22 U.S.C. § 2791 — General provisions
submitted 58 years ago by Pub. L. 90-629 to r/title-22-FOREIGN-RELATIONS-AND-INTERCOURSE · 875 words · no verdicts yet
This section favors United States procurement but allows foreign coproduction or licensed production when it best serves specified United States interests. It sets notice, procurement, contract-cancellation, management, and civilian-personnel rules for defense sales and guarantees.
(a) In carrying out this chapter, procurement in the United States receives special emphasis. Subject to (b), foreign coproduction or licensed production of United States-origin defense articles must also be considered when it best serves United States foreign policy, national security, and economic interests. A proposed sale must be evaluated for harm to United States licensing arrangements and their financial returns, the United States-origin share of the articles, and whether it could fuel an arms race, aid weapons of mass destruction, support terrorism, increase or escalate conflict, or harm arms-control or nonproliferation agreements or arrangements.
(b) No credit sale under section 2763 and no guarantee under section 2764 involving foreign coproduction or licensed production may occur unless the Secretary of State first advises the appropriate congressional committees and gives the House Speaker and Senate President full information, including the articles, estimated production value, and likely effects on United States employment and production.
(c) Chapter funds may pay for foreign procurement only if the President finds that its harmful effects on the United States economy, industrial mobilization base, labor-surplus areas, or balance of payments do not outweigh the savings and other advantages.
(d)(1) Under the President's direction, the Defense Secretary has primary responsibility for military end-item requirements, integrated procurement, foreign-military training, movement and delivery of end items, and other Defense functions for sales and guarantees under sections 2761, 2762, 2763, 2764, 2769, and 2770. (2) The Secretary sets procurement, delivery, and allocation priorities under the President's direction.
(e)(1) Sales contracts under sections 2761, 2762, 2769, and 2770 and contracts under section 2767(d) must allow the United States to cancel all or part of them or suspend performance at any time when unusual or compelling circumstances require it in the national interest. (2) Export licenses under section 2778 must allow the Secretary of State to revoke, suspend, or amend them without prior notice when advisable; this does not limit the President's regulatory authority. (3) Congress may appropriate money to refund purchasers for amounts already paid to private contractors or agencies for work in progress and to pay damages and costs from canceling or suspending related procurement contracts or agency orders.
(f) To the maximum extent possible and consistent with this chapter, the President must use civilian contract personnel in foreign countries to perform defense services sold under this chapter.
In carrying out this chapter, special emphasis shall be placed on procurement in the United States, but, subject to the provisions of subsection (b) of this section, consideration shall also be given to coproduction or licensed production outside the United States of defense articles of United States origin when such production best serves the foreign policy, national security, and economy of the United States. In evaluating any sale proposed to be made pursuant to this chapter, there shall be taken into consideration (A) the extent to which the proposed sale damages or infringes upon licensing arrangements whereby United States entities have granted licenses for the manufacture of the defense articles selected by the purchasing country to entities located in friendly foreign countries, which licenses result in financial returns to the United States, (B) the portion of the defense articles so manufactured which is of United States origin, and (C) whether, and the extent to which, such sale might contribute to an arms race, aid in the development of weapons of mass destruction, support international terrorism, increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control or nonproliferation agreements or other arrangements.
No credit sale shall be extended under section 2763 of this title, and no guarantee shall be issued under section 2764 of this title, in any case involving coproduction or licensed, production outside the United States of any defense article of United States origin unless the Secretary of State shall, in advance of any such transaction, advise the appropriate committees of the Congress and furnish the Speaker of the House of Representatives and the President of the Senate with full information regarding the proposed transaction, including, but not limited to, a description of the particular defense article or articles which would be produced under a license or coproduced outside the United States, the estimated value of such production or coproduction, and the probable impact of the proposed transaction on employment and production within the United States.
