10 U.S.C. § 7542 — Technical data packages for large-caliber cannon: prohibition on transfers to foreign countries; exception

(a) Defense Department appropriations may not be used (1) to transfer to a foreign country a technical-data package for a defense item being made or developed in an arsenal, or (2) to help a foreign country produce that item. (b) The Army^* Secretary may use those funds if (1) the country is friendly as determined by the Defense Secretary in consultation with the State Secretary; (2) the Army Secretary finds the action clearly benefits preserving the arsenal's cannon-production base and will not transfer technology, including production techniques, unique to the arsenal except as subsection (e) allows; and (3) the Defense Secretary enters an agreement under subsection (c) or (d). (c) A coproduction agreement must be a Government-to-Government Memorandum of Understanding that (1) describes the data or assistance transferred; (2) requires the country's production to be shared with the arsenal; (3) subject to subsection (f), bars transfer to a third party or country of (A) United States-provided articles, data, technology, or assistance and (B) articles the country produces under the agreement; and (4) requires Defense monitoring and periodic country reports. (d) A cooperative-project agreement under section 27 of the Arms Export Control Act must (1) describe development-phase data and prescribe production-phase data or assistance; (2) require at least the United States production of the item to occur at the arsenal; and (3) require Defense monitoring. (e) The technology restriction does not apply to technology or production techniques transferred under a nonexclusive license with a negotiated fee or royalty reflecting development, implementation, and proving costs. The fee or royalty must go to the arsenal's operating fund for capital investment and technology development. (f) A prohibited third-party transfer may occur if (1) the item, data, or technology comes from cooperative research and development or a cooperative project in which the United States and country were partners, or (2) the President meets all section 3(d) Arms Export Control Act requirements and, before transfer, certifies to Congress that it clearly benefits the United States large-caliber-cannon production base. (g) The Army Secretary must notify Congress of every agreement and must provide a semiannual report on this section and its agreements. (h) Here, "arsenal" means a Government-owned and Government-operated defense plant that makes large-caliber cannon.