An Act to amend the Foreign Assistance Act of 1961 and the Foreign Military Sales Act, and for other purposes.
PL 94-329 (H.R.13680), enacted 06/30/1976

PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 729 
Public Law 94-329 
94th Congress 
An Act 
To amend the Foreign Assistance Act of 1961 and tlie Foreign Military Sales 
Act, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled^ That this Act may 
be cited as the "International Security Assistance and Arms Export 
Control Act of 1976". 
TITLE I—MILITARY ASSISTANCE PROGRAM 
AUTHORIZATION 
SEC. 101. Section 504(a) of the Foreign Assistance Act of 1961 is 
amended to read as follows: 
"(a) (1) There is authorized to be appropriated to the President to 
carry out the purposes of this chapter $196,700,000 for the fiscal year 
1976 and $177,300,000 for the fiscal year 1977. Not more than the 
following amounts of funds available for carrying out this chapter 
(other than funds appropriated under section 507 of the International 
Security Assistance and Arms Export Control Kct of 1976) may be 
allocated and made available to each of the following countries for 
such fiscal years: 
Fiscal Year 1976 Fiscal Year 1977 
Country 
Amount 
Amount 
Greece 
$31,000,000 
.$33,000,000 
Indonesia 
13,000,000 
15,000,000 
.Jordan 
50,000,000 
55,000,000 
Republic of Korea 
55, 000, 000 
8, 300. 000 
Philippines 
17,000,000 
17,000,000 
Thailand 
16,000,000 
16,000,000 
Turkey 
31,000,000 
50,000,000 
Ethiopia 
6,000,000 
6,000,000 
The amount specified in this paragraph for military assistance to any 
such country for fiscal year 1976 or for fiscal year 1977 may be increased 
by not more than 10 per centum of such amount if the President deems 
such increase necessary for the purposes of this chapter. 
"(2) Not to exceed $6,000,000 of the funds available for fiscal year 
1976 to carry out tlie purposes of this chapter, and not to exceed 
$3,700,000 of the funds available for fiscal year 1977 to carry out the 
purposes of this chapter (other than funds appropriated under section 
507 of the International Security Assistance and Arms Export Control 
Act of 1976), may be used to provide assistance to international orga-
nizations and, subject to the limitations contained in paragraph (3), 
to countries which are not designated in paragraph (1). 
"(3) Funds available for assistance under this chapter may not be 
used to furnish assistance to more than 20 countries (including those 
countries designated in paragraph (1)) in fiscal year 1976. Funds 
available for assistance under this chapter (other than funds appro-
priated under section 507 of the International Security Assistance and 
Arms Export Control Act of 1976) may not be used to furnish assist-
ance to more than 12 countries (including those countries designated in 
paragraph (1)) in fiscal year 1977. 
June 30. 1976 
[H.R. 13680] 
International 
Security 
Assistance and 
Arms Export 
Control Act of 
1976. 
22 u s e 2151 
note. 
22 u s e 2312. 
Limitation. 
90 STAT. 730 
PUBLIC LAW 94-329—JUNE 30, 1976 
22 use 2351, 
2364. 
Infra. 
Appropriation 
authorization. 
Prohibition. 
22 use 2370. 
"(4) The authority of section 610(a) and of section 614(a) may 
not be used to increase any amount specified in para^^raph (1) or (2). 
The limitations contained in paragraphs (1), (2), and (3) shall not 
apply to emergency assistance furnished under section 506(a). 
"(5) There is authorized to be appropriated to the President, for 
administrative and other related expenses incurred in carrying out the 
purposes of this chapter, $32,000,000 for the fiscal year 1976 and 
$70,000,000 for the fiscal year 1977. 
"(6) None of the funds appropriated under this subsection shall 
be used to furnish sophisticated weapons syst-ems, such as missile 
systems or jet aircraft for military purposes, to any less developed 
country not specified in paragraph (1) unless the President deter-
mines that the furnishing of such Aveapons systems is important to the 
national security of the United States and reports within thirty days 
each such determination to the Congress. 
"(7) Amounts appropriated under this subsection are authorized 
to remain available until expended. 
"(8) Assistance for Turkey under this chapter shall be subject to 
the requirements of section 620 (x) of this Act.". 
22 use 2318. 
22 use 2411. 
Post, p. 734. 
22 use 2751 
note. 
SPECIAL AUTHORITY 
SEC. 102. Section 506(a) of the Foreign Assistance Act of 1961 is 
amended to read as f 
ollow^s: 
"(a) (1) If the President first determines and reports to Congress 
in accordance with section 652 of this Act— 
"(A) that an unforeseen emergency exists which requires 
immediate military assistance to a foreign country or interna-
tional organization; 
"(B) that a failure to respond immediately to that emergency 
will result in serious harm to vital United States security 
interests; and 
"(C) that the emergency requirement cannot be met under 
authority of the Arms Export Control Act or any other law 
except this section; 
he may order defense articles from the stocks of the Department of 
Defense and defense services for the purposes of this part, subject to 
reimbursement from subsequent appropriations made 
specifically 
therefor under subsection (b). 
" (2) The total value of defense articles and defense services ordered 
under this subsection in any fiscal year may not exceed $67,500,000. 
The authority contained in this sulasection shall be effective in any 
fiscal year only to the extent provided in an appropriation Act. 
"(3) The President shall keep the Congress fully and currently 
informed of all defense articles and defense services ordered under 
this subsection.". 
STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUNTRIES 
22 use 2321h. 
SEC. 103. Section 514 of the Foreign Assistance Act of 1961 is 
amended to read as follows: 
"SEC. 514. 
STOCKPILING OF DEFENSE ARTICLES FOR FOREIGN COUN-
TRIES.— (a) No defense article in the inventory of the Department of 
Defense which is set aside, reserved, or in any way earmarked or 
intended for future use by any foreign country may be made available 
to or for use by any foreign country unless such transfer is authorized 
under this Act or the Arms Export Control Act, or any subsequent 
corresponding legislation, and the value of such transfer is charged 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 731 
against funds authorized under such legislation or against the limita-
tions specified in such legislation, as appropriate, for the fiscal period 
in which such defense article is transferred. For purposes of this 
"Value." 
subsection, 'value' means the acquisition cost plus crating, packing, 
handling, and transportation costs incurred in carrying out this section. 
"(b) (1) The value of defense articles to be set aside, earmarked, 
reserved, or intended for use as war reserve stocks for allied or other 
foreign countries (other than for purposes of the North Atlantic 
Treaty Organization) in stockpiles located in foreign countries may 
not exceed in any fiscal year an amount greater than is specified in 
security assistance authorizing legislation for that fiscal year. 
"(2) The value of such additions to stockpiles in foreign countries 
shall not exceed $93,750,000 for the period beginning July 1, 1975, 
and ending September 30, 1976, and $125,000,000 for the fiscal year 
1977. 
"(c) Except for stockpiles in existence on the date of enactment of 
the International Security Assistance and Arms Export Control Act 
of 1976 and for stockpiles located in countries which are members 
of the North Atlantic Treaty Organization, no stockpile may be 
located outside the boundaries of a I'nited States military base or a 
military base used primarily by the United States. 
"(d) No defense article transferred from any stockpile which is 
made available to or for use by any foreign country may be considered 
an excess defense article for the purpose of determining the value 
thereof. 
"(e) The President shall promptly report to the Congress each 
Report to 
new stockpile, or addition to an existing stockpile, described in this 
Congress, 
section of defense articles valued in excess of $10,000,000 in any fiscal 
year.". 
TERMINATION OF MILITARY ASSISTANCE ADVISORY GROUPS AND MISSIONS 
SEC. 104. Section 515 of the Foreign Assistance Act of 1961 is 22 USC 23211 
amended— 
(1) by striking out "Effective July 1, 1976," and inserting in 
lieu thereof "(a) During the period beginning July 1, 1976, and 
ending September 30,1977,"; and 
(2) by adding at the end thereof the following new subsections: 
"(b) (1) After September 30, 1977, no military assistance advisory 
group, military mission, or other organization of Lmited States mili-
tary personnel performing similar military advisory functions under 
this Act may operate in any foreign country unless specifically 
authorized by the Congress. 
"(2) The President may assign not more than three members of 
the Armed Forces of the United States to the Chief of each United 
States Diplomatic Mission to perform such functions as such Chief 
of Mission determines necessary with respect to international military 
education and training provided under chapter 5 of this part, to sales 
of defense articles and services under the Arms Export Control Act, 
or to such other international security assistance programs as the 
President may designate. After September 30, 1977, no such functions 
or related activities may be performed by any defense attaches 
assigned, detailed, or attached to the United States Diplomatic Mission 
in any foreign country. 
"(c) After September 30, 1976, the number of military missions, 
groups, and similar organizations may not exceed 34. 
"(d) As used in this section, the term 'military assistance advisory 
Definition, 
group, military mission, or other organization of United States mili-
Post, p. 732. 
Post, p. 734. 
22 use 2751 
note. 
90 STAT. 732 
PUBLIC LAW 94-329—JUNE 30, 1976 
tary personnel performing similar military advisory functions under 
this Act' does not include regular units of Armed Forces of the United 
States engaged in routine functions designed to bring about the stand-
ardization of military operations and procedures between the Armed 
Forces of the United States and allies of the United States.". 
22 use 2321J. 
22 use 2318. 
Ante, pp. 730, 
731. 
Ante, p. 729. 
22 use 2311. 
TERMINATION OF AUTHORITY TO FURNISH GRANT MILITARY ASSISTANCE 
SEC. 105. Chapter 2 of part I I of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new section: 
"SEC. 516. TERMINATION OF AUTHORITY.— (a) Except to the extent 
that the Congress may, subsequent to the enactment of this section, 
authorize the furnishing of military assistance in accordance with this 
chapter to specified countries in specified amounts, the authorities 
contained in this chapter (other than the authorities contained in 
sections 506, 514, and 515(b) (2)) may not be exercised after Septem-
ber 30, 1977, except that such authorities shall remain available until 
September 30, 1980, to the extent necessary to carry out obligations 
incurred under this chapter on or before September 30, 1977. 
"(b) Funds available to carry out this chapter shall be available 
notwithstanding the limitations contained in paragraphs (2) and (3) 
of section 504(a) of this Act— 
" (1) for the winding up of military assistance programs under 
this chapter, including payment of the costs of packing, crating, 
handling, and transporting defense articles furnished under this 
chapter and of related administrative costs; and 
"(2) for costs incurred under section 503(c) with respect to 
defense articles on loan to countries no longer eligible under 
section 504(a) for military assistance.". 
22 u s e 2347. 
22 u s e 2347a. 
Report to 
Speaker of the 
House and 
congressional 
committee. 
INTERNATIONAL MILITARY EDUCATION AND TRAINING 
SEC. 106. (a) Part I I of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new chapter: 
"CHAPTER 5—INTERNATIONAL MILITARY EDUCATION AND TRAINING 
"SEC. 
541. GENERAL AUTHORITY.—The President is authorized to 
furnish, on such terms and conditions consistent with this Act as the 
President may determine (but whenever feasible on a reimbursable 
basis), military education and training to military and related civilian 
personnel of foreign countries. Such training and education 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 
" (3) observation and orientation visits to military facilities and 
related activities in the United States and abroad. 
"SEC. 542. AUTHORIZATION.—There are authorized to be appropriated 
to the President to carry out the purposes of this chapter $27,000,000 
for the fiscal year 1976 and $30,200,000 for the fiscal year 1977. After 
June 30,1976, no training under this section may be conducted outside 
the United States unless the President has reported and justified such 
training to the Speaker of the House of Representatives and the 
Committee on Foreign Relations of the Senate. 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 733 
Repeal. 
22 use 2321a. 
22 use 2382. 
"SEC. 543. PURPOSES.—Education and training activities conducted 22 USe 2347b. 
under this chapter shall be designed— 
"(1) to encourage eflfective and mutually beneficial relations 
and increased understanding betAveen the United States and for-
eign countries in furtherance of the goals of international peace 
and security; and 
" (2) to improve the ability of participating foreign countries to 
utilize their resources, including defense articles and defense 
services obtained by them from the United States, with maximum 
effectiveness, thereby contributing to greater self-i-eliance by such 
countries.", 
(b) The Foreign Assistance Act of 1961 is amended as follows: 
(1) Section 510 is repealed. 
(2) Section 622 is amended— 
(A) in subsection (b) by inserting "and military education 
and training" immediately after "(including civic action)"; 
and 
(B) by amending subsection (c) to read as follows: 
"(c) Under the direction of the President, the Seci-etary of State 
shall be responsible for the continuous supervision and general direc-
tion of economic assistance, military assistance, and military education 
and training programs, including but not limited to determining 
whether there shall be a military assistance (including civic action) or 
a military education and training program for a country and the value 
thereof, to the end that such programs are effectively integrated both 
at home and abroad and the foreign policy of the United States is best 
served thereby.". 
' 
(3) Section 623 is amended— 
(A) in subsection (a) (4) by inserting "and related civilian" 
immediately after "military"; and 
(B) in subsection (a) (6) by inserting ", education and 
training" immediately after "assistance". 
(4) Section 632 is amended— 
(A) in subsections (a) and (e) by inserting ", military 
education and training" immediately after "articles" where-
ever it appears; and 
(B) in subsection (b) by striking out "and defense articles" 
and inserting in lieu thereof ", defense articles, or military 
education and training". 
(5) Section 636 is amended— 
22 USe 2396. 
(A) in subsection (g) (1) by inserting ", military education 
and training" immediately after "articles"; and 
(B) in subsection (g) (2) and in subsection (g) (3) by 
striking out "personnel" and inserting in lieu thereof "and 
related civilian personnel". 
(6) Section 644 is amended— 
(A) by amending subsection (f) to read as follows: 
"(f) 'Defense service' includes any service, test, inspection, repair, 
publication, or technical or other assistance or defense information 
used for the purposes of furnishing military assistance, but does not 
include military educational and training activities under chapter 5 
of part II."; and 
(B) by adding at the end thereof the following new sub-
section : 
"(n) 'Military education and training' includes formal or informal 
"Military 
instruction of foreign students in the United States or ovei-seas by education and 
officers or employees of the United States, contract technicians, con- training. 
22 use 2383. 
22 use 2392. ^ 
22 use 2403. 
"Defense 
service." 
90 STAT. 734 
PUBLIC LAW 94-329—JUNE 30, 1976 
tractors (including instruction at civilian institutions), or by corre-
spondence courses, technical, educational, or information publications 
and media of all kinds, training aids, orientation, and military advice 
to foreign military units and forces.". 
22 use 2321a 
(c) Except as may be expressly provided to the contrary in this 
J^ote. 
