22 U.S.C. § 2753 — Eligibility for defense services or defense

Page 1198 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 § 2753. Eligibility for defense services or defense articles (a) Prerequisites for consent by President; report to Congress No defense article or defense service shall be sold or leased by the United States Government under this chapter to any country or inter- national organization, and no agreement shall be entered into for a cooperative project (as de- fined in section 2767 of this title), unless— (1) the President finds that the furnishing of defense articles and defense services to such country or international organization will strengthen the security of the United States and promote world peace; (2) the country or international organization shall have agreed not to transfer title to, or possession of, any defense article or related training or other defense service so furnished to it, or produced in a cooperative project (as defined in section 2767 of this title), to anyone not an officer, employee, or agent of that country or international organization (or the North Atlantic Treaty Organization or the specified member countries (other than the United States) in the case of a cooperative project) and not to use or permit the use of such article or related training or other de- fense service for purposes other than those for which furnished unless the consent of the President has first been obtained; (3) the country or international organization shall have agreed that it will maintain the se- curity of such article or service and will pro- vide substantially the same degree of security protection afforded to such article or service by the United States Government; and (4) the country or international organization is otherwise eligible to purchase or lease de- fense articles or defense services. In considering a request for approval of any transfer of any weapon, weapons system, muni- tions, aircraft, military boat, military vessel, or other implement of war to another country, the President shall not give his consent under para- graph (2) to the transfer unless the United States itself would transfer the defense article under consideration to that country. In addi- tion, the President shall not give his consent under paragraph (2) to the transfer of any sig- nificant defense articles on the United States Munitions List unless the foreign country re- questing consent to transfer agrees to demili- tarize 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 de- fense articles, if not demilitarized, to any other foreign country or person without first obtain- ing the consent of the President. The President shall promptly submit a report to the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representa- tives, and to the Committee on Foreign Rela- tions of the Senate on the implementation of each agreement entered into pursuant to clause (2) of this subsection. (b) Necessity of consent by President The consent of the President under paragraph (2) of subsection (a) or under paragraph (1) of section 2314(a) of this title (as it relates to sub- paragraph (B) of such paragraph) shall not be re- quired for the transfer by a foreign country or international organization of defense articles sold by the United States under this chapter if a treaty referred to in section 2778(j)(1)(C)(i) of this title permits such transfer without prior consent of the President, or if— (1) such articles constitute components in- corporated into foreign defense articles; (2) the recipient is the government of a member country of the North Atlantic Treaty Organization, the Government of Australia, the Government of Japan, the Government of the Republic of Korea, the Government of Israel, or the Government of New Zealand; (3) the recipient is not a country designated under section 2371 of this title; (4) the United States-origin components are not— (A) significant military equipment (as de- fined in section 2794(9) of this title); (B) defense articles for which notification to Congress is required under section 2776(b) of this title; and (C) identified by regulation as Missile Technology Control Regime items; and (5) the foreign country or international or- ganization provides notification of the trans- fer of the defense articles to the United States Government not later than 30 days after the date of such transfer. (c) Termination of credits, guaranties or sales; report of violation by President; national se- curity exception; conditions for reinstate- ment (1)(A) No credits (including participations in credits) may be issued and no guaranties may be extended for any foreign country under this chapter as hereinafter provided, if such country uses defense articles or defense services fur- nished under this chapter, or any predecessor Act, in substantial violation (either in terms of quantities or in terms of the gravity of the con- sequences regardless of the quantities involved) of any agreement entered into pursuant to any such Act (i) by using such articles or services for a purpose not authorized under section 2754 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 2754 of this title for a purpose not authorized under such agreement; (ii) by trans- ferring such articles or services to, or permit- ting any use of such articles or services by, any- one not an officer, employee, or agent of the re- cipient country without the consent of the President; or (iii) by failing to maintain the se- curity of such articles or services. (B) No cash sales or deliveries pursuant to pre- vious sales may be made with respect to any for- eign country under this chapter as hereinafter provided, if such country uses defense articles or defense services furnished under this chapter, or any predecessor Act, in substantial violation (ei- ther in terms of quantity or in terms of the gravity of the consequences regardless of the quantities involved) of any agreement entered into pursuant to any such Act by using such ar- ticles or services for a purpose not authorized Page 1199 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 under section 2754 of this title or, if such agree- ment provides that such articles or services may only be used for purposes more limited than those authorized under section 2754 of this title, for a purpose not authorized under such agree- ment. (2) The President shall report to the Congress promptly upon the receipt of information that a violation described in paragraph (1) of this sub- section may have occurred. (3)(A) A country shall be deemed to be ineli- gible under subparagraph (A) of paragraph (1) of this subsection, or both subparagraphs (A) and (B) of