An act to authorize supplemental international security assistance for the fiscal year 1979 in support of the peace treaty between Egypt and Israel, and for other purposes.
PL 96-35 (S.1007), enacted 07/20/1979

PUBLIC LAW 96-35—JULY 20, 1979 
93 STAT. 89 
Public Law 96-85 
96th Congress 
An Act 
To authorize supplementsil international security assistance for the fiscal year 
1979 in support of the peace treaty between Egypt and Israel, and for other 
purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Special International 
Security Assistance Act of 1979". 
STATEMENT OF POLICY AND FINDINGS 
SEC. 2. (a) It is the policy of the United States to support the peace 
treaty concluded between the Government of Egypt and the Govern-
ment of Israel on March 26, 1979. This treaty is a significant step 
toward a full and comprehensive peace in the Middle East. The 
Congress urges the President to continue to exert every effort to bring 
about a comprehensive peace and to seek an end by all parties to the 
violence which could jeopardize this peace. 
(b) The peace treaty between Egypt and Israel having been ratified, 
the Congress finds that the national interests of the United States are 
served— 
(1) by authorizing the President to construct air bases in Israel 
to replace the Israeli air bases on the Sinai peninsula that are to 
be evacuated; 
(2) by authorizing additional funds to finance procurements by 
Egypt and Israel through the fiscal year 1982 of defense articles 
and defense services for their respective security requirements; 
and 
(3) by authorizing additional funds for economic assistance for 
Egypt in order to promote the economic stability and develop-
ment of that country and to support the peace process in the 
Middle East. 
(c) The authorities contained in this Act to implement certain 
arrangements in support of the peace treaty between Egypt and 
Israel do not signify approval by the Congress of any other agree-
ment, understanding, or commitment made by the executive branch. 
CONSTRUCTION OF AIR BASES IN ISRAEL 
SEC. 3. Part II of the Foreign Assistance Act of 1961 is amended by 
adding at the end thereof the following new chapter: 
"CHAPTER 7—AIR BASE CONSTRUCTION IN ISRAEL 
"SEC. 561. GENERAL AUTHORITY.—The President is authorized— 
"(1) to construct such air bases in Israel for the Government of 
Israel as may be agreed upon between the Government of Israel 
July 20. 1979 
[S. 1007] 
Specied 
International 
Security 
Assistcmce Act of 
1979. 
22 u s e 3401 
note. 
22 u s e 3401. 
22 u s e 2349. 
93 STAT. 90 
PUBLIC LAW 96-35—JULY 20, 1979 
22 u s e 2349a. 
Obligations and 
contracts. 
22 u s e 2751 
note. 
22 u s e 2349b. 
22 u s e 2393. 
22 u s e 2396. 
and the Government of the United States to replace the Israeli 
air bases located at Etzion and Etam on the Sinai peninsula that 
are to be evacuated by the Government of Israel; and 
"(2) for purposes of such construction, to furnish as a grant to 
the Government of Israel, on such terms and conditions as the 
President may determine, defense articles and defense services, 
which he may acquire from any source, of a value not to exceed 
the amount appropriated pursuant to section 562(a). 
"SEC. 562. AUTHORIZATION AND UTILIZATION OF FUNDS.—(a) There is 
authorized to be appropriated to the President to carry out this 
chapter not to exceed $800,000,000, which may be made available 
until expended. 
"Qj) Upon agreement by the Government of Israel to provide to the 
Government of the United States funds equal to the difference 
between the amount required to complete the agreed construction 
work and the amount appropriated pursuant to subsection (a) of this 
section, and to make those funds available, in advance of the time 
when payments are due, in such amounts and at such times as may be 
required by the Government of the United States to meet those 
additional costs of construction, the President may incur obligations 
and enter into contracts to the extent necessary to complete the 
agreed construction work, except that this authority shall be effective 
only to such extent or in such amounts as are provided in advance in 
appropriation Acts. 
"(c) Funds made available by the Government of Israel pursuant to 
subsection O
t
>
) of this section may be credited to the appropriation 
account established to carry out the purposes of this section for the 
payment of obligations incurred and for refund to the Government of 
Israel if they are unnecessary for that purpose, as determined by the 
President. Credits and the proceeds of guaranteed loans made availa-
ble to the Government of Israel pursuant to the Arms Export Control 
Act, as well as any other source of financing available to it, may hn 
used by Israel to carry out its undertaking to provide such additional 
funds. 