^ct, all determinations, authorizations, regulations, orders, contracts, 
agreements, and other actions issued, undertaken, or entered into under 
authority of any provision of law amended or repealed by this section 
shall continue in full force and effect until modified, revoked, or 
superseded by appropriate authority. 
22 use 2347 
(d) Funds made available pursuant to other provisions of lav5^ for 
iiote. 
foreign military educational and training activities shall remain avail-
able for obligation and expenditure for their original purposes in 
accordance with the provisions of law originally applicable to those 
purposes or in accordance with the provisions of law currently appli-
cable to those purposes. 
TITLE II—ARMS EXPORT CONTROLS 
CHANGE IN TITLE 
22 use 2751 
SEC. 201. (a) The first section of the Foreign Military Sales Act is 
iiote. 
amended by striking out " 'The Foreign Military Sales Act" and 
inserting in lieu thereof "the 'Arms Export Control Act". 
(b) Any reference to the Foreign Military Sales Act shall be 
deemed to be a reference to the Arms Export Control Act. 
ARMS SALES POLICY 
22 use 2751. 
SEC. 202. (a) Section 1 of the Foreign Military Sales Act is 
amended by striking out the last paragraph and inserting in lieu 
thereof the following new paragraphs: 
"It shall be the policy of the United States to exert leadership in the 
world community to bring about arrangements for reducing the 
international trade in implements of war and to lessen the danger of 
outbreak of regional conflict and the burdens of armaments. United 
States programs for or procedures governing the export, sale, and 
grant of defense articles and defense services to foreign countries and 
international organizations shall be administered in a manner which 
will carry out this policy. 
"It is the sense of the Congress that the President should seek to 
initiate multilateral discussions for the purpose of reaching agree-
ments among the principal arms suppliers and arms purchasers and 
other countries with respect to the control of the international trade in 
armaments. It is further the sense of Congress that the President 
f;o>" 
should work actively with all nations to check and control the inter-
national sale and distribution of conventional weapons of death and 
destruction and to encourage regional arms control arrangements. In 
furtherance of this policy, the President should undertake a concerted 
effort to convene an international conference of major arms-supplying 
and arms-purchasing nations which shall consider measures to limit 
conventional arms transfers in the interest of international peace and 
stability. 
"It is the sense of the Congress that the aggregate value of defense 
articles and defense services— 
"(1) which are sold under section 21 or section 22 of this Act; 
or 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 735 
"(2) which are licensed or approved for export under section 
38 of this Act to, for the use, or for benefit of the armed forces, 
police, intelligence, or other internal security forces of a foreign 
country or international organization under a commercial sales 
contract; 
in any fiscal year should not exceed current levels.". 
(b)(1) The President shall conduct a comprehensive study of the 
arms sales policies and practices of the United States Government, 
including policies and practices with respect to commercial arms sales, 
in order to determine whether such policies and practices should be 
changed. Such study shall examine the rationale for arms sales to for-
eign countries, the benefits to the United States of such arms sales, the 
risks to world peace as a result of such arms sales, trends in arms sales 
by the L^nited States and other countries, and steps which might be 
taken by the United States to provide foi* limitations on arms sales. 
In addition, such study shall include an evaluation of the impact 
of United States arms sales policies on the economic and social develop-
ment of foreign countries and consideration of steps which might 
be taken by the United States to encourage the maximum use of the 
resources of the developing countries for economic and 
social 
development purposes. 
(2) Not later than the end of the one-year period beginning on the 
date of enactment of this section, the President shall submit to the 
Congress a report setting forth in detail (A) the findings made and 
conclusions reached as a result of the study conducted pursuant to 
paragraph (1) of this subsection, together with such recommenda-
tions for legislation as the President deems appropriate, (B) the efforts 
made by the United States during the five years immediately preced-
ing the submission of such report to initiate and otherwise encourage 
arms sales limitations, and (C) the efforts being made by the United 
States at the time of the submission of such report to initiate and 
otherwise encourage arms sales limitations in accordance with the 
policies stated in the amendment made by subsection (a) of this 
section. 
TRANSFER OF DEFENSE SERVICES 
SEC. 203. (a) Section 3(a)(2) 
of the Foreign Military Sales 
Act is amended, effective July 1, 1976, by inserting immediately after 
"article" each time it appears "or related training or other defense 
service". 
(b) Section 505(a) of the Foreign Assistance Act of 1961 is 
amended, effective July 1, 1976, by inserting immediately 
after 
"articles" each time it appears "or related training or other defense 
service.". 
APPROVAL FOR TOANSFER OF DEFENSE ARTICLES 
SEC. 204. (a) Section 3 of the Foreign Military Sales Act is amended 
by adding at the end thereof the following new subsections: 
"(e) The President may not give his consent under paragraph (2) 
of subsection (a) or under the third sentence of such subsection to a 
transfer of a defense article, or related training or other defense serv-
ice, sold under this Act and may not give his consent to such a transfer 
under section 505(a) (1) or 505(a) (4) of the Foreign Assistance Act 
of 1961 unless, 30 days prior to giving such consent, the President 
submits to the Speaker of the House of Representatives and the Com-
mittee on Foreign Relations of the Senate a written certification with 
respect to such proposed transfer containing—-
" (1) the name of the country or international organization pro-
posing to make such transfer, 
Study. 
22 use 2751 
note. 
Report to 
Congress. 
22 u s e 2753 and 
note. 
22 u s e 2314 and 
note. 
22 u s e 2753. 
Written 
certification, 
submittal to 
Speaker of the 
House and 
congressional 
committee. 
22 use 2314. 
-194 0—78—Dt. 1-
90 STAT. 736 
PUBLIC LAW 94-329—JUNE 30, 1976 
Report to 
Speaker of the 
House and 
congressional 
committee. 
22 use 2314. 
22 use 2753. 
22 use 2314. 
" (2) a description of the defense article or related training or 
other defense service proposed to be transferred, including the 
original acquisition cost of such defense article or related training 
or other defense service, 
" (3) the name of the proposed recipient of such defense article 
or related training or other defense service, 
" (4) the reasons for such proposed transfer, and 
" (5) the date on which such transfer is proposed to be made. 
Any certification submitted to Congress pursuant to this subsection 
shall be unclassified, except that information regarding the dollar 
value and number of defense articles, or related training or other 
defense services, proposed to be transferred may be classified if public 
disclosure thereof would be clearly detrimental to the security of the 
United States. 
"(f) 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 section or under 
section 505 of the Foreign Assistance Act of 1961, he shall report 
such information immediately to the Speaker of the House of Repre-
sentatives and the Committee on Foreign Relations of the Senate.". 
(b)(1) The second sentence of subsection (a) of section 3 of the 
Foreign Military Sales Act is amended by striking out ", and prior" 
and all that follows thereafter through "transferred" the second time 
it appears. 
(2) The first sentence of section 505(e) of the Foreign Assistance 
Act of 1961 is amended by striking out ", and prior" and all that 
follows thereafter through "transferred" the second time it appears. 
SALES FROM STOCKS 
22 use 2761. 
SEC. 205. Section 21 of the Foreign Military Sales Act is amended 
to read as follows: 
"SEC. 21. SALES FROM STOCKS.— (a) The President may sell defense 
articles and defense services from the stocks of the Department of 
Defense to any eligible country or international organization if such 
country or international organization agrees to pay in United States 
dollars— 
hiu 
"(1) in the case of a defense article not intended to be replaced 
at the time such agreement is entered into, not less than the actual 
value thereof; 
bxi; • 
"(2) in the case of a defense article intended to be replaced 
at the time such agreement is entered into, the estimated cost of 
replacement of such article, including the contract or production 
costs less any depreciation in the value of such article; or 
"(3) in the case of the sale of a defense service, the full cost 
to the United States Government of furnishing such service. 
"(b) Except as provided by subsection (d) of this section, payment 
shall be made in advance or, if the President determines it to be in the 
national interest, upon delivery of the defense article or rendering of 
the defense service. 
"(c) Personnel performing defense services sold under this Act 
may not perform any duties of a combatant nature, including any 
duties related to training, advising, or otherwise providing assistance 
regarding combat activities, outside the United States in connection 
with the performance of those defense services. 
"(d) If the President determines it to be in the national interest 
•pursuant to subsection (b) of this section, billings for sales made 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 737 
under letters of offer issued under this section after the enactment of 
this subsection may be dated and issued upon delivery of the defense 
article or rendering of the defense service and shall be due and payable 
upon receipt thereof by the purchasing country or international orga-
nization. Interest shall be charged on any net amount due and payable 
which is not paid within sixty days after the date of such billing. The 
rate of interest charged shall be a rate not less than a rate determined 
by the Secretary of the Treasury taking into consideration the current 
average market yield on outstanding short-term obligations of the 
United States as of the last day of the month preceding the billing 
and shall be computed from the date of billing. The President may 
extend such sixty-day period to one hundred and twenty days if he 
determines that emergency requirements of the purchaser for acquisi-
tion of such defense articles or defense services exceed the ready 
availability to the purchaser of funds sufficient to pay the United 
States in full for them within such sixty-day period and submits that 
determination to the Congress together with a special emergency 
request for the authorization and appropriation of additional funds to 
finance such purchases under this Act. 
"(e) (1) After September 30, 1976, letters of offer for the sale of 
defense articles or for the sale of defense services that are issued pur-
suant to this section or pureuant to section 22 of this Act shall include 
appropriate charges for— 
"(A) administrative services, calculated on an average per-
centage basis to recover the full estimated costs of administration 
of sales made under this Act to all purchasers of such articles and 
services; 
"(B) any use of plant and production equipment in connection 
with such defense articles; and 
"(C) a proportionate amount of any nonrecurring costs of 
research, 
development, 
and 
production 
of 
major 
defense 
equipment. 
"(2) The President may reduce or waive the charge or charges 
which would otherwise be considered appropriate under paragraphs 
(1) (B) and (1) (C) for particular sales that would, if made, signifi-
cantly advance United States Government interests in Xorth Atlantic 
Treaty Organization standardization, or foreign procurement in the 
United States under coproduotion arrangements. 
"(f) Any contracts entered into between the United States and a 
foreign country under the authority of this section or section 22 of 
this Act shall be prepared in a manner which will permit them to be 
made available for public inspection to the fullest extent possible 
consistent with the national security of the United States. 
"(g) In carrying out section 814 of the Act of October 7, 1975 
(Public Law 94-106), the President may enter into North Atlantic 
Treaty Organization standardization agreements for the cooperative 
furnishing of training on a bilateral or multilateral basis, if the finan-
cial principles of such agreements are based on reciprocity. Such 
agreements shall include reimbursement for all direct costs but may 
exclude reimbursement for indirect costs, administrative surcharges, 
and costs of billeting of trainees (except to the extent that members 
of the LTnited States Armed Forces occupying comparable accom-
modations are charged for such accommodations by the United States). 
Each such agreement shall be transmitted promptly to the Speaker 
of the House of Representatives and the Committees on Appropria-
tions, Armed Services, and Foreign Relations of the Senate.". 
22 use 2762. 
Reduction or 
waiver. 
NATO 
standardization 
agreements. 
89 Stat. 540. 
Transmittal to 
Speaker of the 
House and 
congressional 
committees. 
90 STAT. 738 
PUBLIC LAW 94-329—JUNE 30, 1976 
Ante, p. 736. 
Written 
statement, 
transmittal to 
Speaker of the 
House and 
congressional 
committees. 
22 use 2762. 
Interest rate. 
SALES FROM STOCKS AFFECTING UNITED STATES COMBAT READINESS 
SEC. 206. Section 21 of the Foreign Military Sales Act, as amended 
by section 205 of this Act, is further amended by adding at the end 
thereof the following new subsection: 
"(h) (1) Sales of defense articles and defense services which could 
have significant adverse effect on the combat readiness of the Armed 
Forces of the United States shall be kept to an absolute minimum. 
The President shall transmit to the Speaker of the House of Kepresent-
atives and the Committees on Armed Services and Foreign Relations 
of the Senate on the same day a written statement giving a complete 
explanation with respect to any proposal to sell, under this section, any 
defense articles or defense services if such sale could have a significant 
adverse effect on the combat readiness of -the Armed Forces of the 
United States. Each such statement shall be unclassified except to 
the extent that public disclosure of any item of information contained 
therein would be clearly detrimental to the security of the United 
States. Any necessarily classified information shall be confined to a 
supplemental report. Each such statement shall include an explanation 
relating to only one such proposal to sell and shall set forth— 
"(A) the country or international organization to which the 
sale is proposed to be made; 
"(B) the amount of the proposed sale; 
"(C) a description of the defense article or service proposed to 
be sold; 
"(D) a full description of the impact which the proposed sale 
will have on the Armed Forces of the United States; and 
" ( E ) a justification for such proposed sale, including a certifica-
tion that such sale is important to the security of the United States. 
A certification described in subparagraph (E) shall take effect on the 
date on which such certification is transmitted and shall remain in 
effect for not to exceed one year. 
"(2) N^o delivery may be made under any sale which is required to 
be reported under paragraph (1) of this subsection unless the certifica-
tion required to be transmitted by paragraph (E) of paragraph (1) 
is in effect.". 
PROCITREMENT FOR CASH SAEES 
SEC. 207. (a) Section 22(a) of the Foreign Military Sales Act is 
amended by adding at the end thereof the following: "Interest shall 
be charged on any net amount by which any such country or inter-
national organization is in arrears under all of its outstanding unliqui-
dated dependable undertakings, considered collectively. The rate of 
interest charged shall be a rate not less than a rate determined by the 
Secretary of the Treasury taking into consideration the current average 
market yield on outstanding short-term obligations of the United 
States as of the last day of the month preceding the net arrearage and 
shall be computed from the date of net arrearage.". 
(b) Section 22(b) of the Foreign Military Sales Act is amended by 
striking out the first sentence and inserting in lieu thereof the follow-
ing: "The President may, if he determines it to be in the national 
interest, issue letters of offer under tliis section which provide for 
billing upon delivery of the defense article or rendering of the defense 
service and for payment within one hundred and twenty days after 
the date of billing. This authority may be exercised, however, only if 
the President also determines that the emergency requirements of the 
purchaser for acqviisition of such defense articles and services exceed 
the ready availability to the purchaser of funds sufficient to make 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 739 
payments on a dependable undertaking basis and submits both deter-
minations to the Congress together with a special emergency request 
for authorization and appropriation of additional funds to finance 
such purchases under this Act.". 
EXTENSION OF PAYMENT PERIOD FOR CREDIT SALES 
SEC. 208. (a) Paragraph (1) of section 23 of the Foreign Military 
Sales Act is amended by striking out "ten years" and inserting in lieu 22 USC 2763. 
thereof "twelve years". 
