International Security Assistance and Arms Export Control Act of 1976

(Conference report filed in House, H. Rept. 94-1272)

International Security Assistance and Arms Export Control Act - =Title I: Military Assistance Program= - Amends the Foreign Assistance Act of 1961 (1) to authorize the appropriation of $196,700,000 for fiscal year 1976 and $177,300,000 for fiscal year 1977 for military assistance, and (2) to authorize the appropriation of $32,000,000 for fiscal year 1976 and $70,000,000 for fiscal year 1977 for administrative expenses under this title.

Limits the amounts of assistance to be made available during fiscal year 1976 to Greece, Indonesia, Jordan, the Republic of Korea, the Philippines, Thailand, Turkey, and Ethiopia. Restricts the use of such funds to extending military assistance to not more than 20 countries in 1976 and to not more than 12 countries in 1977. Prohibits the increase of such limitations by transfer between accounts or by Presidential determination that authorization of such increase is important to national security. Makes such limitations inapplicable to emergency assistance under special authority of the President to order defense articles and services. Conditions assistance to Turkey upon Presidential certification that Turkey has met certain conditions with respect to Cyprus.

Amends the Foreign Assistance Act of 1961 to permit the President to order defense articles from the stocks of the Department of Defense for military assistance to a foreign country on a reimbursable basis upon certification to Congress that certain emergency conditions exist. Restricts the total value of such defense articles and services which may be ordered in a fiscal year.

Amends the Foreign Assistance Act of 1961 to prohibit the reservation of any defense article for use by a foreign country unless such transfer has been specially authorized by legislation. Directs that the value of such reserved articles stockpiled in foreign countries may not exceed an amount greater than is specified in security-assistance authorizing legislation. Limits the total value of such stockpile to $93,750,000 for fiscal year 1976 through September 30, 1976, and $125,000,000 for fiscal year 1977. Limits the location of such foreign stockpiles to United States military bases and NATO countries. Prohibits the valuation of any such transferred defense article as an excess defense article. Requires the President to report to Congress each new stockpile or addition to stockpile of defense articles valued in excess of $10,000,000 in any fiscal year.

Terminates, under the Foreign Assistance Act of 1961, the operation of United States military assistance advisory groups and missions unless specifically authorized by Congress. Limits to three the number of Armed Forces personnel which the President may assign to the Chief of each United States Diplomatic Mission to perform such functions. Prohibits the performance of such functions by any defense attache assigned to a Diplomatic Mission. Limits to 34 the total number of such missions.

Specifies the authority to furnish grant military assistance shall terminate on September 30, 1977, except when such assistance is authorized by Congress to specified countries.

Amends the Foreign Assistance Act of 1961 to authorize the President to furnish education and training to military and related civilian personnel of foreign countries. Authorizes the appropriation of $27,000,000, for fiscal year 1976 and $30,200,000 for fiscal year 1977 for such purposes. Repeals restrictions on military assistance for training foreign military students. Makes the Secretary of State responsible for the general supervision of such programs. Makes the Secretary of Defense primarily responsible for such programs. Specifies administrative procedures for furnishing such assistance.

=Title II: Arms Export Controls= - Changes the title of the "Foreign Military Sales Act" to the "Arms Control Act".

Declares it the policy of the United States to encourage control and reduction of arms traffic. Requires the President to review the arms sales policies and practices of the United States. Expresses the sense of the Congress that sales or licensing for export of defense items be kept at current levels.

Amends the Foreign Military Sales Act to limit the authority of the President to transfer defense articles sold under this Act, by permitting Congressional disapproval in emergency situations.

Amends such Act to require that payment for articles or services sold from Defense stocks be made for the actual value, except that the cost of articles intended to be replaced shall be the production cost less depreciation. Permits the President to extend an additional time for payment in certain circumstances. Sets forth procedures for billing, interest charges, time for payment, charges for administrative services, use of equipment, and nonrecurring research costs. Requires that any contract under such Act be prepared in such a way as to be made available for public inspection to the fullest extent possible. Permits the President to enter into NATO standardization agreements for training if the financial principles of such agreements are based on reciprocity. Stipulates that the direct costs of such agreements shall be reimbursable.

