PROVIDING FOREIGN MILITARY AND RELATED ASSISTANCE AUTHORIZATION FOR 1972

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP73B00296R000400170005-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 30
• Document Creation Date: December 9, 2016
• Document Release Date: September 7, 2000
• Sequence Number: 5
• Publication Date: November 8, 1971
• Content Type: REPORT

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a r 29o. 424
(glen
92D CoNan:ess 1 SENATE REPORT
1st Session No. 92-431
PROVIDING FOREIGN MILITARY AND RELATED
ASSISTANCE AUTHORIZATION FOR 1972.
NOVEMBER 8, 1971.-Ordered to be printed
Mr. FULBRIGHT, from the Committee on Foreign Relations, submitted
the following
REPORT
together with
SUPPLEMENTAL VIEWS
[To accompany S. 28181
The Committee on Foreign Relations, having had under considera-
tion the authorization and appropriations for fiscal. year 1972 for
foreign military assistance, reports the bill (S. 2819), . to provide
foreign military and related assistance authorizations' for fiscal year
1972, and for other purposes, and recommends that it do pass.
1. PRINCIPAL PURPOSE OF.THE BILL
The principal purpose of the bill is to authorize appropriations
for FY 1972 for foreign military assistance, military credit sales, and
supporting, or budgetary, assistance. This will be an interim authori-
zation to allow continuation of these programs, at a reduced level,
pending enactment of a new and drastically revised military assistance
program in the next session of Congress.
The bill authorizes a total of $1,185,000,000 for these programs, a
reduction of $798,000,000 from the amount requested by the Executive
Branch.
The following table provides information on the amounts to be
authorized:
86-047+ 0=-71 ""---~1
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MILITARY AND RELATED ASSISTANCE, FISCAL YEAR 1972
[In thousands of dollars[
Authorization Committee
request recommendation
1. Military assistance grants -------------------------------------------------- $705,000 $350,000
2. Supporting assistance-general --------------------------------------------- 768,000 350,000
(a) Israel---------------------------------------------------------------------------- 85,000
3. Military credit sales:
(a) Appropriation_______________________ _-_--____--_ 510,000 400,000
(b) Authorized ceiling, general --------------------------------- -------- (582, 000) (250, 000)
(1) Israel--------------------------------------------------------------------- (300,000)
Total_
---------------------------------------------------- 1,983,000 1, 185, 000
2. OTHER PURPOSES OF THE BILL
In addition to authorizing appropriations as detailed, the bill also
does the following:
1. Declares a national policy that all U.S. forces be withdrawn from
Indochina within six months, subject to release of prisoners of war.
2. Provides for funding of military aid to Thailand from the regular
Military Assistance Program beginning July 1, 1972.
3. Imposes a ceiling of $341,000,000 on obligations and expenditures
in or for Cambodia :in FY 1972 and puts a ceiling of 200 on the number
of American civilian and military government personnel in Cambodia.
4. Requires the President to submit to Congress a country-by-
country list of foreign aid allocations within 30 days after passage of
the appropriation bill and permits a maximum 10% increase in aid
in each category and country by transfer of funds from other countries
or programs without advance notice to Congress.
5. Requires advance notice to Congress before use by the President
of the transfer, waiver, and certain other special authorities available
to him under the Foreign Assistance Act.
6. Requires a 25% cutback by September 30, 1972 in the number of
U.S. military personnel assigned abroad to military advisory missions
or similar groups.
7. Requires 25% payment in foreign currency for U.S. military
grant aid.
8. Prohibits waiving by the President of the ceilings on military aid
and sales to Latin. America and Africa.
3. COMMITTEE ACTION
H.R. 9910, the omnibus foreign aid bill passed by the House of
Representatives, was reported by the Committee to the Senate on
October 21, 1971. It, was debated in the Senate on October 26, 27, 28,
and on the 29th it was defeated by a vote of 27 yeas to 41 nays.
The Committee met in executive session on November 1 to discuss
further action on foreign aid legislation. It heard Secretary of State
William P. Rogers and Dr. John A. Hannah, Administrator of the
Agency for International Development, in executive session on Novem-
ber 3. On November 4 the Committee by a vote of 15 to 0 decided to
report this interim, stopgap measure to the Senate, along with a
separate bill to authorize funds for bilateral economic, humanitarian,
and multilateral assistance.
The defeat of H.R. 9910 by the Senate was obviously the result of
a number of factors. One of those was the fact that, traditionally,
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authorizations for foreign development, humanitarian, and military
programs have been lumped into one bill, forcing members of the
Senate to take-or reject-the good with the bad, according to how
they viewed each category. In the past this Committee has urged
separate bills for economic and military assistance but has failed to
persuade the House of Representatives on the merits of separating
the two programs. The Committee last tried to separate the economic
and military programs in 1966. Its report on the economic aid bill
said this about the problem:
A majority of the committee believes that handling pro-
grams by separate bills will allow each to stand on its own
merits and that the public will gain a better understanding
of the distinctions between the two programs. It has been
argued that the economic aid program may be emasculated
by the Congress if military assistance is not a part of the
package. If the economic aid program is so distasteful to the
public and the Congress, it should not continue to have a free
ride on the back of military aid. Congress should have the
opportunity to consider the program as a separate measure
and shape it to more acceptable proportions if it is that
unpopular.
The Committee has decided to report two separate bills which will
permit Senators to weigh each major category of aid on its own merits.
No longer will either category ride on the back of another program.
Each major category will stand or fall by itself.
The Committee wishes to make it clear that the authorizations it
has approved are for an interim program to phase-out the old pro-
grams-economic and military-while the Committee works to
develop a new program next session, one that, hopefully, will command
the support of both Congress and the public, which foots the bills
for foreign aid.
COST ESTIMATES
Section 252(a) (1) of the Legislative Reorganization Act of 1970
requires that committee reports on bills and joint resolutions contain:
"(A) an estimate, made by such committee, of the costs which would
be incurred in carrying out such bill or joint resolution in the fiscal
year in which it is reported and in each of the five fiscal years following
such fiscal year ..."
This bill authorizes foreign military assistance only through the
remainder of FY 1972 and it is intended as an interim, temporary
measure to bridge the gap until a new foreign aid program is formulated
next year. It is impossible to predict, at this time, the size or scope of
that new foreign military assistance program.
The estimated costs in FY 1972 for carrying out the programs to
be authorized by this bill are $1,185,000,000 plus certain related
administrative expenses, such as the cost of maintaining military aid
missions abroad.
SECTION-BY-SECTION ANALYSIS
Section pd-Statement of Policy
Section 2 states the policy that the bill is intended as an interim
measure to carry forward for fiscal year 1972 United States bilateral
military assistance and military credit sales programs authorized by
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4
the Foreign Assistance Act of 1961 and the Foreign Military Credit
Sales Act. It states Congress' intention to reevaluate, at the earliest
possible date, the United States foreign assistance program, including
foreign military sales, and to develop a new program for the future.
Accordingly, the section states, the bill looks to a phase-out of the
current program and to the establishment of a new one which will
command the respect and the support of Congress and the American
people.
Section 3-Authorizations
Section 3 authorizes appropriations for FY 1972 for supporting
assistance, military grant assistance, and military credit sales.
Subsection 3(a) (1) authorizes an appropriation of $350,000,000 in
fiscal year 1972 for security supporting assistance.
The authorization recommended by the Committee may be com-
pared to the following:
Security Supporting Assistance
1. Fiscal year 1970 appropriation_______________________ ____ $396,000,000
2. Fiscal year 1971 appropriation (does not include funds for
UNRWA) - ------------------------------------------- 556, 300, 000
3. Fiscal year 1972 authorization request---------------------- 768, 000, 000
4. Committee recommendation___________________________ __ 350, 000, 000
Supporting assistance provides budgetary or similar support to
certain less developed countries which spend a large portion of their
budget resources for military purposes.
Subsection 3(a) (2)--Supporting Assistance for Israel
Subsection 3(a)(2) authorizes an appropriation of $85,000,000 in
supporting assistance for Israel. This special authorization recognizes
the severe strains placed on Israel's economy because of the critical
situation in the Middle East.
Subsection 3(a) (3)--Military Grant Assistance
Subsection 3 (a) (3) authorizes an appropriation of $350 million in
fiscal 1972 for military grant assistance.
Military assistance funding-comparative data
1. Fiscal year 1970 appropriation----------------------------- $350,000,000
2. Fiscal year 1971 appropriation_____________________________ 1 690, 000, 000
3. Fiscal year 1972 authorization request---------------------- 705, 000, 000
4. Committee recommendation_____________________________ 350, 000, 000
Plus $60,000,000 in funds transferred from supporting assistance.
As the following data indicates, the regular MAP program funded
through the authorization in this bill is only a portion of the overall
military assistance provided to other nations.
Military assistance and related programs-proposed fiscal year 1972 levels
Military Assistance Service Funded Millions
_ _ _ $2,230. 8
Military Assistance Program______________________________ 731. 5
Foreign Military Credit Sales -________________-------------------
Ship 582. 0
Excess Defense Articles--------------------------------------- 324.0
loans z______ 90.1
Valued at approximately 3, 958. 4
z one-third of acquisition cost.
Valued at acquisition ion cost.