such paragraph in the case of a violation described in both such paragraphs, if the Presi- dent so determines and so reports in writing to the Congress, or if the Congress so determines by joint resolution. (B) Notwithstanding a determination by the President of ineligibility under subparagraph (B) of paragraph (1) of this subsection, cash sales and deliveries pursuant to previous sales may be made if the President certifies in writing to the Congress that a termination thereof would have significant adverse impact on United States se- curity, unless the Congress adopts or has adopt- ed a joint resolution pursuant to subparagraph (A) of this paragraph with respect to such ineli- gibility. (4) A country shall remain ineligible in accord- ance with paragraph (1) of this subsection until such time as— (A) the President determines that the viola- tion has ceased; and (B) the country concerned has given assur- ances satisfactory to the President that such violation will not recur. (d) Submission of written certification to Con- gress; contents; classified material; effective date of consent; report to Congress; transfers not subject to procedures (1) Subject to paragraph (5), the President may not give his consent under paragraph (2) of sub- section (a) or under the third sentence of such subsection, or under section 2314(a)(1) or 2314(a)(4) of this title, to a transfer of any major defense equipment valued (in terms of its origi- nal acquisition cost) at $14,000,000 or more, or any defense article or related training or other defense service valued (in terms of its original acquisition cost) at $50,000,000 or more, unless the President submits to the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Foreign Relations of the Senate a written certification with respect to such proposed transfer containing— (A) the name of the country or international organization proposing to make such transfer, (B) a description of the article or service proposed to be transferred, including its acqui- sition cost, (C) the name of the proposed recipient of such article or service, (D) the reasons for such proposed transfer, and (E) the date on which such transfer is pro- posed to be made. Any certification submitted to Congress pursu- ant to this paragraph shall be unclassified, ex- cept that information regarding the dollar value and number of articles or services proposed to be transferred may be classified if public disclosure thereof would be clearly detrimental to the se- curity of the United States. (2)(A) Except as provided in subparagraph (B), unless the President states in the certification submitted pursuant to paragraph (1) of this sub- section that an emergency exists which requires that consent to the proposed transfer become ef- fective immediately in the national security in- terests of the United States, such consent shall not become effective until 30 calendar days after the date of such submission and such consent shall become effective then only if the Congress does not enact, within such 30-day period, a joint resolution prohibiting the proposed trans- fer. (B) In the case of a proposed transfer to the North Atlantic Treaty Organization, or any member country of such Organization, Japan, Australia, the Republic of Korea, Israel, or New Zealand, unless the President states in the cer- tification submitted pursuant to paragraph (1) of this subsection that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States, such consent shall not become effective until fif- teen calendar days after the date of such sub- mission and such consent shall become effective then only if the Congress does not enact, within such fifteen-day period, a joint resolution pro- hibiting the proposed transfer. (C) If the President states in his certification under subparagraph (A) or (B) that an emer- gency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States, thus waiving the requirements of that subparagraph, the President shall set forth in the certification a detailed justification for his determination, including a description of the emergency circumstances which necessitate im- mediate consent to the transfer and a discussion of the national security interests involved. (D)(i) Any joint resolution under this para- graph shall be considered in the Senate in ac- cordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976. (ii) For the purpose of expediting the consider- ation and enactment of joint resolutions under this paragraph, a motion to proceed to the con- sideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. (3)(A) Subject to paragraph (5), the President may not give his consent to the transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service val- ued (in terms of its original acquisition cost) at $50,000,000 or more, the export of which has been licensed or approved under section 2778 of this title or has been exempted from the licensing re- quirements of this chapter pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title where such treaty does not authorize the trans- fer without prior United States Government ap- Page 1200 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 1 So in original. The closing parenthesis probably should not appear. proval, unless before giving such consent the President submits to the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and the Chairman of the Committee on Foreign Rela- tions of the Senate a certification containing the information specified in subparagraphs (A) through (E) of paragraph (1). Such certification shall be submitted— (i) at least 15 calendar days before such con- sent is given in the case of a transfer to a country which is a member of the North At- lantic Treaty Organization or Australia, Japan, the Republic of Korea, Israel, or New Zealand; and (ii) at least 30 calendar days before such con- sent is given in the case of a transfer to any other country, unless the President states in his certification that an emergency exists which requires that consent to the proposed transfer become effec- tive immediately in the national security inter- ests of the United States. If the President states in his certification that such an emergency ex- ists (thus waiving the requirements of clause (i) or (ii), as the case may be, and of subparagraph (B)) the President shall set forth in the certifi- cation a detailed justification for his determina- tion, including a description of the emergency circumstances which necessitate that consent to the proposed transfer become effective imme- diately and a discussion of the national security interests involved. (B) Consent to a transfer subject to subpara- graph (A) shall become