351 
(3) observation and orientation visits to military 
facilities and related activities in the United States 
and abroad. 
SEC. 4265. REIMBURSEMENT. 
The Secretary shall seek reimbursement for military 
education and training provided under this chapter from 
countries using assistance under section 4251 to purchase 
such military education and training at a rate comparable 
to the rate charged to countries receiving grant assistance 
for military education and training under this chapter. 
SEC. 4266. EXCHANGE OF TRAINING AND RELATED SUP-
PORT. 
(a) AUTHORITY.—Subject to subsection (b), the Sec-
retary, in consultation with the Secretary of Defense, is 
authorized to provide training and related support to for-
eign military and defense personnel (as defined in section 
4262) and to foreign civilian personnel (as defined in sec-
tion 4263). Such training and related support shall be pro-
vided by the Secretary of Defense and may include the 
provision of transportation, food services, health services, 
and logistics and the use of facilities and equipment. 
(b) AGREEMENT
OR OTHER ARRANGEMENT RE-
QUIRED.— 
(1) IN GENERAL.—Training and related sup-
port may be provided under this section only pursu-
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352 
ant to an agreement or other arrangements pro-
viding for the provision by the country or organiza-
tion, on a reciprocal basis, of comparable training 
and related support to the United States. 
(2) REASONABLE PERIOD OF TIME.—Such re-
ciprocal training and related support shall be pro-
vided within a reasonable period of time (which may 
not be more than one year) of the provision of train-
ing and related support by the United States Gov-
ernment under this chapter. 
(c) REIMBURSEMENT REQUIREMENT.—To the extent 
that a country or organization to which training and re-
lated support is provided under this section does not pro-
vide such comparable training and related support to the 
United States within a reasonable period of time, the Sec-
retary shall require a country or organization to reimburse 
the United States for the full costs of the training and 
related support provided by the United States. 
(d) REGULATIONS.—The President shall prescribe 
regulations for the provision of training and related sup-
port under this section. 
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353 
CHAPTER 7—TRANSFER OF EXCESS 
DEFENSE ARTICLES 
SEC. 4271. TRANSFER OF EXCESS DEFENSE ARTICLES. 
(a) AUTHORITY.—To further the goals and objectives 
of United States foreign policy and the goals of this Act, 
the Secretary is authorized to transfer to foreign countries 
and international organizations excess defense articles 
under this section that have been designated by the Sec-
retary of Defense as excess to the military needs of the 
United States, except for naval vessels subject to section 
4275. 
(b) LIMITATIONS
ON TRANSFERS.—The Secretary 
may authorize the transfer of excess defense articles under 
this section only if— 
(1) such articles are drawn from existing stocks 
of the Department of Defense; 
(2) funds available to the Department of De-
fense for the procurement of defense equipment are 
not expended in connection with the transfer; 
(3) the transfer of such articles will not have, 
in the judgment of the Secretary of Defense, an ad-
verse impact on the military readiness of the United 
States; 
(4) with respect to a proposed transfer of such 
articles on a grant basis, such a transfer is pref-
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354 
erable to a transfer on a sales basis, after taking 
into account the potential proceeds from, and likeli-
hood of, such sales, and the comparative foreign pol-
icy benefits that may accrue to the United States as 
the result of a transfer on either a grant or sales 
basis; and 
(5) the transfer of such articles will not have an 
adverse impact on the national technology and in-
dustrial base and, particularly, will not reduce the 
opportunities of entities in the national technology 
and industrial base to sell new or used equipment to 
the countries to which such articles are transferred. 
SEC. 4272. TERMS OF TRANSFERS. 
(a) IN GENERAL.—Excess defense articles may be 
transferred under section 4271 without cost to the recipi-
ent country or international organization. 
(b) WAIVER
OF REQUIREMENT
FOR REIMBURSE-
MENT OF DEPARTMENT OF DEFENSE EXPENSES.—sec-
tion 10505(c) shall not apply with respect to the transfer 
to foreign countries and international organizations of ex-
cess defense articles (including transportation and related 
costs) under section 4271. 
(c) TRANSPORTATION AND RELATED COSTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), funds available to the Department of De-
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355 
fense may not be expended for crating, packing, 
handling, and transportation of excess defense arti-
cles transferred under the authority of section 4271. 
(2) EXCEPTION.—Excess defense articles may 
be transported to a recipient country or inter-
national organization without charge if— 
(A) the Secretary determines that it is in 
the national interest of the United States to do 
so; 
(B) the total weight of the transfer does 
not exceed 50,000 pounds; and 
(C) such transportation is accomplished on 
a space available basis. 
SEC. 4273. ADVANCE NOTIFICATION TO CONGRESS FOR 
TRANSFER OF CERTAIN EXCESS DEFENSE AR-
TICLES. 
(a) IN GENERAL.—The Secretary may not transfer 
excess defense articles that are significant military equip-
ment (as defined in section 4411) or excess defense arti-
cles valued (in terms of original acquisition cost) at 
$10,000,000 or more, under section 4271 until 30 days 
after the date on which the Secretary has provided notice 
of the proposed transfer to the appropriate congressional 
committees in accordance with procedures applicable to re-
programming notifications under section 8401. 
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356 
(b) CONTENTS.—Such notification shall include— 
(1) a statement outlining the purposes for 
which the article is being provided to the country, 
including whether such article has been previously 
provided to such country; 
(2) an assessment of the impact of the transfer 
on the military readiness of the United States; 
(3) an assessment of the impact of the transfer 
on the national technology and industrial base and, 
particularly, the impact on opportunities of entities 
in the national technology and industrial base to sell 
new or used equipment to the countries to which 
such articles are to be transferred; 
(4) a statement describing the current value of 
such article and the value of such article at acquisi-
tion; and 
(5) an assessment, if the article is a small arm 
or light weapon, of the risk that such article or arti-
cle could be illicitly transferred to terrorist or crimi-
nal persons or groups or otherwise used for unau-
thorized purposes. 
