Page:United States Statutes at Large Volume 100 Part 2.djvu/788

 100 STAT. 1783-107

PUBLIC LAW 99-500—OCT. 18, 1986

Ob) TECHNICAL DATA PACKAGES FOR PRODUCTION OF LARGE-CALIBER

CANNON.—(1) Chapter 433 of title 10, United States Code, is amended by adding at the end the following new section: "§ 4542. Technical data packages for large-caliber cannon: prohibition on transfers to foreign countries; exception "(a) GENERAL RULE.—Funds appropriated to the Department of Defense may not be used— "(1) to transfer to a foreign country a technical data package for a defense item being manufactured or developed in an arsenal; or "(2) to assist a foreign country in producing such a defense item. "(b) EXCEPTION.—The Secretary of the Army may use funds appropriated to the Department of Defense to transfer a technical data package, or to provide assistance, described in subsection (a) if^ "(1) the transfer or provision of assistance is to a friendly foreign country (as determined by the Secretary of Defense in consultation with the Secretary of State); "(2) the Secretary of the Army determines that such action— "(A) would have a clear benefit to the preservation of the production base for the production of cannon at the arsenal concerned; and "(B) would not transfer technology (including production i techniques) considered unique to the arsenal concerned; and "(3) the Secretary of Defense enters into an agreement with the country concerned described in subsection (c). "(c) CoPRODUCTiON AGREEMENTS.—An agreement under this subsection shall be in the form of a Government-to-Government Memorandum of Understanding and shall include provisions that— "(1) prescribe the content of the technical data package or assistance to be transferred to the foreign country participating in the agreement; "(2) require that production by the participating foreign country of the defense item to which the technical data package or assistance relates be shared with the arsenal concerned; "(3) subject to such exceptions as may be approved under subsection (d), prohibit transfer by the participating foreign country to a third party or country of— "(A) any defense article, technical data package, tech"''' nology, or assistance provided by the United States under the agreement; and "(B) any defense article produced by the participating foreign country under the agreement; and "(4) require the Secretary of Defense to monitor compliance with the agreement and the participating foreign country to report periodically to the Secretary of Defense concerning the agreement. "(d) TRANSFERS TO THIRD PARTIES.—A transfer described in subsection (b)(3) may be made if— "(1) the defense article, technical data package, or technology to be transferred is a product of a cooperative research and development program in which the United States and the participating foreign country were partners; or "(2) the President—

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