effective after the end of the 15-day or 30-day period specified in subpara- graph (A)(i) or (ii), as the case may be, only if the Congress does not enact, within that period, a joint resolution prohibiting the proposed transfer. (C)(i) Any joint resolution under this para- graph shall be considered in the Senate in ac- cordance with the provisions of section 601(b) of the International Security Assistance and Arms Export Control Act of 1976. (ii) For the purpose of expediting the consider- ation and enactment of joint resolutions under this paragraph, a motion to proceed to the con- sideration of any such joint resolution after it has been reported by the appropriate committee shall be treated as highly privileged in the House of Representatives. (4) This subsection shall not apply— (A) to transfers of maintenance, repair, or overhaul defense services, or of the repair parts or other defense articles used in fur- nishing such services, if the transfer will not result in any increase, relative to the original specifications, in the military capability of the defense articles and services to be main- tained, repaired, or overhauled; (B) to temporary transfers of defense arti- cles for the sole purpose of receiving mainte- nance, repair, or overhaul; or (C) to arrangements among members of the North Atlantic Treaty Organization or be- tween the North Atlantic Treaty Organization and any of its member countries— (i) for cooperative cross servicing, or (ii) for lead-nation procurement if the cer- tification transmitted to the Congress pur- suant to section 2776(b) of this title with re- gard to such lead-nation procurement identi- fied the transferees on whose behalf the lead-nation procurement was proposed. (5) In the case of a transfer to a member coun- try of the North Atlantic Treaty Organization (NATO) or Australia, Japan, the Republic of Korea, Israel, or New Zealand that does not au- thorize a new sales territory that includes any country other than such countries, the limita- tions on consent of the President set forth in paragraphs (1) and (3)(A) shall apply only if the transfer is— (A) a transfer of major defense equipment valued (in terms of its original acquisition cost) at $25,000,000 or more; or (B) a transfer of defense articles or defense services valued (in terms of its original acqui- sition cost) at $100,000,000 or more).1 (e) Transfers without consent of President; re- port to Congress If the President receives any information that a transfer of any defense article, or related training or other defense service, has been made without his consent as required under this sec- tion or under section 2314 of this title, he shall report such information immediately to the Speaker of the House of Representatives, the Committee on Foreign Affairs of the House of Representatives, and the Committee on Foreign Relations of the Senate. (f) Sales and leases to countries in breach of nu- clear nonproliferation agreements and trea- ties No sales or leases shall be made to any coun- try that the President has determined is in ma- terial breach of its binding commitments to the United States under international treaties or agreements concerning the nonproliferation of nuclear explosive devices (as defined in section 6305(4) of this title) and unsafeguarded special nuclear material (as defined in section 6305(8) of this title). (g) Unauthorized use of articles Any agreement for the sale or lease of any ar- ticle on the United States Munitions List en- tered into by the United States Government after November 29, 1999, shall state that the United States Government retains the right to verify credible reports that such article has been used for a purpose not authorized under section 2754 of this title or, if such agreement provides that such article may only be used for purposes more limited than those authorized under sec- tion 2754 of this title, for a purpose not author- ized under such agreement. (Pub. L. 90–629, ch. 1, § 3, Oct. 22, 1968, 82 Stat. 1322; Pub. L. 91–672, § 1, Jan. 12, 1971, 84 Stat. 2053; Pub. L. 93–189, § 25(2), Dec. 17, 1973, 87 Stat. 729; Pub. L. 93–559, § 45(a)(1), Dec. 30, 1974, 88 Stat. 1813; Pub. L. 94–329, title II, §§ 203(a), 204(a), (b)(1), title III, § 304(b), June 30, 1976, 90 Stat. 735, 736, 754, 755; Pub. L. 95–92, §§ 15–18, Aug. 4, 1977, 91 Stat. 622; Pub. L. 96–92, § 11, Oct. 29, 1979, 93 Stat. 705; Pub. L. 96–533, title I, § 101, Dec. 16, 1980, 94 Page 1201 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 Stat. 3131; Pub. L. 97–113, title I, §§ 101(a), 102(a), 109(b)(2), Dec. 29, 1981, 95 Stat. 1519, 1520, 1526; Pub. L. 99–83, title I, § 115(b)(2), title V, § 503(b), Aug. 8, 1985, 99 Stat. 201, 221; Pub. L. 99–145, title XI, § 1102(a)(3), (5), Nov. 8, 1985, 99 Stat. 710; Pub. L. 99–247, § 1(a), Feb. 12, 1986, 100 Stat. 9; Pub. L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 100–461, title V, § 577, Oct. 1, 1988, 102 Stat. 2268–45; Pub. L. 101–222, § 2(b), Dec. 12, 1989, 103 Stat. 1896; Pub. L. 103–236, title VIII, § 822(a)(1), Apr. 30, 1994, 108 Stat. 511; Pub. L. 104–164, title I, §§ 141(a), (b), 142, July 21, 1996, 110 Stat. 1430, 1431, 1433; Pub. L. 106–113, div. B, § 1000(a)(7) [div. B, title XII, § 1225], Nov. 29, 1999, 113 Stat. 1536, 1501A–499; Pub. L. 107–228, div. B, title XIV, § 1405(a)(1), Sept. 30, 2002, 116 Stat. 1456; Pub. L. 110–429, title II, § 203(b)(1), (2), Oct. 15, 2008, 122 Stat. 4845; Pub. L. 111–266, title I, §§ 102(a), 104(a), title III, § 301, Oct. 8, 2010, 124 Stat. 2797, 2799, 2804; Pub. L. 113–276, title II, § 208(a)(1), Dec. 18, 2014, 128 Stat. 2992.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) to (d), was in the original ‘‘this Act’’, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables. Section 601(b) of the International Security Assist- ance and Arms Export Control Act of 1976, referred to in subsec. (d)(2)(D)(i), (3)(C)(i), is section 601(b) of Pub. L. 94–329, June 30, 1976, 90 Stat. 729, which made provi- sion for expedited procedures in the Senate, and is not classified to the Code. AMENDMENTS 2014—Subsecs. (a), (d)(1), (3)(A), (e). Pub. L. 113–276 substituted ‘‘the Speaker of the House of Representa- tives, the Committee on Foreign Affairs of the House of Representatives, and’’ for ‘‘the Speaker of the House of Representatives and’’. 