
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: 22USC2791]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
  SUBCHAPTER IV--GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS
 
Sec. 2791. General provisions


(a) Considerations in procurement outside United States

    In carrying out this chapter, special emphasis shall be placed on 
procurement in the United States, but, subject to the provisions of 
subsection (b) of this section, consideration shall also be given to 
coproduction or licensed production outside the United States of defense 
articles of United States origin when such production best serves the 
foreign policy, national security, and economy of the United States. In 
evaluating any sale proposed to be made pursuant to this chapter, there 
shall be taken into consideration (A) the extent to which the proposed 
sale damages or infringes upon licensing arrangements whereby United 
States entities have granted licenses for the manufacture of the defense 
articles selected by the purchasing country to entities located in 
friendly foreign countries, which licenses result in financial returns 
to the United States, (B) the portion of the defense articles so 
manufactured which is of United States origin, and (C) whether, and the 
extent to which, such sale might contribute to an arms race, aid in the 
development of weapons of mass destruction, support international 
terrorism, increase the possibility of outbreak or escalation of 
conflict, or prejudice the development of bilateral or multilateral arms 
control or nonproliferation agreements or other arrangements.

(b) Information to Congress on credit sales and guaranties

    No credit sale shall be extended under section 2763 of this title, 
and no guarantee shall be issued under section 2764 of this title, in 
any case involving coproduction or licensed, production outside the 
United States of any defense article of United States origin unless the 
Secretary of State shall, in advance of any such transaction, advise the 
appropriate committees of the Congress and furnish the Speaker of the 
House of Representatives and the President of the Senate with full 
information regarding the proposed transaction, including, but not 
limited to, a description of the particular defense article or articles 
which would be produced under a license or coproduced outside the United 
States, the estimated value of such production or coproduction, and the 
probable impact of the proposed transaction on employment and production 
within the United States.

(c) Availability of funds for procurement outside United States

    Funds made available under this chapter may be used for procurement 
outside the United States only if the President determines that such 
procurement will not result in adverse effects upon the economy of the 
United States or the industrial mobilization base, with special 
reference to any areas of labor surplus or to the net position of the 
United States in its balance of payments with the rest of the world, 
which outweigh the economic or other advantages to the United States of 
less costly procurement outside the United States.

(d) Responsibility of Secretary of Defense with respect to sales and 
        guaranties

    (1) With respect to sales and guaranties under sections 2761, 2762, 
2763, 2764, 2769 and 2770 of this title, the Secretary of Defense shall, 
under the direction of the President, have primary responsibility for--
        (A) the determination of military end-item requirements;
        (B) the procurement of military equipment in a manner which 
    permits its integration with service programs;
        (C) the supervision of the training of foreign military 
    personnel;
        (D) the movement and delivery of military end-items; and
        (E) within the Department of Defense, the performance of any 
    other functions with respect to sales and guaranties.

    (2) The establishment of priorities in the procurement, delivery, 
and allocation of military equipment shall, under the direction of the 
President, be determined by the Secretary of Defense.

(e) Revocation and suspension provisions of contracts for sale and 
        export licenses; appropriations for refunds

    (1) Each contract for sale entered into under sections 2761, 2762, 
2769 and 2770 of this title, and each contract entered into under 
section 2767(d) of this title, shall provide that such contract may be 
canceled in whole or in part, or its execution suspended, by the United 
States at any time under unusual or compelling circumstances if the 
national interest so requires.
    (2)(A) Each export license issued under section 2778 of this title 
shall provide that such license may be revoked, suspended, or amended by 
the Secretary of State, without prior notice, whenever the Secretary 
deems such action to be advisable.
    (B) Nothing in this paragraph may be construed as limiting the 
regulatory authority of the President under this chapter.
    (3) There are authorized to be appropriated from time to time such 
sums as may be necessary (A) to refund moneys received from purchasers 
under contracts of sale entered into under sections 2761, 2762, 2769 and 
2770 of this title, or under contracts entered into under section 
2767(d) of this title, that are canceled or suspended under this 
subsection to the extent such moneys have previously been disbursed to 
private contractors and United States Government agencies for work in 
progress, and (B) to pay such damages and costs that accrue from the 
corresponding cancellation or suspension of the existing procurement 
contracts or United States Government agency work orders involved.

(f) Use of civilian contract personnel in foreign countries

    The President shall, to the maximum extent possible and consistent 
with the purposes of this chapter, use civilian contract personnel in 
any foreign country to perform defense services sold under this chapter.

