
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: 22USC2767]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
          SUBCHAPTER II--FOREIGN MILITARY SALES AUTHORIZATIONS
 
Sec. 2767. Authority of President to enter into cooperative 
        projects with friendly foreign countries
        

(a) Authority of President

    The President may enter into a cooperative project agreement with 
the North Atlantic Treaty Organization or with one or more member 
countries of that Organization.

(b) Definitions

    As used in this section--
        (1) the term ``cooperative project'', in the case of an 
    agreement with the North Atlantic Treaty Organization or with one or 
    more member countries of that Organization, means a jointly managed 
    arrangement, described in a written agreement among the parties, 
    which is undertaken in order to further the objectives of 
    standardization, rationalization, and interoperability of the armed 
    forces of North Atlantic Treaty Organization member countries and 
    which provides--
            (A) for one or more of the other participants to share with 
        the United States the costs of research on and development, 
        testing, evaluation, or joint production (including follow-on 
        support) of certain defense articles;
            (B) for concurrent production in the United States and in 
        another member country of a defense article jointly developed in 
        accordance with subparagraph (A); or
            (C) for procurement by the United States of a defense 
        article or defense service from another member country or for 
        procurement by the United States of munitions from the North 
        Atlantic Treaty Organization or a subsidiary of such 
        organization;

        (2) the term ``cooperative project'', in the case of an 
    agreement entered into under subsection (j) of this section, means a 
    jointly managed arrangement, described in a written agreement among 
    the parties, which is undertaken in order to enhance the ongoing 
    multinational effort of the participants to improve the conventional 
    defense capabilities of the participants and which provides--
            (A) for one or more of the other participants to share with 
        the United States the costs of research on and development, 
        testing, evaluation, or joint production (including follow-on 
        support) of certain defense articles;
            (B) for concurrent production in the United States and in 
        the country of another participant of a defense article jointly 
        developed in accordance with subparagraph (A); or
            (C) for procurement by the United States of a defense 
        article or defense service from another participant to the 
        agreement; and

        (3) the term ``other participant'' means a participant in a 
    cooperative project other than the United States.

(c) Agreements for equitable share of costs; limiting nature of 
        agreements

    Each agreement for a cooperative project shall provide that the 
United States and each of the other participants will contribute to the 
cooperative project its equitable share of the full cost of such 
cooperative project and will receive an equitable share of the results 
of such cooperative project. The full costs of such cooperative project 
shall include overhead costs, administrative costs, and costs of claims. 
The United States and the other participants may contribute their 
equitable shares of the full cost of such cooperative project in funds 
or in defense articles or defense services needed for such cooperative 
project. Military assistance and financing received from the United 
States Government may not be used by any other participant to provide 
its share of the cost of such cooperative project. Such agreements shall 
provide that no requirement shall be imposed by a participant for 
worksharing or other industrial or commercial compensation in connection 
with such agreement that is not in accordance with such agreement.

(d) Contractual or other obligation; preconditions

    The President may enter into contracts or incur other obligations 
for a cooperative project on behalf of the other participants, without 
charge to any appropriation or contract authorization, if each of the 
other participants in the cooperative project agrees (1) to pay its 
equitable share of the contract or other obligation, and (2) to make 
such funds available in such amounts and at such times as may be 
required by the contract or other obligation and to pay any damages and 
costs that may accrue from the performance of or cancellation of the 
contract or other obligation in advance of the time such payments, 
damages, or costs are due.

(e) Waiver of charges; administrative surcharges

    (1) For those cooperative projects entered into on or after the 
effective date \1\ of the International Security and Development 
Cooperation Act of 1985, the President may reduce or waive the charge or 
charges which would otherwise be considered appropriate under section 
2761(e) of this title in connection with sales under sections 2761 and 
2762 of this title when such sales are made as part of such cooperative 
project, if the other participants agree to reduce or waive 
corresponding charges.
---------------------------------------------------------------------------
    \1\ See References in Text note below.
---------------------------------------------------------------------------
    (2) Notwithstanding provisions of section 2761(e)(1)(A) and section 
2792(b) of this title, administrative surcharges shall not be increased 
on other sales made under this chapter in order to compensate for 
reductions or waivers of such surcharges under this section. Funds 
received pursuant to such other sales shall not be available to 
reimburse the costs incurred by the United States Government for which 
reduction or waiver is approved by the President under this section.