"SEC. 563. WAIVER AUTHORITIES.—(a) It is the sense of the Congress 
that the President should take all necessary measures consistent 
with law to insure the efficient and timely completion of the construc-
tion authorized by this chapter, including the exercise of authority 
vested in him by section 633(a) of this Act. 
"(b) The provisions of paragraph (3) of section 636(a) of this Act 
shall be applicable to the use of funds available to carry out this 
chapter, except that no more than sixty persons may be engaged at 
any one time under that paragraph for purposes of this chapter.". 
22 u s e 3402. 
22 u s e 2776. 
22 u s e 2771. 
SUPPLEMENTAL AUTHORIZATION OF FOREIGN MILITARY SALES LOAN 
GUARANTIES FOR EGYPT AND ISRAEL 
SEC. 4- (a) The Congress finds that the legitimate defense interests 
of Israel and Egypt require a one time extraordinary assistance 
package due to Israel's phased withdrawal from the Sinai and Egypt's 
shift from reliance on Soviet weaponry. The authorizations contained 
in this section do not, however, constitute Congressional approval of 
the sale of any particular weapons system to either country. These 
sales will be reviewed under the normal procedures set forth in 
section 36(b) of the Arms Export Control Act. 
(b) In addition to amounts authorized to be appropriated for the 
fiscal year 1979 by section 31(a) of the Arms Export Control Act, there 
PUBLIC LAW 96-35—JULY 20, 1979 
93 STAT. 91 
is authorized to be appropriated to the President to carry out that Act 
$370,000,000 for the fiscal year 1979. 
(c) Funds made available pursuant to subsection 0^) of this section 
may be used only for guaranties for Egypt and Israel pursuant to 
section 24(a) of the Arms Export Control Act. The principal amount of 
loans guaranteed with such funds may not exceed $3,700,000,000 of 
which $2,200,000,000 shall be available only for Israel and 
$1,500,000,000 shall be available only for Egypt. The principal 
amount of such guaranteed loans shall be in addition to the aggregate 
ceiling authorized for the fiscal year 1979 by section 310b) of the Arms 
Export Control Act. 
(d) Loans guaranteed with funds made available pursuant to 
subsection (b) of this section shall be on terms calling for repayment 
within a period of not less than thirty years, including an initial grace 
period often years on repayment of principal. 
(e)(1) The Congress finds that the Governments of Israel and Egypt 
each have an enormous external debt burden which may be made 
more difficult by virtue of the financing authorized by this section. 
The Congress further finds that, as a consequence of the impact of the 
debt burdens incurred by Israel and Egypt under such financing, it 
may become necessary in future years to modify the terms of the 
loans guaranteed with funds made available pursuant to this section. 
(2) In order to assist the Congress in determining whether any 
such modification is warranted, the President shall transmit to the 
Speaker of the House of Representatives and to the chairman of the 
Committee on Foreign Relations of the Senate, by January 15 of each 
year, an annual report regarding economic conditions prevailing in 
Israel and Egypt which may affect their respective ability to meet 
their obligations to make payments under the financing authorized 
by this section. In addition to such annual report, the President shall 
transmit a report containing such information within thirty days 
after receiving a request therefor from the chairman of the 
Committee on Foreign Relations of the Senate or from the chairman 
of 
the 
Committee 
on 
Foreign 
Affairs 
of 
the 
House 
of 
Representatives. 
22 u s e 2764. 
22 u s e 2771. 
Repayment. 
Reports, 
transmittal to 
Speaker of the 
House and 
congressional 
committees. 
SUPPLEMENTAL AUTHORIZATION OF ECONOMIC SUPPORT FOR EGYPT 
SEC. 5. There is authorized to be appropriated to the President to 
carry out chapter 4 of part II of the Foreign Assistance Act of 1961, 
$300,000,000 for the fiscal year 1979 for Egypt, in addition to amounts 
otherwise authorized to be appropriated for such chapter for the 
fiscal year 1979. The amounts appropriated pursuant to this section 
may be made available until expended. 
