316 
(G) supporting innovative technology and 
improved data collection to prevent child traf-
ficking, aid in the prosecution of criminals, and 
rescue victims; and 
(H) developing regional cooperative plans 
with neighboring countries to prevent cross-bor-
der trafficking of children and child sex tour-
ism. 
(c) ELIGIBLE COUNTRIES.—A country is eligible for 
a compact if the country— 
(1) is a developing country, in that term is de-
fined in section 1023; 
(2) is a Tier II country or Tier II Watch List 
country; 
(3) has a documented high prevalence of traf-
ficking of children; and 
(4) has demonstrated political will and sus-
tained commitment by the government to undertake 
meaningful measures to address severe forms of 
trafficking of children, including— 
(A) enactment and enforcement of laws 
criminalizing trafficking in children with pun-
ishments commensurate with the crime, includ-
ing, when necessary, against complicit govern-
ment officials; 
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(B) cooperation with local and inter-
national nongovernmental organizations with 
demonstrated expertise in combating the traf-
ficking in children; and 
(C) the treatment of child trafficking vic-
tims in accordance with Article 6(3) of the Pro-
tocol to Prevent, Suppress and Punish Traf-
ficking in Persons, Especially Women and Chil-
dren, Supplementing the United Nations Con-
vention 
Against 
Transnational 
Organized 
Crime. 
SEC. 3403. AUTHORIZATION OF ASSISTANCE. 
(a) IN GENERAL.—The Secretary is authorized to use 
funds made available under this Act for economic assist-
ance to— 
(1) develop a Child Protection Compact between 
the United States and an eligible country under sec-
tion 3402; and 
(2) provide assistance to an eligible entity de-
scribed in subsection (b) to carry out a Child Protec-
tion Compact. 
(b) ELIGIBLE ENTITIES.—In carrying out a Child 
Protection Compact, the Secretary may provide assistance 
to— 
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(1) the national government of the eligible 
country under section 3402; 
(2) regional or local governmental units of an 
eligible country under section 3402; 
(3) a regional or international organization; or 
(4) a nongovernmental organization or a private 
entity with expertise in the protection of vulnerable 
children, the investigation and prosecution of those 
who engage in or benefit from child trafficking, or 
the rescue of child victims of trafficking. 
SEC. 3404. SUSPENSION AND TERMINATION OF ASSIST-
ANCE. 
(a) SUSPENSION
AND TERMINATION
OF ASSIST-
ANCE.—The Secretary shall suspend or terminate assist-
ance under section 3403 in whole or in part for an eligible 
entity under section 3403 if the Secretary determines 
that— 
(1) the entity is engaged in activities that are 
contrary to the national security interests of the 
United States; 
(2) the entity has engaged in a pattern of ac-
tions inconsistent with the criteria used to determine 
the eligibility of the country or entity, as the case 
may be; or 
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319 
(3) the entity has failed to adhere to its respon-
sibilities under the Child Protection Compact. 
(b) REINSTATEMENT.—The Secretary may reinstate 
assistance that has been suspended or terminated under 
subsection (a) only if the Secretary determines that the 
entity has demonstrated a commitment to correcting each 
condition for which assistance was suspended or termi-
nated. 
(c) CONGRESSIONAL NOTIFICATION.—Not later than 
3 days after the date on which the Secretary suspends or 
terminates assistance under subsection (a) for an entity, 
or reinstates assistance under subsection (b) for an entity, 
the Secretary shall submit to the appropriate congres-
sional committees a report that contains the determination 
of the Secretary under subsection (a) or subsection (b), 
as the case may be. 
SEC. 3405. CONGRESSIONAL NOTIFICATION. 
(a) PRIOR CONSULTATION.—Not later than 15 days 
prior to the start of negotiations of a Child Protection 
Compact with a country, the Ambassador shall consult 
with the appropriate congressional committees. 
(b) CONGRESSIONAL NOTIFICATION.—Not later than 
10 days after entering into a Child Protection Compact 
with a country, the Ambassador shall notify the appro-
priate congressional committees, and shall provide a de-
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tailed summary of the Compact and a copy of the text 
of the Compact. 
(c) MONITORING AND EVALUATION.—The Ambas-
sador shall ensure that regular monitoring reports for 
each compact are prepared and made available to the ap-
propriate congressional committees, and that an inde-
pendent impact evaluation is conducted upon the comple-
tion of a compact. 
SEC. 3406. DEFINITIONS. 
In this subtitle: 
(1) AMBASSADOR.—The term ‘‘Ambassador’’ 
means the Ambassador-at-Large of the Department 
of State’s Office to Monitor and Combat Trafficking 
in Persons. 