(b) The amendment made by subsection (a) shall apply with respect 
22 USC 2763 
to financing under agreements entered into on or after the date of 
"o*^-
enactment of this Act for the procurement of defense articles to be 
delivered, or defense services to be rendered, after such date. 
ANNUAL ESTIMATE AND JUSTIFICATION FOR SALES PROGRAM 
SEC. 209. (a) Immediately after section 24 of the Foreign Military 
Sales Act, add the following new section: 
"SEC. 25. A N N U A L ESTIMATE AND JUSTIFICATION FOR SALES PRO-
GRAM.— (a) The President shall transmit to the Congress, as a part of 
the presentation materials for security assistance progra^ms proposed 
for each fiscal year, a report which sets forth— 
"(1) an estimate of the amount of sales expected to be made to 
each country under sections 21 and 22 of this Act, including a 
detailed explanation of the foreign policy and United States 
national security considerations involved in expected sales to 
each country; 
"(2) an estimate of the amount of credits and guaranties 
expected to be extended to each country under sections 23 and 
24 of this Act; 
" (3) a list of all findings which are in effect on the date of such 
transmission made by the President pursuant to section 3(a) (1) 
of this Act, together with a full and complete justification for 
each such finding, explaining how sales to each country with 
respect to which such finding has been made will strengthen the 
security of the United States and promote world peace; and 
"(4) an arms control impact statement for each purchasing 
country, including (A) an analysis of the relationship between 
expected sales to each country and arms control efforts relating 
to that country, and (B) the impact of such expected sales on 
the stability of the region that includes the purchasing country. 
"(b) Not later than thirty days following the receipt of a request 
made by the Committee on Foreign Relations of the Senate or the 
Committee on International Relations of the House of Representatives 
for additional information with respect to any estimate submitted 
pursuant to subsection (a), the President shall submit such informa-
tion to such committee, 
"(c) The President shall make every effort to submit all of the 
information required by this section wholly in unclassified form. In 
the event the President submits any such information in classified 
form, he shall submit such classified information in an addendum and 
shall also submit simultaneously a detailed summary, in unclassified 
form, of such classified information.". 
(b) Section 634(d) of the Foreign Assistance Act of 1961 is 
amended by striking out "and military sales under this or any other 
Act" in the fourth sentence. 
22 USC 2765. 
Report to 
Congress. 
22 USC 2761, 
2762. 
22 USC 2763, 
2764. 
Information, 
submittal to 
congressional 
committee. 
22 USC 2394. 
90 STAT. 740 
PUBLIC LAW 94-329—JUNE 30, 1976 
22 use 2771. 
22 use 2764. 
22 use 2763. 
22 use 2311 et 
seq. 
Repeal. 
22 use 2321b 
and notes. 
Transfer of funds. 
22 use 2776. 
Report to 
Speaker of the 
House and 
congressional 
committee. 
Contents. 
MILITARY SALES AUTHORIZATION 
SEC. 210. (a) Section 31(a) of the Foreign Military Sales Act is 
amended by striking out "not to exceed $405,000,000 for the fiscal year 
1975" and inserting in lieu thereof "not to exceed $1,039,000,000 for the 
fiscal year 1976 and not to exceed $740,000,000 for the fiscal year 1977". 
(b) Section 31(b) of such Act is amended to read as follows: 
"(b) The aggregate total of credits, or participations in credits, 
extended pursuant to this Act and of the principal amount of loans 
guaranteed pursuant to section 24(a) shall not exceed $2,374,700,000 
for the fiscal year 1976, of which not less than $1,500,000,000 shall be 
available only for Israel, and shall not exceed $2,022,100,000 for the 
fiscal year 1977, of which not less than $1,000,000,000 shall be available 
only for Israel.". 
(c) (1) Section 31 of such Act is further amended by adding at the 
end thereof the following new subsections: 
"(c) Funds made available for the fiscal years 1976 and 1977 under 
subsection (a) of this section shall be obligated to finance the pro-
curement of defense articles and defense services by Israel on a long-
term repayment basis either by the extension of credits, without regard 
to the limitations contained in section 23, or by the issuance of guar-
anties under section 24. Repayment shall be in not less than twenty 
years, following a grace period of ten years on repayment of prin-
cipal. Israel shall be released from one-half of its contractual liability 
to repay the United States Government with respect to defense articles 
and defense services so financed for each such year, 
"(d) The aggregate acquisition cost to the United States of excess 
defense articles ordered by the President in any fiscal year after fiscal 
year 1976 for delivery to foreign countries or international organiza-
tions under the authority of chapter 2 of part II of the Foreign 
Assistance Act of 1961 or pursuant to sales under this Act may not 
exceed $100,000,000 (exclusive of ships and their on-board stores and 
supplies transferred in accordance with law).", 
(2) Subsections (a), (b), (c), and (e) of section 8 of the Act 
entitled "An Act to amend the Foreign Military Sales Act and for 
other purposes", approved January 12, 1971 (Public Law 91-672; 84 
Stat, 2053), are repealed effective July 1, 1976. All funds in the 
suspense account referred to in subsection (a) of such section on 
July 1,1976, shall be transferred to the general fund of the Treasury. 
REPORTS ON COMMERCIAL AND GOVERNMENTAL MILITARY EXPORTS; 
CONGRESSIONAL ACTION 
SEC. 211. (a) Section 36 of the Foreign Military Sales Act is 
amended to read as follows: 
"SEC. 36. REPORTS ON COMMERCIAL AND GOVERNMENTAL MILITARY 
EXPORTS; CONGRESSIONAL ACTION.— (a) 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 not more than thirty 
days after the end of each quarter an unclassified report (except that 
any material which was transmitted in classified form under subsec-
tion (b) (1) or (c) (1) of this section may be contained in a classified 
addendum to such report, and any letter of offer referred to in para-
graph (1) of this subsection may be listed in such, addendum unless 
such letter of offer has been the subject of an unclassified certification 
pursuant to subsection (b)(1) of this section) containing— 
"(1) a listing of all letters of offer to sell any major defense 
equipment for $1,000,000 or more under this Act to each foreign 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 741 
country and international organization, by category, if such letters 
of offer have not been accepted or canceled; 
" (2) a listing of all such letters of offer that have been accepted 
during the fiscal year in which such report is submitted, together 
with the total value of all defense articles and defense services sold 
to each foreign country and international organization during 
such fiscal year; 
"(3) the cumulative dollar amounts, by foreign country and 
international organization, of sales credit agreements under sec-
tion 23 and guaranty agreements under section 24 made during the 
fiscal year in which such report is submitted; 
"(4) a numbered listing of all licenses and approvals for the 
export to each foreign country and international organization 
during such fiscal year of commercially sold major defense equip-
ment, by category, sold for $1,000,000 or more, together with the 
total value of all defense articles and defense services so licensed 
for each foreign country and international organization, setting 
forth with respect to the listed major defense equipment— 
"(A) the items to be exported under the license, 
"(B) the quantity and contract price of each such item to 
be furnished, and 
"(C) the name and address of the ultimate user of each 
such item; 
" (5) projections of the dollar amounts, by foreign country and 
international organization, of cash sales expected to be made 
under sections 21 and 22, credits to be extended under section 23, 
and guaranty agreements to be made under section 24 in the 
quarter of the fiscal j^ear immediately following the quarter for 
which such report is submitted; 
"(6) a projection with respect to all cash sales expected to be 
made and credits expected to be extended to each country and 
organization for the remainder of the fiscal year in which such 
report is transmitted; 
" (7) an estimate of the number of officers and employees of the 
United States Government and of United States civilian contract 
personnel present in each such country at the end of that quarter 
for assignments in implementation of sales and commercial 
exports under this Act; and 
"(8) an analysis and description of the services being per-
formed by officers and employees of the United States Govern-
ment under section 21(a) of this Act, including the number of 
personnel so emploj^ed. 
For each letter of offer to sell under paragraphs (1) and (2), the 
report shall specify (i) the foreign country or international organiza-
tion to which the defense article or service is offered or was sold, as the 
case may be; (ii) the dollar amount of the offer to sell or the sale and 
the number of defense articles offered or sold, as the case may be; (iii) 
a description of the defense article or service offered or sold, as the 
case may be; and (iv) the United States Armed Force or other agency 
of the United States which is making the offer to sell or the sale, as 
the case may be. 
"(b)(1) In the case of any letter of offer to sell any defense articles 
or services under this Act for $25,000,000 or more, or any major 
defense equipment for $7,000,000 or more, before such letter of offer 
is issued, the President shall submit to the Speaker of the House of 
Representatives and to the chairman of the Committee on Foreign 
Relations of the Senate a numbered certification with respect to such 
offer to sell containing the information specified in clauses (i) through 
22 use 2763, 
2764. 
22 use 2761, 
2762. 
eertification, 
submittal to 
Speaker of the 
House and 
congressional 
committee. 
90 STAT. 742 
PUBLIC LAW 94-329—JUNE 30, 1976 
Statement, 
transmittal to 
congressional 
committee. 
(iv) of subsection (a). In addition, the President shall, upon the 
request of such committee or the Committee on International Rela-
tions of the House of Representatives, transmit promptly to both such 
committees a statement setting forth, to the extent specified in such 
request— 
"(A) a detailed description of the defense articles or services 
to be offered, including a brief description of the capabilities of 
any defense article to be offered; 
"(B) an estimate of the number of officers and employees of 
the United States Government and of United States civilian con-
tract personnel expected to be needed in such country to carry 
out the proposed sale; 
"(C) the name of each contractor expected to provide the 
defense article or defense service proposed to be sold (if known 
on the date of transmittal of such statement); 
"(D) an analysis of the arms control impact pertinent to such 
offer to sell, prepared in consultation with the Secretary of 
Defense; 
"(E) the reasons why the foreign country or international 
organization to which the sale is proposed to be made needs the 
defense articles or services which are the subject of such sale and 
a description of how such country or organization intends to use 
such defense articles or services; 
"(F) an analysis by the President of the impact of the proposed 
sale on the military stocks and the military preparedness of 
the United States; 
"(G) the reasons why the proposed sale is in the national 
interest of the United States; 
"(H) an analysis by the President of the impact of the pro-
posed sale on the military capabilities of the foreign country 
or international organization to which such sale would be made; 
"(I) an analysis by the President of how the proposed sale 
would affect the relative military strengths of countries in the 
region to which the defense articles or services which are the 
subject of such sale would be delivered and whether other coun-
tries in the region have comparable kinds and amounts of defense 
articles or services; 
"(J) an estimate of the levels of trained personnel and main-
tenance facilities of the foreign country or international orga-
nization to which the sale would be made which are needed and 
available to utilize effectively the defense articles or services 
proposed to be sold; 
"(K) an analysis of the extent to which comparable kinds and 
amounts of defense articles or services are available from other 
countries; 
"(L) an analysis of the impact of the proposed sale on United 
States relations with the countries in the region to which the 
defense articles or services which are the subject of such sale 
would be delivered; and 
"(M) a detailed description of any agreement proposed to be 
entered into by the United States for the purchase or acquisition 
by the United States of defense articles, services, or equipment, 
or other articles, services, or equipment of the foreign country or 
international organization in connection with, or as consideration 
for, such letter of offer, including an analysis of the impact of 
such proposed agreement upon Ignited States business concerns 
which might otherwise have provided such articles, services, or 
equipment to the United States, an estimate of the costs to be 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 743 
incurred by the United States in connection with such agreement 
compared with costs which would otherwise liave been incurred, 
an estimate of the economic impact and unemployment which 
would result from entering into such proposed agreement, and 
an analysis of whether such costs and such domestic economic 
impact justify entering into such proposed agreement. 
A certification transmitted pursuant to this subsection shall be 
unclassified, except that the information specified in clause (ii) and 
the details of the description specified in clause (iii) of subsection (a) 
may be classified if the public disclosure thereof would be clearly 
detrimental to the security of the United States. The letter of offer 
shall not be issued if the Congress, within thirty calendar days after 
receiving such certification, adopts a concurrent resolution stating 
that it objects to the proposed sale, unless the President states in his 
certification that an emergency exists which requires such sale in the 
national security interests of the United States. 
"(2) Any such resolution shall be considered in the Senate in 
accordance \\ith the provisions of section 601(b) of tlie International 
Security Assistance and Arms Export Control Act of 1976. 
"(3) For the purpose of expediting the consideration and adoption 
of concurrent resolutions under this subsection, a motion to proceed 
to the consideration of any such resolution after it has been reported 
by the appropriate committee shall be treated as highly privileged 
in the ITouse of Representatives. 
"(c) In the case of an application by a person (other than with 
regard to a sale under section 21 or section 22 of this Act) for a license 
for the export of any major defense equipment sold under a contract 
in the amount of $7,000,000 or more or of defense articles or defense 
services sold under a contract in the amount of $25,000,000 or more, 
not less than 30 days before issuing such license 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 an 
unclassified numbered certification with respect to such application 
specifying (1) the foreign country or international organization to 
which such export will be made, (2) the dollar amount of the items to 
be exported, and (3) a description of the items to be exported. In 
addition, the President shall, upon the request of such committee or 
the Committee on International Relations of the House of Representa-
tives, transmit promptly to both such committees a statement setting 
forth, to the extent specified in such request, a description of the 
capabilities of the items to be exported, an estimate of the total num-
ber of United States personnel expected to be needed in the foreign 
country concerned in connection with the items to be exported and 
an analysis of the arms control impact pertinent to such application, 
prepared in consultation with the Secretary of Defense. A certifica-
tion transmitted pursuant to this subsection shall be unclassified, 
except that the information specified in paragraph (2) and the details 
of the description specified in paragraph (3) may be classified if the 
public disclosure thereof would be clearly detrimental to the security 
of the United States. 
"(d) In the case of an approval under section 38 of this Act of a 
United States commercial technical assistance or manufacturing licens-
ing agreement for or in a country not a member of the North Atlantic 
Treaty Organization which involves the manufacture abroad of any 
item of significant combat equipment on the United States Munitions 
List, before such approval is given, the President shall submit a certifi-
cation with respect to such proposed commercial agreement in a man-
ner similar to the certification required under subsection (c) containing 
Post, p. 765. 
Certification, 
transmittal to 
Speaker of the 
House and 
congressional 
committee. 
22 u s e 2761, 
2762. 
Statement, 
transmittal to 
congressional 
committees. 
Post, p. 744. 
90 STAT. 744 
PUBLIC LAW 94-329—JUNE 30, 1976 
22 use 2776 
note. 
22 use 2776. 
Infra. 
comparable information, except that the last sentence of such subsec-
tion shall not apply to certifications submitted pursuant to this 
subsection.". 
