Foreign Military Sales to Less Developed Countries.—

Sec. 35. Foreign Military Sales to Less Developed Countries.— (a) When the President finds that any economically less developed country is diverting development assistance furnished pursuant to the Foreign Assistance Act of 1961, as amended, or sales under the Agricultural Trade Development and Assistance Act of 1954, as amended, to military expenditures, or is diverting its own resources to unnecessary military expenditures, to a degree which materially interferes with its development, such country shall be immediately ineligible fur further sales and guarantees under sections 21, 22, 23, and 24, until the President is assured that such diversion will no longer take place, (b) The President shall transmit to the Speaker of the House of Representatives and to the Committee on Foreign Relations of the Senate semiannual reports of sales, and guaranties, to economically less developed countries, under sections 21,22,23, and 24, disclosing in detail the countries extended sales guaranties and credits and the terms and conditions of such sales, guaranties and credits; concurrently the President shall transmit semiannual reports of forecasts of sales and of guaranty and credit applications and anticipated 82 Stat. 1326 guaranty and credit extensions to economically less developed countries for the current fiscal year.