Pub. L. 92-226, pt. II, sec. 201

Sec. 201. Part II of the Foreign Assistance Act of 1961, relating to military assistance, is amended as follows: (a) In section 504(a), relating to authorization, strike out “$350,000,000 for the fiscal year 1970, and $350,000,000 for the fiscal year 1971” and insert in lieu thereof “$500,000,000 for the fiscal year 1972”. (b) In section 505(b) (2), relating to conditions of eligibility, strike out “and” and insert in lieu thereof “or”. (c) Section 505(e), relating to conditions of eligibility, is repealed. (d) In section 506(a), relating to special authority— (1) strike, out “1970 and the fiscal year 1971” and insert in lieu thereof “1972”; and (2) strike out “each of the fiscal years 1970 and 1971” and insert in lieu thereof “the fiscal year 1972”. (e) Section 507(a), relating to restrictions on military aid to Latin America, is amended to read as follows: “(a) Except as otherwise provided in this section, the value of defense articles furnished by the United States Government under this Act to Latin American countries shall not exceed $10,000,000. Not to exceed $25,000,000 in value of defense articles may be furnished under this part on a cost-sharing basis to an inter-American military force under the control of the Organization of American States.”. (f) At the end of chapter 2 of such part II, add the following new sections: “Sec. 511. Considerations in Furnishing Military Assistance.—Decisions to furnish military assistance made under this part shall take into account whether such assistance will— “(1) contribute to an arms race; “(2) increase the possibility of outbreak or escalation of conflict; or “(3) prejudice the development of bilateral or multilateral arms control arrangements. “Sec. 512. Military Assistance Advisory Groups and Missions.—(a) It is the sense of Congress that the need for large United States military assistance advisory groups and military aid missions in foreign countries has diminished substantially during the last few year’s. In the words of the Peterson Task Force Report on International Development, ‘The United States now can reduce its supervision and advice to a minimum, thus encouraging progress toward self-reliance. United States military missions and advisory groups should be consolidated with other elements in our overseas missions as soon as possible.’ “(b) In accordance with the provisions of subsection (a) of this section, the total number of United States military personnel assigned and detailed, as of September 30, 1971, to United States military assistance advisory groups, military missions, and other organizations of the United States performing activities similar to such groups and missions, shall be reduced by at least 15 per centum by September 30, 1972, but every effort should be made to effect an aggregate reduction of 25 per centum by September 30, 1972. “Sec. 513. Military Assistance Authorizations for Thailand.—After June 30, 1972, no military assistance shall be furnished by the United States to Thailand directly or through any other foreign country unless that assistance is authorized under this Act or the Foreign Military Sales Act. 86 Stat. 26 “Sec. 514. Special Foreign Country Accounts.—(a) Except as otherwise provided in this section, no defense article may be given, arid no grant of military assistance may be made, under this Act to a foreign country unless the country agrees— “(1) to deposit in a special account established by the United States Government the following amounts of currency of that country: “(A) in the case of any excess defense article to be given to that country, an amount equal to 10 per centum of the fair value of the article, as determined by the Secretary of State, at the time the agreement to give the article to the country is made; and “(B) in the case of a grant of military assistance to be made to that country, an amount equal to 10 per centum of each such grant; and “(2) to allow the United States Government to use such amounts from that special account as may be determined, from time to time, by the President to be necessary to pay all official costs of the United States Government payable in the currency of that country, including all costs relating to the financing of international educational and cultural exchange activities in which that country participates under the programs authorized by the Mutual Educational and Cultural Exchange Act of 1961. “(b) The President may waive any amount of currency of a foreign country required to be deposited under subsection (a)(1) of this section if he determines that the United States Government will be able to pay all of its official costs payable in the currency of that country enumerated under subsection (a)(2) of this section without the deposit of such amount and without having to expend United States dollars to purchase currency of that country to pay such costs. “(c) The provisions of this section shall not apply in any case in which an excess defense article is given, or a grant of military assistance is made— “(1) to a foreign country under an agreement with that country which allows the United States Government to operate a military or other similar base in that country in exchange for that article or grant; and “(2) to South Vietnam, Cambodia, or Laos. “(d) In no event shall any foreign country be required, under this section, to make deposits in a special account aggregating more than $20,000,000 in any one year.”.