(b) The amendment made by subsection (a) of this section shall 
apply with respect to letters of offer for which a certification is trans-
mitted pursuant to section 36(b) of the Arms Export Control Act on 
or after the date of enactment of this Act and to export licenses for 
which an application is filed under section 38 of such Act on or after 
such date. 
CONTROL OF LICENSES WITH RESPECT TO ARMS EXPORTS AND IMPORTS 
SEC. 212. (a) (1) Chapter 3 of the Foreign Military Sales Act is 
amended by adding at the end thereof the following new section: 
22 use 2778. 
"SEC. 38. CONTROL OF ARMS EXPORTS AND IMPORTS.— (a) (1) In fur-
therance of world peace and the security and foreign policy of the 
United States, the President is authorized to control the import and 
the export of defense articles and defense services and to provide for-
eign policy guidance to persons of the United States involved in the 
Regulations. 
export and import of such articles and services. The President is 
authorized to designate those items which shall be considered as 
defense articles and defense services for the purposes of this section 
and to promulgate regulations for the import and export of such 
articles and services. The items so designated shall constitute the 
United States Munitions List. 
"(2) Decisions on issuing export licenses under this section shall be 
made in coordination with the Director of the United States Arms 
Control and Disarmament Agency and shall take into account the 
Director's opinion as to whether the export of an article will contribute 
to an arms race, increase the possibility of outbreak or escalation of 
conflict, or prejudice the development of bilateral or multilateral arms 
control arrangements. 
"(b)(1) As prescribed in regulations issued under this section, 
every person (other than an officer or employee of the United States 
Government acting in an official capacity) who engages in the busi-
ness of manufacturing, exporting, or impoi-ting any defense articles 
or defense services designated by the President under subsection (a) 
(1) shall register with the United States Government agency charged 
with the administration of this section, and shall pay a registration 
fee which shall be prescribed by such regulations. Such regulations 
shall prohibit the return to the United States for sale in the United 
States (other than for the Armed Forces of the United States and its 
allies or for any State or local law enforcement agency) of any mili-
tary firearms or ammunition of United States manufacture furnished 
to foreign governments by the United States under this Act or any 
other foreign assistance or sales program of the United States, 
whether or not enhanced in value or improved in condition in a foreign 
country. This prohibition shall not extend to similar firearms that 
have been so substantially transformed as to become, in effect, articles 
of foreign manufacture. 
" (2) Except as otherwise specifically provided in regulations issued 
under subsection (a) (1), no defense articles or defense services desig-
nated by the President under subsection (a) (1) may be exported or 
imported without a license for such export or import, issued in accord-
ance with this Act and regulations issued under this Act, except that 
no license shall be required for exports or imports made by or for an 
agency of the United States Government (A) for official use by a 
department or agency of the United States Government, or (B) for 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 745 
carrying out any foreign assistance or sales program authorized by 
law and subject to the control of the President by other means. 
" (3) No license may be issued under this Act for the export of any 
major defense equipment sold under a contract in the amount of 
$25,000,000 or more to any foreign country which is not a member of 
the North Atlantic Treaty Organization unless such major defense 
equipment was sold under this Act. 
" (c) Any person who willfully violates any provision of this section 
or section 39, or any rule or regulation issued under either section, or 
who willfully, in a registration or license application or required 
report, makes any untrue statement of a material fact or omits to 
state a material fact required to be stated therein or necessary to make 
the statements therein not misleading, shall upon conviction be fined 
not more than $100,000 or imprisoned not more than two years, or 
both. 
"(d) This section applies to and within the Canal Zone. 
"(e) In carrying out functions under this section with respect to 
the export of defense articles and defense services, the President is 
authorized to exercise the same powers concerning violations and 
enforcement which are conferred upon departments, agencies and 
officials by sections 6 (c), (d), (e), and (f) and 7 (a) and (c) of 
the Export Administration Act of 1969, subject to the same terms 
and conditions as are applicable to such powers under such Act. 
Nothing in this subsection shall be construed as authorizing the 
withholding of information from the Congress.". 
(2) Section 2(b) of the Foreign Military Sales Act is amended— 
(A) by inserting "and exports" immediately after "sales" both 
times it appears; and 
(B) by inserting "and whether there shall be delivery or other 
performance under such sale or export," immediately after 
"thereof,". 
(b) (1) Section 414 of the Mutual Security Act of 1954 is repealed. 
Any reference to such section shall be deemed to be a reference to 
section 38 of the Arms Export Control Act and any reference to 
licenses issued under section 38 of the Arms Export Control Act shall 
be deemed to include a reference to licenses issued under section 414 
of the Mutual Security Act of 1954. 
(2) All determinations, authorizations, regulations, orders, con-
tracts, agreements, and other actions issued, undertaken, or entered 
into under section 414 of the Mutual Security Act of 1954 shall 
continue in full force and effect until modified, revoked, or superseded 
by appropriate authority. 
Penalties. 
Post, p. 767. 
50 
use 
app. 
2405, 2406. 
22 
use 
2752. 
Repeal. 
22 
use 
1934 
and 
note, 2778 
note. 
22 
use 1934 
note. 
22 
use 
2761, 
2762. 
CANCELLATION AND SUSPENSION OF LICENSES AND CONTRACTS 
SEC. 213. Section 42 of the Foreign Military Sales Act is amended 22 USe 2791 
by adding at the end thereof the following new subsection: 
"(e) (1) Each contract for sale entered into under sections 21 and 
22 of this Act shall provide that such contract may be canceled in w^hole 
or in part, or its execution suspended, by the United States at any 
time under unusual or compelling circumstances if the national interest 
so requires. 
"(2) (A) Each export license issued under section 38 of this Act Ante, p. 744 
shall provide that such license may be revoked, suspended, or amended 
by the Secretary of State, without prior notice, whenever the Secretary 
deems such action to be advisable. 
"(B) Nothing in this paragraph may be construed as limiting the 
regulatory authority of the President under this Act. 
90 STAT. 746 
PUBLIC LAW 94-329—JUNE 30, 1976 
" (3) There are authorized to be appropriated from time to time such 
sums as may be necessary (A) to refund moneys received from pur-
chasers under contracts of sale entered into under sections 21 and 22 
22 use 2761, 
of this Act that are canceled or suspended under this subsection to the 
2762. 
extent such moneys have previously been disbursed to private con-
tractors and L'nited States Government a<^ncies for work in progress, 
and (B) to pay such damages and costs that accrue from the corre-
sponding cancellation or suspension of the existing procurement con-
tracts or United States Government agency work orders involved.". 
ADMINISTRATIVE EXPENSES 
22 use 2792. 
SEC. 214. Section 43 of the Foreign Military Sales Act is amended 
by designating the present section as subsection (a) and by adding 
at the end thereof tlie following new subsection: 
"(b) Administrative expenses incurred by any department or agency 
of the United States Government (including any mission or group) in 
carrying out functions under this Act which are primarily for the 
benefit of any foreign country shall be fully reimbursed from amounts 
received for sales under sections 21 and 22.". 
DEFINITIONS 
22 use 2794. 
SEC. 215. Section 47 of the Foreign Military Sales Act is amended— 
(1) by striking out "and" at the end of paragraph (1); 
(2) by striking out the period at the end of paragraph (2) and 
inserting in lieu thereof a semicolon; and 
(3) by adding immediately after paragraph (2) the following 
new paragraphs: 
"(3) 'defense article', except as provided in paragraph (7) of this 
section, includes— 
"(A) any weapon, weapons system, munition, aircraft, vessel, 
t.... 
boat, or other implement of war, 
"(B) any property, installation, commodity, material, equip-
ment, supply, or goods used for the purposes of making military 
sales, 
"(C) any machinery, facility, tool, material, supply, or other 
item necessary for the manufacture, production, processing, repair, 
servicing, storage, construction, transportation, operation, or use 
of any article listed in this paragraph, and 
" ( D ) any component or part of any article listed in this 
paragraph, 
but does not include merchant vessels or (as defined by the Atomic 
42 use 2014. 
Energy Act of 1954) source material, byproduct material, special 
nuclear material, production facilities, utilization facilities, or atomic 
weapons or articles involving Restricted Data; 
"(4) 'defense service', except as provided in paragraph (7) of this 
section, includes any service, test, inspection, repair, training, publica-
tion, technical or other assistance, or defense information (as defined 
22 use 2403. 
in section 644(e) of the Foreign Assistance Act of 1961), used for the 
purposes of making military sales; 
"(5) 'training' includes formal or informal instruction of foreign 
students in the United States or overseas by officers or employees of 
the United States, contract technicians, or contractors 
(including 
instruction at civilian institutions), or by correspondence courses, 
technical, educational, or information publications and media of all 
kinds, training aid, orientation, training exercise, and military advice 
to foreign military units and forces; 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 747 
"(6) 'major defense equipment' means any item of significant com-
bat equipment on the United States Munitions List having a non-
recurring research and development cost of more than $50,000,000 or a 
total production cost of more than $200,000,000; and 
"(7) 'defense articles and defense services' means, with respect to 
connnercial exports subject to the provisions of section 38 of this Act, Ante, p. 744. 
those items designated by the President pursuant to subsection (a) (1) 
of such section.". 
ANNUAL FOREIGN SALES REPORT 
SEC. 216. Section 657 of the Foreign Assistance Act of 1961 is 
amended as follows: 
(1) The section caption is amended by inserting "AND MILITARY 
EXPORTS" after "FOREIGN ASSISTANCE". 
(2) Paragraph (1) of subsection (a) is amended to read as 
follows: 
"(1) the aggregate dollar value of all foreign assistance 
(including military education and training), foreign military 
sales, sales credits, and guaranties provided or made by the 
United States Government by any means to all foreign countries 
and international organizations, and the aggregate dollar value 
of such assistance, sales, sales credits, and guaranties, by category, 
provided or made by the United States Government to or for 
each such country or organization during that fiscal year;". 
(3) Paragraph (3) of subsection (a) is amended to read as 
follows: 
" (3) the aggregate dollar value and quantity of defense articles 
and defense services, and of military education and training, 
exported to each foreign country and international organization, 
by category, specifying whether the export was made by grant 
under chapter 2 or chapter 5 of part II of this Act, by sale under 
chapter 2 of the Arms Export Control Act, by commercial sale 
licensed under chapter 3 of that Act, or by other authority; and". 
(4) Paragraph (4) of subsection (a) is repealed. 
(5) Paragraph (5) of subsection (a) is amended— 
(A) by redesignating such paragraph as paragraph (4), 
and 
(B) by striking out "(4)" and inserting in lieu thereof 
"(3)". 
22 use 2417. 
REPORT ON SALES or EXCESS DEFENSE ARTICLES 
SEC. 217. Not later than Februarj^ 28, 1977, the President shall 
transmit to the Speaker of the House of Kepresentatives and the 
Committee on Foreign Eelations of the Senate a full and complete 
report regarding all sales made under the Arms Export Control Act 
during the period July 1, 1976, through December 31, 1976, of excess 
defense articles to foreign governments and international organiza-
tions (other than any such article sold solely for scrap). Such report 
shall set forth— 
(1) the number of such sales; 
(2) the total acquisition costs of the articles sold; 
(3) the total gross price paid for such articles exclusive of 
administrative surcharges and costs of repairing, rehabilitation, 
or modifying such articles; 
(4) the data set forth under paragraphs (1), (2), and (3) 
totaled separately for those sales made at less than 33% per centum 
of the acquisition costs thereof; and 
Transmittal to 
Speaker of the 
House and 
congressional 
committee. 
2^ use 2751 
note. 
90 STAT. 748 
PUBLIC LAW 94-329—JUNE 30, 1976 
22 use 2751 
note. 
Submittal to 
President and 
Congress. 
(5) the estimated total proceeds of sales of articles included 
under paragraph (4) if such articles had been sold instead through 
United States Government surplus property disposal operations 
and the percentage thereof that would have been paid out of such 
proceeds to meet direct expenses incurred in connection with such 
dispositions pursuant to law. 
STUDY OF THE EFFECTS OF ARMS EXPORT CONTROL PROVISIONS 
SEC. 218. (a) The Secretary of State, in consultation with the Sec-
retary of Defense, shall conduct a comprehensive study of the effects 
of the enactment of the arms export control provisions contained in 
this title with a view to determining the consequences of such provi-
sions on (1) the foreign policy of the United States, (2) the balance 
of payments of the United States, (3) the trade with foreign countries, 
(4) unemployment in the United States, and (5) weapons procurement 
by the Department of Defense. 
(b) The Secretary of State shall submit the results of such study to 
the President and the Congress within one year after the date of 
enactment of this section, together with such comments and recom-
mendations for legislation as he deems appropriate. 
TITLE III—GENERAL LIMITATIONS 
HUMAN RIGHTS 
22 use 2304. 
SEC. 301. (a) Section 502B of the Foreign Assistance Act of 1961 
is amended to read as follows: 
"SEC. 502B. HUMAN RIGHTS.— (a) (1) It is the policy of the United 
States, in accordance with its international obligations as set forth in 
the Charter of the United Nations and in keeping with the constitu-
tional heritage and traditions of the United States, to promote and 
encourage increased respect for human rights and fundamental free-
doms for all without distinction as to race, sex, language, or religion. 
To this end, a principal goal of the foreign policy of the United States 
is to promote the increased observance of internationally recognized 
human rights by all countries. 
" (2) It is further the policy of the United States that, except under 
circumstances specified in this section, no security assistance may be 
provided to any country the government of which engages in a con-
sistent pattern of gross violations of internationally recognized human 
rights. 
" (3) In furtherance of the foregoing policy the President is directed 
to formulate and conduct international security assistance programs 
of the United States in a manner which will promote and advance 
human rights and avoid identification of the United States, through 
such programs, with governments which deny to their people inter-
nationally recognized human rights and fundamental freedoms, in 
violation of international law or in contravention of the policy of the 
United States as expressed in this section or otherwise. 
Report to 
"(b) The Secretary of State shall transmit to the Congress, as part 
Congress. 
of the presentation materials for security assistance programs pro-
posed for each fiscal year, a full and complete report, prepared with 
the assistance of the Coordinator for Human Rights and Humani-
tarian Affairs, with respect to practices regarding the observance of 
and respect for internationally recognized human rights in each 
country proposed as a recipient of security assistance. In determining 
whether a government falls within the provisions of subsection (a) (3) 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 749 
and in the preparation of any report or statement required under this 
section, consideration sliall be given to— 
" (1) the relevant jfindings of appropriate international organi-
zations, including nongovernmental organizations, such as the 
International Committee of the Red Cross; and 
"(2) the extent of cooperation by such government in permit-
ting an unimpeded investigation Dy any such organization of 
alleged violations of internationally recognized human rights. 