(2) CHILD PROTECTION.—The term ‘‘child pro-
tection’’ means efforts to prevent and respond to vio-
lence, exploitation, and abuse against children. 
(3) COMPACT.—The term ‘‘Child Protection 
Compact’’ or ‘‘Compact’’ means a Child Protection 
Compact described in section 3402. 
(4) SEVERE
FORMS
OF
TRAFFICKING.—The 
term ‘‘severe forms of trafficking in persons’’ 
means— 
(A) sex trafficking in which a commercial 
sex act is induced by force, fraud, or coercion, 
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or in which the person induced to perform such 
act has not attained 18 years of age; or 
(B) the recruitment, harboring, transpor-
tation, provision, or obtaining of a person for 
labor or services, through the use of force, 
fraud, or coercion for the purpose of subjection 
to involuntary servitude, peonage, debt bondage, 
or slavery. 
(5) TIER II COUNTRIES AND TIER II WATCH 
LIST COUNTRIES.—The terms ‘‘Tier II countries’’ 
and ‘‘Tier II Watch List countries’’ mean those 
countries designated by the Secretary as not meeting 
minimum standards for the elimination of traf-
ficking. 
TITLE IV—BUILDING AND REIN-
FORCING STRATEGIC PART-
NERSHIPS 
SEC. 4001. FINDINGS. 
Congress finds the following: 
(1) The ultimate goal of the United States con-
tinues to be a world which is free from the scourge 
of war and the dangers and burdens of armaments, 
in which the use of force has been subordinated to 
the rule of law, and in which international adjust-
ments to a changing world are achieved peacefully. 
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(2) In furtherance of that goal, it remains the 
policy of the United States to encourage regional 
arms control and disarmament agreements; discour-
age arms races; and encourage restraint in the pro-
vision of armaments, especially small arms and light 
weapons and advanced conventional weapons, to 
countries in regions of instability. 
(3) The efforts of the United States and other 
friendly countries to promote peace and security con-
tinue to require measures of support based upon the 
principle of effective self-help and mutual aid. 
(4) The peace of the world and the security of 
the United States are endangered so long as hostile 
countries continue by threat of military action, by 
the use of economic pressure, by their active or per-
missive support of terrorists, terrorist organizations 
and extremism, and by internal subversion, or other 
means to attempt to undermine the peace, security, 
human rights, political freedoms, civil rights, or 
prosperity of others. 
(5) Peace and security for all is endangered by 
the failure of countries to live up to their sovereign 
responsibilities to protect civilian populations from 
violence, reduce terrorism, halt the spread of dan-
gerous materials, and control transnational crime. 
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323 
(6) It is in the interest of the United States to 
help foreign countries build capable and accountable 
military, police, customs, and other security forces, 
under civilian democratic control, in order to exer-
cise their sovereign responsibilities. 
(7) Extreme poverty and underdevelopment are 
threats to peace. The provision of foreign assistance 
under this title to developing countries must take 
into account how the foreign assistance will affect 
such countries’ social and economic development and 
whether the foreign assistance is diverting resources 
away from development efforts that meet basic needs 
of the population and address root causes of insta-
bility. 
(8) Weapons and weapons systems are not and 
should not be considered to be normal commodities 
for international trade, and the United States should 
permit such sales only to the extent that such sales 
directly support United States foreign policy and na-
tional security objectives. 
(9) Foreign assistance under this title should 
not be provided if such foreign assistance will like-
ly— 
(A) contribute to an arms race or regional 
instability; 
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(B) increase the possibility of outbreak or 
escalation of conflict, either within or across the 
borders of the recipient country; 
(C) support international terrorism; 
(D) prejudice the development of bilateral 
or multilateral arms control arrangements; 
(E) adversely affect the arms control or 
nonproliferation policy of the United States; 
(F) be in excess to the legitimate defense 
needs of the recipient country in terms of the 
actual threats to its national security it faces; 
or 
(G) undermine the objectives and purposes 
to promote and protect human rights and de-
mocracy under title III. 
SEC. 4002. STATEMENT OF POLICY. 
