Conditions of Eligibility.—

Sec. 506. Conditions of Eligibility.— (a) In addition to such other provisions as the President may require, no defense articles shall be furnished to any country on a grant basis unless it shall have agreed that— (1) it will not, without the consent of the President— (A) permit any use of such articles by anyone not an officer, employee, or agent of that country, (B) transfer, or permit any officer, employee, or agent of that country to transfer such articles by gift, sale, or otherwise, or (C) use or permit the use of such articles for purposes other than those for which furnished; (2) it will maintain the security of such articles, and will provide substantially the same degree of security protection afforded to such articles by the United States Government; (3) it will, as the President may require, permit continuous observation and review by, and furnish necessary information to, representatives of the United States Government with regard to the use of such articles; and (4) unless the President consents to other disposition, it will return to the United States Government for such use or disposition as the President considers in the best interests of the United States, such articles which are no longer needed for the purposes for which furnished. (b) No defense articles shall be furnished on a grant basis to any country at a cost in excess of $3,000,000 in any fiscal year unless the President determines— (1) that such country conforms to the purposes and principles of the Charter of the United Nations; (2) that such defense articles will be utilized by such country for the maintenance of its own defensive strength, and the defensive strength of the free world; (3) that such country is taking all reasonable measures, consistent with its political and economic stability, which may be needed to develop its defense capacities; and (4) that the increased ability of such country to defend itself is important to the security of the United States.