"(c)(1) Upon the request of the Senate or the House of Repre- Statement, 
sentatives by resolution of either such House, or upon the request of transmittal to 
the Committee on Foreign Relations of the Senate or the Commit- Congress, 
tee on International Relations of the House of Representatives, the 
Secretary of State shall, within thirty days after receipt of such 
request, transmit to both such committees a statement, prepared with 
the assistance of the Coordinator for Hmnan Rights and Humani-
tarian Affairs, with respect to the country designated in such request, 
setting forth— 
"(A) all the available information about observance of and 
respect for human rights and fundamental freedom in that coun-
try, and a detailed description of practices by the recipient 
government with respect thereto; 
"(B) the steps the United States has taken to— 
"(i) promote respect for and observance of human rights 
in that country and discourage any practices which are inimi-
cal to internationally recognized human rights, and 
"(ii) publicly or privately call attention to, and disassoci-
ate the United States and any security assistance provided 
for such country from, such practices; 
"(C) whether, in the opinion of the Secretary of State, not-
withstanding any such practices— 
"(i) extraordinary circumstances exist which necessitate 
a continuation of security assistance for such country, and, 
' " 
if so, a description of such circumstances and the extent to 
which such assistance should be continued (subject to such 
conditions as Congress may impose under this section), and 
"(ii) on all the facts it is in the national interest of the 
t • 
United States to provide such assistance; and 
"(D) such other information as such committee or such House 
may request. 
"(2) (A) A resolution of request under paragraph (1) of this sub-
section shall be considered in the Senate in accordance with the provi-
sions of section 601(b) of the International Security Assistance and 
Arms Export Control Act of 1976. 
Post, p. 765. 
"(B) The term 'certification', as used in section 601 of such Act, "Certification, 
means, for the purposes of this subsection, a resolution of request of 
the Senate under paragraph (1) of this subsection. 
"(3) In the event a statement with respect to a country is rec^uested 
pursuant to paragraph (1) of this subsection but is not transmitted 
in accordance therewith within thirty days after receipt of such re-
quest, no security assistance shall be delivered to such country except 
as may thereafter be specifically authorized by law from such country 
unless and until such statement is transmitted. 
" (4) (A) In the event a statement with respect to a country is trans-
mitted under paragraph (1) of this subsection, the Congress may at 
any time thereafter adopt a joint resolution terminating, restricting, 
or continuing security assistance for such country. In the event such a 
joint resolution is adopted, such assistance shall be so terminated, so 
restricted, or so continued, as the case may be. 
90 STAT. 750 
PUBLIC LAW 94-329—JUNE 30, 1976 
"Certification. 
Definitions. 
Ante, p. 744. 
22 u s e 2384. 
Coordinator for 
Human Rights 
and 
Humanitarian 
Affairs. 
Ante, p. 748. 
22 u s e 2151n. 
"(B) Any such resolution shall be considered in the Senate in 
accordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 
"(C) The term 'certification', as used in section 601 of such Act, 
means, for the purposes of this paragraph, a statement transmitted 
under paragraph (1) of this subsection. 
"(d) For the purposes of this section— 
"(1) the term 'gross violations of internationally recognized 
human rights' includes torture or cruel, inhuman, or degrading 
treatment or punishment, prolonged detention without charges 
and trial, and other flagrant denial of the right to life, liberty, 
or the security of person; and 
" (2) the term 'security assistance' means— 
"(A) assistance under chapter 2 (military assistance) or 
chapter 4 (security supporting assistance) or chapter 5 (mili-
tary education and training) of this part or part VI (assist-
ance to the Middle East) of this Act; 
"(B) sales of defense articles or services, extensions of 
credits (including participations in credits, and guaranties 
of loans under the Arms Export Control Act; or 
"(C) any license in effect with respect to the export of 
defense articles or defense services to or for the armed forces, 
police, intelligence, or other internal security forces of a 
foreign country under section 38 of the Arms Export Control 
Act.", 
(b) Section 624 of the Foreign Assistance Act of 1961 is amended 
by adding at the end thereof the following new subsection: 
"(f) (1) There is established in the Department of State a Coordi-
nator for Human Rights and Humanitarian Affairs. The Coordi-
nator shall be appointed by the President with the advice and consent 
of the Senate. He shall be responsible to the Secretary of State for 
matters pertaining to human rights and humanitarian affairs (includ-
ing matters relating to refugees, prisoners of war, and members of the 
United States Armed Forces missing in action) in the conduct of 
foreign policy. The Secretary of State shall carry out his responsibility 
under section 502B of this Act through the Coordinator for Human 
Rights and Humanitarian Affairs. 
''(2) The Coordinator for Human Rights and Humanitarian Affairs 
shall maintain continuous observation and review of all matters per-
taining to human rights and humanitarian affairs (including matters 
relating to refugees, prisoners of war, and members of the United 
States Armed Forces missing in action) in the conduct of foreign 
policy including— 
"(A) gathering detailed information regarding humanitarian 
affairs and the observance of and respect for internationally 
recognized human rights in each country to which requirements 
of sections 116 and 502B of this Act are relevant; 
"(B) preparing the statements and reports to Congress required 
under section 502B of this Act; 
"(C) making recommendations to the Secretary of State and 
the Administrator of the Agency for International Development 
regarding compliance with sections 116 and 502B of this Act; and 
"(D) performing other responsibilities which serve to promote 
increased observance of internationally recognized human rights 
by all countries.". 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 751 
PROHIBITION AGAINST DISCRIMINATION 
SEC. 302. (a) Section 505 of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new subsection: 
" ( g ) ( 1 ) It is the policy of the United States that no assistance 
under this chapter should be furnished to any foreign country, the 
law^s, regulations, official policies, or governmental practices of which 
prevent any United States person (as defined in section 7701(a) (30) 
of the Internal Revenue Code of 1954) from participating in the 
furnishing of defense articles or defense services under this chapter 
on the basis of race, religion, national origin, or sex. 
"(2) (A) No agency performing functions under this chapter shall, 
in employing or assigning personnel to participate in the performance 
of any such function, whether in the United States or abroad, take 
into account the exclusionary policies or practices of any foreign gov-
ernment where such policies or practices are based upon- race, religion, 
national origin, or sex. 
" ( B ) Each contract entered into by any such agency for the per-
formance of any function under this chapter shall contain a provision 
to the effect that no person, partnership, corporation, or other entity 
performing functions pursuant to such contract, shall, in employing 
or assigning personnel to participate in the performance of any such 
function, whether in the United States or abroad, take into account 
the exclusionary policies or practices of any foreign government where 
such policies or practices are based upon race, religion, national origin, 
or sex. 
"(3) The President shall promptly transmit reports to the Speaker 
of the House of Representatives and the chairman of the Committee 
on Foreign Relations of the Senate concerning any transaction in 
which any United States person (as defined in section 7701 (a) (30) of 
the Internal Revenue Code of 1954) is prevented by a foreign govern-
ment on the basis of race, religion, national origin, or sex, from par-
ticipating in the furnishing of assistance under this chapter, or 
education and training under chapter 5, to any foreign country. Such 
reports shall include (A) a description of the facts and circumstances 
of any such discrimination, (B) the response thereto on the part of 
the United States or any agency or employee thereof, and (C) the 
result of such response, if any. 
"(4) (A) Upon the request of the Committee on Foreign Relations 
of the Senate or the Committee on International Relations of the 
House of Representatives, the President shall, within 60 days after 
receipt of such request, transmit to both such committees a statement, 
prepared with the assistance of the Coordinator for Human Rights 
and Humanitarian Affairs, with respect to the country designated in 
such request, setting forth— 
"(i) all the available information about the exclusionary 
policies or practices of the government of such country when such 
policies or practices are based upon race, religion, national origin, 
or sex and prevent any such person from participating in a trans-
action involving the furnishing of any assistance under this chap-
ter or any education and training under chapter 5; 
"(ii) the response of the United States thereto and the results 
of such response ; 
"(iii) whether, in the opinion of the President, notwithstand-
ing any such policies or practices— 
" (I) extraordinary circumstances exist which necessitate a 
continuation of such assistance or education and training 
transaction, and, if so, a description of such circumstances 
22 use 2314. 
26 use 7701. 
Reports, 
transmittal to 
Speaker of the 
House and 
congressional 
committee. 
Ante, p. 732. 
89-194 O—78—pt. 1 
51 
90 STAT. 752 
PUBLIC LAW 94-329—JUNE 30, 1976 
Post, p. 765. 
"Certification.' 
22 
use 
2755. 
26 
use 
7701. 
Reports, 
transmittal to 
Speaker of the 
House and 
congressional 
committee. 
and the extent to which such assistance or education and 
. 
training transaction should be continued (subject to such 
conditions as Congress may impose under this section), and 
"(II) on all the facts it is in the national interest of the 
United States to continue such assistance or education and 
training transaction; and 
" (iv) such other information as such committee may request. 
"(B) In the event a statement with respect to an assistance 
or training transaction is requested pursuant to subparagraph (A) 
of this paragraph but is not transmitted in accordance therewith 
within 60 days after receipt of such request, such assistance or training 
transaction shall be suspended unless and until such statement is 
transmitted. 
"(C) (i) In the event a statement with respect to an assistance or 
training transaction is transmitted under subparagraph (A) of this 
paragraph, the Congress may at any time thereafter adopt a joint 
resolution terminating or restricting such assistance or training 
transaction. 
" (ii) Any such resolution shall be considered in the Senate in accord-
ance with the provisions of section 601(b) of the International Secu-
rity Assistance and Arms Export Control Act of 1976. 
"(iii) The term 'certification', as used in section 601 of such Act, 
means, for the purposes of this paragraph, a statement transmitted 
under subparagraph (A) of this paragraph.". 
(b) Chapter 1 of the Foreign Military Sales Act is amended by 
adding at the end thereof the following new section: 
"SEC. 5. PROHIBITION AGAINST DISCRIMINATION.— (a) 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, regulations, official policies, or govern-
mental practices of which prevent any United States person (as 
defined in section 7701(a) (30) of the Internal Revenue Code of 1954) 
from participating in the furnishing of defense articles or defense 
services under this Act on the basis of race, religion, national origin, 
or sex. 
"(b) (1) No agency performing functions under this Act shall, in 
employing or assigning personnel to participate in the performance 
of any such function, whether in the United States or abroad, take 
into account the exclusionary policies 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 per-
formance of any function under this Act shall contain a provision to 
the effect that no person, partnership, corporation, or other entity 
performing functions pursuant to such contract, shall, in employing 
or assigning personnel to participate in the performance of any such 
function, whether in the United States or abroad, take into account the 
exclusionary policies or practices of any foreign government where 
such policies or practices are based upon race, religion, national origin, 
or sex. 
"(c) The President shall promptly transmit reports to the Speaker 
of the House of Representatives and the chairman of the Committee 
on Foreign Relations of the Senate concerning any instance in which 
any United States person (as defined in section 7701(a) (30) of the 
Internal Revenue Code of 1954) is prevented by a foreign government 
on the basis of race, religion, national origin, or sex, from participating 
in the performance of any sale or licensed transaction under this Act. 
Such reports shall include (1) a description of the facts and circum-
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 753 
stances of any such discrimination, (2) the response thereto on the 
part of the United States or any agency or employee thereof, and (3) 
the result of such response, if any. 
" (d) (1) Upon the request of the Committee on Foreign Eelations of 
the Senate or the Committee on International Relations of the House 
of Representatives, the President shall, within 60 days after receipt 
of such request, transmit to both such committees a statement, prepared 
with the assistance of the Coordinator for Human Rights and Humani-
tarian Affairs, with respect to the country designated in such request, 
setting forth— 
"(A) all the available information about the exclusionary 
policies or practices of the government of such country when such 
policies or practices are based upon race, religion, national origin 
or sex and prevent any such person from participating in the 
performance of any sale or licensed transaction under this Act; 
"(B) the response of the United States thereto and the results 
of such response; 
"(C) whether, in the opinion of the President, notwithstanding 
any such policies or practices— 
"(i) extraordinary circumstances exist which necessitate a 
continuation of such sale or licensed transaction, and, if so, 
a description of such circumstances and the extent to which 
such sale or licensed transaction should be continued (subject 
to such conditions as Congress may impose under this sec-
tion), and 
"(ii) on all the facts it is in the national interest of the 
United States to continue such sale or licensed transaction; 
and 
"(D) such other information as such committee may request. 
"(2) In the event a statement with respect to a sale or licensed 
transaction is requested pursuant to paragraph (1) of this subsection 
but is not transmitted in accordance therewith within 60 days after 
receipt of such request, such sale or licensed transaction shall be 
suspended unless and until such statement is transmitted. 
"(3) (A) In the event a statement with respect to a sale or licensed 
transaction is transmitted under paragraph (1) of this subsection, the 
Congress may at any time thereafter adopt a joint resolution termi-
nating or restricting such sale or licensed transaction. 
"(B) Any such resolution shall be considered in the Senate in 
accordance with the provisions of section 601(b) of the International 
Security Assistance and Arms Export Control Act of 1976. 
"(C) The term 'certification', as used in section 601 of such Act, 
means, for the purposes of this paragraph, a statement transmitted 
under paragraph (1) of this subsection.". 
Statement, 
transmittal to 
congressional 
committees. 
Post, p. 765. 
"Certification. 
PROHIBITION OF ASSISTANCE TO COUNTRIES GRANTING SANCTUARY TO 
INTERNATIONAL TERRORISTS 
SEC. 303. Chapter 1 of part I I I of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
section: 
"SEC. 620A. PROHIBITION 
AGAINST FURNISHING 
ASSISTANCE 
TO 
COUNTRIES W H I C H 
GRANT 
SANCTUARY 
TO INTERNATIONAL 
TERROR-
ISTS.—-(a) Except where the President finds national security to 
require otherwise, the President shall terminate all assistance under 
this Act to any government which aids or abets, by granting sanctuary 
from prosecution to, any individual or grouj) which has committed an 
act of international terrorism and the President may not thereafter 
22 use 2371. 
90 STAT. 754 
PUBLIC LAW 94-329—JUNE 30, 1976 
Report to 
Speaker of the 
House and 
congressional 
committee. 
22 use 2314. 
68 Stat. 832. 
22 use 1751 
note. 
22 use 2302. 
Report to 
Congress. 
22 use 2753. 
furnish assistance to such government until the end of the one year 
period beginning on the date of such termination, except that if during 
its period of ineligibility for assistance vmder this section such govern-
ment aids or abets, by granting sanctuary from prosecution to, any 
other individual or group which has committed an act of international 
terrorism, such government's period of ineligibility shall be extended 
for an additional year for each such individual or group. 