It is the policy of the United States— 
(1) to promote the peace of the world and the 
foreign policy, security, and general welfare of the 
United States by fostering an improved climate of 
security, political independence and individual lib-
erty, improving the ability of friendly countries and 
international organizations to deter or, if necessary, 
defeat aggression in whatever form, facilitating ar-
rangements for individual and collective security, as-
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325 
sisting friendly countries to provide for their legiti-
mate defense needs, and creating an environment of 
security and stability in the developing friendly 
countries essential to their more rapid social, eco-
nomic, and political progress; 
(2) to exert leadership in the world community 
to bring about arrangements for reducing the inter-
national trade in implements of war and to lessen 
the danger of outbreak of regional conflict and the 
burdens of armaments; 
(3) to exert maximum efforts to achieve uni-
versal control of weapons of mass destruction, the 
securing and control of the means to produce and 
deliver them, and universal regulation and reduction 
of armaments, including armed forces, under ade-
quate safeguards to protect complying countries 
against violation, aggression, and invasion; 
(4) to administer United States programs for or 
procedures governing the export, sale, and grant of 
defense articles and defense services to foreign coun-
tries and international organizations in a manner 
consistent with the goals described in section 4003; 
(5) to achieve international peace and security 
through the United Nations and the diplomatic set-
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tlement of disputes so that armed force shall not be 
used except for individual or collective self-defense; 
(6) to encourage all other countries to join in 
a common undertaking to meet the goals described 
in section 4003; and 
(7) to give priority for the provision of foreign 
assistance under this title to the needs of those 
countries in danger of becoming victims of aggres-
sion, terrorism, or intimidation by conventional or 
non-conventional military means. 
SEC. 4003. GOALS OF ASSISTANCE. 
(a) IN GENERAL.—The provision of foreign assist-
ance under this title to any country or organization shall 
be furnished solely to achieve the following goals: 
(1) To improve the ability of the country or or-
ganization to meet its legitimate defense and inter-
nal security needs. 
(2) To assist and encourage the country or or-
ganization to recognize and effectively address prob-
lems that threaten United States security, including 
terrorism, proliferation of weapons and dangerous 
technologies, environmental destruction, the spread 
of deadly disease, and transnational crime. 
(3) To protect civilian populations from vio-
lence, including criminal violence. 
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(4) To permit the country or organization to 
participate in regional or collective arrangements or 
measures requested by the United Nations, or con-
sistent with the Charter of the United Nations, for 
the purpose of maintaining or restoring international 
peace and security. 
(5) To increase the professionalization, trans-
parency, accountability, humanitarian and disaster 
response capacity, or human rights record of the se-
curity forces of the country or organization, and the 
effective control of such security forces by civilian 
democratic authorities. 
(6) To promote a social, economic, and political 
environment conducive to stable peace in the country 
or region. 
(b) BIENNIAL REVIEW AND REPORT.— 
(1) REVIEW.—In carrying out the requirements 
of section 9201 with respect to security assistance, 
the Secretary shall, for each country to which such 
assistance is provided— 
(A) review the extent to which such assist-
ance is achieving the goals of subsection (a); 
(B) review the impact of such assistance 
on internationally recognized human rights; and 
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(C) incorporate the results of such review 
into decisions regarding the provision and de-
sign of security assistance. 
(2) BIENNIAL REPORT.—Not later than 2 years 
after the date of the enactment of this Act, and 
every 2 years thereafter, the President shall submit 
to the appropriate congressional committees a report 
on the result of the review required under paragraph 
(1) and the steps taken to incorporate the results of 
such review into security assistance decisionmaking. 
Subtitle A—Economic Support 
Fund 
SEC. 4101. FINDINGS AND STATEMENT OF POLICY. 
(a) FINDINGS.—Congress finds the following: 
(1) Conflict, violence, anarchy, and instability, 
fueled by problems such as tyranny and oppression, 
corruption and financial mismanagement, ethnic and 
religious discrimination and discord, competition 
over resources, and other sources of tension, are 
among the greatest threats to United States national 
security. 
(2) Terrorism and violent extremism undermine 
the stability and survival of states, the protection of 
democratic freedoms, the vitality of economies and 
markets, and the lives of civilian populations. 
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329 
(3) United States leadership is essential to 
countering terrorism and violent extremism, fos-
tering political and economic stability, and reaching 
comprehensive, just and lasting peace agreements. 
(4) To reduce the need for military force, the 
United States must develop and maintain a broad 
range of efficient and effective diplomatic and eco-
nomic tools to promote peaceful resolution of conflict 
and to prevent the collapse of weak and fragile 
states. 
(5) Efforts to promote international peace and 
stability are most effective when undertaken on a 
multilateral basis, in concert with strategic partners. 
(6) Prudent investment of United States re-
sources to assist, through bilateral and collective ef-
forts, in preventing or containing armed conflict, in 
restoring peace and stability, and in addressing the 
sources of conflict, is essential for achieving a peace-
ful world. 
(7) While stability is a necessary precursor to 
long-term development, stabilization programming 
often has different objectives, beneficiaries, modali-
ties, and measurement tools than long-term develop-
ment programming, and should be justified, budg-
eted, and evaluated according to different criteria. 