SEC. 4274. AGGREGATE ANNUAL LIMITATION. 
The aggregate value of excess defense articles trans-
ferred to countries under section 4271 in any fiscal year 
may not exceed $500,000,000. 
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357 
SEC. 4275. RESTRICTIONS AND CONDITIONS ON TRANS-
FERS OF NAVAL VESSELS. 
(a) IN GENERAL.—A naval vessel that is in excess 
of 3,000 tons or that is less than 20 years of age may 
not be disposed of to a foreign country (whether by sale, 
lease, grant, loan, barter, transfer, or otherwise) unless 
the disposal of that vessel, or of a vessel of the class of 
that vessel, is authorized by law. A lease or loan of such 
a vessel under such a law may be made only in accordance 
with the provisions of this title. In the case of an author-
ization by law for the disposal of such a vessel that names 
a specific vessel as being authorized for such disposal, the 
Secretary of Defense may substitute another vessel of the 
same class, if the vessel substituted has virtually identical 
capabilities as the named vessel. 
(b) COSTS OF TRANSFERS.—Any expense incurred by 
the United States in connection with a transfer authorized 
by this section shall be charged to the recipient (notwith-
standing section 4272(c)). 
(c) REPAIR
AND
REFURBISHMENT
IN
UNITED 
STATES SHIPYARDS.—To the maximum extent prac-
ticable, the Secretary shall require, as a condition of the 
transfer of a vessel covered by this chapter, that the recipi-
ent to which the vessel is transferred have such repair or 
refurbishment of the vessel as is needed, before the vessel 
joins the naval forces of the recipient, performed at a ship-
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358 
yard located in the United States, including a United 
States Navy shipyard. 
CHAPTER 8—COOPERATIVE PROJECT 
AGREEMENTS 
SEC. 4281. AUTHORITY TO ENTER INTO COOPERATIVE 
PROJECT AGREEMENTS. 
(a) AUTHORITY.—The President is authorized to 
enter into a cooperative project agreement with one or 
more foreign countries that is undertaken in order to— 
(1) further the objectives of standardization, ra-
tionalization, and interoperability of the armed 
forces of the foreign country and the United States; 
or 
(2) enhance an ongoing multinational effort of 
the parties to the agreement to improve the conven-
tional defense capabilities of the parties. 
(b) MATTERS TO BE INCLUDED.— 
(1) IN GENERAL.—A cooperative project agree-
ment described in subsection (a) shall provide that 
each of the parties to the agreement will contribute 
to the cooperative project its equitable share of the 
full costs of the cooperative project and will receive 
an equitable share of the results of such cooperative 
project. 
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359 
(2) FULL COSTS DESCRIBED.—The full costs of 
the cooperative project includes overhead costs, ad-
ministrative costs, and costs of claims. 
(3) CONTRIBUTION OF FUNDS OR DEFENSE AR-
TICLES AND DEFENSE SERVICES.—A party to the 
cooperative project agreement described in sub-
section (a) may contribute its equitable share of the 
full cost of the cooperative project in funds or in de-
fense articles or defense services needed for the co-
operative project. 
(4) LIMITATION
ON
ASSISTANCE.—Assistance 
provided under this Act to a foreign country may 
not be used by the foreign country to provide its eq-
uitable share of the full costs of the cooperative 
project under this section. 
(5) LIMITATION
ON
WORKSHARING, ETC.—A 
cooperative project agreement described in sub-
section (a) may not impose a requirement on any 
party to the agreement for worksharing or other in-
dustrial or commercial compensation that is not 
specified in the terms of the agreement. 
SEC. 4282. COSTS. 
The President may enter into contracts or incur other 
obligations for a cooperative project described in section 
4281 on behalf of the other parties to the cooperative 
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project agreement described in section 4281, without 
charge to any appropriation or contract authorization, if 
each of the other parties to the cooperative project agree-
ment 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 dam-
ages and costs that may accrue from the perform-
ance of or cancellation of the contract or other obli-
gation in advance of the time such payments, dam-
ages, or costs are due. 
SEC. 4283. CHARGES. 
(a) IN GENERAL.—The President may reduce or 
waive the charge or charges that would otherwise be con-
sidered appropriate under section 4314 in connection with 
sales under sections 4311 and 4312 if— 
(1) such sales are made as part of a cooperative 
project described in section 4281; and 
(2) the other parties to the cooperative project 
agreement described in section 4281 agree to reduce 
or waive corresponding charges. 
(b) ADMINISTRATIVE
SURCHARGES; REIMBURSE-
MENT.—Notwithstanding 
sections 
4314(a)(1) 
and 
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361 
4402(b), administrative surcharges shall not be increased 
on other sales made under this title 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. 
SEC. 4284. CERTIFICATION. 
Not less than 30 days before a cooperative project 
agreement described in section 4281 is signed on behalf 
of the United States, the President shall transmit to the 
appropriate congressional committees and the Committee 
on Armed Services of the House of Representatives and 
the Committee on Armed Services of the Senate, a num-
bered certification with respect to such proposed agree-
ment, 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 coopera-
tive project, with an estimate of the part of the full 
cost to be incurred by the United States Govern-
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362 
ment, including an estimate of the costs as a result 
of waivers of sections 4314(a)(1) and 4402(b), for 
its participation in such cooperative project and an 
estimate of that part of the full costs to be incurred 
by the other participants; 
(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 de-
fense 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 na-
tional 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. 
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