METHODS OF PAYMENT FOR ACQUISITIONS AND TRANSFERS BY THE UNITED STATES TO ALLIED COUNTRIES

SEC. 938. METHODS OF PAYMENT FOR ACQUISITIONS AND TRANSFERS BY THE UNITED STATES TO ALLIED COUNTRIES (a) Exchanges To Be for Supplies or Services of Identical Value.—Section 2344 of title 10, United States Code, is amended by striking out “identical or substantially identical nature” before the period at the end of subsection (a) and inserting in lieu thereof ‘equal value”. (b) Limitations on Exchanges.—Such section is further amended by adding at the end the following new subsection: “(c) In acquiring or transferring logistics support, supplies, or services under the authority of this chapter by exchange of supplies or services, the Secretary of Defense may not agree to or carry out the following: “(1) Transfers in exchange for property the acquisition of which by the Department of Defense is prohibited by law. “(2) Transfers of source, byproduct, or special nuclear mate-rials or any other material, article, data, or thing of value the transfer of which is subject to the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.). “(3) Transfers of chemical munitions.”. (c) Application of Chapter 138.—Section 2350d(e) of title 10, United States Code, as enacted by section 931(c), is amended by inserting “this chapter and” after “in accordance with”.