excess defense articles

excess defense articles Sec. 596. (a) The Congress finds that impending changes in the United States armed forces are likely to result in increased avail-ability of excess defense articles to meet security assistance requirements. The Congress urges the President to make maximum use of available excess defense articles as a cost-effective supplement to funded security assistance programs to meet the legitimate defense requirements of eligible allies and friends. Accordingly, the President is urged to establish policies and procedures to ensure that excess assets are applied against such requirements. Accordingly, the Foreign Assistance Act of 1961 is amended as follows: (b) Chapter 2 of part II of the Foreign Assistance Act of 1961 is amended by adding the following at the end: “Sec. 519. Additional Authorities Relating to Modernization of Military Capabilities.—(a) Authority to Transfer Excess Defense Articles.—Notwithstanding any other provision of law (except title V of the National Security Act of 1947) and subject to subsection (b), the President may transfer to countries for whom a foreign military financing program was justified for the fiscal year in which the transfer is authorized, such nonlethal excess defense articles as the President determines necessary to help modernize the defense capabilities of such countries, in accordance with the provisions of this section. “(b) Limitations on Transfers.—The President may transfer nonlethal excess defense articles under this section only if— “(1) the equipment is drawn from existing stocks of the Department of Defense; “(2) no funds available to the Department of Defense for the procurement of defense equipment are expended in connection with the transfer; “(3) the President determines that the transfer of the nonlethal excess defense articles will not have an adverse impact on the military readiness of the United States; and “(4) the President determines that transferring the articles under the authority of this section is preferable to selling them, after taking into account the potential proceeds from, and likelihood of, such sales, and the comparative foreign policy benefits that may accrue to the United States as the result of either a transfer or sale. “(c) Notification to Congress.—The President shall notify the Committees on Appropriations, Armed Services, and Foreign Relations of the Senate, and the Committees on Appropriations, Armed Services, and Foreign Affairs of the House of Representatives fifteen days before transferring nonlethal excess defense articles under subsection (a), in accordance with the regular notification procedures of those committees. “(d) Waiver of Requirement for Reimbursement of DOD Expenses.—Section 632(d) shall not apply with respect to transfers of nonlethal excess defense articles under this section. “(e) Annual Report.—Commencing in 1991, not later than December 15 of each year, the President shall transmit to the committees described in subsection (c) a report with respect to the previous fiscal year which contains— “(1) a list of the countries to which the President has furnished nonlethal excess defense articles under the authority of this section; and 104 STAT. 2062 “(2) the value of the excess nonlethal defense articles that were furnished to each such country. “(f) Transportation and Related Costs.—(1) Except as provided in paragraph (2), funds available to the Department of Defense shall not be expended for crating, packing, handling and transportation of nonlethal excess defense articles transferred under the authority of this section. “(2) Notwithstanding section 632(d) or any other provision of law, the President may direct the crating, packing, handling and trans-port of nonlethal excess defense articles without charge to a country if— “(A) that country has an agreement providing the United States with base rights in that country; “(B) that country is eligible for assistance from the International Development Association; and “(C) the nonlethal excess defense articles are being provided to that country under the authority of this section.”. (c) In section 31(d) of the Arms Export Control Act, insert the following after the word “law” “, and of any defense articles with respect to which the President submits a certification under section 36(b) of this Act.”. (d) During fiscal year 1991, the provisions of section 573(e) of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1990, shall be applicable, for the period specified therein, to excess defense articles made available under sections 516 and 519 of the Foreign Assistance Act of 1961.