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PROPOSED MILITARY ASSISTANCE AND RELATED PROGRAMS FOR FISCAL YEAR 1972, BY REGIONS AND MAJOR
RECIPIENTS
Other
Regular military
MAP programs
Total
Cambodia____________________________________________________ 200.0 11.0
211.0
Indonesia--------------------------------------------------- 24.9 3.0
27.9
Korea-------------------------------------------------------- 239.4 402.9
642.3
Laos----------------------------------------------------------------------- 125.8
125.8
Taiwan---------------------------------------------------- 19.5 93.0
112.5
Thailand ----------------------------------------------------- 77.2
77.2
Vietnam ------------------------------------------------------------------ 1,789.1
1,789.1
Near East and South Asia_--_--------------------------- 167.0 533.8
700.8
--
Greece------------------------------------------------------ - 19.8 98.0
117.8
Turkey------------------------------------------------------ 99.7 71.8
171.5
Latin America____________________________________________________ 9.8 73.8
83.6
Africa----------------------------------------------------------- 19.0 18.6
37.6
Europe---------------------------------------------------------- 14.0 57.6
71.6
Other------------------------------------------------------------ 20.4 20.0
40.4
Total------------------------------------------------------ 731.5 3,226.9
3,958.4
Subsection 3(a) (4) -Foreign Military Sales
This subsection authorizes credit sales of military equipment and
services to foreign countries. Annual authorization by Congress is
required for both appropriations and a ceiling on the amount of credit
that may be provided. Most of the countries which purchase arms
under this program are less developed. Credit sales of military hard-
ware to the majority of the developed countries are financed either
through the Export-Import Bank or regular commercial channels.
Subsection 3(a) (4) authorizes an appropriation of $400,000,000 for
fiscal year 1972.
Subsection 3(b)-Credit Ceiling
Subsection 3(b) establishes an aggregate credit ceiling of $550,000,-
000 for fiscal year 1972. The Executive Branch requested a credit
ceiling of $582 million. Of the overall ceiling approved by the Com-
mittee, not less than $300,000,000 is to be made available for credit
sales to Israel. The Committee recommends this procedure in order to
insure that sufficient authority for direct military credits and/or the
guaranty of private credits is available for Israel.
The following tables provide data on authorization and credit
ceilings, historical data, estimates for all U.S. military export sales,
and the. proposed credit sales program, by region and country, for
fiscal year 1972.
AUTHORIZATION AND CREDIT CEILING DATA
[In millions]
Fiscal year
1970
Fiscal year
1971
Executive
request
Committee
recom-
mendation
Authorization of appropriations-----------------------
1 $70
2$250
$510
$400
Credit ceiling_______________________________________
(1)
340
582
550
1 Provided under continuing resolution authority.
4 Does not include special authorization for Israel contained in the Defense Authorization Act.
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FOREIGN MILITARY SALES BY REGION WITH TOTAL DISTRIBUTED BETWEEN DEVELOPED AND LESS DEVELOPED
COUNTRIES, FISCAL YEARS 1966-72
[In millions of dollars[
East Asia and Pacific:
Cash__________________ 162.3 113.3
Credit______12.1 21.6
DOD direct--_-_--__ (11.2) (8.1)
DOD guaranty- (.9) (13.5)
-------------
Total------------ _
174.3
134.9
Near East and South Asia:
Cash__________________
87.6
95.7
Credit_________________
267.7
258.4
DOD direct---------
(61.8)
(42.0)
DOD guaranty------
(205.9)
(216.4)
96.9
67.4
(26.0)
(41.4)
--
164.3
185.3
160.3
(50.1)
(110.2)
-------------
Total_________-__ 355.3 354.1 345.6
Europe and Canada (cash)---- 1,180.7 524.8 521.8
Estimated
Total, ---
1969 1970 1966-70 1971 1972
132.3 132.8 637.5 192.5 170.0
26.0 40.0 167.1 66.0 75.0
(26.0) (40.0) (105.3)--------------------
(6.0) --------- (61.8) --------------------
158.3 172.8 804.6 258.5 245.0
383.5 216.2 968.3 410.9 290.6
223.3 30.0 939.7 620.0 420.0
(174.0) (30.0) (357.9)--------------------
(49.3) ---------- (581.8)-------------------
606.7 246.2
863.2 472.4
Cash________________ _ 1.9 22.3 3.3 11.8 6.6
Credit_____________ ----------------- .2 15.5 ---------- 9.5 ----------
DOD direct--------- (.2) (14.0)---------- (9.5)----------
DOD guaranty --------------- (1.5)
Total__ 2.1 37.8 3.3 21.3 6.6
Latin America:
Cash__________________ 9.9 15.4 12.4 13.4 16.3
Credit_________________ 37.3 27.7 35.6 22.4 ----------
.
.
.
DOD direct_________ (7.5) (12.0) (12.3) (22.4) ---------- (54.2)__________________
DOD guaranty- -- _ (29.8) (15.7) (23.3)-------------------- (68.8)------------------
------
Total-------- ____ 47.2 43.1 48.0 35.8 16.3 190.4 72.0 144.0
International organizations:
Cash -__---------------- _ 25.2 33.6 29.9 34.4 19.0 142.1 --------------------
Credit (direct)-------------------------------
Total ________________ 25.2 33.6 30.0 34.4 19.0 142.2
Contingency (credit)-------- ---------------------------------------- --------- 15.0 ----------
1,908.0
1,030.9
710.6
3,562.8
499.9
1,028.5
45.9
21.2
.5
25.2
----------
17.0
(23.7
(1.5
71.1
21.2
17.5
67.4
18.0
74.0
123
0
54
0
70
0
Cash ---------------- _ 1,467.7 805.1 849.7 1,438.5 863.2 5,424.2 1,142.5 1,563.6
Credit ----------------- 317.2 323.2 263.4 281.2 70.0 1,255.0 755.0 582.0
DOD direct --------- (80.6) (76.1) (88.5) ' (225.9) (70.0) (541.1) (681.0) (486.0)
DODguaranty ------ (236.6) (247.1) (174.9) (55.3)---- _----- (713.9) (74.0) (96.0)
Total____________ 1,784.9
Developed countries--------- 1,556.0
FMS cash______________ 1,388.3
FMS credit_____________ 167.7
DOD direct ------- _ (23.0)
DOD guaranty------ (144.7)
Less developed countries r---- 203.7
FMS cash______________ 54.2
FMS credit ------------- 149.5
DOD direct --------- (57.6
DODguaranty ------ (91.9)
1,128.3 1,113.1
966.3 784.2
719.9 654.2
246.4 130.0
2(34.7) 37.0)
11 7 93.0
(12
8.4) 298.9)
(51.6 165.5
76.8 133.4
(35.4) (81.9)
1, 719.7 933.2 6, 679.2 1, 897.5 2, 145.6
1, 170.4 687.6 5,164.5 834.4 1, 374.0
1,066.2 687.6 4,516.2 804.4 1,344.0
104.2 ---------- 648.3 30.0 30.0
(75.0)--------- (169.7)--------------------
(29.2)---------- (478.6)--------------------
514.9 226.6 1, 372.5 1,048.1 771.6
337.9 156.6 .765.8 338.1 219.6
177.0 70.0 606.7 710.0 552.0
(150.9) (70.0) (371.4)____________________
(26.1) (235.3)------------------
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FOREIGN MILITARY CREDIT SALES-FISCAL YEAR 1971 AND PROPOSED FISCAL YEAR 1972
[In millionsi
Fiscal year proposed fiscal
1971 year 1972
Greece--------------------------------------------------------------------- 45.0 60.0
India ---------------------------------------------------------------------------------- 5.0
Israel ------------------------------------------------------------------- 500.0 (r)
Jordan----------------------------------------------------------------- --- 30.0 ((a))
Lebanon------------------------------------------------------------------- 5.0 r
Pakistan------------------------------------------------------------------ 10.0 5.0
Saudi Arabia--------------------------------------------------------------- 30.0 35010
Regional2--------------------------------------------------------------------
East Asia and Pacific----------------------------------------------------------- 66.0 75.0
Korea------- ---------------------------------------------------- 15.0 15.0
Malaysia------------------------------------------------------------------- 5.5 7.5
Singapore------------------------------------------------------------------ 5.5 7.5
Taiwan-------------------------------------------------------------------- 40.0 45.0
Argentina ----------------------------------------------------------------- 13.0 15.0
Brazil---------------------------------------------------------------------- 15.0 20.0
Chile 1.0 5.0
Colombia--------------------------------------------------------------------------------- 8.0
Guatemala -------------------------------------------------------------- 4.0 5.0
Uruguay------------------------------------------------------------------- 4.0 2.0
Venezuela------------------------------------------------------------------ 10.0 15.0
Regional ----------- -------------------------------------------- 7.0 --------------
Africa-------------------------------------------------------------------------------------- 17.0
Congo (K)------------------- --------------------------------- ---------------- 2.0
Morocco --------------------------------------------------------------------------------(')
Regional'-------------------- ---------------------------------------------------------- 15.0
I Classified data.
2 Includes countries for which data is classified.
Subsection 3(c) -Applicability of Pertinent Acts
Subsection 3 (c) requires that any appropriation made pursuant to
subsection (a) shall be governed by the applicable provisions of the
Foreign Assistance Act of 1961, as amended, or the Foreign Military
Sales Act, as the case may be.
