§ 2767. — Authority of President to enter into cooperative projects with friendly foreign countries.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2767]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39--ARMS EXPORT CONTROL
SUBCHAPTER II--FOREIGN MILITARY SALES AUTHORIZATIONS
Sec. 2767. Authority of President to enter into cooperative
projects with friendly foreign countries
(a) Authority of President
The President may enter into a cooperative project agreement with
the North Atlantic Treaty Organization or with one or more member
countries of that Organization.
(b) Definitions
As used in this section--
(1) the term ``cooperative project'', in the case of an
agreement with the North Atlantic Treaty Organization or with one or
more member countries of that Organization, means a jointly managed
arrangement, described in a written agreement among the parties,
which is undertaken in order to further the objectives of
standardization, rationalization, and interoperability of the armed
forces of North Atlantic Treaty Organization member countries and
which provides--
(A) for one or more of the other participants to share with
the United States the costs of research on and development,
testing, evaluation, or joint production (including follow-on
support) of certain defense articles;
(B) for concurrent production in the United States and in
another member country of a defense article jointly developed in
accordance with subparagraph (A); or
(C) for procurement by the United States of a defense
article or defense service from another member country or for
procurement by the United States of munitions from the North
Atlantic Treaty Organization or a subsidiary of such
organization;
(2) the term ``cooperative project'', in the case of an
agreement entered into under subsection (j) of this section, means a
jointly managed arrangement, described in a written agreement among
the parties, which is undertaken in order to enhance the ongoing
multinational effort of the participants to improve the conventional
defense capabilities of the participants and which provides--
(A) for one or more of the other participants to share with
the United States the costs of research on and development,
testing, evaluation, or joint production (including follow-on
support) of certain defense articles;
(B) for concurrent production in the United States and in
the country of another participant of a defense article jointly
developed in accordance with subparagraph (A); or
(C) for procurement by the United States of a defense
article or defense service from another participant to the
agreement; and
(3) the term ``other participant'' means a participant in a
cooperative project other than the United States.
(c) Agreements for equitable share of costs; limiting nature of
agreements
Each agreement for a cooperative project shall provide that the
United States and each of the other participants will contribute to the
cooperative project its equitable share of the full cost of such
cooperative project and will receive an equitable share of the results
of such cooperative project. The full costs of such cooperative project
shall include overhead costs, administrative costs, and costs of claims.
The United States and the other participants may contribute their
equitable shares of the full cost of such cooperative project in funds
or in defense articles or defense services needed for such cooperative
project. Military assistance and financing received from the United
States Government may not be used by any other participant to provide
its share of the cost of such cooperative project. Such agreements shall
provide that no requirement shall be imposed by a participant for
worksharing or other industrial or commercial compensation in connection
with such agreement that is not in accordance with such agreement.
(d) Contractual or other obligation; preconditions
The President may enter into contracts or incur other obligations
for a cooperative project on behalf of the other participants, without
charge to any appropriation or contract authorization, if each of the
other participants in the cooperative project agrees (1) to pay its
equitable share of the contract or other obligation, and (2) to make
such funds available in such amounts and at such times as may be
required by the contract or other obligation and to pay any damages and
costs that may accrue from the performance of or cancellation of the
contract or other obligation in advance of the time such payments,
damages, or costs are due.
(e) Waiver of charges; administrative surcharges
(1) For those cooperative projects entered into on or after the
effective date \1\ of the International Security and Development
Cooperation Act of 1985, the President may reduce or waive the charge or
charges which would otherwise be considered appropriate under section
2761(e) of this title in connection with sales under sections 2761 and
2762 of this title when such sales are made as part of such cooperative
project, if the other participants agree to reduce or waive
corresponding charges.
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\1\ See References in Text note below.
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(2) Notwithstanding provisions of section 2761(e)(1)(A) and section
2792(b) of this title, administrative surcharges shall not be increased
on other sales made under this chapter in order to compensate for
reductions or waivers of such surcharges under this section. Funds
received pursuant to such other sales shall not be available to
reimburse the costs incurred by the United States Government for which
reduction or waiver is approved by the President under this section.
