§ 2765. — Annual estimate and justification for sales program.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC2765]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 39--ARMS EXPORT CONTROL
SUBCHAPTER II--FOREIGN MILITARY SALES AUTHORIZATIONS
Sec. 2765. Annual estimate and justification for sales program
(a) Report to Congress; contents
Except as provided in subsection (d) \1\ of this section, no later
than February 1 of each year, the President shall transmit to the
appropriate congressional committees, as a part of the annual
presentation materials for security assistance programs proposed for the
next fiscal year, a report which sets forth--
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\1\ See References in Text note below.
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(1) an arms sales proposal covering all sales and licensed
commercial exports under this chapter of major weapons or weapons-
related defense equipment for $7,000,000 or more, or of any other
weapons or weapons-related defense equipment for $25,000,000 or
more, which are considered eligible for approval during the current
calendar year, together with an indication of which sales and
licensed commercial exports are deemed most likely actually to
result in the issuance of a letter of offer or of an export license
during such year;
(2) an estimate of the total amount of sales and licensed
commercial exports expected to be made to each foreign nation from
the United States;
(3) the United States national security considerations involved
in expected sales or licensed commercial exports to each country, an
analysis of the relationship between anticipated sales to each
country and arms control efforts concerning such country and an
analysis of the impact of such anticipated sales on the stability of
the region that includes such country;
(4) an estimate with regard to the international volume of arms
traffic to and from nations purchasing arms as set forth in
paragraphs (1) and (2) of this subsection, together with best
estimates of the sale and delivery of weapons and weapons-related
defense equipment by all major arms suppliers to all major recipient
countries during the preceding fiscal year;
(5)(A) an estimate of the aggregate dollar value and quantity of
defense articles and defense services, military education and
training, grant military assistance, and credits and guarantees, to
be furnished by the United States to each foreign country and
international organization in the next fiscal year; and
(B) for each country that is proposed to be furnished credits or
guaranties under this chapter in the next fiscal year and that has
been approved for cash flow financing (as defined in subsection (d)
\1\ of this section) in excess of $100,000,000 as of October 1 of
the current fiscal year--
(i) the amount of such approved cash flow financing,
(ii) a description of administrative ceilings and controls
applied, and
(iii) a description of the financial resources otherwise
available to such country to pay such approved cash flow
financing;
(6) an analysis and description of the services performed during
the preceding fiscal year by officers and employees of the United
States Government carrying out functions on a full-time basis under
this chapter for which reimbursement is provided under section
2792(b) of this title or section 2761(a) of this title, including
the number of personnel involved in performing such services;
(7) the total amount of funds in the reserve under section
2764(c) of this title at the end of the fiscal year immediately
preceding the fiscal year in which a report under this section is
made, together with an assessment of the adequacy of such total
amount of funds as a reserve for the payment of claims under
guarantees issued pursuant to section 2764 of this title in view of
the current debt servicing capacity of borrowing countries, as
reported to the Congress pursuant to section 634(a)(5) of the
Foreign Assistance Act of 1961 [22 U.S.C. 2394(a)(5)];
(8) a list of all countries with respect to which findings made
by the President pursuant to section 2753(a)(1) of this title are in
effect on the date of such transmission;
(9) the progress made under the program of the Republic of Korea
to modernize its armed forces, the role of the United States in
mutual security efforts in the Republic of Korea and the military
balance between the People's Republic of Korea and the Republic of
Korea;
(10) the amount and nature of Soviet military assistance to the
armed forces of Cuba during the preceding fiscal year and the
military capabilities of those armed forces;
(11) the status of each loan and each contract of guaranty or
insurance theretofore made under the Foreign Assistance Act of 1961
[22 U.S.C. 2151 et seq.], predecessor Acts, or any Act authorizing
international security assistance, with respect to which there
remains outstanding any unpaid obligation or potential liability;
the status of each extension of credit for the procurement of
defense articles or defense services, and of each contract of
guaranty in connection with any such procurement, theretofore made
under this chapter with respect to which there remains outstanding
any unpaid obligation or potential liability;
(12)(A) a detailed accounting of all articles, services,
credits, guarantees, or any other form of assistance furnished by
the United States to each country and international organization,
including payments to the United Nations, during the preceding
fiscal year for the detection and clearance of landmines, including
activities relating to the furnishing of education, training, and
technical assistance for the detection and clearance of landmines;
and
(B) for each provision of law making funds available or
authorizing appropriations for demining activities described in
subparagraph (A), an analysis and description of the objectives and
activities undertaken during the preceding fiscal year, including
the number of personnel involved in performing such activities;
(13) a list of weapons systems that are significant military
equipment (as defined in section 2794(9) of this title), and numbers
thereof, that are believed likely to become available for transfer
as excess defense articles during the next 12 months; and
(14) such other information as the President may deem necessary.
(b) Congressional request for additional information
Not later than thirty days following the receipt of a request made
by any of the congressional committees described in subsection (e) of
this section for additional information with respect to any information
submitted pursuant to subsection (a) of this section, the President
shall submit such information to such committee.