Section 4-Military Assistance ?~'
Subsection 4(1) (A)-Conditions of Eligibility
This subsection amends section 505(b) (2) of the Foreign Assistance
Act of 1961, as amended, which requires that the President determine,
when furnishing assistance on a grant basis in excess of $3 million,
"that such defense articles will be utilized by such country for the
maintenance of its own defensive strength, and the defensive strength
of the free world." The amendment, which was requested by the
Administration,, substitutes the word "or" for the word "and," thus
relaxing the more stringent conditions now contained in the section.
The Committee approves this request not because it believes the
present conditions unduly restrict the President's authority to provide
military assistance. Rather it approves the request because it believes
the conditions of eligibility already in the act' have little, if any,
meaning if the President and his advisors determine that this or that
government, should get military aid. As the Administration, too,
recognizes, this change is really not necessary if the President wants
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to give more than $3 million in military assistance to Indonesia,
Cambodia or any other country without meeting the condition that
such assistance will serve the "defensive strength of the free world ..."
Under the Act, the President has the authority to waive this condition.
Hence the amendment is little more than a convenience to avoid the
paperwork of a Presidential determination.
The only possible advantage the Committee sees in the amendment
is that it may cut down on the number of Presidential waivers which
would otherwise be issued.
Subsection 4(1) (B) --Public Law 480 Common Defense Grants
This subsection repeals section 505(e) of the Foreign Assistance Act
of 1961, as amended, which requires that recipients of P.L. 480 assist-
ance enter into an agreement with the United States to permit local
currencies accruing to the United States under Title I of the Agricul-
tural Trade Development and Assistance Act of 1954 to be used for
common defense purposes, including internal security.
This amendment, originally introduced as S. 905, was sponsored
by Senators Proxmire, Humphrey, McGovern and Mansfield. It re-
moves the requirement that recipient countries formally agree that
funds accruing from the P.L. 480 program to the United States be
available for military assistance purposes.
Subsection 4(2) ---Special Authority
This subsection amends section 506 (a) of the Act by extending for
FY 1972 the authority of the President to draw on Department of De-
fense stocks to carry out the purposes of the military assistance pro-
gram, subject to subsequent reimbursement therefor from military
assistance funds. As in prior years, this authority is limited to $300
million for fiscal. year 1972.
Subsection 4(8)---Restrictions on Military Aid to Latin America
This subsection amends section 507(a) of the Act to reduce from
$25 million to $10 million the ceiling on the value of defense articles
that the United States can furnish to Latin American countries during
any fiscal year.
Beginning in FY 1966, Congress initiated what has developed into
a phased reduction of our military assistance to Latin America. Dur-
ing thast six years, this program has steadily declined from a high
of $79 million in FY 1966 to a low of $11 million in FY 1971. Clearly,
the intent of the Congress has been to move toward the curtailment
of the material assistance portion of the program.
The $10 million ceiling recommended by the Committee is but
another step in this direction.
Section 4(4)-New Provisions Relative to Military Assistance
New Section 511-Reduction in Military Aid Mission Personnel
The new section 511 of the Foreign Assistance Act states the sense of
Congress that the size of our military aid missions should be reduced
and consolidated with other elements of our overseas diplomatic mis-
sions and requires a twenty-five percent reduction world wide by Sep-
tember 30, 1972 in the number of military aid mission personnel
assigned to an overseas post as of September 30, 1971. As of June 30,
1971, there were 2,808 military personnel serving abroad in 48 military
aid missions, groups, or.similar activities, not including South Viet-
nam.
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The Peterson Task Force Report on International Development rec-
ommended a reduction and consolidation of U.S. military advisory
groups and the Committee believes that this amendment is in line with
the Task Force's recommendation. During the Committee's considera-
tion of the 1969 foreign aid bill, it gave very serious consideration to
compelling, by law, a reduction in the number of overseas military as-
sistance advisors. The Committee's report on that bill clearly evidences
its concern:
"Many members of the Committee have become increasingly con-
cerned over the size of United States military aid missions abroad. As
of July (1969), there were 3,185 Americans attached to the military
missions in 36 countries which receive military aid under the authority
of this bill."
" . The Committee is of the opinion that many of these missions
could be eliminated entirely, at great savings to the taxpayer and with
the resultant benefit to our foreign relations. The Committee expects
to see considerable progress in this direction when it reviews the 1971
military aid program."
There have been some token cuts overall but there is no evidence to
suggest that the Executive Branch has given this issue the serious
attention that the Committee intended. In many instances either the
cost of the military missions remains considerably greater than the
aid programs being administered or the number of people in the
mission is substantially larger than the size of the U.S. diplomatic
mission-or both.
This amendment is aimed at bringing about the kind of corrective
action which the Committee had hoped the Administration itself
would initiate. The twenty-five percent reduction required by this
amendment should be considered only as a beginning.
The amendment is not intended in any way to impose a ceiling on
the number of military attaches stationed abroad but the Committee
intends to keep close watch over our attache missions to ensure that
their personnel levels do not increase as the size of the military aid
missions decline.
New Section 51 s-Military Assistance to Thailand
The new section 512 requires that, beginning with fiscal year 1973,
all military aid to Thailand be funded out of the regular military
assistance program as authorized under the Foreign Assistance Act of
1961, as amended.
Military aid to Thailand is currently being funded from the Depart-
ment of Defense budget, and for fiscal 1972 Thailand is scheduled to
receive $77.2 million in military assistance funds.
This funding procedure was approved as an interim arrangement
by Congress in 1967. At that time, military considerations dominated
the situation in Southeast Asia, and there was some justification for
shifting military assistance funding for Thailand to the Defense De-
partment. The situation has changed considerably since then: the
war is being wound down; U.S. combat troops are being withdrawn;
and negotiations for a peace settlement are taking place.
Accordingly, the time has come to return the funding of our military
aid program for Thailand to the regular foreign assistance program.
This will permit the appropriate Committee's of Congress to judge
military aid expenditures to that country against security assistance
needs elsewhere-all of which have a direct bearing on this country's
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New Section 513--Limitation on Availability of Funds for Military
Operations
The new section 513 of the Act would require specific Congressional
authorization before funds from any U.S. Government agency or
official could be made available "for the purpose of financing any
military operations by foreign forces in Laos, North Vietnam, or
Thailand, outside the borders of the country of the government or
person receiving such funds . . ." In addition, the amendment would
require the President to make available to the Congress copies of any
agreements and other information bearing on such military operations.
The amendment is not intended, however, to infringe or restrict
military operations and exercises outside Southeast Asia which are
required for self-defense purposes or which are pursuant to regional
defense arrangements, such as NATO, or other arrangements, such as
U.N. peacekeeping operations.
New Section 514-Payments in Local Currency for Military Grant Aid
and Excess Military Equipment
This new section 514 requires that a foreign country which receives
military grant aid or excess defense articles pay, in its own currency,
25% of the amount of the grant aid or, in the case of excess articles,
an amount equal to 25% of the fair market value. The foreign currency
obtained in payment would be available to meet U.S. obligations in
the country and to finance educational. and cultural exchange pro-
grams. It would not apply to a country where military aid was given
in payment for base rights. And, if the President decided, the pay-
ment requirement would be waived if, without it, the United States did
not need to make dollar purchases of the local currency for financing
U.S. operations in that country. In practical effect, the payment re-
quirement would not be applied unless it would actually result in
dollar savings.
It is basically the same as an amendment adopted by the Senate last
year in the Foreign Military Sales bill, H.R. 15628, but which was de-
leted in the conference with the House. The most significant change is
that this provision requires only a 25% payment in the local currency,
whereas last year's amendment called for 50%. That amendment was
supported in the Senate by a vote of 36 to 52 when an attempt was
made to strike it. The need for the amendment is even more compelling
today than it was a year ago.
In none of the countries which are major recipients of military grant
aid, Korea, Taiwan, Greece, and Turkey, does the United States own
an excess of the local currency. In fact, none of the top ten recipients
of military aid, programmed for FY 1972, are excess currency coun-
tries. There is no valid reason why recipients of military aid should
not be required to pay at least one-fourth the value of the materials
we give them, especially if we have to buy their currency with dollars
to pay for the cost of U.S. operations in the country. Having additional
foreign currencies available would lessen the drain on our dollar re-
sources and have a favorable impact on our escalating balance-of-
payments deficit.
The General Accounting Office examined the question of a foreign
currency payment requirement from the standpoint of its potential
impact on the budget. Based on the Treasury Department's estimates
of U.S. foreign currency purchases in FY 1972 for official operations
in countries which receive military rant al the bnji We
wo
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currency for military grant aid programmed to be given to them. The
GAO analysis and a table listing the major grant aid recipients and
the estimated dollar purchases of their currency follows:
For the purposes of this analysis, the excess defense articles
programmed for FY 1972 Military Assistance Programs are val-
ued at one-third ('%) of the cost of acquisition. This valuation is
in accordance with the Foreign Military Sales Act, as amended.
The data used for the analysis does not include nonregional mili-
tary assistance grants, service-funded military assistance, or ex-
cess, defense article programs for certain countries in Southeast
Asia.
