An act to amend title 10, United States Code, to authorize the Secretary of Defense to enter into certain agreements to further the readiness of the military forces of the North Atlantic Treaty Organization.
PL 96-323 (H.R.5580), enacted 08/04/1980

94 STAT. 1016 
PUBLIC LAW 96-323—AUG. 4, 1980 
Public Law 96-323 
96th Congress 
An Act 
Aug. 4,1980 
rj,^ amend title 10, United States Code, to authorize the Secretary of Defense to 
[H.R. 5580] 
enter into certain agreements to further the readiness of the nulitaiy forces of 
the North Atlantic Treaty Organization. 
Be it enacted by the Senate and House of Rmresentatives of the 
North Atlantic 
United States of 
America in Conjgress assembled, That this Act may be 
Treaty 
cited as the "North Atlantic Treaty Organization Mutual Support 
MKfsup^rt 
Act of 1979". 
Act of 1979. 
SEC. 2. (a) Title 10, United States Code, is amended by inserting 
1
0 use 2321 
after chapter 137 the following new chapter: 
note. 
"CHAPTER 138—NORTH ATLANTIC TREATY ORGANIZATION 
ACQUISITION AND CROSS-SERVICING AGREEMENTS 
"Sec. 
"2321. Authority to acquire logistic support, supplies, and services for United States 
armed forces in Europe. 
"2322. Cross-servicing agreements. 
"2323. Law applicable to acquisition and cross-servicing agreements. 
"2324. Methods of pajmient for acquisitions and transfers by the United States. 
"2325. Liquidation of accrued credits and liabilities. 
"2326. Crediting of receipts. 
"2327. Limitation on amounts that may be obligated or accrued by the United 
States. 
"2328. Inventories of supplies not to be increased. 
"2329. Regulations. 
"2330. Annual reports. 
"2331. Definitions. 
1
0 use 2321. 
"§2321. Authority to acquire logistic support, supplies, and serv-
ices for United States armed forces in Europe 
"Subject to section 2323 of this title and subject to the availability 
of appropriations, the Secretary of Defense may acquire from the 
Governments of North Atlantic Treatjr Organization countries and 
from North Atlantic Treaty Organization subsidiary bodies logistic 
support, suppUes, and services for elements of the armed forces 
deployed in Europe and adjacent waters. 
10 use 2322. 
«§ 2322. Cross-servicing agreements 
"Subject to section 2323 of this title and to the availability of 
appropriations, and after consultation with the Secretary of State, 
the Secretary of Defense may enter into agreements with the Govern-
ment of any North Atlantic Treaty Organization country and with 
any North Atlantic Treaty Organization subsidiary body under 
which the United States agrees to provide logistic support, supplies, 
and services to military forces of such country or subsidiary body 
deployed in Europe and adjacent waters in return for the reciprocal 
provision of logistic support, supplies, and services by such coimtry or 
subsidiary body to elements of the armed forces deployed in Europe 
and ac^acent waters. 
PUBLIC LAW 96-323—AUG. 4, 1980 
94 STAT. 1017 
10 u s e 2301 et 
seq. 
10 u s e 2207, 
2304, 2306, 2313. 
Reciprocal 
pricing 
principles. 
"§2323. Law applicable to acquisition and cross-servicing agree- 10 use 2323. 
ments 
"(a) Except as provided in subsection (b), acquisition of logistic 
support, supplies, and services under section 2321 of this title and 
agreements enteredinto under section 2322 of this title shall be made 
in accordance with chapter 137 of this title and the provisions of this 
chapter. 
"(b) Sections 2207,2304(g), 2306(a), 2306(b), 2306(e), 2306(f), and 2313 
of this title, section 3741 of the Revised Statutes (41 U.S.C. 22), and 
section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 
2168) shall not apply to acquisitions made under the authority of 
section 2321 of this title or to agreements entered into under section 
2322 of this title. 
"§2324. Methods of payment for acquisitions and transfers by the 10 use 2324. 
United States 
"(a) Logistics support, supplies, and services may be acquired or 
transferred by the United States under the authority of this chapter 
on a reimbursement basis or by replacement-in-kind or exchange of 
supplies or services of an identical or substantially identical nature. 
"(b)(1) In entering into agreements with the Government of 
another North Atlantic Treaty Organization country for the acquisi-
tion or transfer of logistic support, supplies, and services on a reim-
bursement basis, the Secretary of Defense shall negotiate for adoption 
of the following pricing principles for reciprocal application: 
"(A) The price charged by a supplying country for logistics 
support, supplies, and services specifically procured by the sup-
plying country from its contractors for a recipient country shall 
be no less favorable than the price for identical items or services 
charged by such contractors to the armed forces of the supplying 
country, taking into account price differentials due to delivery 
schedules, points of delivery, and other similar considerations. 
"(B) The price charged a recipient country for supplies fur-
nished by a supplying country from its inventory, and the price 
charged a recipient country for logistics support and services 
furnished by the officers, employees, or governmental agencies of 
a supplying country, shall be the same as the price charged for 
identical supplies, support, or services acquired by an armed 
force of the supplying country from such governmental sources. 
"(2) To the extent that the Secretary of Defense is unable to obtain 
mutual acceptance by the other country involved of the reciprocal 
pricing principles for reimbursable transactions set forth in para-
graph (1)— 
"(A) the United States may not acquire from such country any 
logistic support, supply, or service not governed by such recipro-
cal pricing principles unless the United States forces commander 
acquiring such support, supply, or service determines (after price 
analysis) that the price thereof is fair and reasonable; and 
"(B) transfers by the United States to such country under this 
Act of any logistic support, supply, or service that is not governed 
by such reciprocal pricing principles shall be subject to the 
pricing provisions of the Arms Export Control Act (22 U.S.C. 2751 
et seq.). 