Amends the Foreign Military Sales Act to require that sales of defense articles and services which could have significant adverse effect on the combat readiness of the United States be kept to an absolute minimum. Sets forth procedures for such sales.

Amends the Foreign Military Sales Act to require imposition of interest charges on amounts by which a country or international organization is in arrears pursuant to the procurement of defense articles or services from private industry. Permits the President to issue letters of offer for such articles or services which require payment 120 days after the date of billing, if (1) it is in the national interest, (2) the emergency requirements of the purchaser exceed fund availability, and (3) a special emergency request is made to Congress for additional funds to finance such purchases.

Extends from 10 to 12 years the maximum payment period for credit sales after the delivery or rendering of defense articles or services under the Foreign Military Sales Act.

Amends such Act to require the President to transmit to Congress a detailed annual estimate of military sales, including an explanation of the foreign policy and national security considerations involved in such sales, and an arms control impact statement for each purchasing country. Requires the President to make every effort to submit such information in an unclassified form.

Amends the Foreign Military Sales Act to authorize the appropriation of $1,039,000,000 for fiscal year 1976 and $740,000,000 for fiscal year 1977, and to establish a ceiling of $2,374,700,000 on the aggregate amount of military sales credits that may be extended or loans that may be guaranteed for fiscal year 1976 and a ceiling of $2,022,100,000 for fiscal year 1977. Authorizes not less than $1,500,000,000 of such sums for Israel for fiscal year 1976 and $1,000,000,000 for fiscal year 1977. Limits to $100,000,000 the aggregate acquisition cost to the United States of excess defense articles ordered by the President after fiscal year 1976 for delivery to foreign countries or international organizations, exclusive of ships and their supplies.

Amends the Foreign Military Sales Act to require the President to transmit to Congress (1) quarterly reports which detail commercial and governmental military transactions; (2) reports regarding any letter of offer to sell any defense articles or services for $25,000,000,000 or more or any major defense equipment for $7,000,000 or more, and (3) reports regarding any application for a license to export any major defense equipment in the amount of $7,000,000 or defense articles or services for $25,000,000. Permits Congressional disapproval of such letters of offer or export licenses.

Amends the Foreign Military Sales Act to authorize the President to control arms exports and imports and to make available foreign policy guidance to persons in the United States involved in such activities. Requires that decisions regarding the issuance of such licenses be made in coordination with the Director of the United States Arms Control and Disarmament Agency. Requires any person, other than an officer or employee of the United States acting in an official capacity, who manufactures, exports, or imports such articles or services, to register with the appropriate agency. Prohibits the export or import of defense articles or services without a license. Prohibits issuance of such license for major defense equipment over $25,000,000 or more to any non-NATO country unless sold under this Act. Imposes a fine of not more than $100,000 or imprisonment for not more than two years, or both, for willful violation of this Act or regulations under this Act, or for willful misstatement or omission pursuant to required reports or applications. Declares this Act applicable to the Canal Zone. Repeals the munitions control regulations and penalties of the Mutual Security Act of 1954.

Amends the Foreign Military Sales Act to permit (1) revocation, suspension, or amendment of arms export licenses by the Secretary of State, and (2) cancellation of a Government contract for sale of defense articles or services by the United States if national security requires. Authorizes the appropriation of such sums as may be necessary to refund moneys received pursuant to such cancelled contracts or to pay damages and costs arising from such cancellation. Requires reimbursement of any department or agency of the United States Government for administrative expenses incurred in carrying out functions under the Act which are primarily for the benefit of any foreign country. Redefines "defense article", "defense service", "training", "major defense equipment", and "defense articles and services" for the purposes of such Act.