VALUE OF MILITARY ASSISTANCE PROGRAMMED FOR FISCAL YEAR 1971
The programmed FY 1972 military grant assistance and the
value of excess defense articles, with the above exclusions, amounts
to $710 million and $200 million, respectively, for a total of $910
million. United States Treasury projected purchases of foreign
currencies from commercial sources, in the same countries receiv-
ing the military aid, amounts to $315 million for FY 1972.
POTENTIAL REDUCTION OF U.S. PURCHASES OF LOCAL CURRENCIES
In the proposed FY 1972 Military Assistance Program, a total
of 35 countries are to receive grant assistance or excess defense
articles, and in 28 of those countries the United States could re-
duce its foreign currency purchases if partial payments are made.
In seven of the recipient countries the United States will not pur-
chase local currency or has a sufficient amount of local currency
holdings to meet requirements. Over 94 percent of the purchases
which could be reduced would result from U.S. programs in six
countries. Twenty-two other countries would account for about 6
percent of the reduced purchases.
On the basis of amounts programmed for FY 1972, the follow-
ing table shows the amounts by which dollar purchases of local
currencies could be reduced if the United States were to receive
partial payment for military grant assistance and excess property
grants in those countries where the United States purchases local
currencies with dollars to meet its needs. Figures in the table are
based upon applying a percentage to the value of programmed
military assistance by country, comparing the results with the
amount of projected local currency purchases in the country, and
utilizing whichever is the lesser.
REDUCED AMOUNT OF U.S. FOREIGN CURRENCY PURCHASES
[In millions of dollars] .
Percentage of partial payment;
50-----------------------------------------------------------
$,131.5.`
$124.6
$6.9
40-----------------------------------------------------------
x?' 125.9
120.3
5.6
30-----------------------------------------------------------
117.7 '
113.3
4.4
20---------------------------------- ----------------------
83.7
80.5
3.2
10----------------------------------- -------------
45.5
43.5
2.0
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Foreign currencies to be purchased in fiscal year 1972-selected countries
(In millions)
Korea-------------- --------------- ---------------------
$85.8
Spain-------------------------------------------------------------
32.5
Greece ----------------------------------------------
9.9
Philippines --------------------------------------------
83.4
Ethiopia-------- ----------------------------------------
6. 1
Republic of China ------------------------------------------
4.8
Source: General Accounting Office.
Finally, the requirement of 25% payment in value will serve as a
brake on the appetites of foreign military leaders, who, under the
present system, are encouraged to ask for all the weapons they can get
since they cost them nothing. It will insure that requests by foreign
countries for military aid must be treated as any other claim on that
country's budget resources. If military aid must be weighed in bal-
ance with other national priorities, foreign governments may be more
reluctant to approve their military leaders' requests for United States
aid.
The President's Task Force on Foreign Assistance, after pointing
out that the United States now makes the basic determination on what
equipment a country should get, recommended that in the case of mili-
tary grant aid: "More should be done to enable these receiving coun-
tries to estimate their own requirements, to relate them to their budg-
etary priorities, and to make their military decisions in the light of
available resources." This provision will carry out the spirit of that
recommendation.
Subsection (a) (1) requires that a recipient of military aid agree to
deposit in a special account established by the United States the fol-
lowing amounts of currency of that country:
(a) 25% of the fair value of excess defense articles; and
(b) an amount equal to 25% of any grant of military
assistance.
Subsection (a) (2) provides that the country must agree to make
available, from that special account, sufficient amounts of the foreign
currency thus generated to pay for the official local currency costs of
the U.S. Government plus amounts needed to finance activities under
the Mutual Educational and Exchange Act of 1961.
Subsection (b) permits the President to waive the foreign currency
payment requirement if he determines that the currency will not be
needed to finance both U.S. official operations in the country and
educational and cultural exchanges.
Subsection (c) exempts from the payment requirement grants made
to countries pursuant to base rights or similar agreements.
Subsection (d) states that the provisions of section 1415 of the
Supplemental Appropriation Act of 1953 shall not apply to this
section.
Section 5. Miscellaneous Provisions.-Section 5 amends section 652
of the Act and adds new sections 653, 654, 655, and 656.
Revised Section 652--Limitations Upon Exercise of Special Authorities
Sections 610(a) and 614(a) of the Foreign Assistance Act comprise
the President's primary authority to transfer funds from one program
to another and to waive restrictions imposed by the Act. Under the
authority of these two sections Cambodia was allotted $110 million
in foreign aid last year without specific authorization by Congress.
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Section 506(a) authorizes the President to draw on Department of
Defense stocks with subsequent reimbursement to be made out of
appropriations for military assistance.
During fiscal year 1971 and thus far in fiscal year 1972, sections
610(a) or 614(a) served as a basis, in part or in whole, for at least
17 Presidential waivers. In none of these cases (or in any of the others
in which the President relied on addition waiver authority) was the
Congress notified before the President acted. In fact, in many of these
cases the President waited a month before notifying the Congress of
any action at all.
Some of these actions, such as those concerning Cambodia, involved
transfers of millions of dollars and raised a number of critical foreign
policy issues.
This amendment simply requires that, before the President exercises
the authority in sections 506(a), 610(a) or 614(a), he must give ten
days prior notice in writing to the Speaker of the House of Represent-
atives and the Committee on Foreign Relations of the Senate.
New Section 653- Change in allocation of foreign assistance
Under existing provisions of the Foreign Assistance Act the
President has unlimited authority to increase or decrease the amounts
of foreign assistance actually given to foreign countries from the
amount previously justified to Congress. He can shift amounts from
country to country as he sees fit. Section 614(a) of the Act also gives
the President general authority to waive restrictions in the Act when
he considers such action "important to the security of the United
States." By using this waiver authority last year Cambodia was
allocated a total. of $110 million in military aid by the President
without a specific authorization by Congress through transfer of funds
from other economic and military aid programs. Section 653 restricts
the President's sweeping authority to change country amounts.
The provision would do the following:
(a) Require the President to notify Congress at least 30 days after
passage of the Foreign Aid Appropriations Act of how much aid he
plans to allocate to each country for each category; and
(b) Prohibit giving any country more than 10% more than the
amount specified for each category unless the President determines
that an additional amount is vital to national security and gives
Congress at least ten days prior notice.
New Section 654-Presidential findings and determinations
This new section would tighten several provisions in the Foreign
Assistance Act relating to the President's waiver authority. It stems
from certain Executive Branch actions over the last two years, pri-
marily those relating to the furnishing of military aid to Cambodia
without a specific Congressional authorization. It requires that:
(1) All Presidential determinations and findings which must be
reported to Congress be put in writing and signed by the President
before any action could be taken pursuant to the finding or
determination.
Last year the Executive Branch gave Cambodia $7.9 million in
military aid 'and, after the fact, obtained a Presidential determi-
nation which was made retroactive in an effort to legalize what
had already been done.
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On April 10, 1971, the President made an oral determination to
authorize giving $3 million in military aid to Ceylon. The deter-
mination was not put in writing until June 7 and was not, trans-
iitted to Congress until June 25-2l months after the decision
was made;
(2) Presidential findings and determinations must be printed in the
Federal Register unless publication would be detrimental to the na-
tional security.
Prior to the Committee's protests last year concerning the clas-
sification of the Presidential determinations on aid to Cambodia,
all these decisions were furnished to the Committee on a classified
basis; and
(3) Information could not be denied to Congress by Executive
Branch officials pending a Presidential determination.
Last year the Committee staff was denied access in the field to
information on military aid to Cambodia on the grounds that no
information on the subject could be released prior to transmittal
to Congress of a related Presidential determination.
These factors are basic to Congress's consideration of foreign aid
and foreign military sales, which, in turn, are of fundamental impor-
tance in this country's foreign policy. If Congress is to fulfill its
responsibilities in these areas, it must be fully informed before the
fact-and not confronted with a fait accompli weeks after the Presi-
dent has acted.
This amendment is not intended to supersede any other requirement
providing for prior notification of findings and determinations made
by the President to the Congress or any of its Committees.
New Section 655-Limitation on Assistance to or for Cambodia
The new section 655 of the act provides for limitations on assistance
to Cambodia. Subsection (a) provides that no funds authorized to be
appropriated by this or any other act may be obligated or expended
in excess of $341 million to carry out directly or indirectly any eco-
nomic or military assistance, or any operation, project, or program
of any kind, or for providing any goods, supplies, materials, equip-
ment, services, personnel, or advisers in, to, for, or on behalf of Cam-
bodia during the fiscal year ending June 30, 1972.
Subsection (b) states that in computing the $341 million limitation
the "value" of any goods, supplies, materials or equipment provided
by gift, donation, loan, lease or otherwise must be included and that
"value" means the fair market value and in no case less than one-third
of acquisition cost.
Subsection (c) provides that no funds may be obligated or expended
in, to, for or on behalf of Cambodia in any future fiscal year unless
they are specifically authorized by law and that in no case shall funds
in excess of the amounts specifically authorized by law for any fiscal
year be obligated or expended.
Subsection (d) excludes from this $341 million limitation the obli-
gation or expenditure of funds to carry out air operations over
Cambodia.
Subsection (e) requires that whenever any request is mad:; to the
Congress for the appropriation of funds for use in, for, or on behalf
of Cambodia the President shall furnish a written report to the Con-
gress explaining the purpose for which such funds will be used.