2010—Subsec. (b). Pub. L. 111–266, § 102(a), inserted ‘‘a treaty referred to in section 2778(j)(1)(C)(i) of this title permits such transfer without prior consent of the President, or if’’ after ‘‘under this chapter if’’ in intro- ductory provisions. Subsec. (b)(2). Pub. L. 111–266, § 301(2), inserted ‘‘the Government of Israel,’’ before ‘‘or the Government of New Zealand’’. Subsec. (d)(2)(B). Pub. L. 111–266, § 301(1), inserted ‘‘Israel,’’ before ‘‘or New Zealand’’. Subsec. (d)(3)(A). Pub. L. 111–266, § 104(a), inserted in introductory provisions ‘‘or has been exempted from the licensing requirements of this chapter pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title where such treaty does not authorize the transfer without prior United States Government approval’’ after ‘‘approved under section 2778 of this title’’. Subsec. (d)(3)(A)(i). Pub. L. 111–266, § 301(1), inserted ‘‘Israel,’’ before ‘‘or New Zealand’’. Subsec. (d)(5). Pub. L. 111–266, § 301(1), inserted ‘‘Israel,’’ before ‘‘or New Zealand’’ in introductory pro- visions. 2008—Subsec. (b)(2). Pub. L. 110–429, § 203(b)(2), in- serted ‘‘the Government of the Republic of Korea,’’ be- fore ‘‘or the Government of New Zealand’’. Subsec. (d)(2)(B), (3)(A)(i), (5). Pub. L. 110–429, § 203(b)(1), inserted ‘‘the Republic of Korea,’’ before ‘‘or New Zealand’’. 2002—Subsec. (d)(1), (3)(A). Pub. L. 107–228, § 1405(a)(1)(A), substituted ‘‘Subject to paragraph (5), the President may not’’ for ‘‘The President may not’’ in introductory provisions. Subsec. (d)(5). Pub. L. 107–228, § 1405(a)(1)(B), added par. (5). 1999—Subsec. (g). Pub. L. 106–113 added subsec. (g). 1996—Subsec. (b). Pub. L. 104–164, § 142, added subsec. (b). Subsec. (d)(2)(A). Pub. L. 104–164, § 141(a)(1), struck out ‘‘, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title’’ after ‘‘joint resolution’’. Subsec. (d)(2)(B). Pub. L. 104–164, § 141(a)(2), sub- stituted ‘‘joint resolution prohibiting the proposed transfer’’ for ‘‘law prohibiting the proposed transfer’’. Subsec. (d)(2)(C), (D). Pub. L. 104–164, § 141(a)(3), added subpars. (C) and (D). Subsec. (d)(3)(A). Pub. L. 104–164, § 141(b), designated existing provisions as subpar. (A), struck out ‘‘at least 30 calendar days’’ before ‘‘before giving such consent the President’’, substituted ‘‘a certification’’ for ‘‘a re- port’’ after ‘‘Committee on Foreign Relations of the Senate’’, and substituted ‘‘Such certification shall be submitted— ‘‘(i) at least 15 calendar days before such consent is given in the case of a transfer to a country which is a member of the North Atlantic Treaty Organization or Australia, Japan, or New Zealand; and ‘‘(ii) at least 30 calendar days before such consent is given in the case of a transfer to any other country, unless the President states in his certification that an emergency exists which requires that consent to the proposed transfer become effective immediately in the national security interests of the United States. If the President states in his certification that such an emer- gency exists (thus waiving the requirements of clause (i) or (ii), as the case may be, and of subparagraph (B)) the President shall set forth in the certification a de- tailed justification for his determination, including a description of the emergency circumstances which ne- cessitate that consent to the proposed transfer become effective immediately and a discussion of the national security interests involved.’’ for ‘‘Such consent shall become effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as pro- vided for in sections 2776(c)(2) and 2776(c)(3) of this title prohibiting the proposed transfer.’’ Subsec. (d)(3)(B), (C). Pub. L. 104–164, § 141(b)(3), added subpars. (B) and (C). 1994—Subsec. (f). Pub. L. 103–236 added subsec. (f). 1989—Subsec. (f). Pub. L. 101–222 struck out subsec. (f) which directed termination of sales under this chapter to countries granting sanctuary to international ter- rorists. See section 2780 of this title. 1988—Subsec. (d)(2)(A). Pub. L. 100–461, § 577(1), sub- stituted ‘‘joint resolution, as provided for in sections 2776(b)(2) and 2776(b)(3) of this title’’ for ‘‘law’’. Subsec. (d)(3). Pub. L. 100–461, § 577(2), inserted at end ‘‘Such consent shall become effective then only if the Congress does not enact, within a 30-day period, a joint resolution, as provided for in sections 2776(c)(2) and 2776(c)(3) of this title prohibiting the proposed trans- fer.’’ 1986—Subsec. (a). Pub. L. 99–661 repealed section 1102(a)(3) 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. Subsec. (d)(2)(A). Pub. L. 99–247, § 1(a)(1), substituted ‘‘enact, within such 30-day period, a law prohibiting’’ for ‘‘adopt, within such 30-day period, a concurrent res- olution disapproving’’. Subsec. (d)(2)(B). Pub. L. 99–247, § 1(a)(2), substituted ‘‘enact, within such fifteen-day period, a law prohib- iting’’ for ‘‘adopt, within such fifteen-day period, a con- current resolution disapproving’’. 1985—Subsec. (a). Pub. L. 99–83, § 115(b)(2), in introduc- tory text and in par. (2) inserted provisions relating to cooperative projects, and in par. (3) inserted ‘‘or serv- ice’’ after ‘‘such article’’ in two places. Pub. L. 99–145, § 1102(a)(3), which enacted amendments similar to those provided in Pub. L. 99–83, § 115(b)(2), was repealed. See 1986 Amendments note above and former section 1105(a)(5) of Pub. L. 99–145 set out as a Page 1202 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 Repeals; Effective Date note under section 2752 of this title. Subsec. (f). Pub. L. 99–83, § 503(b), struck out ‘‘, credits, and guaranties’’ and ‘‘, credits, or guaran- ties’’ wherever appearing in pars. (1) and (2). 1981—Subsec. (a). Pub. L. 97–113, § 109(b)(2), sub- stituted in introductory text ‘‘sold or leased’’ for ‘‘sold’’, and in par. (4) ‘‘purchase or lease’’ for ‘‘pur- chase’’. Subsec. (d)(1). Pub. L. 97–113, § 101(a)(1), substituted in introductory text ‘‘, or under section 2314(a)(1) or 2314(a)(4) of this title, to a transfer of any major de- fense equipment valued (in terms of its original acqui- sition cost) at $14,000,000 or more, or any defense article or related training or other defense service valued (in terms of its original acquisition cost) at $50,000,000 or more,’’ for ‘‘to a transfer of a defense article, or related training or other defense service, sold under this chap- ter and may not give his consent to such a transfer under section 2314(a)(1) or (a)(4) of this title’’, in sub- par. (B) ‘‘a description of the article or service proposed to be transferred, including its acquisition cost’’ for ‘‘a description of the defense article or related training or other defense service proposed to be transferred, in- cluding the original acquisition cost of such defense ar- ticle or related training or other defense service’’, in subpar. (C) ‘‘article or service’’ for ‘‘defense article or related training or other defense service’’, and in provi- sion following subpar. (E) ‘‘articles or services’’ for ‘‘de- fense articles, or related training or