(c) Submission of information in unclassified form or classified
addendum with unclassified summary
The President shall make every effort to submit all of the
information required by subsection (a) or (b) of this section wholly in
unclassified form. Whenever the President submits any such information
in classified form, he shall submit such classified information in an
addendum and shall also submit simultaneously a detailed summary, in
unclassified form, of such classified information.
(d) \2\ ``Cash flow financing'' defined
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\2\ So in original. Two subsecs. (d) have been enacted.
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For the purposes of subsection (a)(5)(B) of this section, the term
``cash flow financing'' means the dollar amount of the difference
between the total estimated price of a Letter of Offer and Acceptance or
other purchase agreement that has been approved for financing under this
chapter or under section 503(a)(3) of the Foreign Assistance Act of 1961
[22 U.S.C. 2311(a)(3)] and the amount of the financing that has been
approved therefor; \3\
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\3\ So in original. The semicolon probably should be a period.
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(d) \2\ Transmission of information to Congress
The information required by subsection (a)(4) of this section shall
be transmitted to the Congress no later than April 1 of each year.
(e) ``Appropriate congressional committees'' defined
As used in this section, the term ``appropriate congressional
committees'' means the Committee on Foreign Relations and the Committee
on Appropriations of the Senate and the Committee on International
Relations and the Committee on Appropriations of the House of
Representatives.
(Pub. L. 90-629, ch. 2, Sec. 25, as added Pub. L. 94-329, title II,
Sec. 209(a), June 30, 1976, 90 Stat. 739; amended Pub. L. 95-384,
Sec. 18, Sept. 26, 1978, 92 Stat. 740; Pub. L. 96-92, Secs. 13, 14, Oct.
29, 1979, 93 Stat. 706; Pub. L. 96-533, title I, Secs. 104(c), 107(d),
Dec. 16, 1980, 94 Stat. 3133, 3137; Pub. L. 97-113, title VII, Sec. 732,
Dec. 29, 1981, 95 Stat. 1557; Pub. L. 99-83, title I, Secs. 112, 113,
Aug. 8, 1985, 99 Stat. 198; Pub. L. 104-164, title I, Sec. 102(d), July
21, 1996, 110 Stat. 1423; Pub. L. 105-118, title V, Sec. 519, Nov. 26,
1997, 111 Stat. 2411; Pub. L. 107-228, div. B, title XII, Sec. 1232,
Sept. 30, 2002, 116 Stat. 1433.)
References in Text
Subsection (d) of this section, referred to in subsec. (a),
preceding par. (1), probably means the subsec. (d) added by section
113(2) of Pub. L. 99-83, relating to transmittal of information to
Congress.
Subsection (d) of this section, referred to in subsec. (a)(5)(B),
probably means the subsec. (d) added by section 112(b) of Pub. L. 99-83,
defining cash flow financing.
The Foreign Assistance Act of 1961, referred to in subsec. (a)(11),
is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as amended, which is
classified principally to chapter 32 (Sec. 2151 et seq.) of this title.
For complete classification of this Act to the Code, see Short Title
note set out under section 2151 of this title and Tables.
Amendments
2002--Subsec. (a)(13), (14). Pub. L. 107-228 added par. (13) and
redesignated former par. (13) as (14).
1997--Subsec. (a). Pub. L. 105-118, Sec. 519(1), substituted
``appropriate congressional committees'' for ``Congress'' in
introductory provisions.
Subsec. (b). Pub. L. 105-118, Sec. 519(2), substituted ``any of the
congressional committees described in subsection (e) of this section''
for ``the Committee on Foreign Relations of the Senate or the Committee
on Foreign Affairs of the House of Representatives''.
Subsec. (e). Pub. L. 105-118, Sec. 519(3), added subsec. (e).
1996--Subsec. (a)(12), (13). Pub. L. 104-164 added par. (12) and
redesignated former par. (12) as (13).
1985--Subsec. (a). Pub. L. 99-83, Sec. 113(1), substituted ``Except
as provided in subsection (d) of this section, no'' for ``No''.
Subsec. (a)(5). Pub. L. 99-83, Sec. 112(a), designated existing
provisions as subpar. (A) and added subpar. (B).
Subsec. (d). Pub. L. 99-83, Sec. 112(b), added subsec. (d) defining
``cash flow financing''.
Pub. L. 99-83, Sec. 113(2), added subsec. (d) relating to
transmittal of information to Congress.
1981--Subsec. (a). Pub. L. 97-113, in provision preceding par. (1),
required transmission of the report no later than Feb. 1 of each year
and substituted provision for annual presentation materials for programs
proposed for next fiscal year for provision for presentation materials
for programs proposed for each fiscal year.
Subsec. (a)(1). Pub. L. 97-113 added par. (1) which incorporated
provisions of former subsec. (d)(1) of this section. See subsec. (d)
amendment note. Former par. (1) covered in par. (3).