(f) Transmission of numbered certification to Congress respecting 
        proposed agreement; contents

    Not less than 30 days before a cooperative project agreement is 
signed on behalf of the United States, the President shall transmit to 
the Speaker of the House of Representatives, the chairman of the 
Committee on Foreign Relations of the Senate, and the chairman of the 
Committee on Armed Services of the Senate, a numbered certification with 
respect to such proposed agreement, setting forth--
        (1) a detailed description of the cooperative project with 
    respect to which the certification is made;
        (2) an estimate of the quantity of the defense articles expected 
    to be produced in furtherance of such cooperative project;
        (3) an estimate of the full cost of the cooperative project, 
    with an estimate of the part of the full cost to be incurred by the 
    United States Government, including an estimate of the costs as a 
    result of waivers of section \2\ 2761(e)(1)(A) and 2792(b) of this 
    title, for its participation in such cooperative project and an 
    estimate of that part of the full costs to be incurred by the other 
    participants;
---------------------------------------------------------------------------
    \2\ So in original. Probably should be ``sections''.
---------------------------------------------------------------------------
        (4) an estimate of the dollar value of the funds to be 
    contributed by the United States and each of the other participants 
    on behalf of such cooperative project;
        (5) a description of the defense articles and defense services 
    expected to be contributed by the United States and each of the 
    other participants on behalf of such cooperative project;
        (6) a statement of the foreign policy and national security 
    benefits anticipated to be derived from such cooperative project; 
    and
        (7) to the extent known, whether it is likely that prime 
    contracts will be awarded to particular prime contractors or that 
    subcontracts will be awarded to particular subcontractors to comply 
    with the proposed agreement.

(g) Reporting and certification requirements applicable

    In the case of a cooperative project with a North Atlantic Treaty 
Organization country, section,\3\ 2776(b) of this title shall not apply 
to sales made under section 2761 or 2762 of this title and to production 
and exports made pursuant to cooperative projects under this section, 
and section 2776(c) of this title shall not apply to the issuance of 
licenses or other approvals under section 2778 of this title, if such 
sales are made, such production and exports ensue, or such licenses or 
approvals are issued, as part of a cooperative project.
---------------------------------------------------------------------------
    \3\ So in original. The comma probably should not appear.
---------------------------------------------------------------------------

(h) Statutory provisions applicable to sales

    The authority under this section is in addition to the authority 
under sections 2761 and 2762 of this title and under any other provision 
of law.

(i) Agreements entered into before October 1, 1985

    (1) With the approval of the Secretary of State and the Secretary of 
Defense, a cooperative agreement which was entered into by the United 
States before the effective date \4\ of the amendment to this section 
made by the International Security and Development Cooperation Act of 
1985 and which meets the requirements of this section as so amended may 
be treated on and after such date as having been made under this section 
as so amended.
---------------------------------------------------------------------------
    \4\ See References in Text note below.
---------------------------------------------------------------------------
    (2) Notwithstanding the amendment made \5\ to this section made by 
the International Security and Development Cooperation Act of 1985, 
projects entered into under the authority of this section before the 
effective date \4\ of that amendment may be carried through to 
conclusion in accordance with the terms of this section as in effect 
immediately before the effective date \4\ of that amendment.
---------------------------------------------------------------------------
    \5\ So in original. The word ``made'' probably should not appear.
---------------------------------------------------------------------------

(j) Cooperative project agreements with friendly foreign countries not 
        members of NATO

    (1) The President may enter into a cooperative project agreement 
with any friendly foreign country not a member of the North Atlantic 
Treaty Organization under the same general terms and conditions as the 
President is authorized to enter into such an agreement with one or more 
member countries of the North Atlantic Treaty Organization if the 
President determines that the cooperative project agreement with such 
country would be in the foreign policy or national security interests of 
the United States.
    (2) Omitted.

(Pub. L. 90-629, ch. 2, Sec. 27, as added Pub. L. 96-92, Sec. 15, Oct. 
29, 1979, 93 Stat. 706; amended Pub. L. 99-83, title I, Sec. 115(a), 
Aug. 8, 1985, 99 Stat. 199; Pub. L. 99-145, title XI, Sec. 1102(a)(1), 
(5), Nov. 8, 1985, 99 Stat. 708, 710; Pub. L. 99-661, div. A, title XI, 
Sec. 1103(a), title XIII, Sec. 1342(e), Nov. 14, 1986, 100 Stat. 3962, 
3991; Pub. L. 100-180, div. A, title X, Sec. 1022, Dec. 4, 1987, 101 
Stat. 1144; Pub. L. 102-484, div. A, title VIII, Sec. 843(a), Oct. 23, 
1992, 106 Stat. 2468.)

