Page:United States Statutes at Large Volume 102 Part 2.djvu/1017

 PUBLIC LAW 100-456—SEPT. 29, 1988

102 STAT. 2021

accordance with r^ulations prescribed by the Secretary of Defense in consultation with the Secretary of Commerce. "(d) DEFINITIONS.—In this section: "(1) The term 'United States firm' means a business entity that performs substantially all of its manufacturing, production, and research and development activities in the United States. "(2) The term 'foreign firm' means a business entity other than a United States firm.". (c) NEGOTIATIONS.—(1) The President shall enter into negotiations with foreign countries that have a policy of requiring an offset arrangement in connection with the purchase of defense equipment or supplies from the United States. The negotiations should be conducted with a view to achieving an agreement with the countries concerned that would limit the adverse effects that such arrangements have on the defense industrial base of each such country. (2) Elvery effort shall be made to achieve such agreements within two years after the date of the enactment of this Act. (d) REPORTS.—(1) Not later than November 15, 1988, the President shall submit to Congress a comprehensive report on contractual offset arrangements required of United States firms for the supply of weapon systems or defense-related items to foreign countries or foreign firms. Such report shall include, at a minimum, the following: (A) An analysis of the amount and type of contractual offsets required of United States firms by the governments of foreign countries or by foreign firms. (B) An assessment of the benefits for and costs to United States manufacturers of defense products at all tiers that result from requirements of foreign governments for contractual offset arrangements in the case of products procured from United States firms. (C) An assessment of the benefits for and the costs to United States manufacturers of defense products at all tiers that would result from restriction of the abliity of foreign governments or foreign firms to require contractual offsets in the case of defense products procured from United States firms. (D) An assessment of the benefits and costs of a United States policy that requires reciprocal offsets in the procurement of defense products from those countries whose governments have a policy of requiring contractual offsets in the case of defense products procured from United States firms. (E) An assessment of the impact that elimination of contractual offset requirements in international sales of defense products would have on the national security of the United States. (F) Recommendations for a national policy with respect to contractual offset arrangements. (G) A preliminary discussion of the actions referred to in paragraph (2). (2) Not later than March 15, 1990, the President shall transmit to Congress a report containing a discussion of appropriate actions to be taken by the United States with respect to purchases from United States firms by a foreign country (or a firm of that country) when that country or firm requires an offset arrangement in connection with the purchase of defense equipment or supplies in favor of such country. The report shall include a discussion of the following possible actions:

President of U.S. 10 USC 2505 note.

President of U.S.

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