"(b) If the President finds that national security justifies a con-
tinuation of assistance to any government described in subsection (a), 
he shall report such finding to the Speaker of the House of Repre-
sentatives and the Committee on Foreign Relations of the Senate.". 
INELIGIBILITY 
SEC. 304. (a) Section 505(d) of the Foreign Assistance Act of 1961 
is amended to read as follows: 
"(d) (1) Assistance and deliveries of assistance under this chapter 
to any country shall be terminated as hereinafter provided, if such 
country uses defense articles or defense services furnished under this 
Act, the Mutual Security Act of 1954, or any predecessor Foreign 
Assistance Act, in substantial violation (either in terms of quantities 
or in terms of the gravity of the consequences regardless of the quan-
tities involved) of any agreement entered into pursuant to any such 
Act (A) by using such articles or services for a purpose not author-
ized under section 502 or, if such agreement provides that such articles 
or services may only be used for purposes more limited than those 
authorized under section 502, for a purpose not authorized under such 
agreement; (B) by transferring such aiiicles or services to, or per-
mitting any use of such articles or services by, anyone not an officer, 
employee, or agent of the recipient country without the consent of the 
President; or (C) by failing to maintain the security of such articles 
or services. 
"(2) (A) Assistance and deliveries of assistance shall be terminated 
pursuant to paragraph (1) of this subsection if the President so 
determines and so states in writing to the Congress, or if the Congress 
so finds by joint resolution. 
"(B) The President shall report to the Congress promptly upon the 
receipt of information that a violation described in paragraph (1) of 
this subsection may have occurred. 
"(3) Assistance to a country shall remain terminated in accord-
ance with paragraph (1) of this subsection until such time as— 
"(A) the President determines that the violation has ceased; 
and 
"(B) the country concerned has given assurances satisfactory 
to the President that such violation will not recur, 
"(4) The authority contained in section 614(a) of this Act may not 
be used to waive the provisions of this section with respect to further 
assistance under this chapter.". 
(b) (1) Section 3(c) of the Foreign Military Sales Act is amended 
to read as follows: 
"(c) (1) (A) No credits (including participations in credits) may be 
issued and no guaranties may be extended for any foreign country 
under this Act as hereinafter provided, if such country uses defense 
articles or defense services furnished under this Act, or any predecessor 
Act, in substantial violation (either in terms of quantities or in terms 
of the gravity of the consequences 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 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 755 
under section 4 or, if such agreement provides that such articles or 22 USC 2754. 
services may only be used for purposes more limited than those author-
ized under section 4 for a purpose not authorized under such agree-
ment; (ii) 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 recipient country without the consent of the President; 
or (iii) by failing to maintain the security of such articles or services. 
"(B) No cash sales or deliveries pursuant to previous sales may be 
made with respect to any foreign country under this Act as hereinafter 
provided, if such country uses defense articles or defense services 
furnished under this Act, or any predecessor Act, in substantial viola-
tion (either in terms of quantity 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 by using such articles or services 
for a purpose not authorized under section 4 or, if such agreement 
provides that such articles or services may only be used for purposes 
more limited than those authorized under section 4, for a purpose not 
authorized under such agreement. 
"(2) The President shall report to the Congress promptly upon the Report to 
receipt of information that a violation described in paragraph (1) of Congress, 
this subsection may have occurred. 
"(3) (A) A country shall be deemed to be ineligible under subpara-
graph (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 President 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 ineligi-
bility 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 security, unless 
the Congress adopts or has adopted a joint resolution pursuant to 
subparagraph (A) of this paragraph with respect to such ineligibility. 
" (4) A country shall remain ineligible in accordance with paragraph 
(1) of this subsection until such time as— 
"(A) the President determines that the violation has ceased; 
.<k •
> 
' 
and 
"(B) the countiy concerned has given assurances satisfactory to 
the President that such violation will not recur.". 
(2) Section 3(d) of the Foreign Military Sales Act is repealed and Repeal. 
subsections (e) and (f) of such section, as added by section 204 of this Ante, p. 735. 
Act, are redesignated as subsections (d) and (e), respectively. 
NUCLEAR TRANSFERS 
; 
SEC. 305. Chapter 3 of part III of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
section: 
"SEC. 669. NUCLEAR TRANSFERS.— (a) Except as provided in subsec- 22 USC 2429. 
tion (b), no funds authorized to be appropriated by this Act or the 
Arms Export Control Act may be used for the purpose of— 
, 
" (1) providing economic assistance; 
"(2) providing military or security supporting assistance or 
grant military education and training; or 
"(3) extending military credits or making gaiarantees; 
to any country which— 
"(A) delivers nuclear reprocessing or enrichment equip-
ment, materials, or technology to any other country; or 
90 STAT. 756 
PUBLIC LAW 94-329—JUNE 30, 1976 
^; J-: ^ [ 2'^ - 
"(B) receives such equipment, materials or technology from 
any other country; 
unless before such delivery— 
" (i) the supplying country and receiving coimtry have 
reached agreement to place all such equipment, materials, 
and technology, upon delivery, under multilateral aus-
pices and management when available; and 
" (ii) the recipient country has entered into an agree-
ment with the International Atomic Energy Agency 
to place all such equipment, materials, technology, and 
all nuclear fuel and facilities in such country under the 
safeguards system of such Agency. 
"(b)(1) Notwithstanding the provisions of subsection (a) of this 
section, the President may, by Executive order effective not less than 
30 days following its date of promulgation, furnish assistance which 
would otherwise be prohibited under paragraph (1), (2), or (3) of 
such subsection if he determines and certifies in writing to the Speaker 
of the House of Representatives and the Committee on Foreign 
Relations of the Senate that— 
"(A) the termination of such assistance would have a serious 
adverse effect on vital United States interests; and 
"(B) he has received reliable assurances that the country in 
question will not acquire or develop nuclear weapons or assist 
other nations in doing so. 
Such certification shall set forth the reasons supporting such deter-
'' 
mination in each particular case. 
" (2) (A) The Congress may by joint resolution terminate or restrict 
assistance described in paragraphs (1) through (3) of subsection (a) 
with respect to a country to which the prohibition in such subsection 
applies or take any other action with respect to such assistance for such 
country as it deems appropriate. 
"(B) Any such joint resolution with respect to a country shall, if 
introduced within 30 days after the transmittal of a certification under 
paragraph (1) with respect to such country, be considered in the 
Senate in accordance with the provisions of section 601(b) of the 
International Security Assistance and Arms Export Control Act of 
Post, p. 765. 
1976.". 
TITLE IV—PROVISIONS RELATING TO SPECIFIC 
REGIONS OR COUNTRIES 
MIDDLE EAST POLICY STATEMENT 
22 use 2441. 
SEC. 401. Section 901 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new paragraph: 
"It is the sense of Congress that the United States will continue 
to determine Middle East Policy as circumstances may require and 
that the authority contained in the joint resolution entitled 'Joint 
resolution to implement the United States proposal for the early-
warning system in Sinai', approved October 13, 1975 (Public Law 
22 use 2441 
94—110), and the authorizations contained in the amendments made 
note. 
by the International Security Assistance and Arms Export Control 
Act of 1976 do not, and shall not in any way be construed to, constitute 
congressional approval, acceptance, or endorsement (1) of any oral 
or written commitment, understanding, assurance, promise, or agree-
ment, whether expressed or implied, or any other expression, oral or 
written (other than the 'United States Proposal for the Early Warning 
System in Sinai'), made by any official of the United States which 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 757 
Israel, Egypt, or any other nation or organization might construe or 
interpret as a basis on which it could rely or act, or (2) of any 
characterization of any such commitment, understanding, assurance, 
promise, or agreement, or other expression, as constituting a 'codifica-
tion' of existing, congressionally approved United States policy,". 
AID rOK CYPRIOT REFUGEES 
SEC. 402. Section 495 of the Foreign Assistance Act of 1961 is 
amended by striking out ''$30,000,000" and inserting in lieu thereof 
"$40,000,000". 
ASSISTANCE TO TURKEY 
22 use 2292f. 
Suspension. 
22 use 2370. 
SEC. 403. Section 620(x) (1) of the Foreign Assistance Act of 1961, 
as amended by section 2(c) of the Act of October 6,1975 (Public Law 
94—104), is amended by striking out '"'• 
Provided^'' and all that follows 
through the end of paragraph (1) and inserting in lieu thereof the 
following: '"'"Provided^ That for the fiscal year 1976, the period begin-
ning July 1, 1976, and ending September 30, 1976, and the fiscal year 
1977, the President may suspend the provisions of this subsection and 
of section 3(c) of the Arms Export Control Act with respect to cash 22 USC 2753. 
sales and extensions of credits and guaranties under such Act for the 
procurement of such defense articles and defense services as the 
President determines are necessary to enable Turkey to fulfill her 
defense responsibilities as a member of the North Atlantic Treaty 
Organization, except that (A) during the fiscal year 1976 and the 
period beginning July 1, 1976, and ending September 30, 1976, the 
total value of defense articles and defense services sold to Turkey 
under such Act, either for cash or financed by credits and guaranties, 
shall not exceed $125,000,000, and (B) during the fiscal year 1977, the 
total value of defense articles and defense services sold to Turkey 
under such Act, either for cash or financed by credits and guaranties, 
shall not exceed $125,000,000. Any such suspension shall be effective 
only so long as Turkey observes the cease-fire on Cyprus, does not 
increase its military forces or its civilian population on Cyprus, and 
does not transfer to Cyprus any United States supplied arms, 
ammunition, or implements of war. The determination required by 
the proviso in the first sentence of this paragraph shall be made, on 
a case-by-case basis, with respect to each cash sale, each approval for 
use of credits, and each approval for use of a guaranty for Turkey. 
Each such determination shall be reported to the Congress and shall Report to 
be accompanied by a full and complete statement of the reasons Congress, 
supporting the President's determination and a statement containing 
the information specified in clauses (A) through (D) of section 2(c) 
(4) of the Act of October 6, 1975 (Public Law 94-104). In any case 89 Stat. 509. 
involving the sale of significant combat equipment on the United 
States Munitions List in wliich the congressional review provisions of 
section 36(b) of the Arms Export Control Act do not apply, the ^^^^ P- 740. 
President may not issue the letter of offer or approve the use of the 
credits or guaranty, as the case may be, until the end of the thirty-day 
period beginning on the date on which the report required by the 
preceding sentence is submitted to the Congress.". 
LIMITATION ON CERTAIN ASSISTANCE TO AND ACTIVITIES I N ANGOLA 
SEC. 404. (a) Notwithstanding any other provision of law, no assist-
ance of any kind may be provided for the purpose, or which would 
have the effect, of promoting or augmenting, directly or indirectly, the 
capacity of any nation, group, organization, movement, or individual 
22 USC 2293 
note. 
90 STAT. 758 
PUBLIC LAW 94-329—JUNE 30, 1976 
Report to 
Speaker of the 
House and 
congressional 
commitee. 
J.rr-' 
to conduct military or paramilitary operations in Angola unless and 
until the Congress expressly authorizes such assistance by law enacted 
after the date of enactment of this section. 
(b) If the President determines that assistance prohibited by sub-
section (a) should be furnished in the national security interests of the 
United States, he shall submit to the Speaker of the House of Repre-
sentatives and the Committee on Foreign Relations of the Senate a 
report containing— 
(1) a description of the amounts and categories of assistance 
which he recommends to be authorized and the identity of the 
proposed recipients of such assistance; and 
(2) a certification that he has determined that the furnishing 
of such assistance is important to the national security interests 
of the United States and a detailed statement, in unclassified 
form, of the reasons supporting such determination. 
(c) The prohibition contained in subsection (a) does not apply with 
respect to assistance which is furnished solely for humanitarian 
purposes. 
(d) The provisions of this section may not be waived under any 
other provision of law. 
22 use 2293 
note. 
SOVIET INTERVENTION IN ANGOLA 
SEC. 405. The Congress views the large-scale and continuing Soviet 
intervention in Angola, including active sponsorship and support of 
Cuban armed forces in Angola, as being completely inconsistent with 
any reasonably defined policy of detente, as well as with Articles 1 
and 2 of the United Nations Charter, the principle of noninterference 
in the affairs of other countries agreed to at Helsinki in 1975, and with 
the spirit of recent bilateral agreements between the United States and 
the Union of Soviet Socialist Republics. Such intervention should be 
taken explicitly into account in United States foreign policy planning 
and negotiations. 
22 use 2370 
note. 
22 use 2151 
note. 
LIMITATIONS ON ECX)N0MIC ASSISTANCE, MILITARY ASSISTANCE, SALES, AND 
SALES CREDITS FOR CHILE 
SEC. 406. (a) (1) No military or security supporting assistance and 
no military education and training may be furnished under the For-
eign Assistance Act of 1961 for Chile; and no credits (including par-
ticipations in credits) may be extended and no loan may be guaranteed 
under the Arms Export Control Act with respect to Chile. No deliv-
eries of any such assistance, credits, or guaranties may be made to 
Chile on or after the date of enactment of this section. 
(2) No sales (including cash sales) may be made and no export 
license may be issued under the Arms Export Control Act with respect 
to Chile on or after the date of enactment of this section. 
(b) (1) Notwithstanding any other provision of law, the total 
amount of economic assistance which may be made available for Chile 
during the period beginning July 1, 1976, and ending September 30, 
1977, may not exceed $27,500,000. For purposes of this subsection, eco-
nomic assistance includes any assistance of any kind v/hich is pro-
vided, directly or indirectly, to or for the benefit of Chile by any 
department, agency, or other instrumentality of the United States 
Government (other than assistance provided under chapter 2, 4, or 5 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 759 
of part II of the Foreign Assistance Act of 1961 or credits or guaran-
ties extended under the Arms Export Control Act), but does not 
include commodities furnished under title II of the Agricultural Trade 
Development and Assistance Act of 1954. This subsection shall not be 
construed to authorize the furnishing of any assistance which is 
prohibited under any other provision of law. 
(2) The $27,500,000 limit set forth in paragraph (1) of this sub-
section may be increased by not to exceed $27,500,000 if the President 
certifies in writing to the Speaker of the House of Representatives 
and the Committee on Foreign Relations of the Senate that the 
Government of Chile— 
(A) does not engage in a consistent pattern of gross violations 
of internationally recognized human rights, including torture or 
cruel, inhuman, or degrading treatment or punishment, prolonged 
detention without charges or trial, or other flagrant denials of the 
; 
right to life, liberty, or the security of person; 
(B) has permitted the unimpeded investigation, by interna-
tionally recognized commissions on human rights (including the 
United Nations Commission on Human Rights and the Inter-
American Commission on Human Rights of the Organization of 
American States) of alleged violations of internationally recog-
nized human rights (as described in subparagraph (A) of this 
paragraph) ; and 
(C) has taken steps to inform the families of prisoners of the 
condition of and charges against such prisoners. 