(Pub. L. 90-629, ch. 4, Sec. 42, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 
92-226, pt. IV, Sec. 401(e), (f), Feb. 7, 1972, 86 Stat. 33; Pub. L. 94-
141, title I, Sec. 150(b), Nov. 29, 1975, 89 Stat. 760; Pub. L. 94-329, 
title II, Sec. 213, title VI, Sec. 605(b), June 30, 1976, 90 Stat. 745, 
768; Pub. L. 96-533, title I, Sec. 105(e)(3), Dec. 16, 1980, 94 Stat. 
3135; Pub. L. 97-392, Sec. 2, Dec. 29, 1982, 96 Stat. 1963; Pub. L. 99-
83, title I, Sec. 115(b)(3), Aug. 8, 1985, 99 Stat. 201; Pub. L. 99-145, 
title XI, Sec. 1102(a)(4), (5), Nov. 8, 1985, 99 Stat. 710; Pub. L. 99-
661, div. A, title XIII, Sec. 1342(e), Nov. 14, 1986, 100 Stat. 3991; 
Pub. L. 103-236, title VII, Sec. 714(a)(2), Apr. 30, 1994, 108 Stat. 
497; Pub. L. 105-277, div. G, subdiv. A, title XII, Sec. 1225(a)(3), 
Oct. 21, 1998, 112 Stat. 2681-773.)


                               Amendments

    1998--Subsec. (a). Pub. L. 105-277 struck out par. (1) designation, 
struck out ``the assessment of the Director of the United States Arms 
Control and Disarmament Agency as to'' after ``, and (C)'', and struck 
out par. (2) which read as follows: ``Any proposed sale made pursuant to 
this chapter shall be approved only after consultation with the Director 
of the United States Arms Control and Disarmament Agency. The Director 
of the Arms Control and Disarmament Agency is authorized, whenever the 
Director determines that a sale under this section would be detrimental 
to the national security of the United States, to recommend to the 
President that such sale be disapproved.''
    1994--Subsec. (a). Pub. L. 103-236 designated existing provisions as 
par. (1), redesignated former cls. (1) to (3) as cls. (A) to (C), 
respectively, amended cl. (C) generally, and added par. (2). Prior to 
being amended generally, cl. (C) read as follows: ``in coordination with 
the Director of the United States Arms Control and Disarmament Agency, 
the Director's opinion as to the extent to which such sale might 
contribute to an arms race, or increase the possibility of outbreak or 
escalation of conflict, or prejudice the development of bilateral or 
multilateral arms control arrangements.''
    1986--Subsec. (e)(1), (3). Pub. L. 99-661 repealed section 
1102(a)(4) 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.
    1985--Subsec. (e)(1), (3). Pub. L. 99-83 inserted reference to 
contracts under section 2767(d) of this title.
    Pub. L. 99-145, Sec. 1102(a)(4), which enacted amendments similar to 
those provided in Pub. L. 99-83, was repealed. See 1986 Amendments note 
below and former section 1102(a)(5) of Pub. L. 99-145 set out as a 
Repeals; Effective Date note under section 2752 of this title.
    1982--Subsecs. (d)(1), (e)(1), (3)(A). Pub. L. 97-392 substituted 
``2769 and 2770'' for ``and 2769''.
    1980--Subsecs. (d)(1), (e)(1), (3). Pub. L. 96-533, Sec. 105(e)(3), 
inserted reference to section 2769 of this title.
    1976--Subsec. (e). Pub. L. 94-329, Sec. 213, added subsec. (e).
    Subsec. (f). Pub. L. 94-329, Sec. 605(b), added subsec. (f).
    1975--Subsec. (a)(3). Pub. L. 94-141 inserted provision relating to 
coordination with the Director of the United States Arms Control and 
Disarmament Agency.
    1972--Subsec. (a). Pub. L. 92-226, Sec. 401(e), (f)(1), added cl. 
(3) and inserted ``, subject to the provisions of subsection (b) of this 
section,'' before ``consideration shall also be given'', respectively.
    Subsecs. (b) to (d). Pub. L. 92-226, Sec. 401(f)(2), added subsec. 
(b) and redesignated former subsecs. (b) and (c) as (c) and (d).


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-277 effective Apr. 1, 1999, see section 
1201 of Pub. L. 105-277, set out as an Effective Date note under section 
6511 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.

                         Delegation of Functions

    Functions of President under subsecs. (c) and (f) of this section 
delegated to Secretary of Defense, with concurrence of Secretary of 
State and Secretary of the Treasury required for any determination 
proposed under subsec. (c) of this section, by section 1(p) 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.