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Subsection (f) provides that the President shall submit to the Con-
gress within 30 days after the end of each quarter of each fiscal year a
written report showing the amount of funds expended during the pre-
ceeding quarter in, for, or on behalf of Cambodia and the purposes
for which such funds were expended.
Subsection (g) states that enactment of this section shall not be con-
strued as a commitment by the United States to Cambodia for its
defense.
The purpose of section 655 is to establish a ceiling on overall U.S.
expenditures, exclusive of air combat operations, in, for, or on behalf
of Cambodia during the current fiscal year and to put the Congress in
position to know in the future, when money is being requested for Cam-
bodia, how much is actually being spent and for what purposes. In
the past, the cost of United States Government operations in some
countries has far exceeded the amounts which have been requested and
then authorized and appropriated. It is the Committee's intention to
see that this escalation of costs, not only unauthorized by the Congress
but also unknown to it, does not occur in Cambodia. Section 655 is in-
tended, therefore, to return to the Congress some measure of control
over what is actually spent by setting an absolute ceiling on expendi-
tures, a ceiling which applies to all Executive Branch departments
and agencies.
The ceiling of $341 million set by the Committee represents the
total amounts tentatively programed for Cambodia by the Executive
Branch.
The amendment is also designed to close any loopholes still remain-
ing regarding the transferability of funds of the Defense Department
and other agencies and, in connection with the expenditure ceiling, to
establish a method of setting a value on excess materials by requiring
that they be at fair market value and in no case less than 33% percent
of acquisition cost.
By setting an absolute ceiling on expenditures in Cambodia, the
Committee means to include all Executive Branch expenditures except
those relating to combat air operations. The limitations would thus
apply to the military assistance program, supporting assistance, excess
defense articles, P. L. 480, CIA operations, the administrative costs
of the various United States Government departments and agencies
who engage in activities to, in, for or behalf of Cambodia and, as in
the similar provision relating to Laos included in the Defense Authori-
zation bill, H. R. 8687, the costs to the United States.of South Viet-
namese ground operations in Cambodia.
Section 655 specifically excepts all combat air operations over Cam-
bodia from this ceiling. This exception covers all United States and
South Vietnamese combat air operations as well as combat air opera-
tions by other countries which involve the expenditure of U.S. funds.
This exception is included because of the view of some Committee
members that monetary limitations on air operations in Cambodia
might jeopardize the continuing withdrawal of U.S. forces from
Vietnam.
Section 6-Limitations on United States Personnel and Personnel
Assisted by the United States in Cambodia
Section 6 adds a new section 656 to the Foreign Assistance Act.
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New Section 656--Limitations on United States Personnel and Personnel
Assisted by United States in Cambodia
The new section 656 of the Act imposes a ceiling of 200 on the
number of United States civilians and military personnel who can be
present in Cambodia at any time. It also imposes a ceiling of 50 on the
number of non-Cambodians working in Cambodia whose compensation
can be paid in whole or in part, directly or indirectly, by the United
States. U.S. military personnel involved in air operations originating
outside of Cambodia will not be counted against the ceiling. This is
intended to exempt personnel engaged in combat air operations from
bases outside Cambodia as well as those engaged in periodic air cargo
or similar missions into Cambodia from bases outside the country.
The purpose of this provision is to prevent the further growth of a
large American presence in Cambodia which could drag our nation
even more deeply into that difficult situation. When the Cambodian
incursion began in April, 1970, the United States mission in Phnom
Penh consisted of 12 people. Since the initiation by the Executive
Branch of a vast military and economic aid program to that country
the number of Americans in Cambodia in an official capacity has
mounted steadily. By the time Secretary of State Rogers testified
before the Committee on December 10, 1970, in support of the
authorization of a total of $285 million in aid to Cambodia for FY
1971, the American presence had quintupled. In replying to members
who expressed concern that a large American mission would result
from the proposed aid program, Secretary Rogers said :
Senator, as you know, we have already delivered hardware
to Cambodia, and we have done it, I think, successfully with-
out involvement of any large numbers of people. We have a
very small mission in Phnompenh, 62. And we intend to keep
our mission small. We think we can do it based on the experi-
ence we have already had.
In addition, of course, we have people in Saigon who are
working on this problem. They can do it from Saigon, so there
will be no necessity for them to go to Phnompenh. There are
some people involved in the delivery process who are located
in Saigon, and they will stay in Saigon.
There are now 56 U.S. civilian employees and 87 U.S. military per-
sonnel in Cambodia, a total of 143. The Committee was advised that,
in addition, some 25 to 35 persons are there at any given time in a tem-
porary duty status. There have been recent news reports that the De-
fense Department plans to expand the size of the military mission con-
siderably during the next year. The slim U.S. operation that was
promised has already grown much too fat.
The Committee does not approve of the vast escalation that has
already taken place in American involvement in Cambodia. The situa-
tion seems to be developing in precisely the way most members of the
Committee feared at the beginning of the U.S. involvement. The end
of the escalation in men and money is not in sight, unless Congress
imposes strict limits on both. In placing the personnel ceiling at 200 the
Committee does not intend, in any way, to imply that it would look
with favor on any increase in the number of U.S. personnel now in
Cambodia. Indeed, the Committee hopes that there will be a rollback
in the current level.
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Administration spokesmen have said in justification of the increase
in military personnel that they are needed to carry out provisions in
the Foreign Assistance Act relative to "end use." The statute requires
"observation and review" of how the material furnished is being used
only to the extent "as the President may require." Under the statute
the President may waive "end use" review entirely and, in fact, this
has been done in other countries in the past. The Committee is not say-
ing that there should not be any surveillance at all of how the military
aid we give to Cambodia is used. But reliance by the Executive Branch
on the "end use" requirement to justify the buildup of a huge military
aid mission in Cambodia is a weak reed at best and goes directly con-
trary to the spirit of the Cooper-Church amendment.
There are recurring news reports that the Executive Branch will
attempt to get around the prohibition of the Cooper-Church amend-
ment against providing United States advisers to Cambodian forces
by bringing in and paying for the services of advisers or technicians
from other countries. The Committee opposes any such plan and in
order to prevent an end run around the restriction, through the use of
foreigners, has put a limit of 50 on the number of third country na-
tionals in Cambodia who can be paid out of U.S. funds.
Section 7-Ceiling on Military Sales and Assistance to Latin America
and Repeal of the President's Waiver Authority
Subsection 7(1) amends subsection 33(a) of the Foreign Military
Sales Act for the purpose of increasing from $75 million to $100
million the annual ceiling on military credit sales and grant aid
(excluding training) to Latin America. Subsection 7(2) repeals the
President's authority to waive this ceiling and the $40 million ceiling
applicable to Africa.
Subsection 33(c) of the Foreign Military Sales Act gives the Presi-
dent authority to waive the annual ceilings on military assistance,
sales, and the value of ship loans to Latin America and Africa when
he determines it to be "important to the security of the United
States." On April 9 the President waived the FY 1971 ceiling for Latin
America and on June 16 the 1971 ceiling for Africa. The Executive
Branch requested legislative authority to increase the permanent
ceiling to $150 million for Latin America and $60 million for Africa.
The United States should not encourage the nations of Latin
America and Africa to spend their scarce resources on arms which
they neither need nor can afford. The argument that they will buy
elsewhere if we do not sell to them makes little sense if they should
not have the planes and tanks in the first place. It amounts to an
admission that the United States Government is going after the
Latin American and African arms market because it thinks American
suppliers should have the business instead of foreign arms manu-
facturers. This is a return to the old "hard sales" policy which Congress
rejected in 1967.
There is nothing in the ceiling restriction which prevents the
countries affected from buying on the commercial market here, after the
ceiling has been reached. The ceiling only affects government trans-
actions. Let the purchasing country and the manufacturer of the arms
arrange credit through private channels if credit is needed.
The removal of the waiver authority is one additional small step
in taking away some of the vast discretionary power Congress has
S. Rept. 92-431 0--3
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given the President on foreign aid matters. If the President wants
to increase the ceilings for specific actions let him come to Congress
and justify it.
Section 8-Restrictions on Excess Defense Articles
This section amends section 8(a) of the Foreign Military Sales Act
Amendments of 1971 to (1) increase the ceiling on the value of excess
articles that may be given to foreign countries without a charge
against appropriations for military grant assistance, and (2) require
that all excess defense articles provided to a country (except Vietn am,
see below) or international organizations on a grant basis by any U.S.
Government agency or department (except the Agency for Inter-
national Development, see below) be treated in a like manner to excess
defense articles provided by the Department of Defense to foreign
countries under the authority of Part II of the Foreign Assistance
Act of 1961, as amended.
There have been reports to the effect that the CIA has provided and
is providing surplus arms to foreign forces in Southeast Asia. If this
is true. Congress' efforts to bring the distribution of surplus arms
under control is being circumvented.
Hence, the objective of the provisions in subsections (1) and (3) is
to ensure that any grants of excess defense articles by the Central
Intelligence Agency, for example, be applied to the annual ceiling on
surplus military equipment or, once the ceiling is reached, charged
against the appropriation for military assistance. Only by making
these limitations applicable to other Government agencies and depart-
ments, like the CIA, can Congress keep account of the distribution of
these arms and hold the program within meaningful limits.