Amends the Foreign Assistance Act of 1961 to require that the Annual Foreign Assistance Report include specified information with respect to foreign military sales and military education and training.

Requires the President to transmit to Congress not later than February 28, 1977, a report regarding all sales of excess defense articles made under this Act between July 1, 1976, and December 31, 1976.

=Title III: General Limitations= - Amends the Foreign Assistance Act of 1961 to set forth the policy of the United States with regard to human rights. Directs the President to formulate international security assistance programs in conformity with such policy. Requires that the request for security assistance programs for each fiscal year be accompanied by a statement from the Secretary of State on the status of human rights in each country included in such program. Prohibits such assistance to any country which engages in a consistent pattern of gross violation of internationally recognized human rights, except when extraordinary circumstances exist which necessitate continuation of such assistance or the national interest of the United States requires such assistance.

Amends the Foregn Assistance Act of 1961 to establish in the Department of State a Coordinator of Human Rights to review all matters pertaining to human rights and humanitarian affairs in the conduct of foreign policy.

Prohibits discrimination on the basis of race, religion, national origin, or sex in the furnishing of defense articles, under the Foreign Assistance Act of 1961 and the Foreign Military Sales Act.

Provides that the Committees on Foreign Relations or International Relations may request the President to report on a country's exclusionary practices, the response of the United States thereto, and whether assistance under this Act should continue despite such practices. Suspends assistance if the President fails to so report, and permits the Congress to suspend or restrict assistance after receipt of such a report.

Requires that assistance under the Foreign Assistance Act of 1961 be terminated and that no military sales credits be issued or loans guaranteed or cash sales made under the Foreign Military Sales if the country to which they are provided (1) uses defense articles or services for purposes not authorized by such Acts, (2) transfers such articles and services without consent of the President, or (3) fails to maintain the security of such defense articles or services.

Amends the Foreign Assistance Act of 1961 to prohibit all assistance under this Act to countries which grant sanctuary to international terrorists, except upon a Presidential determination that national security requires otherwise.

Amends the Foreign Assistance Act of 1961 to prohibit all assistance (except under the Agricultural Trade Development and Assistance Act of 1954 for disasters, famines, or other relief) to any country which transfers nuclear materials, equipment, or technology in violation of specified conditions, except where the President certifies that termination of such assistance would adversely affect vital interests, and he has received reliable assurances that such country will not acquire or develop nuclear weapons.

=Title IV: Provisions Relating to Specific Regions or Countries= - Amends the Foreign Assistance Act of 1961 to declare it the sense of Congress that the United States shall maintain a flexible policy toward the Middle East. Declares that the Joint resolution to implement the United States proposal for the early-warning system in the "Sinai" does not constitute Congressional approval of any commitment or agreement upon which any other nation or organization may rely. Authorizes the appropriation of $40,000,000 for fiscal year 1977 for Cypriot refugees under the Foreign Assistance Act of 1961, for fiscal year 1976.

Amends such Act to permit the President to waive restrictions on assistance or aid to Turkey to enable Turkey to fulfill defense responsibilities to NATO.

Prohibits any assistance to military or paramilitary operations in Angola, except under specified conditions.

States that Congress views Soviet intervention in Angola and support of Cuban armed forces in Angola as inconsistent with detente and other international agreements. Declares that such intervention should be taken into account in United States foreign policy planning and negotiations.

Prohibits military assistance, sales, or sales credits to Chile, and limits economic assistance to $27,500,000 through fiscal year 1977, except that such amount may be increased by $27,500,000 if the President certifies that Chile does not engage in a consistent pattern of gross violations of human rights and has permitted investigation of alleged violations of such rights.

Declares it the sense of Congress that the President seek an agreement with respect to limiting military forces in the Indian Ocean.

Calls upon the President to express concern for United States citizens arrested in Mexico and requires the Secretary of State to submit periodic reports to Congress regarding the status of such citizens and their treatment. Declares it the sense of Congress that the President evaluate the emergency food needs of Portugal and take action to alleviate such emergency.

