A bill to authorize the obligation and expenditure of funds to implement for fiscal year 1977 the provisions of the Treaty of Friendship and Cooperation between the United States and Spain, signed at Madrid on January 24, 1976.

Authorizes appropriations for fiscal year 1977 to carry out the Treaty of Friendship and Cooperation between the United States and Spain, January 24, 1976, including $15,000,000 for military assistance under the Foreign Assistance Act of 1961, $7,000,000 for security supporting assistance under such Act, $2,000,000 for international military education and training under such Act, and $12,000,000 for guaranties under the Foreign Military Sales Act.

Declares such assistance exempt from restrictions upon grants to an economically developed nation capable of sustaining its own defense burden and economic growth, under the Foreign Assistance Act of 1961.

Stipulates the scope and policy with respect to such Treaty.

Directs that the United States contribution toward modernization and maintenance of the aircraft control and warning network in Spain be financed from Department of Defense appropriations.

Authorizes the President to apply the proceeds from the lease of aircraft to Spain to the purchase of aircraft for such country, notwithstanding restrictions regarding the application of such proceeds.