22 use 2311, 
2346. 
Ante, p. 732. 
7 use 1721. 
CONTROL o r MILITARY FORCES IN" THE INDIAN OCEAN 
SEC. 407. (a) It is the sense of Congress that the President should 
undertake to enter into negotiations with the Soviet Union intended 
to achieve an agreement limiting the deployment of naval, air, and 
land forces of the Soviet Union and the United States in the Indian 
Ocean and littoral countries. Such negotiations should be convened 
as soon as possible and should consider, among other things, limita-
tions with respect to— 
(1) the establishment or use of facilities for naval, air, or land 
forces in the Indian Ocean and littoral countries; 
(2) the number of naval vessels which may be deployed in the 
Indian Ocean, or the number of "shipdays" allowed therein; and 
(3) the type and number of military forces and facilities 
allowed therein. 
(b) Not later than December 1, 1976, the President shall transmit 
a report to the Speaker of the House of Representatives and the Com-
mittee on Foreign Relations of the Senate with respect to steps he has 
taken to carry out the provisions of this section. 
UNITED STATES CITIZENS IMPRISONED I N MEXICO 
SEC. 408. (a) The Congress, while sharing the concern of the Presi-
dent over the urgent need for international cooperation to restrict traf-
fic in dangerous drugs, is convinced that such efforts must be consistent 
with respect for fundamental human rights. The Congress, therefore, 
calls upon the President to take steps to insure that United States 
efforts to secure stringent international law enforcement measures are 
22 use 2151 
note. 
Report to 
Speaker of the 
House and 
congressional 
committee. 
22 use 2291 
note. 
90 STAT. 760 
PUBLIC LAW 94-329—JUNE 30, 1976 
Report to 
Speaker of the 
House and 
congressional 
committee. 
combined with efforts to secure fair and humane treatment for citizens 
of all countries. 
(b)(1) The Congress requests that the President communicate 
directly to the President and Government of the Republic of Mexico, 
a nation with which we have friendly and cooperative relations, the 
continuing desire of the United States for such relations between our 
two countries and the concern of the United States over treatment of 
United States citizens arrested in Mexico. 
(2) The Secretary of State shall report to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of the 
Senate within one hundred and twenty days after the date of enact-
ment of this section, and every one hundred and twenty days there-
after, on progress toward full respect for the human and legal rights 
of all United States citizens detained in Mexico. 
22 use 2293 
note. 
22 use 2441 
note. 
EMERGENCY FOOD NEEDS OF PORTUGAL 
SEC. 409. It is the sense of the Congress that the President should 
undertake immediately an evaluation of the emergency food needs of 
Portugal. It is further the sense of the Congress that the President 
should take timely action to alleviate such emergency by providing 
Portugal with food commodities under the provisions of pertinent 
statutes. 
STRIFE IN LEBANON 
SEC. 410. It is the sense of the Congress that the situation in Leba-
non, a nation traditionally friendly to the United States, poses a 
danger to peace in the Middle East. The Congress deplores the armed 
civil strife and the continuing erosion of national institutions which 
threaten to destroy the political and economic fabric of Lebanon with 
such tragic impact on all its people. The Congress views with grave 
concern any outside efforts to exploit the current strife with the pur-
pose of transforming Lebanon into a radical state in confrontation 
with Israel. The Congress requests that the President use his good 
offices to secure an end to the civil strife and national discord in Leb-
anon and to preserve the traditional friendly attitude of Lebanon 
toward the United States. 
REPORT ON KOREA 
SEC. 411. Chapter 3 of part III of the Foreign Assistance Act of 
1961 is amended by adding at the end thereof the following new 
section: 
22 use 2428. 
"SEC. 668. REPORT ON KOREA.—Within ninety days after the enact-
ment of this section, and at least once during each of the next five 
years, the President shall transmit to the Speaker of the House of 
Representatives and to the Committees on Foreign Relations and 
Armed Services of the Senate a report which (1) reviews the progress 
I ;K?r 
made under the announced program of the Republic of Korea to mod-
ernize its armed forces so as to achieve military self-sufficiency by 1980, 
(2) reports on the role of the United States in mutual security efforts 
in the Republic of Korea, and (3) reports on the prospects for or 
implementation of phased reduction of United States Armed Forces 
assigned to duty in the Republic of Korea, in coordination with the 
timetable of the Republic of Korea for military self-sufficiency.". 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 761 
KOREA 
SEC. 412. The Congress views with distress the erosion of important 22 USC 2428 
civil liberties in the Republic of Korea and requests that the Presi- "
o
*
®
-
dent communicate this concern in forceful terms to the Government 
of the Republic of Korea within sixty days after enactment. 
REPEAL o r INDOCHINA ASSISTANCE 
SEC. 413. (a) Part V of the Foreign Assistance Act of 1961 and 
sections 34, 35, 36, 37, 38, 39, and 40 of the Foreign Assistance Act of 
1974 are repealed. All determinations, authorizations, regulations, 
orders, contracts, agreements, and other actions issued, undertaken, or 
entered into under authority of any provision of law repealed by this 
section shall continue in full force and effect until modified, revoked, 
or superseded by appropriate authority. 
(b) Subject to the availability of appropriations therefor, the Presi-
dent is authorized to adopt as a contract of the United States Govern-
ment, and assume any liabilities arising thereunder (in whole or in 
part), any contract which had been funded or approved for funding 
by the Agency for International Development prior to June 30, 1975, 
for financing with funds made available under the Foreign Assistance 
Act of 1961 or the Foreign Assistance Act of 1974, or any equitable 
claim based upon a letter of intent issued prior to April 30, 1975, in 
which the Agency had expressed its intention to finance a transaction 
subject to the availability^ of funds, between the former Governments 
of Vietnam or Cambodia (including any of their agencies) or the 
Government of Laos (or any of its agencies) and any person and to 
apply with respect to any such contract the authorities of the Foreign 
Assistance Act of 1961. 
(c) Funds made available for the purposes of part V of the Foreign 
Assistance Act of 1961 and of section 36 of the Foreign Assistance Act 
of 1974 (including amounts certified pursuant to section 1311 of the 
Supplemental Appropriation Act, 1955 (31 U.S.C. 200), as having 
been obligated against appropriations heretofore made) are authorized 
to be appropriated, and thereafter, to remain available until expended, 
to meet necessary expenses arising from the actions authorized by 
subsection (b) of this section and such funds are authorized to remain 
available until expended to meet necessary expenses arising from the 
termination of assistance programs authorized by such part and such 
section 36, which expenses may include but need not be limited to the 
settlement of claims and associated personnel costs. 
Repeal. 
22 USC 2431, 
2432, 2433 
notes, 2434, 
2435, 2415, 
2416. 
22 USC 2431 
note. 
22 USC 2151 
note, 2151a note. 
LEBANON HOUSING RECONSTRUCTION 
SEC. 414. Section 223(j) of the Foreign Assistance Act of 1961 is 22 USC 2183. 
amended by striking out "and" in the last sentence and by inserting 
immediately before the period at the end of such sentence ", and in 
Lebanon, not exceeding a face amount of $15,000,000". 
ITALY RELIEF AND REHABILITATION 
SEC. 415. Chapter 9 of part I of the Foreign Assistance Act of 1961 
is amended by adding at the end thereof the following new section: 
"SEC. 495B. ITALY RELIEF AND REHABILITATION.— (a) In addition Appropriation 
to amounts otherwise available for such purpose, there is authorized authorization, 
to be appropriated $25,000,000 for the fiscal year 1976 to furnish 22 USC 2292h. 
90 STAT. 762 
PUBLIC LAW 94-329—JUNE 30, 1976 
22 use 22921. 
Appropriation 
authorization. 
22 use 2292. 
Reports to 
Speaker of the 
House and 
cong 
committees. 
assistance under this chapter for the relief and rehabilitation of the 
people who have been victimized by the recent earthquake in Italy. 
Amounts appropriated under this section are authorized to remain 
available until expended. 
"(b) Obligations incurred j)rior to the date of enactment of this sec-
tion against other appropriations or accounts for the purpose of pro-
viding relief and rehabilitation assistance to the people of Italy may be 
charged to the appropriations authorized under this section.". 
LEBANON RELIEF AND REHABILITATION 
SEC. 416. Chapter 9 of part I of the Foreign Assistance Act of 1961, 
as amended by section 415 of this Act, is further amended by adding 
at the end thereof the following new section: 
"SEC. 495C. LEBANON BELIEF AND REHABILITATION.— (a) The Con-
gress, recognizing that prompt United States assistance is necessaiy 
to alleviate the human suffering arising from civil strife in Lebanon 
and to restore the confidence of the people of Lebanon, authorizes the 
President to furnish assistance, on such terms and conditions as he 
may determine, for the relief and rehabilitation of refugees and other 
needy people in Lebanon. 
" (b) There is authorized to be appropriated to the President for the 
purposes of this section, in addition to amounts otherwise available 
for such purposes, $20,000,000, which amount is authorized to remain 
available until expended. 
"(c) Assistance under this section shall be provided in accordance 
with the policies and general authority contained in section 491, 
"(d) Obligations incurred prior to the date of enactment of this sec-
tion against other appropriations or accounts for the purpose of pro-
viding relief and rehabilitaition assistance to the people of Lebanon 
may be charged to the appropriations authorized under this section. 
"(e) Not later than sixty days after the date of enactment of appro-
priations to carry out this section, and on a quarterly basis thereafter, 
the President shall transmit reports to the Committees on Foreign 
Relations and Appropriations of the Sena;te and to the Speaker of the 
House of Representatives regarding the programing and obligation 
of funds under this section,". 
T I T L E V—MISCELLANEOUS A U T H O R I Z A T I O N S 
SECURITY SUPPORTING ASSISTANCE 
22 use 2346a. 
SEC. 501, (a) Section 532 of the Foreign Assistance Act of 1961 is 
amended to read as follows: 
"SEC, 532. AUTHORIZATION,— (a) There is authorized to be appro-
priated to the President to carry out the purposes of this chapter for 
the fiscal year 1976 $1,766,200,000, of which not less than $65,000,000 
shall be available only for Greece, $730,000,000 shall be available only 
for Israel, and $705,000,000 shall be available only for Egypt, and for 
the fiscal year 1977 $1,860,000,000, of which not less than $785,000,000 
shall be available only for Israel, not less than $750,000,000 shall be 
available only for Egypt, not less than $27,500,000 shall be available 
only for Zambia, and not less than $27,500,000 shall be available only 
for Zaire, Amounts appropriated under this section are authorized to 
remain available until expended. 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 763 
"(b) (1) None of the funds made available under this section for 
Zaire and Zambia may be used for military, guerrilla, or paramilitary 
activities in either such country or in any other country. 
"(2) Assistance furnished under this chapter to Zaire and Zambia 
for fiscal year 1977 shall not be counted for purposes of the limitation 
contained in the last sentence of section 531 on the number of countries 22 USC 2346. • 
which may receive assistance under this chapter in any fiscal year.". 
MIDDLE EAST SPECIAL REQUIREMENT FUND 
SEC. 502. Section 903 of the Foreign Assistance Act of 1961 is 22 USC 2443. 
amended— 
(1) in subsection (a), by striking out "for the fiscal year 1975 
not to exceed $100,000,000" and inserting in lieu thereof "for the 
fiscal year 1976 not to exceed $50,000,000 and for the fiscal year 
1977 not to exceed $35,000,000"; and 
(2) by striking out subsection (c) and inserting in lieu thereof 
the following: 
"^' -
"
^ 
"(c) Funds appropriated under subsection (a) shall be available 
to assist the Governments of Egypt and Israel in carrying out activities 
under the Agreement of October 10, 1975, and to pay the costs of 
implementing the United States proposal for the early warning system 
in Sinai. Such funds may be obligated without regard to the provisions 
of subsection (b) of this section to the extent that the proposed obliga-
tion has been justified to the Congress prior to the enactment of this 
; 
subsection. 
"(d) Of the amount authorized to be appropriated in subsection (a) 
for the fiscal years 1976 and 1977, not less than $12,000,000 for each 
.,,y,p 
such year shall constitute a contribution by the United States toward 
the settlement of the deficit of the United Nations Relief and Works 
Agency for Palestine Refugees in the Middle East, if the President 
determines that a reasonable number of other countries will contribute 
.^., j „. 
a fair share toward the settlement of such deficit within a reasonable 
period of time after the date of enactment of the International Security 
Assistance and Arms Export Control Act of 1976. In determining such Ante, p. 729. 
fair share, the President shall take into consideration the economic 
position of each such country. Such $24,000,000 shall be in addition 
to any other contribution to such Agency by the United States pursuant 
to any other provision of law. 
"(e) Funds made available under this section may be obligated 
without regard to the provisions of subsection (b) of this section for 
programs contained in the presentation materials submitted to Con-
gress for the fiscal year 1977.". 
CONTINGENCY FUND 
SEC. 503. Chapter 5 of part I of the Foreign Assistance Act of 1961 22 USC 2261. 
is amended— 
(1) in the chapter heading, by striking out "DISASTER RELIEF" 
and inserting in lieu thereof "CONTINGENCY FUND"; and 
(2) in section 451 (a)— 
22 USC 2261. 
(A) by striking out "for the fiscal year 1975 not to exceed 
$5,000,000," and inserting in lieu thereof "for the fiscal year 
1976 not to exceed $5,000,000 and for the fiscal year 1977 not 
' 
to exceed $5,000,000"; 
(B) by striking out "or by section 639"; and 
, 
.-
90 STAT. 764 
PUBLIC LAW 94-329—JUNE 30, 1976 
(C) by adding at the end thereof the following new sen-
tence : "Amounts appropriated under this section are author-
ized to remain available until expended,". 
22 u s e 2291a. 
.<U4V. 
22 use 2291. 
Study, 
transmittal to 
Speaker of the 
House and 
President of the 
Senate. 
INTERNATIONAL NARCOTICS CONTROL 
SEC. 504. (a) Section 482 of the Foreign Assistance Act of 1961 is 
amended by inserting immediately before the period at the end of the 
first sentence ", $40,000,000 for the fiscal year 1976, no part of which 
may be obligated for or on behalf of any country where illegal traffic 
in opiates has been a significant problem unless and until the President 
determines and certifies in writing to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign Rela-
tions of the Senate that assistance furnished to such country pursuant 
to the authority in this chapter is significantly reducing the amount of 
illegal opiates entering the international market, and not to exceed 
$34,000,000 for the fiscal year 1977". 