Subsec. (a)(2). Pub. L. 97-113 added par. (2). Former par. (2),
which required the report to contain an estimate of amount of credits
and guaranties expected to be extended to each country under sections
2763 and 2764 of this title, covered in par. (5).
Subsec. (a)(3). Pub. L. 97-113 added par. (3) which incorporated
provisions of former par. (1) requiring the report to contain an
estimate of amounts of expected sales to each country under sections
2761 and 2762 of this title, including detailed explanations of foreign
policy and United States national security considerations in expected
sales to each country, and (5) requiring inclusion of an arms control
impact statement for each purchasing country, covering (A) an analysis
of the relationship between expected sales to each country and arms
control efforts relating to that country, and (B) the impact of such
expected sales on the stability of the region that included the
purchasing country. Former par. (3) redesignated (7).
Subsec. (a)(4). Pub. L. 97-113 added par. (4) which incorporated
provisions of former subsec. (e), which had required executive estimates
of international arms traffic, including estimates on an annual basis of
the sale and delivery of weapons and weapons-related defense equipment
by all major arms suppliers to all major recipient countries during the
preceding three years. Former par. (4) covered in par. (8).
Subsec. (a)(5). Pub. L. 97-113 added par. (5) which incorporated
provisions of former par. (2) requiring the report to contain an
estimate of amount of credits and guaranties expected to be extended to
each country under sections 2763 and 2764 of this title. Former par. (5)
covered in par. (3).
Subsec. (a)(6). Pub. L. 97-113 added par. (6).
Subsec. (a)(7). Pub. L. 97-113 redesignated former par. (3) as (7).
Subsec. (a)(8). Pub. L. 97-113 added par. (8), which incorporated
provisions of former par. (4), requiring the report to contain a list of
all findings in effect on date of its transmission made by the President
pursuant to section 2753(a)(1) of this title, together with a full and
complete justification for each finding, explaining how sales to each
country with respect to which findings were made would strengthen the
security of the United States and promote world peace.
Subsecs. (a)(9) to (12). Pub. L. 97-113 added pars. (9) to (12).
Subsec. (b). Pub. L. 97-113 substituted ``Committee on Foreign
Affairs'' for ``Committee on International Relations'', and ``with
respect to any information'' for ``with respect to any estimate''.
Subsec. (c). Pub. L. 97-113 substituted ``Whenever the President''
for ``In the event the President''.
Subsec. (d). Pub. L. 97-113 incorporated in subsec. (a) introductory
text and subsec. (a)(1), provisions of former subsec. (d)(1) which had
required transmission to the Speaker of the House and the chairman of
the Senate Foreign Relations Committee the Arms Sales Proposal covering
sales and licensed commercials exports under this chapter (other than
such transactions to members of North Atlantic Treaty Organization,
Japan, Australia, and New Zealand) of major weapons or weapons-related
defense equipment for $7,000,000 or more, or of any other weapons or
similar equipment for $25,000,000 or more, which were eligible for
approval during fiscal year beginning October 1 of such year and had
required identification in the reports of sales and licensed commercial
exports deemed most likely actually to result in issuance of a letter of
offer or of an export license during such fiscal year, and subsec.
(d)(2) which had required Presidential six month written notifications
of Congress of any change in the Arms Sales Proposal for such fiscal
year, together with reasons therefor.
Subsec. (e). Pub. L. 97-113 incorporated, in subsec. (a)
introductory text and subsec. (a)(4), provisions of former subsec. (e)
which had required transmission to Congress on or before Nov. 15 of each
year executive estimates of international arms traffic, including
estimates on an annual basis of the sale and delivery of weapons and
weapons-related defense equipment by all major arms suppliers to all
major recipient countries during the preceding three years.
1980--Subsec. (a)(3) to (5). Pub. L. 96-533, Sec. 104(c), added par.
(3) and redesignated former pars. (3) and (4) as (4) and (5),
respectively.
Subsec. (d)(1). Pub. L. 96-533, Sec. 107(d), included coverage of
licensed commercial exports and substituted ``letter of offer or of an
export license'' for ``letter of offer''.
1979--Subsec. (d). Pub. L. 96-92, Sec. 13(1)-(4), designated
existing provision as par. (1), substituted ``major weapons or weapons-
related defense equipment'' for ``major defense equipment'' and
``weapons or weapons-related defense equipment'' for ``defense articles
or defense services'', required identification of sales likely to result
in issuance of a letter of offer in the furnished reports, and added
par. (2).
Subsec. (e). Pub. L. 96-92, Sec. 14, added subsec. (e).
1978--Subsec. (c). Pub. L. 95-384, Sec. 18(b), substituted
``subsection (a) or (b) of this section'' for ``this section''.
Subsec. (d). Pub. L. 95-384, Sec. 18(a), added subsec. (d).
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
State, with Secretary of Defense and Director of Arms Control and
Disarmament Agency required to assist in preparation of materials for
presentation to Congress, by section 1(g) 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 section 2763 of this title.