"(3) To the extent that indirect costs (including charges for plant Waiver, 
and production equipment), administrative surcharges, and contract 
administration costs with respect to any North Atlantic Treaty 
Organization country are not waived by operation of the reciprocal 
94 STAT. 1018 
PUBLIC LAW 96-323—AUG. 4, 1980 
10 use 2325. 
10 use 2326. 
10 use 2327. 
Liabilities. 
Credits. 
10 use 2328. 
10 u s e 2329. 
Copies, 
transmittal to 
Congress. 
10 use 2330. 
Submittal to 
Congress. 
pricing principles of 
paragraph (1), the Secretary of 
Defense may, on a 
reciprocal basis, agree to waive such costs. 
"(4) The pricing principles set forth in paragraph (2) and the waiver 
authority provided in paragr^h (3) shall also apply to a^eements 
with North Atlantic Treaty Organization subsidiary bodies under 
this chapter. 
*'§2325. Liquidation of accrued credits and liabilities 
''Credits and liabilities of the United States accrued as a result of 
acquisitions and transfers of logistic support, supplies, and services 
unaer the authority of this chapter shall oe liquidated not less often 
than once every three months by direct payment to the entity 
supplying such support, supplies, or services by the entity receiving 
such support, supplies, or services. 
"§2326. Crediting of receipts 
"Any receipt of the United States as a result of an agreement 
entered into under this chapter shall be credited to applicable 
appropriations, accounts, and funds of the Department of Defense. 
"§2327. Limitation on amounts that may be obligated or accrued 
by the United States 
"(a) Except during a period of active hostilities involving the North 
Atlantic Treaty Organization, the total amount of reimbursable 
liabilities that the United States may accrue under this chapter 
(before the computation of ofTsetting balances) may not exceed 
$100,000,000 in any fiscal year, and of such amount not more than 
$25,000,000 in liabilities may be accrued for the acquisition of 
supplies (other than petroleum, oils, and lubricants). 
(b) Except during a period of active hostilities involving the North 
Atlantic Treaty Oi^anization, the total amount of reimbursable 
credits that the United States may accrue under this chapter Oi^efore 
the computation of ofTsetting balances) may not exceed $100,000,000 
in any fiscal year. 
"§2328. Inventories of supplies not to be increased 
"Inventories of supplies for elements of the armed forces may not 
be increased for the purpose of transferring supplies imder the 
authority of this Act to military forces of any North Atlantic Treaty 
Organization coimtry or any North Atlantic Treaty Organization 
subsidiary body. 
"§2329. Regulations 
"The Secretary of 
Defense shall prescribe regulations to implement 
this chapter and shall, not later than sixty days before the effective 
date of such regulations, transmit copies of such regulations to the 
Congress. No agreement to make an acquisition or transfer under the 
authority provided by this chapter may be entered into until such 
regulations take effect. 
"§2330. Annual reports 
"The Secretary of Defense shall submit to the Congress not later 
than February 1 of 
each year a report containing— 
"(1) a description of each agreement entered into under the 
authority of this chapter that was in effect during the fiscal year 
preceding the fiscal year in which such report is submitted; 
"(2) a report of the dollar value of each reimbursable acquisi-
tion or transfer of logistic support, supplies, or services by the 
PUBLIC LAW 96-323—AUG. 4, 1980 
94 STAT. 1019 
United States (by appropriation, account, or fiind) during such 
fiscal year under each such agreement; 
"(3) a report of nonreimbursable acquisitions and transfers of 
logistic support and services by the United States O
b
y appropri-
ation, account, and fund) during such fiscal year under each such 
agreement; and 
''(4) a description of each agreement entered into (or expected 
to be entered into) under the authority of this chapter that is 
expected to be in effect during the fiscal year in which such 
report is submitted, together with a report of the estimated total 
dollar value of acquisitions and transfers by the United States 
(by appropriation, account, or fund) expected to be made during 
such fiscal year under each such agreement. 
''§2331. Definitions 
"In this chapter: 
"(1) 'Logistic support, supplies, and services' means food, billet-
ing, transportation, petroleum, oils, lubricants, clothing, commu-
nications services, medical services, ammunition, base oper-
ations support (and construction incident to base operations 
support), storage services, use of facilities, training services, 
spare parts and components, repair and maintenance services, 
and port services. 
"(2) 'North Atlantic Treaty Organization subsidiary bodies' 
means— 
"(A) any oiganization within the meaning of the term 
'subsidiary bodies' in article I of the multilateral treaty on 
the Status of the North Atlantic Treaty Organisation, Na-
tional Representatives and International Staff, signed at 
Ottawa on September 20,1951 (TIAS 2992; 5 UST1087); and 
"(B) any international military headquarters or organiza-
tion to which the Protocol on the Status of International 
Military Headquarters Set Up Pursuant to the North Atlan-
tic Treaty, signed at Paris on August 28,1952 (TIAS 2978; 5 
UST870),appUes.". 
(Jb) The tables of chapters at the beginning of subtitle A, and at the 
beginning of i)art IV of subtitle A, of title 10, United States Code, are 
amended by inserting after the item relating to chapter 137 the 
following new item: 
"138. North Atlantic Treaty Oiganization Acquisition and Cross-
Servicing Agreements 
2321". 
Approved August 4, 1980. 
10 u s e 2331. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-612, Pt. 1 (Coram, on Armed Services) and Pt. 2 (Coram, on 
Foreign Affairs). 
SENATE REPORTS: No. 96-795 (Comra. on Armed Services) and No. 96-842 (Coram, 
on Foreign Relations). 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Dec. 3, considered and passed House. 
Vol. 126 (1980): July 21, considered and passed Senate.