(f) Transmission of numbered certification to Congress respecting
proposed agreement; contents
Not less than 30 days before a cooperative project agreement is
signed on behalf of the United States, the President shall transmit to
the Speaker of the House of Representatives, the chairman of the
Committee on Foreign Relations of the Senate, and the chairman of the
Committee on Armed Services of the Senate, a numbered certification with
respect to such proposed agreement, setting forth--
(1) a detailed description of the cooperative project with
respect to which the certification is made;
(2) an estimate of the quantity of the defense articles expected
to be produced in furtherance of such cooperative project;
(3) an estimate of the full cost of the cooperative project,
with an estimate of the part of the full cost to be incurred by the
United States Government, including an estimate of the costs as a
result of waivers of section \2\ 2761(e)(1)(A) and 2792(b) of this
title, for its participation in such cooperative project and an
estimate of that part of the full costs to be incurred by the other
participants;
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\2\ So in original. Probably should be ``sections''.
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(4) an estimate of the dollar value of the funds to be
contributed by the United States and each of the other participants
on behalf of such cooperative project;
(5) a description of the defense articles and defense services
expected to be contributed by the United States and each of the
other participants on behalf of such cooperative project;
(6) a statement of the foreign policy and national security
benefits anticipated to be derived from such cooperative project;
and
(7) to the extent known, whether it is likely that prime
contracts will be awarded to particular prime contractors or that
subcontracts will be awarded to particular subcontractors to comply
with the proposed agreement.
(g) Reporting and certification requirements applicable
In the case of a cooperative project with a North Atlantic Treaty
Organization country, section,\3\ 2776(b) of this title shall not apply
to sales made under section 2761 or 2762 of this title and to production
and exports made pursuant to cooperative projects under this section,
and section 2776(c) of this title shall not apply to the issuance of
licenses or other approvals under section 2778 of this title, if such
sales are made, such production and exports ensue, or such licenses or
approvals are issued, as part of a cooperative project.
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\3\ So in original. The comma probably should not appear.
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(h) Statutory provisions applicable to sales
The authority under this section is in addition to the authority
under sections 2761 and 2762 of this title and under any other provision
of law.
(i) Agreements entered into before October 1, 1985
(1) With the approval of the Secretary of State and the Secretary of
Defense, a cooperative agreement which was entered into by the United
States before the effective date \4\ of the amendment to this section
made by the International Security and Development Cooperation Act of
1985 and which meets the requirements of this section as so amended may
be treated on and after such date as having been made under this section
as so amended.
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\4\ See References in Text note below.
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(2) Notwithstanding the amendment made \5\ to this section made by
the International Security and Development Cooperation Act of 1985,
projects entered into under the authority of this section before the
effective date \4\ of that amendment may be carried through to
conclusion in accordance with the terms of this section as in effect
immediately before the effective date \4\ of that amendment.
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\5\ So in original. The word ``made'' probably should not appear.
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(j) Cooperative project agreements with friendly foreign countries not
members of NATO
(1) The President may enter into a cooperative project agreement
with any friendly foreign country not a member of the North Atlantic
Treaty Organization under the same general terms and conditions as the
President is authorized to enter into such an agreement with one or more
member countries of the North Atlantic Treaty Organization if the
President determines that the cooperative project agreement with such
country would be in the foreign policy or national security interests of
the United States.
(2) Omitted.
(Pub. L. 90-629, ch. 2, Sec. 27, as added Pub. L. 96-92, Sec. 15, Oct.
29, 1979, 93 Stat. 706; amended Pub. L. 99-83, title I, Sec. 115(a),
Aug. 8, 1985, 99 Stat. 199; Pub. L. 99-145, title XI, Sec. 1102(a)(1),
(5), Nov. 8, 1985, 99 Stat. 708, 710; Pub. L. 99-661, div. A, title XI,
Sec. 1103(a), title XIII, Sec. 1342(e), Nov. 14, 1986, 100 Stat. 3962,
3991; Pub. L. 100-180, div. A, title X, Sec. 1022, Dec. 4, 1987, 101
Stat. 1144; Pub. L. 102-484, div. A, title VIII, Sec. 843(a), Oct. 23,
1992, 106 Stat. 2468.)
References in Text
The effective date of the International Security and Development
Cooperation Act of 1985 and the effective date of the amendment to this
section made by the International Security and Development Cooperation
Act of 1985, referred to in subsecs. (e)(1) and (i), respectively, is
October 1, 1985, see section 1301 of Pub. L. 99-83, set out as an
Effective Date of 1985 Amendment note under section 2151-1 of this
title.