22 u s e 3403. 
22 u s e 2346 et 
seq. 
TRANSFER OF FACILITIES OF THE SINAI FIELD MISSION TO EGYPT 
SEC. 6. The President is authorized to transfer to Egypt, on such 22 use 3404. 
terms and conditions as he may determine, such of the facilities and 
related property of the United States Sinai Field Mission as he may 
determine, upon the termination of the activities of the Sinai Field 
Mission in accordance with the terms of the peace treaty between 
Egypt and Israel. 
93 STAT. 92 
PUBLIC LAW 96-35—JULY 20, 1979 
22 u s e 3405. 
Consultation. 
Report to 
Congress. 
CONTRIBUTIONS BY OTHER COUNTRIES TO SUPPORT PEACE IN THE 
MIDDLE EAST 
SEC 7. (a) It is the sense of the Congress that other countries should 
give favorable consideration to providing support for the implementa-
tion of the peace treaty between Egypt and Israel. Therefore, the 
Congress requests that the President consult with other countries in 
order to (1) promote and develop an agreement for the establishment 
of a peace development fund whose purpose would be to underwrite 
the costs of implementing a Middle East peace, and (2) encourage 
investments in Israel and Egypt and other countries in the region 
should they join in Middle East peace agreements. 
(b) Not later than January 31, 1980, the President shall report to 
the Congress with regard to (1) the efforts made by the United States 
to consult with other countries in order to increase the economic 
assistance provided by other donors to Egypt and Israel and to others 
in the region participating in the peace process, and (2) the impact on 
Egypt's economy of Arab sanctions against Egypt. 
22 u s e 3406. 
Plan, 
development by 
President. 
Transmittal to 
Congress. 
PLANNING FOR TRILATERAL SCIENTIFIC AND TECHNOLOGICAL 
COOPERATION BY EGYPT, ISRAEL, AND THE UNITED STATES 
SEC. 8. (a) It is the sense of the Congress that, in order to continue to 
build the structure of peace in the Middle East, the United States 
should be prepared to participate, at an appropriate time, in 
trilateral cooperative projects of a scientific and technological nature 
involving Egypt, Israel, and the United States. 
Ot)) Therefore, the President shall develop a plan to guide the 
participation of both United States Government agencies and private 
institutions in such projects. This plan shall identify— 
(1) potential projects in a variety of areas appropriate for 
scientific and technological cooperation by the three countries, 
including agriculture, health, energy, the environment, educa-
tion, and water resources; 
(2) the resources which are available or which would be needed 
to implement such projects; and 
(3) the means by which such projects would be implemented, 
(c) The President shall transmit the plan developed pursuant to 
subsection 0?) to the Congress within twelve months after the date of 
enactment of this Act. 
Report, 
submittal to 
Congress. 
22 u s e 3407. 
REPORT ON COSTS TO THE UNITED STATES OF IMPLEMENTING THE PEACE 
TREATY BETWEEN EGYPT AND ISRAEL 
SEC 9. Not later than ninety days after the date of enactment of 
this Act, the President shall submit to the Congress a detailed and 
comprehensive report on the costs to the United States Government 
associated with implementation of the peace treaty between Egypt 
and Israel. The report shall include estimates of all costs of any kind 
to any department or agency of the United States Government which 
may result from United States activities in support of the peace 
treaty. 
PUBLIC LAW 96-35—JULY 20, 1979 
93 STAT. 93 
NON-PROLIFERATION OF NUCLEAR WEAPONS 
SEC. 10. In accordance with the Nuclear Non-ProUferation Act of 22 use 3408. 
1978, the Congress strongly encourages all countries in the Middle 22 use 3201 
East which are not parties to the Treaty on the Non-Proliferation of °°^ 
Nuclear Weapons to become parties to that Treaty. 
21 UST 483. 
Approved July 20, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-161 accompanying H.R. 4035 (eomm. on Foreign Affairs). 
SENATE REPORT No. 96-113 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
May 14, considered and passed Senate. 
May 30, H.R. 4035 considered and passed House; passage vacated and S. 1007, 
amended, passed in lieu. 
June 21, Senate concurred in House amendments with an amendment. 
June 28, House concurred in Senate amendment!.