Pub. L. 87-565, pt. II, ch. 1, sec. 201

Sec. 201. Chapter 2 of part II of the Foreign Assistance Act of 1961, as amended, which relates to military assistance, is amended as follows: (a) In section 506, which relates to conditions of eligibility, add the following new subsections: “(c) The President shall regularly reduce and, with such deliberate speed as orderly procedure and other relevant considerations, including prior commitments, will permit, shall terminate all further grants of military equipment and supplies to any country having sufficient wealth to enable it, in the judgment of the President, to maintain and equip its own military forces at adequate strength, without undue burden to its economy. “(d) Any country which hereafter uses defense articles or defense services furnished such country under this Act, the Mutual Security Act of 1954, as amended, or any predecessor foreign assistance Act, in substantial violation of the provisions of this chapter or any agreements entered into pursuant to any of such Acts shall be immediately ineligible for further assistance.” (b) In section 507(a), which relates to sales, insert “not less than” before “the value” in the first sentence. (c) In section 507(b), add a new sentence to read as follows: “No sales of unclassified defense articles shall be made to the government76 Stat. 260 of any economically developed nation under the provisions of this subsection unless such articles are not generally available for purchase by such nations from commercial sources in the United States: Provided, however, That the Secretary of Defense may waive the provisions of this sentence when he determines that the waiver of such provisions is in the national interest.” (d) In section 510(a), which relates to special authority, strike out “1962” in the first and second sentences and substitute “1963”.