209(a), June 30, 1976, 90 Stat. 739; amended Pub. L. 95-384, 
Sec. 18, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96-92, Secs. 13, 14, Oct. 
29, 1979, 93 Stat. 706; Pub. L. 96-533, title I, Secs. 104(c), 107(d), 
Dec. 16, 1980, 94 Stat. 3133, 3137; Pub. L. 97-113, title VII, Sec. 732, 
Dec. 29, 1981, 95 Stat. 1557; Pub. L. 99-83, title I, Secs. 112, 113, 
Aug. 8, 1985, 99 Stat. 198; Pub. L. 104-164, title I, Sec. 102(d), July 
21, 1996, 110 Stat. 1423; Pub. L. 105-118, title V, Sec. 519, Nov. 26, 
1997, 111 Stat. 2411.)

                       References in Text

    Subsection (d) of this section, referred to in subsec. (a), 
preceding par. (1), probably means the subsec. (d) added by section 
113(2) of Pub. L. 99-83, relating to transmittal of information to 
Congress.
    Subsection (d) of this section, referred to in subsec. (a)(5)(B), 
probably means the subsec. (d) added by section 112(b) of Pub. L. 99-83, 
defining cash flow financing.
    The Foreign Assistance Act of 1961, referred to in subsec. (a)(11), 
is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended, which is 
classified principally to chapter 32 (Sec. 2151 et seq.) of this title. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 2151 of this title and Tables.