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330 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States to deepen engagement with close allies and 
partners, and to develop relations with new partners, to 
prevent violent conflict, resolve underlying grievances fair-
ly, and build sustainable peace. 
SEC. 4102. GOAL AND OBJECTIVES. 
(a) GOAL.—The goal of foreign assistance under this 
subtitle is to expand strategic partnerships to prevent vio-
lent conflict, resolve underlying grievances fairly, and 
build sustainable peace. 
(b) OBJECTIVES.—In furtherance of the goal de-
scribed in subsection (a), foreign assistance under this 
subtitle shall be designed to achieve the following objec-
tives: 
(1) Promoting and supporting peace agree-
ments. 
(2) Increasing economic and political stability. 
(3) Facilitating participation in collective diplo-
matic and security efforts. 
(4) Strengthening democratic governance. 
SEC. 4103. ECONOMIC SUPPORT FUND. 
(a) AUTHORIZATION.—The President is authorized to 
provide foreign assistance under this subtitle to countries 
and organizations, on such terms and conditions as the 
President may determine, in order to achieve the goal and 
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objectives of this subtitle. Such foreign assistance shall be 
known as ‘‘Economic Support Fund’’ assistance. 
(b) RELATIONSHIP
TO
DEVELOPMENT
ASSIST-
ANCE.—Foreign assistance under this subtitle— 
(1) should be designed to complement assist-
ance under title I and should be linked with subse-
quent medium-term and long-term development pro-
grams; 
(2) shall be provided, to the maximum extent 
feasible, consistent with the policy directions, pur-
poses, and programs of title I; and 
(3) is authorized to be provided for countries in 
amounts that could not be justified solely under as-
sistance under title I. 
(c) ROLE OF THE SECRETARY.—The Secretary shall 
be responsible for policy decisions and justifications for 
foreign assistance under this subtitle, including determina-
tions of whether to provide foreign assistance to a country 
or organization and the amount of such foreign assistance. 
The Secretary shall exercise this responsibility in coordi-
nation with the Administrator. 
(d) INFORMATION TO BE PROVIDED.—The annual 
congressional budget justification required under section 
9302 and the database required under section 9301 shall 
include information concerning the amounts and kinds of 
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(c) USE OF FUNDS.—Funds placed into a separate 
account pursuant to subsection (b) may be obligated and 
expended notwithstanding commodity restrictions (as de-
fined in section 11001). 
Subtitle B—Security Partnerships 
CHAPTER 1—GENERAL AUTHORITIES 
SEC. 4211. AUTHORIZATION OF ASSISTANCE. 
(a) AUTHORIZATION.— 
(1) IN GENERAL.—The President is authorized 
to provide foreign assistance under this subtitle to 
any country or organization that is eligible to receive 
such assistance in order to promote security in the 
country or region. 
(2) TERMS AND CONDITIONS.—The President 
may provide foreign assistance under this subtitle on 
such terms and conditions as the President may de-
termine. 
(b) TYPES
OF ASSISTANCE.—Assistance provided 
under subsection (a) includes— 
(1) acquiring from any source and providing by 
grant any defense article or defense service; 
(2) assigning or detailing members of the 
United States Armed Forces and other personnel of 
the Department of Defense, the Department of 
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334 
State, or any other Federal agency, to perform du-
ties of a non-combatant nature; or 
(3) transferring such amounts made available 
under this title as the President may determine for 
assistance to the country or organization to the ac-
count in which amounts for the procurement of de-
fense articles and defense services under section 
4311 and section 4312 have been deposited for the 
country or organization, to be merged with such de-
posited funds, and to be used solely to meet obliga-
tions of the country or organization for payment for 
sales of defense items and services under this title. 
(c) EXCLUSION OF CERTAIN COSTS.—Sales that are 
wholly paid from funds transferred under subsection 
(b)(3) or from funds made available on a non-repayable 
basis under section 4311 shall be priced to exclude the 
costs of salaries of members of the United States Armed 
Forces (other than the Coast Guard). 
SEC. 4212. CONDITIONS OF ASSISTANCE. 