other defense serv- ices,’’. Subsec. (d)(2). Pub. L. 97–113, § 102(a), designated ex- isting provisions as subpar. (A), substituted ‘‘Except as provided in subparagraph (B), unless’’ for ‘‘Unless’’, and added subpar. (B). Subsec. (d)(3). Pub. L. 97–113, § 101(a)(2), substituted ‘‘transfer of any major defense equipment valued (in terms of its original acquisition cost) at $14,000,000 or more, or of any defense article or defense service val- ued (in terms of its original acquisition cost) at $50,000,000 or more’’ for ‘‘transfer to a third country of a defense article or a defense service valued (in terms of its original acquisition costs) at $25,000,000 or more, or of major defense equipment valued (in terms of its original acquisition costs) at $7,000,000 or more’’. Subsec. (d)(4). Pub. L. 97–113, § 101(a)(3), struck out subpar. (D), which provided that subsec. (d) of this sec- tion not apply to transfers to the North Atlantic Trea- ty Organization, any member country of such organiza- tion, Japan, Australia, or New Zealand, of any major defense equipment valued (in terms of its original ac- quisition cost) at less than $7,000,000 or of any defense article or related training or other defense service val- ued (in terms of its original acquisition cost) at less than $25,000,000. 1980—Subsec. (d)(1). Pub. L. 96–533, § 101(a)(2)(A), sub- stituted ‘‘pursuant to this paragraph’’ for ‘‘pursuant to this subsection’’. Subsec. (d)(2). Pub. L. 96–533, § 101(a)(2)(B), substituted ‘‘paragraph (1) of this subsection’’ for ‘‘this sub- section’’. Subsec. (d)(3). Pub. L. 96–533, § 101(a)(1)(B), added par. (3). Former par. (3) redesignated (4). Subsec. (d)(4). Pub. L. 96–533, § 101(a)(1)(A), (b), redes- ignated former par. (3) as (4) and, in par (4) as so redes- ignated, added subpar. (D). 1979—Subsec. (d)(3)(C). Pub. L. 96–92 made subsec. (d) of this section inapplicable to arrangements between the North Atlantic Treaty Organization and any of its member countries, incorporated existing text in provi- sions designated cl. (i) and added cl. (ii). 1977—Subsec. (b). Pub. L. 95–92, § 15, struck out sub- sec. (b) which related to prohibitions on sales, etc., to countries seizing or fining American fishing vessels for fishing in waters more than twelve miles from their coastlines. Subsec. (d). Pub. L. 95–92, §§ 16, 17, redesignated exist- ing provisions as par. (1), struck out ‘‘, 30 days prior to giving such consent,’’ before ‘‘the President submits’’, redesignated pars. (1) to (5) as subpars. (A) to (E), re- spectively, and added pars. (2) and (3). Subsec. (f). Pub. L. 95–92, § 18, added subsec. (f). 1976—Subsec. (a). Pub. L. 94–329, §§ 203(a), 204(b)(1), in- serted in par. (2) ‘‘or related training or other defense service’’ after ‘‘article’’ wherever appearing and struck out provisions following par. (4) relating to the Presi- dent’s notification of his consent to transfer war imple- ments to another country, in writing, to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate indicating his jus- tification for the transfer and the particular war imple- ment transferred. Subsec. (c). Pub. L. 94–329, § 304(b)(1), provided that the President, by so stating in writing to Congress, or Congress, by joint resolution, terminate credits, guar- anties or sales upon determining a violation, permitted cash sales and deliveries pursuant to previous sales to be made if the President certifies in writing to Con- gress that termination thereof would be adverse to na- tional security unless Congress adopts or has adopted a joint resolution determining such eligibility, and speci- fied conditions for reinstatement of eligibility. Subsec. (d). Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (d). Former subsec. (d), which related to condi- tions for reinstatement after a determination of ineli- gibility, was repealed and is now covered by subsec. (c). Subsec. (e). Pub. L. 94–329, §§ 204(a), 304(b)(2), added subsec. (e). 1974—Subsec. (d). Pub. L. 93–559 struck out first sen- tence provision respecting furnishing of sophisticated weapons to countries in violation of agreements pursu- ant to subsec. (a)(2) of this section, section 2314(a) of this title, or other similar provisions and substituted ‘‘in accordance with subsection (c) of this section’’ for ‘‘in accordance with this subsection’’. 1973—Subsec. (a). Pub. L. 93–189, § 25(2)(A)–(C), in par. (2) inserted requirement not to use or permit the use of such articles for purposes other than those for which furnished, redesignated former par. (3) as (4), added a new par. (3), and following par. (4), as so redesignated, inserted provisions relating to Presidential consider- ation of requests prior to consent under par. (2). Subsecs. (c), (d). Pub. L. 93–189, § 25(2)(D), added sub- secs. (c) and (d). 1971—Subsec. (b). Pub. L. 91–672 extended the retalia- tory measures against countries seizing, taking cus- tody or fining American vessels for fishing outside of twelve miles of their coast, to sales, credits, guaran- ties, and laid down a period of one year as the extent of such prohibition, and added assurances of future re- straint received from such countries as an additional ground for waiver, and provided exception that the pro- hibition will not apply in cases governed by inter- national agreements to which the United States is a party. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–164, title I, § 141(f), July 21, 1996, 110 Stat. 1433, provided that: ‘‘The amendments made by this section [amending this section and sections 2776, 2796a, and 2796b of this title] apply with respect to certifi- cations required to be submitted on or after the date of the enactment of this Act [July 21, 1996].’’ EFFECTIVE DATE OF 1994 AMENDMENT Amendment by Pub. L. 103–236 effective 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out as an Effective Date note under section 6301 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 sec- tion 2151–1 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Pub. L. 94–329, title II, § 203(a), June 30, 1976, 90 Stat. 735, provided that the amendment made by that section is effective July 1, 1976. Page 1203 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. SECURITY ASSISTANCE FOR BALTIC NATIONS FOR JOINT PROGRAM FOR INTEROPERABILITY AND DETERRENCE AGAINST AGGRESSION Pub. L. 115–91, div. A, title XII, § 1279D, Dec. 12, 2017, 131 Stat. 1702, as amended by Pub. L. 116–92, div. A, title XII, § 1246(c)–(e), Dec. 20, 2019, 133 Stat. 1662, provided that the Secretary of Defense could, with the concur- rence of the Secretary of State, conduct or support a single joint program of the Baltic nations to improve their interoperability and build their capacity to deter and resist aggression by the Russian Federation, and such assistance would not be provided after Dec. 31, 2021. ENHANCED DEFENSE COOPERATION Pub. L. 114–123, § 5, Feb. 18, 2016, 130 Stat. 118, provided that: ‘‘(a) IN GENERAL.