AID's use of excess military equipment is excluded from the pro-
visions of this section because of its use of many of these items, such
as vehicles or engineering equipment, for economic assistance pro-
grams. Moreover, the provisions of this section are not to apply to
the distribution of surplus arms in Vietnam until July 1, 1972.
Subsection (2) increases from $100 million to $150 million the value
of excess defense articles which may be ordered during any fiscal
year before the value of the articles is considered military assist-
ance to be charged against funds appropriated for this purpose un-
der Part II of the act.
Raising this ceiling on the amount of excess property that can be
used will permit greater use of the excess military equipment that is
becoming available from Southeast Asia.
Sec. 9-Termination of U.S. Military Operations in Indochina
Section 9, the Mansfield amendment, would declare it to be the
national policy that the United States should terminate military
operations in Indochina at the earliest practicable date, and that all
U.S. forces be withdrawn not later than six months after date of enact-
ment, subject to the release of all American prisoners of war held by
the enemy. Under its terms, Congress would urge the President to take
the following actions:
(1) Establish a final date for withdrawal of all U.S. forces
from Indochina, contingent upon the realease of all prisoners of
war, the date to be not later than six months after date of
enactment;
(2) Negotiate with North Vietnam for an immediate cease-fire
by all parties; and
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(3) Negotiate with North Vietnam for an agreements pro-
viding for the phased withdrawal of U.S. forces coupled with
the phased release of prisoners of war with the remaining prison-
ers to be released concurrently with the withdrawal of the last
U.S. forces.
The substance of this provision has been approved by the Senate
twice this year. First, on June 22, 1971, as an amendment to the Draft
Extension Bill, by a vote of 61 to 38. The amendment to the draft bill
provided for a nine-month deadline for withdrawal, instead of six
months as contained in this provision. The second approval came on
September 30, 1971, when an amendment to the Defense Authoriza-
tion Bill, identical to the provision recommended by the Com-
mittee, was adopted by a vote of 57 to 38.
There is no doubt that the Senate as a body wants the Nation to dis-
engage itself from the tragic morass of Southeast Asia. What the
war is doing morally and physically to the youth that serve on the
battlefields is well documented. What it is doing to our resources is
clear beyond question. And, perhaps most important, every thought-
ful American senses what it has done, and is doing, to the moral fibre of
our Nation.
The Senate has a responsibility for helping to determine and set
the policy of this government on the broad issues of national import-
ance. Congress is a co-equal of the Executive Branch and it is unfair
as well as unwise for Congress to look to the President to assume the
full burden of these decisions.
Last session the Senate initiated the repeal of the Gulf of Tonkin
Resolution. That Resolution had been cited by the previous Adminis-
tration as the functional equivalent of a Congressional declaration of
war and a justification and endorsement of a policy of escalation in
Vietnam. Many members of the Committee have objected to the broad
interpretation put on that resolution. Whatever it was-functional or
otherwise-it has been repealed. But with its demise has gone the only
expressed government policy-openly participated in by the Con-
gress-with respect to U.S. involvement in Indochina. There is no
longer a joint policy.
The Mansfield amendment fills that void. It declares a clear national
policy for Indochina. The Mansfield amendment states a government
policy to terminate military operations in Indochina at the earliest
practicable date; to provide for the withdrawal of all our forces within
six months from the date of enactment, provided a release of all
prisoners is accomplished within that timeframe, and it urges the
President to proclaim a date within this timeframe to accomplish
those ends.
There is much evidence that the overwhelming sentiment of the
American people is for total withdrawal as soon as possible. The
fixing of a deadline for withdrawal should end the stalemate, effect
the return of our fighting men, the return of our prisoners and hope-
fully set the stage for the rebuilding process that is needed for the
future of American hope and confidence.
Section 10-Limitations on United States Activities in Cambodia
This section amends section 7(a) of the Special Foreign Assistance
Act 1971 to prohibit the expenditure of public funds for U.S. advisers
"to or for military, paramilitary, police, or other security or intelli-
gence forces in Cambodia."
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The purpose of this amendment is to expand the scope of the exist-
ing prohibition of the Cooper-Church amendment against providing
U.S. advisers to Cambodian military forces. It would also prohibit
any U.S. government personnel from advising Cambodian paramili-
tary and police forces, as well as Cambodian security and intelligence
units. The intent of this amendment is consistent with, and is a logical
extension of, the existing prohibition designed to prevent direct U.S.
involvement in the war in Cambodia. Our Vietnam experience teaches
that the first fatal step toward direct involvement comes with the fur-
nishing of U.S. advisers to the military and related forces of another
country. This provision is another effort aimed at preventing this fatal
step from being taken in Cambodia.
Section 11-Restriction Relating to Foreign Forces
Subsection 400(1) amends section 401(a) of Public Law 89-367, as
amended, to prevent "any department, agency or independent estab-
lishment of the United States" from paying allowances to free world
forces in Vietnam that are greater than similar allowances paid to
members of the United States Armed Forces for service in Vietnam or
"in any other hostile fire area . . . "
This provision expands the existing prohibition against paying for-
eign troops at higher levels than U.S. troops. At the present this pro-
hibition applies only to funds appropriated for use by the Armed
Forces of the United States. Hence, other appropriated funds, such
as those available to the Central Intelligence Agency could be used to
circumvent this prohibition. The amendment would close this loophole.
Subsection 409(2) requires that the conditions in Sec. 401(a) (2)
of P.L. 89-367, as amended, governing the grant of defense articles to
Vietnam, Thailand, or Laos out of Defense Department funds also
apply to the grant of defense articles to those countries paid for out of
funds of any other department or agency.
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UPPLEMENTAL VIEWS OF ENATOR FULBRIGHT
Although I voted to report the two interim foreign aid authoriza-
tion bills, I believe that the Committee's refusal to give the Senate an
opportunity to vote clearly on the three major components of foreign
aid and its failure to cut the money amounts again endanger the entire
aid program. There is still a long legislative gauntlet to be run.
The Senate's rejection of H.R. 9910 reflected the growing dissatis-
faction by members with one or more components of foreign aid. Some
support bilateral economic and humanitarian aid but oppose military
aid. Many support military aid and oppose economic assistance. Others
support multilateral and humanitarian aid but oppose bilateral aid, as
presently constituted. And so it goes. Foreign aid bills have become a
"grab bag" with something in them for everyone. Members of the
Senate have not been accorded the opportunity to vote on the merits
of each major aid category-bilateral economic aid, military aid, and
multilateral and humanitarian aid.
In order to ensure that each aid category stood, or fell, on its own
merit, I offered three bills in the Committee which separated the
present hodge-podge of programs into three categories and allowed
authorizations at a reduced level during the phaseout period. Three
bills, instead of two, would have provided a sharper delineation of the
purposes and objectives of each aid category, and given guidance on
how the Senate wants the new foreign aid programs to be shaped for
the future. But the Committee decided to combine bilateral economic
aid with humanitarian and multilateral programs. The package
approved by the Committee lumps A.I.D. programs to promote anti-
communist labor unions in Latin America with those providing relief
for Pakistani and Arab refugees. It again prevents the Senate from
working its will in a clearcut way.
The bills I proposed would have authorized a total of $2.1 billion
in all categories, with $1.0 billion for military aid, $620 million for
bilateral economic aid, and $445.9 million for multilateral and humani-
tarian assistance. Including the $250 million for relief of Pakistani
refugees, this would have been $180 million more than Congress
appropriated for FY 1970.
With a $30 billion-plus deficit facing the Federal Government, an
unprecedented balance of payments gap, and the deterioration of our
domestic situation, particularly in the big cities, I think the Com-
mittee should have held the line closer to the 1970 amount. But,
instead, it approved a total aid package which is $444 million above
the 1970 figure and $263 million more than I proposed. Two-thirds of
the increase is on the military side.
I regret both of these actions. In my opinion, they go against the
spirit of the Senate's rejection of the old approach to foreign aid, and
endanger the passage of any foreign aid program this session. The
Senate should not be forced to vote on a warmed-over version of what
it rejected on October 29th. Together, these bills are little more than
(21)
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22
a slightly scaled-down H.R. 9910. Senators are still being asked to
take the good along with the bad. The Committee's action has, I fear,
created a situation where it is quite possible that Congress may reject
the entire program, which, in my opinion, would not be in the interest
of our country.
CHANGES IN EXISTING LAW
In compliance with paragraph 4 of rule XXIX of the Standing Rules
of the Senate, changes in existing law made by the bill, as reported, are
shown as follows (existing law proposed to be omitted is enclosed in
black brackets, new matter is printed in italic, existing law in. which
no change is proposed is shown in roman) :
I. FOREIGN ASSISTANCE ACT OF 1961
*
Chapter 2-MILITARY ASSISTANCE
SEC. 505. Conditions of Eligibility.-
* * * * * * *
(b) No defense articles shall be furnished on a grant basis to any
country at a cost in excess of $3,000,000 in any fiscal year unless the
President determines-
(1) that such country conforms to the purposes and principles
of the Charter of the United Nations;
(2) that such defense articles will be utilized by such country
for the maintenance of its own defensive strength, [and] or the
defensive strength of the free world;
(3) that such country is taking all reasonable measures, con-
sistent with its political and economic stability, which may be
needed to develop its defense capacities; and
(4) that the increased ability of such country to defend itself
is important to the security of the United States.
