Page:United States Statutes at Large Volume 106 Part 5.djvu/569

 PUBLIC LAW 102-558—OCT. 28, 1992 106 STAT. 4207 firms to compete for military export sales is not undermined, it is the policy of the Congress that— (1) no agency of the United States Government shall encourage, enter directly into, or commit United States firms to any offset arrangement in connection with the sale of defense goods or services to foreign governments; (2) United States Government funds shall not be used to finance offsets in security assistance transactions, except in accordance with policies and procedures that were in existence on March 1, 1992; (3) nothing in this section shall prevent agencies of the United States Government from fulfilling obligations incurred through international agreements entered into before March 1, 1992; and (4) the decision whether to engage in offsets, and the responsibility for negotiating and implementing offset arrangements, reside with the companies involved. (b) PRESIDENTIAL APPROVAL OF EXCEPTIONS.—It is the policy of the Congress that the President may approve an exception to the policy stated in subsection (a) after receiving the recommendation of the National Security Council. (c) CONSULTATION.— It is the policy of the Congress that the President. President shall designate the Secretary of Defense to lead, in coordination with the Secretary of State, an interagency team to consult with foreign nations on limiting the adverse effects of offsets in defense procurement. The President shall transmit an annual Reports, report on the results of these consultations to the Congress as part of the report required under section 309(a) of the Defense Production Act of 1950. SEC. 124. ANNUAL REPORT ON IMPACT OF OFFSETS. Section 309 of the Defense Production Act of 1950 (50 U.S.C. App. 2099) is amended— (1) in subsection (a)— (A) by striking "(a) REPORT REQUIRED. —Not later" and inserting: "(a) ANNUAL REPORT ON IMPACT OF OFFSETS. — "(1) REPORT REQUIRED. —Not later"; (B) by striking the second sentence; and (C) by adding at the end the following new paragraph: "(2) DUTIES OF THE SECRETARY OF COMMERCE.—The Secretary of Commerce (hereafter in this subsection referred to as 'the Secretary') shall— "(A) prepare the report required by paragraph (1); "(B) consult with the Secretary of Defense, the Secretary of the Treasury, the Secretary of State, and the United States Trade Representative in connection with the ^ preparation of such report; and "(C) function as the President's Executive Agent for carrying out this section."; (2) by amending subsection (b) to read as follows: "(b) INTERAGENCY STUDIES AND RELATED DATA.— "(1) PURPOSE OF REPORT. — Each report required under subsection (a) shall identify the cumulative effects of offset agreements on— "(A) the full range of domestic defense productive capability (with special attention paid to the firms serving as lower-tier subcontractors or suppliers); and

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