—During the 3-year period beginning on the date of the enactment of this Act [Feb. 18, 2016], the Hashemite Kingdom of Jordan shall be treated as if it were a country listed in the provisions of law de- scribed in subsection (b) for purposes of applying and administering such provisions of law. ‘‘(b) ARMS EXPORT CONTROL ACT.—The provisions of law described in this subsection are— ‘‘(1) subsections (b)(2), (d)(2)(B), (d)(3)(A)(i), and (d)(5) of section 3 of the Arms Export Control Act (22 U.S.C. 2753); ‘‘(2) subsections (e)(2)(A), (h)(1)(A), and (h)(2) of sec- tion 21 of such Act (22 U.S.C. 2761); ‘‘(3) subsections (b)(1), (b)(2), (b)(6), (c), and (d)(2)(A) of section 36 of such Act (22 U.S.C. 2776); ‘‘(4) section 62(c)(1) of such Act (22 U.S.C. 2796a(c)(1)); and ‘‘(5) section 63(a)(2) of such Act (22 U.S.C. 2796b(a)(2)).’’ PILOT PROGRAM ON REPAIR, OVERHAUL, AND REFUR- BISHMENT OF DEFENSE ARTICLES FOR SALE OR TRANSFER TO ELIGIBLE FOREIGN COUNTRIES AND EN- TITIES Pub. L. 112–239, div. A, title XII, § 1285, Jan. 2, 2013, 126 Stat. 2036, provided that: ‘‘(a) PILOT PROGRAM AUTHORIZED.—The Secretary of Defense may carry out a pilot program to repair, over- haul, or refurbish in-stock defense articles in anticipa- tion of the sale or transfer of such defense articles to eligible foreign countries or international organiza- tions under law. ‘‘(b) FUND FOR SUPPORT OF PROGRAM AUTHORIZED.— The Secretary of Defense may establish and administer a fund to be known as the ‘Special Defense Repair Fund’ (in this section referred to as the ‘Fund’) to sup- port the program authorized by subsection (a). ‘‘(c) CREDITS TO FUND.— ‘‘(1) IN GENERAL.—Subject to paragraphs (2) and (3), the following shall be credited to the Fund: ‘‘(A) Such amounts, not to exceed $50,000,000, from amounts authorized to be appropriated for overseas contingency operations for fiscal year 2013 as the Secretary of Defense considers appropriate, and re- programmed under a reprogramming authority pro- vided by another provision of this Act or by other law. ‘‘(B) Notwithstanding section 114(c) of title 10, United States Code, any collection from the sale or transfer of defense articles from Department of De- fense stocks repaired, overhauled, or refurbished with amounts from the Fund that are not intended to be replaced which sale or transfer is made pursu- ant to section 21(a)(1)(A) of the Arms Export Con- trol Act (22 U.S.C. 2761(a)(1)(A)), the Foreign Assist- ance Act of 1961 (22 U.S.C. 2151 et seq.), or another provision of law. ‘‘(C) Notwithstanding section 37(a) of the Arms Export Control Act (22 U.S.C. 2777(a)), any cash pay- ment from the sale or transfer of defense articles from Department of Defense stocks repaired, over- hauled, or refurbished with amounts from the Fund that are intended to be replaced. ‘‘(2) LIMITATION ON AMOUNTS CREDITABLE FROM SALE OR TRANSFER OF ARTICLES.— ‘‘(A) CREDITS IN CONNECTION WITH ARTICLES NOT TO BE REPLACED.—The amount credited to the Fund under paragraph (1)(B) in connection with a collec- tion from the sale or transfer of defense articles may not exceed the cost incurred by the Depart- ment of Defense in repairing, overhauling, or refur- bishing such defense articles under the program au- thorized by subsection (a). ‘‘(B) CREDITS IN CONNECTION WITH ARTICLES TO BE REPLACED.—The amount credited to the Fund under paragraph (1)(C) in connection with a sale or trans- fer of defense articles may not exceed the amounts from the Fund used to repair, overhaul, or refurbish such defense articles. ‘‘(3) LIMITATION ON SIZE OF FUND.—The total amount in the Fund at any time may not exceed $50,000,000. ‘‘(4) TREATMENT OF AMOUNTS CREDITED.—Amounts credited to the Fund under this subsection shall be merged with amounts in the Fund, and shall remain available until expended. ‘‘(5) AUTHORIZATION TO PURCHASE SERVICES FROM DOD WORKING CAPITAL FUND ACTIVITIES.—The Fund shall be considered an authorized customer of Depart- ment of Defense Working Capital Fund activities. Prices of goods and services sold by Working Capital Fund activities to the Fund shall reflect Foreign Military Sales pricing guidelines, as promulgated by the Department of Defense Financial Management Regulation, and other applicable guidelines. ‘‘(d) NONAVAILABILITY OF AMOUNTS IN FUND FOR STOR- AGE, MAINTENANCE, AND RELATED COSTS.—Following the repair, overhaul, or refurbishment of defense arti- cles under the program authorized by subsection (a), amounts in the Fund may not be used to pay costs of storage and maintenance of such defense articles or any other costs associated with the preservation or preparation for sale or transfer of such defense articles. ‘‘(e) SALES OR TRANSFERS OF DEFENSE ARTICLES.— ‘‘(1) IN GENERAL.—Any sale or transfer of defense ar- ticles repaired, overhauled, or refurbished under the program authorized by subsection (a) shall be in ac- cordance with— ‘‘(A) the Arms Export Control Act (22 U.S.C. 2751 et seq.); ‘‘(B) the Foreign Assistance Act of 1961; or ‘‘(C) another provision of law authorizing such sale or transfer. ‘‘(2) SECRETARY OF STATE CONCURRENCE REQUIRED FOR CERTAIN SALES OR TRANSFERS TO FOREIGN COUN- TRIES.—If the sale or transfer of defense articles oc- curs in accordance with a provision of law referred to in paragraph (1)(C) that does not otherwise require the concurrence of the Secretary of State for the sale or transfer, the sale or transfer may be made only with the concurrence of the Secretary of State. ‘‘(f) TRANSFERS OF AMOUNTS.— ‘‘(1) TRANSFER TO OTHER DEPARTMENT OF DEFENSE ACCOUNTS.—Amounts in the Fund may be transferred to any Department of Defense account for use in car- rying out the program authorized by subsection (a). Any amount so transferred shall be merged with amounts in the account to which transferred, and shall be available for the same purposes and the same time period as amounts in the account to which transferred. ‘‘(2) TRANSFER FROM OTHER DEPARTMENT OF DEFENSE ACCOUNTS.—Upon a determination by the Secretary of Defense with respect to an amount transferred under paragraph (1) that all or part of such transfer is not necessary for the purposes transferred, such amount may be transferred back to the Fund. Any amount so transferred shall be merged with amounts in the Fund, and shall remain available until expended. ‘‘(g) CERTAIN EXCESS PROCEEDS TO BE CREDITED TO SPECIAL DEFENSE ACQUISITION FUND.