[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2791]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39--ARMS EXPORT CONTROL
SUBCHAPTER IV--GENERAL, ADMINISTRATIVE, AND MISCELLANEOUS PROVISIONS
Sec. 2791. General provisions
(a) Considerations in procurement outside United States
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.
(b) Information to Congress on credit sales and guaranties
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.
(c) Availability of funds for procurement outside 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.
(d) Responsibility of Secretary of Defense with respect to sales and
guaranties
(1) 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--
(A) the determination of military end-item requirements;
(B) the procurement of military equipment in a manner which
permits its integration with service programs;
(C) the supervision of the training of foreign military
personnel;
(D) the movement and delivery of military end-items; and
(E) within the Department of Defense, the performance of any
other functions with respect to sales and guaranties.
(2) 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.
(e) Revocation and suspension provisions of contracts for sale and
export licenses; appropriations for refunds
(1) 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.
(2)(A) 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.
(B) Nothing in this paragraph may be construed as limiting the
regulatory authority of the President under this chapter.
(3) 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.
(f) Use of civilian contract personnel in foreign countries
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.
(Pub. L. 90-629, ch. 4, Sec. 42, Oct. 22, 1968, 82 Stat. 1326; Pub. L.
92-226, pt. IV, Sec. 401(e), (f), Feb. 7, 1972, 86 Stat. 33; Pub. L. 94-
141, title I, Sec. 150(b), Nov. 29, 1975, 89 Stat. 760; Pub. L. 94-329,
title II, Sec. 213, title VI, Sec. 605(b), June 30, 1976, 90 Stat. 745,
768; Pub. L. 96-533, title I, Sec. 105(e)(3), Dec. 16, 1980, 94 Stat.
3135; Pub. L. 97-392, Sec. 2, Dec. 29, 1982, 96 Stat. 1963; Pub. L. 99-
83, title I, Sec. 115(b)(3), Aug. 8, 1985, 99 Stat. 201; Pub. L. 99-145,
title XI, Sec. 1102(a)(4), (5), Nov. 8, 1985, 99 Stat. 710; Pub. L. 99-
661, div. A, title XIII, Sec. 1342(e), Nov. 14, 1986, 100 Stat. 3991;
Pub. L. 103-236, title VII, Sec. 714(a)(2), Apr. 30, 1994, 108 Stat.
497; Pub. L. 105-277, div. G, subdiv. A, title XII, Sec. 1225(a)(3),
Oct. 21, 1998, 112 Stat. 2681-773.)
Amendments
1998--Subsec. (a). Pub. L. 105-277 struck out par. (1) designation,
struck out ``the assessment of the Director of the United States Arms
Control and Disarmament Agency as to'' after ``, and (C)'', and struck
out par. (2) which read as follows: ``Any proposed sale made pursuant to
this chapter shall be approved only after consultation with the Director
of the United States Arms Control and Disarmament Agency. The Director
of the Arms Control and Disarmament Agency is authorized, whenever the
Director determines that a sale under this section would be detrimental
to the national security of the United States, to recommend to the
President that such sale be disapproved.''
1994--Subsec. (a). Pub. L. 103-236 designated existing provisions as
par. (1), redesignated former cls. (1) to (3) as cls. (A) to (C),
respectively, amended cl. (C) generally, and added par. (2). Prior to
being amended generally, cl. (C) read as follows: ``in coordination with
the Director of the United States Arms Control and Disarmament Agency,
the Director's opinion as to the extent to which such sale might
contribute to an arms race, or increase the possibility of outbreak or
escalation of conflict, or prejudice the development of bilateral or
multilateral arms control arrangements.''
1986--Subsec. (e)(1), (3). Pub. L. 99-661 repealed section
1102(a)(4) 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.
1985--Subsec. (e)(1), (3). Pub. L. 99-83 inserted reference to
contracts under section 2767(d) of this title.
Pub. L. 99-145, Sec. 1102(a)(4), which enacted amendments similar to
those provided in Pub. L. 99-83, was repealed. See 1986 Amendments note
below and former section 1102(a)(5) of Pub. L. 99-145 set out as a
Repeals; Effective Date note under section 2752 of this title.
1982--Subsecs. (d)(1), (e)(1), (3)(A). Pub. L. 97-392 substituted
``2769 and 2770'' for ``and 2769''.
1980--Subsecs. (d)(1), (e)(1), (3). Pub. L. 96-533, Sec. 105(e)(3),
inserted reference to section 2769 of this title.
1976--Subsec. (e). Pub. L. 94-329, Sec. 213, added subsec. (e).
Subsec. (f). Pub. L. 94-329, Sec. 605(b), added subsec. (f).
1975--Subsec. (a)(3). Pub. L. 94-141 inserted provision relating to
coordination with the Director of the United States Arms Control and
Disarmament Agency.
1972--Subsec. (a). Pub. L. 92-226, Sec. 401(e), (f)(1), added cl.
(3) and inserted ``, subject to the provisions of subsection (b) of this
section,'' before ``consideration shall also be given'', respectively.
Subsecs. (b) to (d). Pub. L. 92-226, Sec. 401(f)(2), added subsec.
(b) and redesignated former subsecs. (b) and (c) as (c) and (d).
Effective Date of 1998 Amendment
Amendment by Pub. L. 105-277 effective Apr. 1, 1999, see section
1201 of Pub. L. 105-277, set out as an Effective Date note under section
6511 of this title.
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 subsecs. (c) an
