LIMITATION ON AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.

SEC. 731. LIMITATION ON AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES. (a) Transfers to Countries on the Southern and South-eastern Flank of NATO.— Section 516(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321j(b)) is amended— (1) by striking “and” at the end of paragraph (2); (2) by striking the period at the end of paragraph (3) and inserting “; and”; and (3) by adding at the end the following new paragraph: “(4) the President first considers the effects of the transfer of the excess defense articles on the national technology and industrial base, particularly the extent, if any, to which the transfer reduces the opportunities of entities in the national technology and industrial base to sell new equipment to the country or countries to which the excess defense articles are transferred.”. (b) Transfers to Countries Participating in a Comprehensive National Antinarcotics Program.— Section 517(f) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321k(f)) is amended— (1) by striking “and” at the end of paragraph (2); (2) by striking the period at the end of paragraph (3) and inserting “; and”; and (3) by adding at the end the following new paragraph: “(4) the President first considers the effects of the transfer of the excess defense articles on the national technology and industrial base, particularly the extent, if any, to which the transfer reduces the opportunities of entities in the national technology and industrial base to sell new equipment to the country or countries to which the excess defense articles are transferred.”. (c) Transfers to Countries Eligible To Participate in a Foreign Military Financing Program.— Section 519(b) of the Foreign Assistance Act of 1961 (22 U.S.C. 2321m(b)) is amended— (1) by striking “and” at the end of paragraph (3); (2) by striking the period at the end of paragraph (4) and inserting “; and”; and (3) by adding at the end the following new paragraph: “(5) the President first considers the effects of the transfer of the excess defense articles on the national technology and industrial base, particularly the extent, if any, to which the transfer reduces the opportunities of entities in the national technology and industrial base to sell new equipment to the country or countries to which the excess defense articles are transferred.”. 108 STAT. 503 (d) Sales From Stock Under Arms Export Control Act.— Section 21 of the Arms Export Control Act (22 U.S.C. 2761) is amended by adding at the end the following new subsection: “(k) Before entering into the sale under this Act of defense articles that are excess to the stocks of the Department of Defense, the President shall first consider the effects of the sale of the articles on the national technology and industrial base, particularly the extent, if any, to which the sale reduces the opportunities of entities in the national technology and industrial base to sell new equipment to the country or countries to which the excess defense articles are sold.”. (e) Leases Under Arms Export Control Act.— Section 61(a) of the Arms Export Control Act (22 U.S.C. 2796(a)) is amended— (1) by striking “and” at the end of paragraph (2); (2) by redesignating paragraph (3) as paragraph (4); (3) by inserting after paragraph (2) the following new paragraph (3): “(3) the President first considers the effects of the lease of the articles on the national technology and industrial base, particularly the extent, if any, to which the lease reduces the opportunities of entities in the national technology and industrial base to sell new equipment to the country or countries to which the articles are leased; and”; and (4) in the matter following paragraph (4) (as redesignated by paragraph (2) of this subsection) by striking “paragraph (3)” each place it appears and inserting “paragraph (4)”.