(a) IN GENERAL.—Consistent with the requirements 
of sections 4361 and 4362, foreign assistance authorized 
under this subtitle, including defense articles, defense 
services, or related training, may be provided to any coun-
try or organization if the country or organization (as the 
case may be) has agreed that— 
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(1) it will not transfer title to, or possession or 
use of, any defense article, defense service, or related 
training so provided to it, or produced pursuant to 
a cooperative project agreement, to anyone who is 
not an officer, employee, or agent of the country or 
organization (as the case may be) or the specific 
member countries (other than the United States) in 
the case of a cooperative project agreement, without 
the prior consent of the President; 
(2) it will maintain the security of such articles, 
services, or related training and will provide substan-
tially the same degree of security protection afforded 
to such articles, services, or related training by the 
United States Government; 
(3) it will, as the President may require, permit 
continuous observation and review by, and provide 
necessary information to, representatives of the 
United States Government with regard to the use of 
such articles, services, or related training; and 
(4) unless the President consents to other dis-
position, it will return to the United States Govern-
ment for such use or disposition as the President 
considers in the best interests of the United States, 
such articles, services, or related training which are 
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no longer needed for the purposes for which pro-
vided. 
(b) CERTIFICATION.— 
(1) IN GENERAL.—The Secretary may not give 
consent under section 4361 to the retransfer of any 
defense article or defense service that would be, if it 
were a sale, subject to the requirements of section 
4382 (regarding congressional certification of sen-
sitive foreign military sales and agreements), unless 
the Secretary submits to the appropriate congres-
sional committees a written certification with respect 
to such proposed retransfer containing— 
(A) the name of the country or organiza-
tion proposing to make such retransfer; 
(B) a description of such article or service 
proposed to be retransferred, including its ac-
quisition cost; 
(C) the name of the proposed recipient of 
such article or service; 
(D) the reasons for such proposed re-
transfer; and 
(E) the date on which such retransfer is 
proposed to be made. 
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(2) FORM.—Any certification submitted to the 
appropriate congressional committees pursuant to 
paragraph (1)— 
(A) shall be submitted in unclassified form, 
except that information regarding the dollar 
value and number of defense articles or defense 
services proposed to be retransferred may be 
submitted in classified form if public disclosure 
thereof would be clearly detrimental to the secu-
rity of the United States; and 
(B) shall be subject to the requirements of 
sections 4384. 
(3) EXCEPTION.—Paragraph (1) shall not 
apply to an export that has been exempted from the 
licensing requirements of this title pursuant to an 
agreement pursuant to section 4341. 
(c) 
EXCEPTION
FOR
INCORPORATED
COMPO-
NENTS.—The consent of the President under subsection 
(a)(1) shall not be required for the transfer by a foreign 
country or international organization of defense articles 
sold by the United States under this Act if— 
(1) such articles constitute components incor-
porated into foreign defense articles; 
(2) the recipient is the government of a stra-
tegic United States ally; 
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(3) the recipient is not a country designated 
under section 10401; 
(4) the United States-origin components are 
not— 
(A) significant military equipment; 
(B) defense articles for which notification 
to Congress is required under section 4382; and 
(C) identified by regulation as Missile 
Technology Control Regime items; and 
(5) the foreign country or international organi-
zation provides notification of the transfer of the de-
fense articles to the United States Government not 
later than 30 days after the date of such transfer. 
SEC. 4213. PROHIBITION FOR MISUSE OF UNITED STATES 
ASSISTANCE. 
(a) PROHIBITION.—No foreign assistance may be 
provided under this subtitle, subtitle C, or any predecessor 
Act to any country or organization if the Secretary has 
credible information the country or organization (as the 
case may be) uses or has used assistance, including de-
fense articles or defense services, provided under this title 
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 
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agreement entered into pursuant to this title or any such 
Act— 
(1) by using such articles or services for a pur-
pose not authorized under section 4301 or, if such 
agreement provides that such articles or services 
may only be used for purposes more limited than 
those authorized under section 4301, for a purpose 
not authorized under such agreement; or 
(2) by transferring such articles or services to, 
or permitting any use of such articles or services by, 
anyone not an officer, employee, or agent of the 
country or organization without the prior consent of 
the United States; or 
(3) by failing to maintain the security of such 
articles or services, including attempts to obtain 
classified or proprietary information or technology 
from such articles or services. 
(b) CONGRESSIONAL NOTIFICATION.— 
(1) IN GENERAL.—The Secretary shall notify 
the appropriate congressional committees promptly 
upon the receipt of credible information that a coun-
try or organization may have committed a violation 
described in subsection (a), and what actions are 
being taken to implement the prohibition under that 
subsection. The President shall ensure that the ap-
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340 
propriate United States Government departments 
and agencies provide to the Secretary without delay 
any and all information relating to a violation de-
scribed in subsection (a). 
(2) TIMING.—The notification required under 
paragraph (1) with respect to a country or organiza-
tion shall occur before a certification required under 
chapter 6 of subtitle C relating to a proposed export 
of a defense article or defense service to the country 
or organization. 