(b) Section 481 of the Foreign Assistance Act of 1961 is amended 
by adding at the end thereof the following new subsection: 
"(c) (1) Notwithstanding any other provision of law, no officer or 
employee of the United States may engage or participate in any 
direct police arrest action in any foreign country with respect to 
narcotics control efforts. 
"(2) The President shall carry out a study with respect to meth-
ods through which United States narcotics control programs in foreign 
countries might be placed under the auspices of international or 
regional organizations. The results of such study shall be transmitted 
to the Speaker of the House of Representatives and the President 
of the Senate not later than June 30, 1977.". 
AUTHORIZATION TOR INTERNATIONAL ATOMIC ENERGY AGENCY 
22 use 2222. 
SEC 505. Section 302 of the Foreign Assistance Act of 1961 is 
amended by adding at the end thereof the following new subsection: 
0; 
"(i) In addition to amounts otherwise available under this section, 
there are authorized to be appropriated for fiscal year 1976 $1,000,000 
and for fiscal year 1977 $2,000,000 to be available only for the Inter-
national Atomic Energy Agency to be used for the purpose of strength-
ening safeguards and inspections relating to nuclear fissile facilities 
and materials. Amounts appropriated under this subsection are author-
ized to remain available until expended.". 
22 use 2162 
note. 
22 use 2751 
note. 
Ante, p. 734. 
22 u s e 2764. 
INTERIM QUARTER AUTHORIZATIONS 
SEC. 506. (a) Any authorization of appropriations in this Act, or 
in any amendment to any other law made by this Act, for the fiscal 
year 1976, shall be deemed to include an additional authorization of 
appropriations for the period beginning July 1, 1976, and ending 
September 30,1976, in amounts which equal one-fourth of any amount 
authorized for the fiscal year 1976 and in accordance with the authori-
ties applicable to operations and activities authorized under this Act 
or such other law, unless appropriations for the same purpose are 
specifically authorized in a law hereinafter enacted. 
(b) The aggregate total of credits, including participations in 
credits, extended pursuant to the Arms Export Control Act and of 
the principal amount of loans guaranteed pursuant to section 24(a) of 
such Act during the period beginning July 1, 1976, and ending Sep-
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 765 
tember 30, 1976, may not exceed an amount equal to one-fourth of the 
amount authorized by section 31(b) of such Act to be extended and ^»'«> P- 740. 
guaranteed for the fiscal year 1976. 
BASE AGREEMENTS WITH SPAIN, GREECE, AND TURKEY 
SEC. 507. (a) In addition to any amounts authorized to be appro-
priated by any amendment made by this Act which may be available 
for such purpose, there are authorized to be appropriated such sums 
as may be necessary for the fiscal year 1977 to carry out international 
agreements or other arrangements for the use by the Armed Forces 
of the United States of military facilities in Spain, Greece, or Turkey. 
(b) No funds appropriated under this section may be obligated or 
expended to carry out any such agreement or other arrangement until 
legislation has been enaxited approving such agreement or other 
arrangement. 
TITLE VI—MISCELLANEOUS PROVISIONS 
22 use 2151 
note. 
EXPEDITED PROCEDURE IN THE SENATE 
SEC. 601. (a)(1) The provisions of subsection (b) of this section 
shall apply with respect to the consideration in the Senate of any 
resolution required by law to be considered in accordance with such 
provisions. 
(2) Any such law shall— 
(A) state whether the term "resolution" as used in subsection 
(b) of this section, means, for the purposes of such law— 
(i) a joint resolution; or 
(ii) a resolution of either House of Congress; 
(iii) a concurrent resolution; and 
(B) specify the certification to which such resolution shall 
apply. 
(b) (1) For purposes of any such law, the continuity of a session of 
Congress is broken only by an adjournment of the Congress sine die, 
and the days on which either House is not in session because of an 
adjournment of more than three days to a day certain are excluded 
in the computation of the period indicated. 
(2) Paragraphs (3) and (4) of this subsection are enacted— 
(A) as an exercise of the rulemaking power of the Senate and 
as such they are deemed a part of the rules of the Senate, but 
applicable only with respect to the procedure to be followed in the 
Senate in the case of resolutions described by subsection (a) (1) 
of this section; and they supersede other rules of the Senate only 
to the extent that they are inconsistent therewith; and 
(B) with full recognition of the constitutional right of the 
Senate to change such rules at any time, in the same manner and 
to the same extent as in the case of any other rule of the Senate. 
(3) (A) If the committee of the Senate to which has been referred 
a resolution relating to a certification has not reported such resolution 
at the end of ten calendar days after its introduction, not counting any 
day which is excluded under paragraph (1) of this subsection, it 
is in order to move either to discharge the committee from further 
consideration of the resolution or to discharge the committee from 
further consideration of any other resolution introduced with respect 
to the same certification which has been referred to the committee. 
'Resolution. 
90 STAT. 766 
PUBLIC LAW 94-329—JUNE 30, 1976 
except that no motion to discharge shall be in order after the com-
.i". i \ .'J 
mittee has reported a resolution v/ith respect to the same certification. 
(B) A motion to discharge under subparagraph (A) of this para-
graph may be made only by a Senator favoring the resolution, is 
privileged, and debate thereon shall be limited to not more than 1 hour, 
to be divided equally between those favoring and those opposing the 
' *
^ • '•-' 
resolution, the time to be divided equally between, and controlled by, 
the majority leader and the minority leader or their designees. An 
amendment to the motion is not in order, and it is not in order to move 
to reconsider the vote by which the motion is agreed to or disagreed to. 
(4) (A) A motion in the Senate to proceed to the consideration of 
a resolution shall be privileged. An amendment to the motion shall not 
be in order, nor shall it be in order to move to reconsider the vote by 
which the motion is agreed to or disagreed to. 
(B) Debate in the Senate on a resolution, and all debatable motions 
and appeals in connection therewith, shall be limited to not more than 
10 hours, to be equally divided between, and controlled by, the majority 
leader and the minority leader or their designees. 
(C) Debate in the Senate on any debatable motion or appeal in con-
nection with a resolution shall be limited to not more than 1 hour, to 
be equally divided between, and controlled by, the mover and the 
manager of the resolution, except that in the event the manager of the 
resolution is in favor of any such motion or appeal, the time in opposi-
tion thereto, shall be controlled by the minority leader or his designee. 
Such leaders, or either of them, may, from time under their control on 
the passage of a resolution, allot additional time to any Senator during 
'" 
the consideration of any debatable motion or appeal. 
(D) A motion in the Senate to further limit debate on a resolution, 
debatable motion, or appeal is not debatable. ISo amendment to, or 
motion to recommit, a resolution is in order in the Senate. 
PROCUREMENTS FROM SMALL BUSINESSES 
Report to 
SEC. 602. In order to encourage procurements from small business 
Congress. 
concerns under chapter 4 of the Foreign Assistance Act of 1961, the 
f?*I^ 
^^ 
Administrator of the Agency for International Development shall 
report to the Congress every six months on the extent to which small 
businesses have participated in procurements under such chapter and 
on what efforts the Agency has made to foster such procurements from 
small business concerns. The Small Business Administration shall lend 
all available assistance to the Agency for the purposes of carrying out 
this section. 
PAYMENT o r 
CONSULTANTS 
22 use 2386. 
SEC. 603. Section 626(a) of the Foreign Assistance Act of 1961 is 
amended by striking out "$100 per diem" and inserting in lieu thereof 
"the daily equivalent of the highest rate which may be paid to an 
employee under the General Schedule established by section 5332 
of title 5, United States Code". 
FEES OF MILITARY SALES AGENTS AND OTHER PAYMENTS 
22 use 2776. 
SEC. 604. (a) Section 36 of the Foreign Military Sales Act, as 
amended by section 211 of this Act, is further amended as follows: 
(1) In subsection (a) — 
(A) strikeout "and" at the end of paragraph (7) ; 
(B) redesignate paragraph (8) as paragraph (9) ; and 
note. 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 767 
22 use 2779. 
(C) insert the following new paragraph immediately after 
paragraph (7) : 
"(8) a description of each payment, contribution, gift, com-
mission, or fee reported to the Secretary of State under section 39, 
including (A) the name of the person who made such payment, 
contribution, gift, commission, or fee; (B) the name of any sales 
agent or other person to whom such payment, contribution, gift, 
commission, or fee was paid; (C) the date and amount of such 
payment, contribution, gift, commission, or fee; (D) a description 
of the sale in connection with which such payment, contribution, 
gift, commission, or fee was paid; and (E) the identification of 
any business information considered confidential by the person 
submitting it w^hich is included in the report; and". 
(2) In the first sentence of subsection (b), insert immediately 
before the period "and a description, containing the information 
specified in paragraph (8) of subsection (a), of any contribution, 
gift, commission, or fee paid or offered or agreed to be paid in 
order to solicit, promote, or otherwise to secure such letter of 
offer". 
(b) Chapter 3 of the Foreign ^Military Sales Act, as amended by 
section 212 of this iVct, is further amended by adding at the end 
thereof the following new section: 
"SEC. 
39. 
FEES or 
MILITARY SALES AGENTS AND OTHER 
PAY-
MENTS.—(a) In accordance with such regulations as he may prescribe, 
the Secretary of State shall require adequate and timely reporting on 
political contributions, gifts, commissions and fees paid, or offered or 
agreed to be paid, by any person in connection with— 
"(1) sales of defense articles or defense services under section 
22 of this Act; or 
"(2) commercial sales of defense articles or defense services 
licensed or approved under section 38 of this Act; 
to or for the armed forces of a foreign country or international orga-
nization in order to solicit, promote, or otherwise to secure the con-
clusion of such sales. Such regulations shall specify the amounts and 
the kinds of payments, offers, and agreements to be reported, and the 
form and timing of reports, and shall require reports on the names of 
sales agents and other pei'sons receiving such payments. The Secretary Recordkeeping, 
of State shall by regulation require such recordkeeping as he deter-
mines is necessary. 
"(b) The President may, by regulation, prohibit, limit, or prescribe 
conditions with respect to such contributions, gifts, conunissions, and 
fees as he determines will be in furtherance of the purposes of this 
Act. 
"(c) No such contribution, gift, commission, or fee may be included, 
in whole or in part, in the amount paid under any procurement con-
tract entered into under section 22 of this Act, unless the amount 
thereof is reasonable, allocable to such contract, and not made to a 
person who has solicited, promoted, or otherwise secured such sale, or 
has held himself out as being able to do so, through improper influence. 
For the purposes of this section, 'improper influence' means influence, 
direct or indirect, which induces or attempts to induce consideration 
or action by any employee or officer of a purchasing foreign govern-
ment or international organization with respect to such purchase on 
anj?^ basis other than such consideration of merit as are involved in 
comparable United States procurements. 
22 use 2762. 
"Improper 
influence." 
-194 0—78—pt. 1 
52 
90 STAT. 768 
PUBLIC LAW 94-329—JUNE 30, 1976 
Effective date. 
22 use 2776 
note. 
22 use 2751 
note. 
22 use 2751 
note. 
Ante, p. 734. 
22 use 2791. 
22 use 2370. 
Report to 
eongress. 
22 use 2394a. 
"(d) (1) All information reported to the Secretary of State and all 
records maintained by any person pursuant to regulations prescribed 
under this section shall be available, upon request, to any standing com-
mittee of the Congress or any subcommittee thereof and to any agency 
of the United States Government authorized by law to have access to 
the books and records of the person required to submit reports or to 
maintain records under this section. 
"(2) Access by an agency of the United States Government to 
records maintained under this section shall be on the same terms and 
conditions which govern the access by such agency to the books and 
records of the person concerned.". 
(c) The amendments made by this section shall take effect sixty 
days after the date of enactment of this Act. 
USE OF PERSONNEL 
SEC. 605. (a) Nothing in this Act is intended tx) authorize any addi-
tional military or civilian personnel for the Department of Defense 
for the purposes of this Act, the Foreign Assistance Act of 1961, or 
the Arms Export Control Act. Personnel levels authorized in statutes 
authorizing appropriations for military and civilian personnel of the 
Department of Defense shall be controlling over all military and 
civilian personnel of the Department of Defense assigned to carry out 
functions under the Arms Export Control Act and the Foreign Assist-
ance Act of 1961. 
(b) Section 42 of the Foreign Military Sales Act, as amended by 
section 213 of this Act, is further amended by adding at the end thereof 
the following new subsection: 
"(f) The President shall, to the maximum extent possible and con-
sistent with the purposes of this Act, use civilian contract personnel 
in any foreign country to perform defense services sold under this 
Act.". 
ASSISTANCE FOR PRODUCTIVE ENTERPRISES 
SEC. 606. Section 620(k) of the Foreign Assistance Act of 1961 is 
amended by inserting immediately before the period at the end of the 
first sentence ", except that this sentence does not apply with respect 
to assistance for construction of any productive enterprise in Egypt 
which is described in the presentation materials to Congress for fiscal 
year 1977". 
EXTORTION AND ILLEGAL PAYMENTS 
SEC. 607. Within 60 days after receiving information which sub-
stantiates that officials of a foreign country receiving international 
security assistance have (1) received illegal or otherwise improper 
payments from a United States corporation in return for a contract to 
purchase defense articles or services from such corporation, or (2) 
extorted, or attempted to extort, money or other things of value in 
return for actions by officials of that country that permit a United 
States citizen or corporation to conduct business in that country, the 
President shall submit to Congress a report outlining the circumstances 
of such payment or extortion. The report shall contain a recommenda-
tion from the President as to whether the United States should con-
tinue a security assistance program for that country. 
PUBLIC LAW 94-329—JUNE 30, 1976 
90 STAT. 769 
EXTENSION OF AIRPORT AT PINECREEK, MINNESOTA 
SEC. 608. The consent of Congress is hereby granted for the State 
of Minnesota or a subdivision or instrumentality thereof to enter into 
an agreement with the Government of Canada, a Canadian Province, 
or a subdivision or instrumentality of either, providing for the exten-
sion of the Pinecreek Airport at Pinecreek, Minnesota, into the Prov-
ince of Manitoba, Canada, and the operation of the airport by a joint 
Canadian-American airport authority. The effectiveness of such agree-
ment shall be conditioned on its approval by the Secretary of State. 
Approved June 30, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-1144 (Comm. on International Relations) and No. 94-1272 
(Comm. of Conference). 
SENATE REPORT No. 94-876 accompanying S. 3439 (Comm. on Foreign Relations). 
CONGRESSIONAL RECORD, Vol. 122 (1976): 
May 19, June 2, considered and passed House. 
June 14, considered and passed Senate, amended, in lieu of S. 3439. 
June 22, House agreed to conference report. 
June 25, Senate agreed to conference report. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 12, No. 27: 
July 1, Presidential statement. 
i*i;T •I'AT'^. vv