* * * * * * *
[(e) From and after the sixtieth day after the day of enactment
of the Foreign Assistance Act of 1966, no assistance shall be provided
under this chapter to any country to which sales are made under title
I of the Agricultural Trade Development and Assistance Act of 1954
until such country has entered into an agreement to permit the use of
foreign currencies accruing to the United States under such title I to
procure equipment, materials, facilities, and services for the common
defense including internal security, in accordance with the provisions
of section 104(c) of such title I.]
SEC. 506. Special Authority.-(a) During the fiscal year [1970
and the fiscal year 1971] 1972 the President may, if he determines it
to be vital to the security of the United States, order defense articles
from the stocks of the Department of Defense and defense services for
the purposes of part II, subject to subsequent reimbursement therefor
from subsequent appropriations available for military assistance. The
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value of such orders under this subsection in [each of the fiscal years
1970 and 1971] the fiscal year 1972 shall not exceed $300,000,000.
[Prompt notice of action taken under this subsection shall be given
to the Committees on Foreign Relations, Appropriations, and Armed
Services of the Senate and the Speaker of the House of Representa-
tives.]
SEC. 507. Restrictions on Military Aid to Latin America.-(a) [The
value of grant programs of defense articles for American Republicans,
pursuant to any authority contained in this part other than chapter 3,
in any fiscal year beginning with the fiscal year 1962, shall not exceed
$25,000,000, of which any part may be used for assistance on a cost-
sharing basis to an inter-American military force under the control of
the Organization of American States.] 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.
SEC. 511. MILITARY ASSISTANCE ADVISORY GROUPS AND MIS-
SIONS.- (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 years.
In the words of the Peterson Task Force Report on International Develop-
ment, "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 25 per centum by September 30, 1972.
SEC. 512. 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.
SEC. 513. LIMITATIONS ON AVAILABILITY OF FUNDS FOR MILITARY
OPERATIONS.-(a) No funds authorized or appropriated under any
provision of law shall be made available by any means by any officer,
employee, or agency of the United States Government for the purpose of
financing any military operations by foreign forces in Laos, North
Vietnam, or Thailand outside the borders of the country of the government
or person receiving such funds unless Congress has specifically authorized
or authorizes the making of funds available for such purpose and designates
the area where military operations financed by such funds may be under-
taken outside such borders.
(b) Upon requesting Congress to make any such authorization, the
President shall provide to Congress a copy of any agreement proposed to
be entered into with any such government or person and the complete
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details of the proposed military operation. Upon such authorization by
Congress, the President shall provide a copy of any such agreement and
thereafter of all plans and details of such operation.
SEC. 514. SPECIAL FOREIGN COUNTRY ACCOUNTS.-(a) Except as
otherwise provided by subsection (b) or (c) -of this section, no defense
article may be given, and no grant of military assistance may be made,
under this or any other law 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 25 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 25 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,
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.
(d) Section 1415 of the Supplemental Appropriation Act, 1953 (81
U.S.C. 724), shall not be applicable to the provisions of this section.
* * * * * * *
Chapter 2-ADMINISTRATIVE PROVISIONS
SEc. 634. Reports and Information.-
* * * * * * *
(d) * * * In addition, the President shall promptly notify the
Committee on Foreign Relations and the Committee on Appropria-
tions of the Senate and the Speaker of the House of Representatives of
any determination under section 303, 610, [614(a),] or 614(b) and
of any finding, including his reasons therefor, under section 503 or
521(c).
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Chapter 3-MISCELLANEOUS PROVISIONS
[SEC. 652. Limitation Upon Additional Assistance to Cambodia.-
The President shall not exercise any special authority granted to him
under sections 506(a), 610(a) and 614(a) of this Act for the purpose
of providing additional assistance to Cambodia, unless the President,
at least thirty days prior to the date he intends to exercise any such
authority on behalf of Cambodia (or ten days prior to such date if
the President certifies in writing that an emergency exists requiring
immediate assistance to Cambodia), notifies the Speaker of the House
of Representatives and the Committee on Foreign Relations of the
Senate in writing of each such intended exercise, the section of this
Act under which such authority is to be exercised, and the justifica-
tion for, and the extent of, the exercise of such authority.]
SEC. 652. LIMITATION UPON EXERCISE OF SPECIAL AUTHORITIES.-
The President shall not exercise any special authority granted to him
under section 506(a), 610(a), or 614(a) of this Act unless the President,
at least ten days prior to the date he intends to exercise any such authority,
notifies the Speaker of the house of Representatives and the Committee on
Foreign Relations of the Senate in writing of each such intended exercise,
the section of this Act under which such authority is to be exercised, and
the justification for, and the extent of, the exercise of such authority.
SEC. 653. CHANGE IN ALLOCATION OF FOREIGN ASSISTANCE.-(a)
Not later than thirty days after the enactment of any law appropriating
funds to carry out any provision of this Act (other than section 451 or
637), the President shall notify the Congress of each foreign country and
international organization to which the United States Government intends
to provide any portion of the funds under such law and of the amount of
funds under that law, by category of assistance, that the United States
Government intends to provide to each. Notwithstanding any other provi-
sion of law, the United States Government shall not provide to any foreign
country or international organization any funds under that law which is
in excess of 10 per centum of the amount of each category of assistance
which the President notified the Congress that the United States Govern-
ment intended to provide that country or organization under that law,
unless the President (1) determines that it is vital to the security of the
United States that such country or organization receive funds in excess
of the amount included in such notification for that country or organiza-
tion, and (2) reports to Congress, at least ten days prior to the date on
which such excess funds are to be provided to that country or organization,
each such determination, including the name of the country or organiza-
tion to receive funds in excess of such per centum, the amount of funds
in excess of that per centum which are to be provided,.and the justification
for providing the additional assistance.
(b) The provisions of this section shall not apply in the case of any
law making continuing appropriations and may not be waived under the
provisions of section 614( a) of this Act.
SEC. 654. PRESIDENTIAL FINDINGS AND DETERMINATIONS.-(a) In
any case in which the President is required to make a report to the Con-
gress, or to any committee or officer of either House of Congress, concern-
ing any finding or determination under any provision of this Act, the
Foreign Military Sales Act, or the Foreign Assistance and Related Pro-
grams Appropriation Act for each fiscal year, that finding or determination
shall be reduced to writing and signed by the President.
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(b) No action shall be taken pursuant to any such finding or determina-
tion prior to the date on which that finding or determination has been
reduced to writing and signed by the President.
(c) Each such finding or determination shall be published in the Federal
Register as soon as practicable after it has been reduced to writing and
signed by the President. In any case in which the President concludes
that such publication would be harmful to the national security of the
United States, only a statement that a determination or finding has been
made by the President, including the name and section of the Act under
which it was made, shall be published.
(d) No committee or officer of either House of Congress shall be denied
any requested information relating to any finding or determination
which the President is required to report to the Congress, or to any com-
mittee or officer of either House of Congress, under any provision of
this Act, the Foreign Military Sales Act, or the Foreign Assistance and
Related Programs Appropriation Act for each fiscal year, even though
such report has not yet been transmitted to the Congress or to the appro-
priate committee or officer of either House of Congress.
SEC. 655. LIMITATIONS Upon ASSISTANCE TO OR FOR CAMBODIA.-(a)
Notwithstanding any other provision of law, no funds authorized to be ap-
propriated by this or any other Act may be obligated or expended in any
amount in excess of $341,000,000 for the purpose of carrying out directly
or indirectly any economic or military assistance, or any operation, project,
or program of any kind, or for providing any goods, supplies, materials,
equipment, services, personnel., or advisers in, to, for, or on behalf of
Cambodia during the fiscal year ending June 30, 1972.
(b) In computing the $341,000,000 limitation on obligation and ex-
penditure authority under subsection (a) of this section in fiscal year 1973,
there shall be included in the computation the value of any goods, supplies,
materials, or equipment provided to, for, or on behalf of Cambodia in such
fiscal year- by gift, donation, loan, lease, or otherwise. For the purpose of
this subsection, "value" means the_fair market value of any goods, supplies,
materials, or equipment provided to, for, or on behalf of Cambodia but
in no case less than 3338 per centum of the amount the United States
paid at the time such goods, supplies, materials, or equipment were ac-
quired by the United States.
(c) No funds may be obligated or expended for any of the purposes
described in subsection (a) of this section in, to, for, or on behalf of
Cambodia in any fiscal year beginning after June 30, 1972, unless such
funds have been specifically authorized by law enacted after the date of
enactment of this section. In no case shall funds in any amount in excess of
the amount specifically authorized by law for any fiscal year be obligated
or expended for any such purpose during such fiscal year.
(d) The provisions of subsections (a) and (c) of this section shall not
apply with respect to the obligation or expenditure of funds to carry out
combat air operations over Cambodia.
(e) After the date of enactment of this section, whenever any request is
made to the Congress for the appropriation of funds for use in, for, or
on behalf of Cambodia for any fiscal year, the President shall furnish a
written report to the Congress explaining the purpose for which such funds
are to be used in such fiscal year.