(c) REINSTATEMENT.—The prohibition on assistance 
under subsection (a) shall cease to be effective for any 
country or organization if the Secretary determines and 
notifies the appropriate congressional committees that— 
(1) the violation for which the prohibition was 
imposed has ceased; 
(2) the country or organization (as the case 
may be) has given assurances satisfactory to the 
Secretary that the violation will not recur; and 
(3) the country or organization (as the case 
may be) has taken sufficient steps to prevent a re-
currence of any similar violation; or 
(4) the Secretary has determined that the viola-
tion did not in fact occur. 
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(d) WAIVER.—The Secretary may waive the prohibi-
tion on assistance under subsection (a) for any country 
or organization if the Secretary determines and notifies 
the appropriate congressional committees that such prohi-
bition on assistance would have a significant adverse im-
pact on the security of the United States. 
(e) REVIEW AND REPORT.— 
(1) REVIEW.—Not later than 180 days after 
the date of the enactment of this Act, and every 3 
years thereafter, the Inspector General of the De-
partment of State shall conduct a review of inves-
tigations by the Department of State of any and all 
possible occasions of misuse of defense articles and 
defense services by countries and organizations to 
determine whether the Department of State has 
fully complied with the requirements of this section, 
as well as with the Department of State’s internal 
procedures (and whether such procedures are ade-
quate), for reporting to Congress any information 
regarding the unlawful use or transfer of defense ar-
ticles and defense services by such countries and or-
ganizations. 
(2) REPORT.—The Inspector General of the 
Department of State shall submit to the appropriate 
congressional committees for each of fiscal years 
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2014 through 2017 a report that contains the find-
ings and results of the review conducted under para-
graph (1). The report shall be submitted in unclassi-
fied form to the maximum extent possible, but may 
include a classified annex. 
CHAPTER 2—DRAWDOWN AUTHORITY 
SEC. 4221. AUTHORIZATION OF EMERGENCY ASSISTANCE. 
(a) AUTHORIZATION.—If the President determines 
that— 
(1) an unforeseen emergency exists which re-
quires the immediate provision of assistance author-
ized under this subtitle to a country or organization, 
and 
(2) the emergency requirement cannot be met 
under the authority of any other provision of law ex-
cept this section, 
the President may direct, in order to meet the goals de-
scribed in section 4003, the drawdown of articles and serv-
ices, including training, from any Federal agency of an 
aggregate value of not to exceed $250,000,000 in any fis-
cal year. 
(b) CONGRESSIONAL NOTIFICATION.—The President 
may exercise the authority of subsection (a) with respect 
to an emergency described in subsection (a) only if the 
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343 
President first notifies the appropriate congressional com-
mittees. 
SEC. 4222. AUTHORIZATION OF NON-EMERGENCY ASSIST-
ANCE. 
(a) IN GENERAL.—If the President determines that 
it is in the national interest of the United States to draw-
down articles and services from the inventory and re-
sources of any Federal agency, including military edu-
cation and training from the Department of Defense, the 
President may direct the drawdown of such articles, serv-
ices, and military education and training— 
(1) for purposes of providing foreign assistance, 
as administered by the Department of State, under 
this Act; 
(2) for purposes of providing assistance under 
the Migration and Refugee Assistance Act of 1962; 
or 
(3) to support cooperative efforts with Vietnam, 
Cambodia, or Laos to locate and repatriate members 
of the United States Armed Forces and civilians em-
ployed directly or indirectly by the United States 
Government who remain unaccounted for from the 
Vietnam War, including for purposes of— 
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344 
(A) ensuring the safety of United States 
Government personnel engaged in such coopera-
tive efforts; and 
(B) supporting Department of Defense- 
sponsored humanitarian projects associated 
with such efforts. 
(b) LIMITATION.—An aggregate value of not to ex-
ceed $250,000,000 in any fiscal year of such articles, serv-
ices, and military education and training may be provided 
pursuant to subsection (a). 
(c) NOTIFICATION.—The authority contained in this 
section shall be effective for any such drawdown only upon 
notification to the appropriate congressional committees 
at least 15 days prior to such drawdown in accordance 
with the procedures applicable to reprogramming notifica-
tions. 
SEC. 4223. COMMERCIAL TRANSPORTATION AND RELATED 
SERVICES. 
For purposes of this chapter, a drawdown of articles 
or services may include the supply of commercial transpor-
tation and related services that are acquired by contract 
for the purposes of the drawdown in question if the cost 
to acquire such commercial transportation and related 
services is less than the cost to the United States Govern-
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345 
ment of providing such services from existing assets of the 
applicable Federal agency. 