                       References in Text

    The effective date of the International Security and Development 
Cooperation Act of 1985 and the effective date of the amendment to this 
section made by the International Security and Development Cooperation 
Act of 1985, referred to in subsecs. (e)(1) and (i), respectively, is 
October 1, 1985, see section 1301 of Pub. L. 99-83, set out as an 
Effective Date of 1985 Amendment note under section 2151-1 of this 
title.
    The amendment made to this section made by the International 
Security and Development Cooperation Act of 1985, referred to in subsec. 
(i), means the general amendment of this section by section 115(a) of 
Pub. L. 99-83. See 1985 Amendment note below.

                          Codification

    Subsec. (j)(2) of this section, which required the President to 
submit to certain committees of Congress an annual report specifying 
countries eligible, and criteria used to determine eligibility, for 
participation in cooperative project agreements under subsec. (j)(1) of 
this section, terminated, effective May 15, 2000, pursuant to section 
3003 of Pub. L. 104-66, as amended, set out as a note under section 1113 
of Title 31, Money and Finance. See, also, page 39 of House Document No. 
103-7.


                               Amendments

    1992--Subsec. (c). Pub. L. 102-484 substituted ``costs, 
administrative costs, and costs of claims'' for ``and administrative 
costs''.
    1987--Subsec. (b)(1)(C). Pub. L. 100-180 inserted ``or for 
procurement by the United States of munitions from the North Atlantic 
Treaty Organization or a subsidiary of such organization'' after 
``member country''.
    1986--Pub. L. 99-661, Sec. 1342(e), repealed section 1102(a)(1) of 
Pub. L. 99-145 and the amendments made by that section, and provided 
that this section shall apply as if that section had never been enacted. 
See 1985 Amendments note below.
    Pub. L. 99-661, Sec. 1103(a)(2), substituted ``Authority of 
President to enter into cooperative projects with friendly foreign 
countries'' for ``North Atlantic Treaty Organization cooperative 
projects'' in section catchline.
    Subsec. (b)(1). Pub. L. 99-661, Sec. 1103(a)(1)(A)(i), inserted ``, 
in the case of an agreement with the North Atlantic Treaty Organization 
or with one or more member countries of that Organization,'' in 
introductory provisions.
    Subsec. (b)(2), (3). Pub. L. 99-661, Sec. 1103(a)(1)(A)(ii)-(iv), 
added par. (2) and redesignated former par. (2) as (3).
    Subsec. (f)(3). Pub. L. 99-661, Sec. 1103(a)(1)(B), inserted ``, 
including an estimate of the costs as a result of waivers of section 
2761(e)(1)(A) and 2792(b) of this title,''.
    Subsec. (g). Pub. L. 99-661, Sec. 1103(a)(1)(C), substituted ``In 
the case of a cooperative project with a North Atlantic Treaty 
Organization country, section,'' for ``Section''.
    Subsec. (j). Pub. L. 99-661, Sec. 1103(a)(1)(D), added subsec. (j).
    1985--Pub. L. 99-83 amended section generally, substituting in 
subsec. (a) provisions relating to authority of the President, for 
provisions defining ``cooperative project'', substituting in subsec. (b) 
provisions defining ``cooperative project'' and ``other participant'', 
for provisions relating to reduction or waiver of charges, sales not 
subject to compensatory increases in administrative surcharges, and 
contribution requirements, substituting in subsec. (c) provisions 
relating to agreements for equitable share of costs and limiting the 
nature of such agreements, for provisions relating to transmission of 
numbered certification of proposed agreement, contents of such 
certification, and statutory provisions applicable to sales, and adding 
subsecs. (d) to (i).
    Pub. L. 99-145, Sec. 1102(a)(1), which enacted a general amendment 
of this section similar to that provided in Pub. L. 99-83 was repealed. 
See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 
99-145 set out as a Repeals; Effective Date note under section 2752 of 
this title.

                         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 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 
Defense, with Secretary of Defense required to consult with Secretary of 
State in implementing delegated functions, by section 1(f) 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 sections 2753, 2791 of this title; 
title 10 sections 2350b, 4542.
