Pub. L. 91-194, tit. I, sec. 120

Sec. 120. (a) In order to restrain arms races and proliferation of sophisticated weapons, and to ensure that resources intended for economic development are not diverted to military purposes, the President shall take into account before furnishing development loans, Alliance loans, or supporting assistance to any country under this Act, and before making sales under the Agricultural Trade Development and Assistance Act of 1954, as amended: (1) the percentage of the recipient or purchasing country’s budget which is devoted to military purposes, (2) the degree to which the recipient or purchasing country is using its foreign exchange resources to acquire military equipment; and (3) the amount spent by the recipient or purchasing country for the purchase of sophisticated weapons systems, such as missile systems and jet aircraft for military purposes, from any country. (b) The President shall report annually to the Speaker of the House, of Representatives and the Committee on Foreign Relations of the Senate his actions in carrying out this provision.