Pub. L. 92-226, pt. IV, sec. 401

Sec. 401. The Foreign Military Sales Act is amended as follows: (a) In section 31(a) of chapter 3, relating to authorization, strike out “$250,000,000 for each of the fiscal years 1970 and 1971” and insert in lieu thereof “$400,000,000 for the fiscal year 1972”. (b) In section 31(b) of chapter 3, relating to aggregate ceiling on foreign military sales credits, strike out “$340,000,000 for each of the fiscal years 1970 and 1971” and insert in lieu thereof “$550,000,000 for the fiscal year 1972, of which amount not less than $300,000,000 shall be made available to Israel only”. (c) In section 33(a) of chapter 3, relating to regional ceilings on foreign military sales, strike out “$75,000,000” and insert in lieu thereof “$100,000,000”. (d) Subsection (c) of section 33 of chapter 3, relating to regional ceilings on foreign military sales, is amended to read as follows: “(c) The Limitations of this section may not be waived pursuant to any authority contained in this or any other Act unless the President finds that overriding requirements of the national security of the United States justify such a waiver and promptly reports such finding to the Congress in writing, together with his reasons for such finding. In any case in which the limitations of this section are waived under the preceding sentence, the report required under such sentence shall set forth, in detail, the expenditures proposed to be made in excess of the geographical limitation applicable under this section. Notwithstanding the foregoing provisions of this subsection, in no event shall the aggregate of the total amount of military assistance pursuant to 86 Stat. 33the Foreign Assistance Act of 1961, of cash sides pursuant to sections 21 and 22, of credits, or participations in credits, financed pursuant to section 23 (excluding credits covered by guaranties issued pursuant to section 24(b)), of the face amount of contracts of guaranty issued pursuant to sections 21 (a) and (b), and of loans and sales in accordance with section 7307 of title 10, United States Code, exceed any geographical ceiling applicable under this section by more than an amount equal to 50 per centum of such ceiling.”. (e) In section 42(a) of chapter 4, relating to general provisions— (1) strike out “and” immediately before “(2)”; and (2) immediately before the period at the end thereof insert the following: “, and (3) the extent to which such sale might contribute to an arms race, or increase the possibility of outbreak or escalation of conflict, or prejudice the development of bilateral or multilateral arms control arrangements”. (f) Section 42 of chapter 4, relating to general provisions, is amended as follows: (1) In subsection (a), strike out “but consideration shall also be given” and insert in lieu thereof “but, subject to the provisions of subsection (b) of this section, consideration shall also be given”. (2) Redesignate subsections (b) and (c) as subsections (c) and (d), respectively, and, immediately after subsection (a), insert the following new subsection: “(b) No credit sale shall be extended under section 23, and no guarantee shall be issued under section 24, in any case involving coproduction or licensed, production outside the United States of any defense article of United States origin unless the Secretary of State shall, in advance of any such transaction, advise the appropriate committees of the Congress and furnish the Speaker of the House of Representatives and the President of the Senate with full information regarding the proposed transaction, including, but not limited to, a description of the particular defense article or articles which would be produced under a license or coproduced outside the United States, the estimated value of such production or coproduction, and the probable impact of the proposed transaction on employment and production within the United States.”.