Pub. L. 92-226, pt. IV, sec. 402

Sec. 402. Section 8 of the Act of January 12, 1971, entitled “An Act to amend the Foreign Military Sales Act, and for other purposes” (84 Stat. 2053), is amended— (1) by striking out the first and second sentences of subsection (a) and inserting in lieu thereof the following: “Subject to the provisions of subsection (b), the value of any excess defense article granted to a foreign country or international organization by any department, agency, or independent establishment of the United States Government (other than the Agency for International Development) shall be considered to be an expenditure made from funds appropriated under the Foreign Assistance Act of 1961 for military assistance. Unless such department, agency, or establishment certifies to the Comptroller General of the United States that the excess defense article it is ordering is not to be transferred by any means to a foreign country or international organization, when an order is placed for a defense article whose stock status is excess at the time ordered, a sum equal to the value thereof shall (1) be reserved and transferred to a suspense account, (2) remain in the suspense account until 86 Stat. 34the excess defense article is either delivered to a foreign country or international organization or the order therefor is cancelled, and (3) be transferred from the suspense, account to (A) the general fund of the Treasury upon delivery of such article, or (B) to the military assistance appropriation for the current fiscal year upon cancellation of the order.”; (2) by striking out, in subsection (b), “$100,000,000” and inserting in lieu thereof “$185,000,000”; and (3) by adding at the end thereof the following new subsection: “(e) Except for excess defense articles granted under part II of the Foreign Assistance Act of 1961, the provisions of this section shall not apply to any excess defense article granted to South Vietnam prior to July 1, 1972.”.