Funds made available under this chapter may be used for procurement outside the United States only if the President determines that such procurement will not result in adverse effects upon the economy of the United States or the industrial mobilization base, with special reference to any areas of labor surplus or to the net position of the United States in its balance of payments with the rest of the world, which outweigh the economic or other advantages to the United States of less costly procurement outside the United States.
With respect to sales and guaranties under sections 2761, 2762, 2763, 2764, 2769 and 2770 of this title, the Secretary of Defense shall, under the direction of the President, have primary responsibility for—
the determination of military end-item requirements;
the procurement of military equipment in a manner which permits its integration with service programs;
the supervision of the training of foreign military personnel;
the movement and delivery of military end-items; and
within the Department of Defense, the performance of any other functions with respect to sales and guaranties.
The establishment of priorities in the procurement, delivery, and allocation of military equipment shall, under the direction of the President, be determined by the Secretary of Defense.
Each contract for sale entered into under sections 2761, 2762, 2769 and 2770 of this title, and each contract entered into under section 2767(d) of this title, shall provide that such contract may be canceled in whole 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.
Each export license issued under section 2778 of this title 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.
Nothing in this paragraph may be construed as limiting the regulatory authority of the President under this chapter.
There are authorized to be appropriated from time to time such sums as may be necessary (A) to refund moneys received from purchasers under contracts of sale entered into under sections 2761, 2762, 2769 and 2770 of this title, or under contracts entered into under section 2767(d) of this title, that are canceled or suspended under this subsection to the extent such moneys have previously been disbursed to private contractors and United States Government agencies for work in progress, and (B) to pay such damages and costs that accrue from the corresponding cancellation or suspension of the existing procurement contracts or United States Government agency work orders involved.
The President shall, to the maximum extent possible and consistent with the purposes of this chapter, use civilian contract personnel in any foreign country to perform defense services sold under this chapter.
Source credit: (Pub. L. 90–629, ch. 4, § 42, Oct. 22, 1968, 82 Stat. 1326; Pub. L. 92–226, pt. IV, § 401(e), (f), Feb. 7, 1972, 86 Stat. 33; Pub. L. 94–141, title I, § 150(b), Nov. 29, 1975, 89 Stat. 760; Pub. L. 94–329, title II, § 213, title VI, § 605(b), June 30, 1976, 90 Stat. 745, 768; Pub. L. 96–533, title I, § 105(e)(3), Dec. 16, 1980, 94 Stat. 3135; Pub. L. 97–392, § 2, Dec. 29, 1982, 96 Stat. 1963; Pub. L. 99–83, title I, § 115(b)(3), Aug. 8, 1985, 99 Stat. 201; Pub. L. 99–145, title XI, § 1102(a)(4), (5), Nov. 8, 1985, 99 Stat. 710; Pub. L. 99–661, div. A, title XIII, § 1342(e), Nov. 14, 1986, 100 Stat. 3991; Pub. L. 103–236, title VII, § 714(a)(2), Apr. 30, 1994, 108 Stat. 497; Pub. L. 105–277, div. G, subdiv. A, title XII, § 1225(a)(3), Oct. 21, 1998, 112 Stat. 2681–773.)
- 1968Enacted · Pub. L. 90-629 · 82 Stat. 1326
- 1972Amended · Pub. L. 92-226 · 86 Stat. 33
- 1975Amended · Pub. L. 94-141 · 89 Stat. 760
- 1976Amended · Pub. L. 94-329 · 90 Stat. 745, 768
- 1980Amended · Pub. L. 96-533 · 94 Stat. 3135
- 1982Amended · Pub. L. 97-392 · 96 Stat. 1963
- 1985Amended · Pub. L. 99-83 · 99 Stat. 201
- 1985Amended · Pub. L. 99-145 · 99 Stat. 710
- 1986Amended · Pub. L. 99-661 · 100 Stat. 3991
- 1994Amended · Pub. L. 103-236 · 108 Stat. 497
- 1998Amended · Pub. L. 105-277 · 112 Stat. 2681
A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-629 on 1968-10-22.
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