(f) The President shall submit to the Congress within thirty days after
the end of each quarter of each fiscal year, beginning with the fiscal year
which begins July 1, 1971, a written report showing the total amount of
unds ex ended in, for, or on behalf of Cambodia during the receding
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quarter by the United States Government, and shall include in such report
a general breakdown of the total amount expended, describing the different
purposes for which such funds were expended and the total amount
expended for such purpose, except that in the case of the first two quarters
of the fiscal year beginning July 1, 1971, a single report may be submitted
for both such quarters and such report may be computed on the basis of
the most accurate estimates the President is able to make, taking into
consideration all information available to him.
(g) Enactment of this section shall not be construed as a commitment
by the United States to Cambodia for its defense.
SEC. 656. LIMITATIONS ON UNITED STATES PERSONNEL AND PER-
SONNEL ASSISTED BY UNITED STATES IN CAMBODIA.-The total number
o civilian officers and employees of executive agencies of the United
Cates Government who are citizens of the United States and of members
of the Armed Forces of the United States (excluding such members while
actually engaged in air operations in or over Cambodia which originate
outside Cambodia) present in Cambodia at any one time shall not exceed
two hundred. The United States shall not, at any time, pay in whole or
in part, directly or indirectly, the compensation or allowances of more than
fifty individuals in Cambodia who are citizens of countries other than
Cambodia or the United States. For purposes of this section, "executive
agency of the United States Government" means any agency, department,
board, wholly or partly owned corporation, instrumentality, commission
or establishment within the executive branch of the United States
Government.
II. FOREIGN MILITARY SALES ACT
* * * * * * *
Chapter 3-MILITARY EXPORT CONTROLS
SEC. 33. Regional Ceilings on Foreign Military Sales.-(a) The ag-
gregate of the total amount of military assistance pursuant to the
Foreign Assistance Act of 1961, as amended, of cash sales pursuant to
sections 21 and 22, of credits, or participations in credits, financed pur-
suant to section 24(b)), of the face amount of contracts of guaranty
issued pursuant to sections 24 (a) and (b), and of loans and sales in
accordance with section 7307 of title 10, United States Code; shall,
excluding training, not exceed [$75,000,000] $100,000,000 in each
fiscal year for Latin American countries.
(b) The aggregate of the total amount of military assistance pur-
suant to the Foreign Assistance Act of 1961, as amended, of cash sales
pursuant to sections 21 and 22, of credits, or participations in credits,
financed pursuant to section 23 (excluding credits covered by guar-
anties issued pursuant to section 24(b)), and of the face amount of
contracts or guaranty issued pursuant to sections 224 (a) and (b) shall,
excluding training, not exceed $40,000,000 in each fiscal year for
African countries.
[(c) The President may waive the limitations of this section when
he determines it to be important to the security of the United States,
and promptly so reports to the Speaker of the House of Representa-
tives and the Committee on Foreign Relations of the Senate.]
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III. SECTION 8 OF AN ACT TO AMEND THE FOREIGN
MILITARY SALES ACT, AND FOR OTHER PURPOSES
(22 U.S.C. 2321b)
SEC. 8. (a) Subject to the provisions of subsection (b), the value
of any excess defense article granted to a foreign country or interna-
tional organization [under part II of the Foreign Assistance Act of
1961 shall be considered to be an expenditure made from funds
appropriated under that Act for military assistance. When] 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 organiza-
tion, 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 the 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. Such sum shall be transferred to the
military assistance appropriation for the current fiscal year upon
delivery of such article if at the time of delivery the stock status of the
article is determined, in accordance with sections 644(g) and (m) of
the Foreign Assistance Act of 1961, to be nonexcess.
(b) The provisions of subsection (a) shall apply during any fiscal
year only to the extent that the aggregate value of excess defense
articles ordered during that year exceeds $100,000,000] $150,000,000. (3 '1,
(e) For purposes of this section, "value" means not less than 33%
per centum of the amount the United States paid at the time the excess
defense articles were acquired by the United States.
(d) The President shall promptly and fully inform the Speakei of
the House of Representatives and the Committee on Foreign Relations
and the Committee on Appropriations of the Senate of each decision to
furnish on a grant basis to any country excess defense articles which
are major weapons systems to the extent such major weapons system
was not included in the presentation material previously submitted to
the Congress. Additionally the President shall also submit a quar-
terly report to the Congress listing by country the total value of all
deliveries of excess defense articles, disclosing both the aggregate
original acquisition cost and the aggregate value at the time of delivery. y
(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.
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IV. NEW PROVISION OF LAW RELATING TO INDOCHINA
TERMINATION OF UNITED STATES MILITARY OPERATIONS IN INDOCHINA
SEC. 9. It is hereby declared to be the policy of the United States to
terminate at the earliest practicable date all military operations of the
United States in Indochina, and to provide for the prompt and orderly
withdrawal of all United States military forces not later than six months
after the date of enactment of this section subject to the release of all
American prisoners of war held by the Government of North Vietnam and
forces allied with such Government. The Congress hereby urges and requests
the President to implement the above expressed policy by initiating im-
mediately the following actions:
(1) Establishing a final date for the withdrawal from Indochina of
all military forces of the United States contingent upon the release of
all American prisoners of war held by the Government of North Vietnam
and forces allied with such Government, such date to be not later than
six months after the date of enactment of this Act.
(2) Negotiate with`the Government of North Vietnam for an immediate
cease-fire by all parties to the hostilities in Indochina.
(S) Negotiate with the Government of North Vietnam for an agree-
ment which would provide for a series of phased and rapid withdrawals
of United States military forces from Indochina in exchange for a cor-
responding series of phased releases of American prisoners of war, and
for the release of any remaining American prisoners of war concurrently
with the withdrawal of all remaining military forces of the United States
by not later than the date established by the President pursuant to para-
graph (1) hereof or by such earlier date as may be agreed upon by the
negotiating parties.
V. SECTION 7(a), SPECIAL FOREIGN ASSISTANCE ACT
OF 1971 (22 U.S.C. 2411 note)
SEC. 7. (a) In line with the expressed intention of the President of
the United States, none of the funds authorized or appropriated pur-
suant to this or any other Act may be used to finance the introduction
of United States ground combat troops into Cambodia, or to provide
United States advisers to or for [Cambodian military forces] military,
paramilitary, police, or other security or intelligence forces in Cambodia.
VI. SECTION 401(a) OF PUBLIC LAW 89-367,
APPROVED MARCH 15, 1966
SEC. 401. (a) (1) Not to exceed $2,800,000,000 of the funds authorized
for appropriation for the use of the Armed Forces of the United States
under this or any other Act are authorized to be made available for
their stated purposes to support: (A) Vietnamese and other free world
forces in support of Vietnamese forces, (B) local forces in Laos and
Thailand; and for related costs, during the fiscal year 1971 on such
terms and conditioi~`as the Secretary of Defense may determine. None
of the funds appropriated to or for the use of the Armed Forces of the
United States or of any department, agency, or independent establish-
ment of the United States may be used for the purpose of paying any
overseas allowance, per diem allowance, or any other addition to the
regular base pay of any person serving with the free world forces in
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South Vietnam if the amount of such payment would be greater than
the amouxtt...of special pay authorized to be paid, for an equivalent
period of service, to members of the Armed Forces of the United
States (under section 310 of title 37, United States Code) serving in
Vietnam or in any other hostile fire area, except for continuation of
payments of such additions to regular base pay provided in agree-
ments executed prior to July 1, 1970. Nothing in clause (A) of the
first sentence of this paragraph shall be construed as authorizing the
use of any such funds to support Vietnamese or other free world forces
in actions designed to provide military support and assistance to the
Government of Cambodia or Laos.
(2) No defense article may be furnished to the South Vietnamese
forces, other free world forces in Vietnam, or to local forces in Laos
or Thailand with funds authorized for the use of the Armed Forces of
the United States or of any department, agency, or independent estab-
lishment of the United States under this or any other Act unless the
government of the forces to which the defense article is to be furnished
shall have agreed that-
(A) it will not, without the consent of the President-
(i) permit any use of such article by anyone not an officer,
employee, or agent of that government,
(ii) transfer, or permit any officer, employee, or agent of
that government to transfer such article by gift, sale, or
otherwise, or
(iii) use or permit the use of such article for purposes other
than those for which furnished;
(B) it will maintain the security of such article, and will pro-
vide substantially the same degree of security: protection afforded
to such article by the United States Government;
(C) it will, as the President may require, permit continuous
observation and review by, and furnish necessary information to
representatives of the United States Government with regard to
the use of such article; and
(D) unless the President consents to other disposition, it will
return to the United States Government for such use or disposi-
tion as the President considers in the best: interests of the United
States, any such article which is no longer needed for the purposes
for, which it was furnished.
The President shall promptly submit a report to the Speaer of the
House of Representatives and the President of the.Senate on the im-
plementation of each agreement entered into in compliance with this
paragraph. The President may not give his consent under clause (A)
or (D) of this paragraph with respect to any defense article until the
expiration of fifteen days after written notice has been given to the
Speaker of the House of Representatives and the President of the
Senate regarding the proposed action of the President with respect to
such article. As used in this paragraph the term "defense article" shall
have the same meaning prescribed for such term in section 644(d) of
the Foreign Assistance Act of 1961. In order to allow a reasonable
period of time for the Department of Defense. to comply with the
requirements of this paragraph, the provisions of such paragraph shall
become effective sixty days after the date of enactment of this
paragraph.
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Approved For Release 2000/09/11 : CIA-RDP73B00296R000400170005-5