General Provisions.—

Sec. 42. General Provisions.— (a) In carrying out this Act, special emphasis shall be placed on procurement in the United States, but consideration shall also be given to coproduction or licensed production outside the United States of defense articles of United States origin when such production best serves the foreign policy, national security, and economy of the United States. In evaluating any sale proposed to be made pursuant to this Act, there shall be taken into consideration82 Stat. 1327 (1) the extent to which the proposed sale damages or infringes upon licensing arrangements whereby United States entities have granted licenses for the manufacture of the defense articles selected by the purchasing country to entities located in friendly foreign countries, which licenses result in financial returns to the United States, and (2) the portion of the defense articles so manufactured which is of United States origin. (b) Funds made available under this Act may be used for procurement outside the United States only if the President determines that such procurement will not result in adverse effects upon the economy of the United States or the industrial mobilization base, with special reference to any areas of labor surplus or to the net position of the United States in its balance of payments with the rest of the world, which outweigh the economic or other advantages to the United States of less costly procurement outside the United States. (c) (1) With respect to sales and guaranties under sections 21, 22, 23, and 24, the Secretary of Defense shall, under the direction of the President, have primary responsibility for— (A) the determination of military end-item requirements; (B) the procurement of military equipment in a manner which permits its integration with service programs; (C) the supervision of the training of foreign military personnel; (D) the movement and delivery of military end-items; and (E) within the Department, of Defense, the performance of any other functions with respect to sales and guaranties. (2) The establishment of priorities in the procurement, delivery, and allocation of military equipment, shall, under the direction of the President, be determined by the Secretary of Defense.