—Any collection Page 1204 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2753 from the sale or transfer of defense articles that are not intended to be replaced in excess of the amount creditable to the Fund under subsection (c)(2)(A) shall be credited to the Special Defense Acquisition Fund es- tablished pursuant to chapter 5 of the Arms Export Control Act (22 U.S.C. 2795 et seq.). ‘‘(h) MATERIEL EFFICIENCIES AND DUPLICATION.—In ad- ministering the program authorized by subsection (a), the Secretary of Defense shall ensure to the maximum extent possible that purchases made utilizing the Fund utilize existing Defense Logistics Agency contracts. The Secretary shall also ensure that none of the activi- ties carried out under the program authorized by sub- section (a) are duplicative in nature to those performed by other military departments or Defense Agencies. ‘‘(i) CONDUCT BY PUBLIC OR PRIVATE SECTOR FACILI- TIES OR ENTITIES.—The repair, overhaul, and refurbish- ment of defense articles under the program authorized by subsection (a) may be conducted by a facility or en- tity in the public sector or the private sector, con- sistent with the requirements of chapter 146 of title 10, United States Code. ‘‘(j) REPORTS.— ‘‘(1) ANNUAL REPORT.—Not later than 45 days after the end of each fiscal year through the date of expira- tion specified in subsection (l), the Secretary of De- fense shall submit to the appropriate congressional committees a report on the authorities under this section during such fiscal year. Each report shall in- clude, for the fiscal year covered by such report, the following: ‘‘(A) The types and quantities of defense articles repaired, overhauled, or refurbished under the pro- gram authorized by subsection (a). ‘‘(B) The value of the repair, overhaul, or refur- bishment performed under the program. ‘‘(C) The amount of operation and maintenance funds credited to the Fund under subsection (c)(1)(A). ‘‘(D) The amount of any collections from the sale or transfer of defense articles repaired, overhauled, or refurbished under the program that was credited to the Fund under subsection (c)(1)(B). ‘‘(E) The amount of any cash payments from the sale or transfer of defense articles repaired, over- hauled, or refurbished under the program that was credited to the Fund under subsection (c)(1)(C). ‘‘(2) ASSESSMENT REPORT.—Not later than February 1, 2015, the Secretary of Defense shall submit to the appropriate congressional committees a report on the operation of the authorities in this section. The re- port shall include an assessment of the effectiveness of the authorities in meeting the objectives of the program authorized by subsection (a). At a minimum, the assessment shall address the following: ‘‘(A) Cost efficiencies generated by utilization of the Fund. ‘‘(B) Time efficiencies gained in the delivery of defense articles under the program. ‘‘(C) An explanation of all amounts transferred to and from the Fund pursuant to subsection (f). ‘‘(D) A detailed account of excess proceeds cred- ited to the Special Defense Acquisition Fund pursu- ant to section (g). ‘‘(E) A list of defense articles, by quantity and type, repaired under the program and an identifica- tion of the foreign countries or international orga- nizations to which the repaired defense articles were sold or transferred. ‘‘(3) APPROPRIATE CONGRESSIONAL COMMITTEES DE- FINED.—In this subsection, the term ‘appropriate con- gressional committees’ means— ‘‘(A) the congressional defense committees [Com- mittees on Armed Services and Appropriations of the Senate and the House of Representatives]; and ‘‘(B) the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives. ‘‘(k) DEFENSE ARTICLE DEFINED.—In this section, the term ‘defense article’ has the meaning given that term in section 47(3) of the Arms Export Control Act (22 U.S.C. 2794(3)). ‘‘(l) EXPIRATION OF AUTHORITY.—The authority to carry out the program authorized by subsection (a), and to use amounts in the Fund in support of the pro- gram, shall expire on September 30, 2015.’’ SECURITY COOPERATION WITH THE REPUBLIC OF KOREA Pub. L. 110–429, title II, § 203(a), Oct. 15, 2008, 122 Stat. 4844, provided that: ‘‘Congress makes the following findings: ‘‘(1) Close and continuing defense cooperation be- tween the United States and the Republic of Korea continues to be in the national security interest of the United States. ‘‘(2) The Republic of Korea was designated a major non-NATO ally in 1987, the first such designation. ‘‘(3) The Republic of Korea has been a major pur- chaser of United States defense articles and services through the Foreign Military Sales (FMS) program, totaling $6,900,000,000 in deliveries over the last 10 years. ‘‘(4) Purchases of United States defense articles, services, and major defense equipment facilitate and increase the interoperability of Republic of Korea military forces with the United States Armed Forces. ‘‘(5) Congress has previously enacted important, special defense cooperation arrangements for the Re- public of Korea, as in the Act entitled ‘An Act to au- thorize the transfer of items in the War Reserves Stockpile for Allies, Korea’, approved December 30, 2005 (Public Law 109–159; 119 Stat. 2955), which author- ized the President, notwithstanding section 514 of the Foreign Assistance Act of 1961 (22 U.S.C. 2321h), to transfer to the Republic of Korea certain defense items to be included in a war reserve stockpile for that country. ‘‘(6) Enhanced support for defense cooperation with the Republic of Korea is important to the national se- curity of the United States, including through cre- ation of a status in law for the Republic of Korea similar to the countries in the North Atlantic Treaty Organization, Japan, Australia, and New Zealand, with respect to consideration by Congress of foreign military sales to the Republic of Korea.’’ REPORTING REQUIREMENTS Pub. L. 105–277, div. A, § 101(d) [title V, § 594], Oct. 21, 1998, 112 Stat. 2681–150, 2681–215, as amended by Pub. L. 106–31, title V, § 5002(c)–(e), May 21, 1999, 113 Stat. 109, provided that: ‘‘(a) NOTIFICATION.—No less than 15 days prior to the export to any country identified pursuant to subpara- graph (c) of any lethal defense article or service in the amount of $14,000,000 or less, the President shall pro- vide a detailed notification to the Committees on Ap- propriations and Foreign Relations of the Senate and the Committees on Appropriations and International Relations [now Committee on Foreign Affairs] of the House of Representatives. ‘‘(b) CONTENT OF NOTIFICATION.