The amendment made to this section made by the International
Security and Development Cooperation Act of 1985, referred to in subsec.
(i), means the general amendment of this section by section 115(a) of
Pub. L. 99-83. See 1985 Amendment note below.
Codification
Subsec. (j)(2) of this section, which required the President to
submit to certain committees of Congress an annual report specifying
countries eligible, and criteria used to determine eligibility, for
participation in cooperative project agreements under subsec. (j)(1) of
this section, terminated, effective May 15, 2000, pursuant to section
3003 of Pub. L. 104-66, as amended, set out as a note under section 1113
of Title 31, Money and Finance. See, also, page 39 of House Document No.
103-7.
Amendments
1992--Subsec. (c). Pub. L. 102-484 substituted ``costs,
administrative costs, and costs of claims'' for ``and administrative
costs''.
1987--Subsec. (b)(1)(C). Pub. L. 100-180 inserted ``or for
procurement by the United States of munitions from the North Atlantic
Treaty Organization or a subsidiary of such organization'' after
``member country''.
1986--Pub. L. 99-661, Sec. 1342(e), repealed section 1102(a)(1) of
Pub. L. 99-145 and the amendments made by that section, and provided
that this section shall apply as if that section had never been enacted.
See 1985 Amendments note below.
Pub. L. 99-661, Sec. 1103(a)(2), substituted ``Authority of
President to enter into cooperative projects with friendly foreign
countries'' for ``North Atlantic Treaty Organization cooperative
projects'' in section catchline.
Subsec. (b)(1). Pub. L. 99-661, Sec. 1103(a)(1)(A)(i), inserted ``,
in the case of an agreement with the North Atlantic Treaty Organization
or with one or more member countries of that Organization,'' in
introductory provisions.
Subsec. (b)(2), (3). Pub. L. 99-661, Sec. 1103(a)(1)(A)(ii)-(iv),
added par. (2) and redesignated former par. (2) as (3).
Subsec. (f)(3). Pub. L. 99-661, Sec. 1103(a)(1)(B), inserted ``,
including an estimate of the costs as a result of waivers of section
2761(e)(1)(A) and 2792(b) of this title,''.
Subsec. (g). Pub. L. 99-661, Sec. 1103(a)(1)(C), substituted ``In
the case of a cooperative project with a North Atlantic Treaty
Organization country, section,'' for ``Section''.
Subsec. (j). Pub. L. 99-661, Sec. 1103(a)(1)(D), added subsec. (j).
1985--Pub. L. 99-83 amended section generally, substituting in
subsec. (a) provisions relating to authority of the President, for
provisions defining ``cooperative project'', substituting in subsec. (b)
provisions defining ``cooperative project'' and ``other participant'',
for provisions relating to reduction or waiver of charges, sales not
subject to compensatory increases in administrative surcharges, and
contribution requirements, substituting in subsec. (c) provisions
relating to agreements for equitable share of costs and limiting the
nature of such agreements, for provisions relating to transmission of
numbered certification of proposed agreement, contents of such
certification, and statutory provisions applicable to sales, and adding
subsecs. (d) to (i).
Pub. L. 99-145, Sec. 1102(a)(1), which enacted a general amendment
of this section similar to that provided in Pub. L. 99-83 was repealed.
See 1986 Amendments note above and former section 1105(a)(5) of Pub. L.
99-145 set out as a Repeals; Effective Date note under section 2752 of
this title.
Change of Name
Committee on Foreign Affairs of House of Representatives treated as
referring to Committee on International Relations of House of
Representatives by section 1(a) of Pub. L. 104-14, set out as a note
preceding section 21 of Title 2, The Congress.
Effective Date of 1985 Amendment
Amendment by Pub. L. 99-83 effective Oct. 1, 1985, see section 1301
of Pub. L. 99-83, set out as a note under section 2151-1 of this title.
Delegation of Functions
Functions of President under this section delegated to Secretary of
Defense, with Secretary of Defense required to consult with Secretary of
State in implementing delegated functions, by section 1(f) of Ex. Ord.
No. 11958, Jan. 18, 1977, 42 F.R. 4311, as amended, set out as a note
under section 2751 of this title.
Section Referred to in Other Sections
This section is referred to in sections 2753, 2791 of this title;
title 10 sections 2350b, 4542.
