Page:United States Statutes at Large Volume 101 Part 2.djvu/491

 PUBLIC LAW 100-202—DEC. 22, 1987
 * K

101 STAT. 1329-148

INTERNATIONAL MILITARY EDUCATION AND TRAINING

For necessary expenses to carry out the provisions of section 541, $47,400,000. FOREIGN MILITARY CREDIT SALES

For expenses necessary to enable the President to carry out the provisions of section 23 of the Arms Export Control Act, $4,049,000,000, of which not less than $1,800,000,000 shall be available only for Israel, not less than $1,300,000,000 shall be available only for Egypt, $260,000,000 only shall be available for Pakistan, not less than $12,000,000 shall be available only for Morocco, $334,000,000 only shall be available for Turkey, and not less than $313,000,000 shall be available only for Greece: Provided, That to the extent that the Government of Israel requests that funds be used for such purposes, credits made available for Israel under this heading shall, as agreed by Israel and the United States, be available for advanced fighter aircraft programs or for other advanced weapon systems, as follows: (1) up to $150,000,000 shall be available for research and development in the United States; and (2) not less than $400,000,000 shall be available for the procurement in Israel of defense articles and defense services, including research and development: Provided further. That Israel and Egypt shall be released from their contractual liability to repay the United States Government with respect to all credits provided under this heading, and Pakistan shall be released from such liability with respect to $30,000,000 of the credits provided under this heading, and Turkey shall be released from such liability with respect to $156,000,000 of the credits provided under this heading: Provided further, That during fiscal year 1988, gross obligations for the principal amount of direct loans, exclusive of loan guarantee defaults, shall not exceed $4,049,000,000: Provided further. That any funds made available under this heading, except as otherwise specified, may be made available at concessional rates of interest, notwithstanding section 310aX2) of the Arms Export Control Act: Provided further. That the concessional rate of interest on foreign military credit sales loans shall be not less than 5 percent per year: Provided further. That all country and funding level changes in requested concessional financing allocations shall be submitted through the regular notification procedures of the Committees on Appropriations: Provided further. That funds appropriated under this heading shall be expended at the minimum rate necessary to make timely payment for defense articles and services. FOREIGN MILITARY SALES DEBT REFORM

(a) REFINANCING.—Notwithstanding any other provision of law, 22 USC 2764 the President is authorized during fiscal years 1988 through 1991 to "o^e. transfer existing United States guaranties of outstanding Foreign Military Sales (FMS) credit debt, or to issue new guaranties, either of which would be applied to loans, bonds, notes or other obligations made or issued (as the case may be) by private United States financial institutions (the private lender) to finance the prepayment at par of the principal amounts maturing after September 30, 1989 of existing FMS loans bearing interest rates of ten percent or higher, and arrearages thereon. The loans, bonds, notes or other obligations are hereinafter referred to as the "private loan": Pro-