SEC. 4224. REPORT. 
(a) IN GENERAL.—The Secretary shall keep the ap-
propriate congressional committees fully and currently in-
formed of assistance provided to a country or organization 
under this chapter, including by submitting to the appro-
priate congressional committees a report describing such 
assistance delivered to each country or organization upon 
delivery of such articles or upon completion of such serv-
ices or education and training. 
(b) PUBLICATION ON WEBSITE.—The Secretary shall 
publish each report required under subsection (a) on the 
Internet website of the Department of State upon submis-
sion of the report to the appropriate congressional com-
mittees. 
CHAPTER 3—LOANS OF DEFENSE 
ARTICLES 
SEC. 4231. LOAN REQUIREMENTS. 
In addition to such other terms and conditions as the 
President may determine pursuant to section 4211, de-
fense articles and defense services may be loaned under 
such section only if— 
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(1) there is a bona fide reason, other than the 
shortage of funds, for providing such articles on a 
loan basis rather than on a grant basis; 
(2) there is a reasonable expectation that such 
articles will be returned to the Federal agency mak-
ing the loan at the end of the loan period unless the 
loan is then renewed; 
(3) the loan period is of fixed duration not ex-
ceeding five years, during which such article may be 
recalled for any reason by the United States; 
(4) the agency making the loan is reimbursed 
for the loan according to the provisions of section 
4232; and 
(5) the loan agreement provides that— 
(A) if the defense article is damaged while 
on loan, the country or organization to which it 
was loaned will reimburse the United States for 
the cost of restoring or replacing the defense 
article; and 
(B) if the defense article is lost or de-
stroyed while on loan, the country or organiza-
tion to which it was loaned will pay to the 
United States an amount equal to the replace-
ment cost (less any depreciation in the value) of 
the defense article. 
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347 
SEC. 4232. COST OF LOANS. 
(a) IN GENERAL.—In the case of any loan of a de-
fense article or defense service made under section 4211, 
there shall be a charge to the appropriation for security 
assistance for any fiscal year while such article or service 
is on loan in an amount based on— 
(1) the out-of-pocket expenses authorized to be 
incurred in connection with such loan during such 
fiscal year; and 
(2) the depreciation which occurs during such 
year while such article is on loan. 
(b) INAPPLICABILITY.—The provisions of this chap-
ter shall not apply to any defense article or defense serv-
ice, or portion thereof, acquired with funds made available 
for assistance under this title. 
CHAPTER 4—STOCKPILING OF DEFENSE 
ARTICLES 
SEC. 4241. GENERAL AUTHORITY. 
(a) IN GENERAL.—The President is authorized to set 
aside, reserve, or otherwise earmark defense articles in the 
inventory of the Department of Defense, consistent with 
the provisions of this Act, for future use by any foreign 
country that is a strategic United States ally. 
(b) NOTIFICATION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), not later than 15 days before making a 
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348 
defense article that has been set aside, reserved, or 
otherwise earmarked under the authority of this sec-
tion made available to or for use by a foreign coun-
try described in subsection (a), the President shall 
transmit a notification of the proposed transfer to 
the appropriate congressional committees and to the 
Committees on Armed Services of the House of Rep-
resentatives and the Senate. The notification shall 
identify the items to be transferred and the conces-
sions to be received. 
(2) EXCEPTION.—If the President determines 
that an emergency exists that requires making a de-
fense article available to a foreign country described 
in subsection (a), the President is authorized to 
make such defense article available immediately 
upon notification to the appropriate congressional 
committees. The President shall set forth the rea-
sons for determining that such an emergency exists 
that warrants the immediate use of this authority. 
(c) RULE OF CONSTRUCTION.—No defense article 
transferred from any stockpile which is made available to 
or for use by any foreign country under this section may 
be considered an excess defense article for the purpose of 
determining the value thereof. 
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349 
SEC. 4242. VALUE OF DEFENSE ARTICLES. 
(a) IN GENERAL.—The value of defense articles to 
be set aside, reserved, or earmarked or intended for use 
under this chapter in stockpiles located in foreign coun-
tries may not exceed $300,000,000 for a fiscal year, of 
which up to $200,000,000 may be made available for 
stockpiles in the State of Israel. 
(b) VALUE DEFINED.—For purposes of this section, 
the term ‘‘value’’ means the acquisition cost plus crating, 
packing, handling, and transportation costs incurred in 
carrying out section 4241. 
CHAPTER 5—FOREIGN MILITARY 
FINANCING 
SEC. 4251. GENERAL AUTHORITY. 