                               Amendments

    1997--Subsec. (a). Pub. L. 105-118, Sec. 519(1), substituted 
``appropriate congressional committees'' for ``Congress'' in 
introductory provisions.
    Subsec. (b). Pub. L. 105-118, Sec. 519(2), substituted ``any of the 
congressional committees described in subsection (e) of this section'' 
for ``the Committee on Foreign Relations of the Senate or the Committee 
on Foreign Affairs of the House of Representatives''.
    Subsec. (e). Pub. L. 105-118, Sec. 519(3), added subsec. (e).
    1996--Subsec. (a)(12), (13). Pub. L. 104-164 added par. (12) and 
redesignated former par. (12) as (13).
    1985--Subsec. (a). Pub. L. 99-83, Sec. 113(1), substituted ``Except 
as provided in subsection (d) of this section, no'' for ``No''.
    Subsec. (a)(5). Pub. L. 99-83, Sec. 112(a), designated existing 
provisions as subpar. (A) and added subpar. (B).
    Subsec. (d). Pub. L. 99-83, Sec. 112(b), added subsec. (d) defining 
``cash flow financing''.
    Pub. L. 99-83, Sec. 113(2), added subsec. (d) relating to 
transmittal of information to Congress.
    1981--Subsec. (a). Pub. L. 97-113, in provision preceding par. (1), 
required transmission of the report no later than Feb. 1 of each year 
and substituted provision for annual presentation materials for programs 
proposed for next fiscal year for provision for presentation materials 
for programs proposed for each fiscal year.
    Subsec. (a)(1). Pub. L. 97-113 added par. (1) which incorporated 
provisions of former subsec. (d)(1) of this section. See subsec. (d) 
amendment note. Former par. (1) covered in par. (3).
    Subsec. (a)(2). Pub. L. 97-113 added par. (2). Former par. (2), 
which required the report to contain an estimate of amount of credits 
and guaranties expected to be extended to each country under sections 
2763 and 2764 of this title, covered in par. (5).
    Subsec. (a)(3). Pub. L. 97-113 added par. (3) which incorporated 
provisions of former par. (1) requiring the report to contain an 
estimate of amounts of expected sales to each country under sections 
2761 and 2762 of this title, including detailed explanations of foreign 
policy and United States national security considerations in expected 
sales to each country, and (5) requiring inclusion of an arms control 
impact statement for each purchasing country, covering (A) an analysis 
of the relationship between expected sales to each country and arms 
control efforts relating to that country, and (B) the impact of such 
expected sales on the stability of the region that included the 
purchasing country. Former par. (3) redesignated (7).
    Subsec. (a)(4). Pub. L. 97-113 added par. (4) which incorporated 
provisions of former subsec. (e), which had required executive estimates 
of international arms traffic, including estimates on an annual basis of 
the sale and delivery of weapons and weapons-related defense equipment 
by all major arms suppliers to all major recipient countries during the 
preceding three years. Former par. (4) covered in par. (8).
    Subsec. (a)(5). Pub. L. 97-113 added par. (5) which incorporated 
provisions of former par. (2) requiring the report to contain an 
estimate of amount of credits and guaranties expected to be extended to 
each country under sections 2763 and 2764 of this title. Former par. (5) 
covered in par. (3).
    Subsec. (a)(6). Pub. L. 97-113 added par. (6).
    Subsec. (a)(7). Pub. L. 97-113 redesignated former par. (3) as (7).
    Subsec. (a)(8). Pub. L. 97-113 added par. (8), which incorporated 
provisions of former par. (4), requiring the report to contain a list of 
all findings in effect on date of its transmission made by the President 
pursuant to section 2753(a)(1) of this title, together with a full and 
complete justification for each finding, explaining how sales to each 
country with respect to which findings were made would strengthen the 
security of the United States and promote world peace.
    Subsecs. (a)(9) to (12). Pub. L. 97-113 added pars. (9) to (12).
    Subsec. (b). Pub. L. 97-113 substituted ``Committee on Foreign 
Affairs'' for ``Committee on International Relations'', and ``with 
respect to any information'' for ``with respect to any estimate''.
    Subsec. (c). Pub. L. 97-113 substituted ``Whenever the President'' 
for ``In the event the President''.
    Subsec. (d). Pub. L. 97-113 incorporated in subsec. (a) introductory 
text and subsec. (a)(1), provisions of former subsec. (d)(1) which had 
required transmission to the Speaker of the House and the chairman of 
the Senate Foreign Relations Committee the Arms Sales Proposal covering 
sales and licensed commercials exports under this chapter (other than 
such transactions to members of North Atlantic Treaty Organization, 
Japan, Australia, and New Zealand) of major weapons or weapons-related 
defense equipment for $7,000,000 or more, or of any other weapons or 
similar equipment for $25,000,000 or more, which were eligible for 
approval during fiscal year beginning October 1 of such year and had 
required identification in the reports of sales and licensed commercial 
exports deemed most likely actually to result in issuance of a letter of 
offer or of an export license during such fiscal year, and subsec. 
(d)(2) which had required Presidential six month written notifications 
of Congress of any change in the Arms Sales Proposal for such fiscal 
year, together with reasons therefor.
    Subsec. (e). Pub. L. 97-113 incorporated, in subsec. (a) 
introductory text and subsec. (a)(4), provisions of former subsec. (e) 
which had required transmission to Congress on or before Nov. 15 of each 
year executive estimates of international arms traffic, including 
estimates on an annual basis of the sale and delivery of weapons and 
weapons-related defense equipment by all major arms suppliers to all 
major recipient countries during the preceding three years.
    1980--Subsec. (a)(3) to (5). Pub. L. 96-533, Sec. 104(c), added par. 
(3) and redesignated former pars. (3) and (4) as (4) and (5), 
respectively.
    Subsec. (d)(1). Pub. L. 96-533, Sec. 107(d), included coverage of 
licensed commercial exports and substituted ``letter of offer or of an 
export license'' for ``letter of offer''.
    1979--Subsec. (d). Pub. L. 96-92, Sec. 13(1)-(4), designated 
existing provision as par. (1), substituted ``major weapons or weapons-
related defense equipment'' for ``major defense equipment'' and 
``weapons or weapons-related defense equipment'' for ``defense articles 
or defense services'', required identification of sales likely to result 
in issuance of a letter of offer in the furnished reports, and added 
par. (2).
    Subsec. (e). Pub. L. 96-92, Sec. 14, added subsec. (e).
    1978--Subsec. (c). Pub. L. 95-384, Sec. 18(b), substituted 
``subsection (a) or (b) of this section'' for ``this section''.
    Subsec. (d). Pub. L. 95-384, Sec. 18(a), added subsec. (d).


                    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.

                         Delegation of Functions

    Functions of President under this section delegated to Secretary of 
State, with Secretary of Defense and Director of Arms Control and 
Disarmament Agency required to assist in preparation of materials for 
presentation to Congress, by section 1(g) of Ex. Ord. No. 11958, Jan. 
18, 1977, 42 F.R. 4311, as amended, set out as a note under section 2751 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2763 of this title.