Deplores the civil strife in Lebanon, and requests the President to seek an end to such discord and to preserve the traditional friendly attitude of Lebanon toward the United States.

Requires the President to sumbmit to Congress a report on security and self-sufficiency efforts in Korea. Expresses the distress of the Congress over the erosion of important civil liberties in the Republic of Korea and requests the President to communicate this concern in forceful terms to such government.

Repeals Indochina assistance under the Foreign Assistance Act of 1961 and terminates regulations, contracts, and agreements thereof.

Amends the Foreign Assistance Act of 1961 (1) to make available $15,000,000 for housing reconstruction in Lebanon, (2) to authorize the appropriation of $25,000,000 for relief and rehabilitation of earthquake victims in Italy, and (3) to authorize the appropriation of $20,000,000 for relief and rehabilitation of refugees and other needy people in Lebanon.

=Title V: Miscellaneous Authorizations= - Amends the Foreign Assistance Act of 1961 to authorize for security supporting assistance, appropriations of $1,766,200,000 for fiscal year 1976 and $1,860,000,000 for fiscal year 1977. Sets forth minimum appropriations for Greece and Israel and maximum appropriations for Egypt, Zaire, and Zambia. Prohibits use of any of such funds for Zaire and Zambia for military or guerrilla purposes.

Authorizes the appropriation of $50,000,000 for fiscal year 1976 and $35,000,000,000 for fiscal year 1977 for the Middle East Special Requirements Fund. Requires that such funds be utilized for specified persons relating to the early-warning system in the Sinai, the Agreement of October 10, 1975, and the deficit of the United Nations Relief and Works Agency for Palestine Refugees in the Middle East.

Authorizes the appropriation of $5,000,000 for fiscal year 1976 for the contingency fund of the President for supporting assistance, under the Foreign Assistance Act of 1961. Authorizes the appropriation of $40,000,000 for fiscal year 1976 and $34,000,000 for fiscal year 1977 for international narcotics control, under specified conditions.

Amends the Foreign Assistance Act of 1961 to authorize the appropriation of $1,000,000 for fiscal year 1976 and $2,000,000 for fiscal year 1977 for the International Atomic Energy Agency for strengthening safeguards and inspection of nuclear facilities and materials.

Authorizes interim quarter appropriations for the period from July 1 to September 30, 1976, in amounts equal to one-fourth of the amounts authorized for fiscal year 1976.

Authorizes the appropriation of such sums as may be necessary for fiscal year 1977 to carry out agreements for the use of military facilities in Spain, Greece, or Turkey by United States Armed Forces.

=Title VI: Miscellaneous Provisions= - Establishes a procedure for expediting consideration by the Senate of resolutions of disapproval of certain Presidential certifications under the Arms Export Control Act.

Directs the Administrator of the Agency for International Development to report every six months to Congress on the extent small businesses have participated in procurements under the Foreign Assistance Act of 1961.

Amends the Foreign Assistance Act of 1961 to specify the compensation payable to consultants hired by the Agency for International Development.

Amends the Foreign Military Sales Act to require that reports on military exports to include data on political contributions, gifts, commissions, and fees paid, or offered in connection with sales of military equipment.

Requires that civilian contract personnel be used to the maximum extent possible to perform defense services sold under the Foreign Military Sales Act.

Amends the Foreign Assistance Act of 1961 to prohibit assistance aggregating more than $100,000,000 for the construction of any productive enterprise project in Egypt described in 1977 presentation materials.

Requires the President to submit to Congress a report with respect to any Presidential determination that officials of a foreign country receiving international security assistance have (1) received illegal or improper payments from a United States corporation in return for a contract to purchase defense articles or services or (2) extorted, or attempted to extort, money or other things of value in return for actions by officials of that country.

Grants the consent of the Congress to an agreement between Minnesota and Canada for an extension of the Pinecreek Airport into Canada and for the operation of such airport by a joint Canadian-American airport authority.