The President is authorized to finance the procure-
ment of defense articles, defense services, and design and 
construction services by foreign countries and inter-
national organizations, on such terms and conditions as 
the President may determine consistent with the require-
ments of this chapter. 
SEC. 4252. RULE OF CONSTRUCTION. 
References in any law to credits extended under this 
chapter or section 21 of the Arms Export Control Act 
shall be deemed to include reference to participations in 
credits. 
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350 
SEC. 4253. AUDITS. 
For each fiscal year, the Secretary of Defense, as re-
quested by the Director of the Defense Security Assistance 
Agency, shall conduct audits on a nonreimbursable basis 
of private firms that have entered into contracts with 
countries or organizations under which defense articles, 
defense services, or design and construction services are 
to be procured by such firms for such countries or organi-
zations from financing under this chapter. 
SEC. 4254. CASH FLOW FINANCING. 
The Secretary may approve cash flow financing for 
Israel and Egypt for the procurement of defense articles, 
defense services, or design and construction services in ex-
cess of $100,000,000. 
CHAPTER 6—INTERNATIONAL MILITARY 
EDUCATION AND TRAINING 
SEC. 4261. PURPOSE. 
The purpose of this chapter is to provide military 
education and training activities under this chapter that 
are designed— 
(1) to encourage effective and mutually bene-
ficial relations and increased understanding between 
the United States and foreign countries in further-
ance of the goals of international peace and security; 
(2) to improve the ability of foreign countries to 
utilize their resources, including defense articles and 
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351 
defense services obtained by such countries from the 
United States, with maximum effectiveness, thereby 
contributing to greater self-reliance by such coun-
tries; and 
(3) to increase the awareness of nationals of 
foreign countries participating in such activities of 
basic issues involving respect and observance of 
internationally recognized human rights, the impor-
tance of civilian oversight and authority over secu-
rity and national defense forces, and of account-
ability of defense personnel to civilian governments 
and courts. 
SEC. 4262. MILITARY EDUCATION AND TRAINING FOR FOR-
EIGN MILITARY AND DEFENSE PERSONNEL. 
(a) AUTHORITY.—The Secretary is authorized to pro-
vide, on such terms and conditions as the Secretary may 
determine, military education and training to foreign mili-
tary and defense personnel. 
(b) REQUIREMENTS.—Professional military edu-
cation and training provided under subsection (a) shall be 
designed to— 
(1) contribute to greater cooperation between 
the United States and the government of such for-
eign military and defense personnel on United States 
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352 
counternarcotics, counterterrorism, or counterpro-
liferation efforts; and 
(2) foster greater respect for, and under-
standing of— 
(A) democracy and the rule of law, includ-
ing the principle of civilian control of the mili-
tary; and 
(B) 
internationally 
recognized 
human 
rights. 
(c) SELECTION OF PARTICIPANTS.—The selection of 
foreign military and defense personnel for training under 
this chapter shall be made in consultation with the Sec-
retary of Defense. 
(d) FOREIGN MILITARY AND DEFENSE PERSONNEL 
DEFINED.—In this section, the term ‘‘foreign military and 
defense personnel’’ means members of the armed forces 
and civilian personnel of the defense ministry of a foreign 
country. 
SEC. 4263. MILITARY EDUCATION AND TRAINING FOR FOR-
EIGN CIVILIAN PERSONNEL. 
(a) AUTHORITY.—The Secretary is authorized to pro-
vide, on such terms and conditions as the Secretary may 
determine, military education and training to foreign civil-
ian personnel, if such military education and training 
would contribute to— 
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353 
(1) civilian, democratic control of the military; 
(2) responsible defense resource management; 
(3) cooperation between military and law en-
forcement personnel with respect to counter-
narcotics, counterterrorism, or counterproliferation 
activities; or 
(4) improved military justice systems and pro-
cedures in accordance with internationally recog-
nized human rights. 
(b) FOREIGN CIVILIAN PERSONNEL DEFINED.—In 
this section, the term ‘‘foreign civilian personnel’’ includes 
legislators, representatives of civil society, and foreign gov-
ernmental personnel of ministries other than ministries of 
defense. 
SEC. 4264. LOCATIONS OF INSTRUCTION. 
Military education and training activities carried out 
under this chapter may be provided through— 
(1) attendance at military educational and 
training facilities in the United States (other than 
Service academies) and abroad; 
(2) attendance in special courses of instruction 
at schools and institutions of learning or research in 
the United States and abroad; and 
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354 
(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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355 
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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356 
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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357 
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 11505(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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358 
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 9401. 
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(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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360 
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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361 
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. 
VerDate Mar 15 2010 
00:27 Dec 18, 2012
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