—A detailed notifica- tion transmitted pursuant to subsection (a) shall in- clude the same type and quantity of information re- quired of a notification submitted pursuant to section 36(b) of the Arms Export Control Act (22 U.S.C. 2776(b)). ‘‘(c) COUNTRIES DEFINED.—This section shall apply to any country that is— ‘‘(1) identified in section 520 of this Act [Pub. L. 105–277, 112 Stat. 2681–176], or a comparable provision in a subsequent appropriations Act; or ‘‘(2) currently ineligible, in whole or in part, under an annual appropriations Act to receive funds for International Military Education and Training or under the Foreign Military Financing Program, ex- cluding high-income countries as defined pursuant to section 546(b) of the Foreign Assistance Act of 1961 [22 U.S.C. 2347e(b)]. ‘‘(d) EXCLUSIONS.—Information reportable under title V of the National Security Act of 1947 [50 U.S.C. 3091 et Page 1205 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 2755 seq.] is excluded from the requirements of this sec- tion.’’ [For delegation of functions of President under sec- tion 101(d) [title V, § 594] of div. A of Pub. L. 105–277, set out above, 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.] ELIGIBILITY OF BALTIC STATES FOR NONLETHAL DEFENSE ARTICLES Pub. L. 102–511, title IX, § 906, Oct. 24, 1992, 106 Stat. 3356, provided that: ‘‘(a) ELIGIBILITY.—Estonia, Latvia, and Lithuania shall each be eligible— ‘‘(1) to purchase, or to receive financing for the pur- chase of, nonlethal defense articles— ‘‘(A) under the Arms Export Control Act (22 U.S.C. 2751 et seq.), without regard to section 3(a)(1) of that Act [22 U.S.C. 2753(a)(1)], or ‘‘(B) under section 503 of the Foreign Assistance Act of 1961 (22 U.S.C. 2311), without regard to the re- quirement in subsection (a) of that section for a Presidential finding; and ‘‘(2) to receive nonlethal excess defense articles transferred under section 519 of the Foreign Assist- ance Act of 1961 (22 U.S.C. 2321m), without regard to the restrictions in subsection (a) of that section. ‘‘(b) DEFINITIONS.—As used in this section— ‘‘(1) the term ‘defense article’ has the same mean- ing given to that term in section 47(3) of the Arms Export Control Act (22 U.S.C. 2794(3)); and ‘‘(2) the term ‘excess defense article’ has the same meaning given to that term in section 644(g) of the Foreign Assistance Act of 1961 (22 U.S.C. 2403(g)).’’ Executive Documents DELEGATION OF FUNCTIONS For delegation of certain functions of the President under this section, see section 1(a) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R. 16129, set out as a note under sec- tion 2751 of this title. Functions were previously dele- gated by Ex. Ord. No. 11958, which was formerly set out as a note under section 2751 of this title and was re- voked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637. § 2754. Purposes for which military sales or leases by the United States are authorized; report to Congress Defense articles and defense services shall be sold or leased by the United States Government under this chapter to friendly countries solely for internal security, for legitimate self-defense, for preventing or hindering the proliferation of weapons of mass destruction and of the means of delivering such weapons, to permit the recipient country to participate in regional or collective arrangements or measures consistent with the Charter of the United Nations, or otherwise to permit the recipient country to participate in collective measures requested by the United Na- tions for the purpose of maintaining or restoring international peace and security, or for the pur- pose of enabling foreign military forces in less developed friendly countries to construct public works and to engage in other activities helpful to the economic and social development of such friendly countries. It is the sense of the Con- gress that such foreign military forces should not be maintained or established solely for civic action activities and that such civic action ac- tivities not significantly detract from the capa- bility of the military forces to perform their military missions and be coordinated with and form part of the total economic and social devel- opment effort: Provided, That none of the funds contained in this authorization shall be used to guarantee, or extend credit, or participate in an extension of credit in connection with any sale of sophisticated weapons systems, such as mis- sile systems and jet aircraft for military pur- poses, to any underdeveloped country other than Greece, Turkey, Iran, Israel, the Republic of China, the Philippines and Korea unless the President determines that such financing is im- portant to the national security of the United States and reports within thirty days each such determination to the Congress. (Pub. L. 90–629, ch. 1, § 4, Oct. 22, 1968, 82 Stat. 1322; Pub. L. 97–113, title I, § 109(b)(3), Dec. 29, 1981, 95 Stat. 1526; Pub. L. 107–228, div. B, title XII, § 1202(a), Sept. 30, 2002, 116 Stat. 1427.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chap- ter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables. AMENDMENTS 2002—Pub. L. 107–228 inserted ‘‘for preventing or hin- dering the proliferation of weapons of mass destruction and of the means of delivering such weapons,’’ after ‘‘legitimate self-defense,’’ in first sentence. 1981—Pub. L. 97–113 substituted ‘‘sold or leased’’ for ‘‘sold’’ in first sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 1, 1968, see section 41 of Pub. L. 90–629, set out as a note under section 2751 of this title. § 2755. Discrimination prohibited if based on race, religion, national origin, or sex (a) Congressional declaration of policy It is the policy of the United States that no sales should be made, and no credits (including participations in credits) or guaranties extended to or for any foreign country, the laws, regula- tions, official policies, or governmental prac- tices of which prevent any United States person (as defined in section 7701(a)(30) of title 26) from participating in the furnishing of defense arti- cles or defense services under this chapter on the basis of race, religion, national origin, or sex. (b) Employment of personnel; required contrac- tual provision (1) No agency performing functions under this chapter shall, in employing or assigning per- sonnel to participate in the performance of any such function, whether in the United States or abroad, take into account the exclusionary poli- cies or practices of any foreign government where such policies or practices are based upon race, religion, national origin, or sex. (2) Each contract entered into by any such agency for the performance of any function under this chapter shall contain a provision to the effect that no person, partnership, corpora-