Page:United States Statutes at Large Volume 81.djvu/491

 81 STAT.]

PUBLIC LAW 90-137-NOV. 14, 1967

international organizations agree to pay not less than the value thereof in United States dollars. All payments of principal and interest on account of such sales shall be transferred to the general fund of the Treasury: Provided, That the limitations of this paragraph shall not apply to sales made pursuant to sections 522 and 523/' (i) Section 509, which relates to exchanges and guaranties, is amended as follows: (1) Subsection (a) is hereby repealed. (2) Subsection (b) is redesignated as section 525(b) and is amended by adding at the end thereof the following: "The total face amount of contracts of guaranty, insurance, coinsurance, and reinsurance (including contracts with any agency of the United States Government) issued in the fiscal year 1968 shall not exceed $190,000,000." (j) Section 510 which relates to special authority, is amended as follows: (1) Section 510 is redesignated as section 506. (2) Strike out "1967'' each place it appears and substitute in each such place "1968". (k) Section 511, which relates to restrictions on military aid to Latin America, is amended as follows: (1) Section 511 is redesignated as section 507. (2) I n subsection (a), strike out "section 507" and substitute "chapter 3 "; and strike out the colon and the proviso. (1) Section 505(b), which relates to utilization of assistance, is redesignated as subsection (c) of such new section 507. (m) Section 512 which relates to restrictions on military aid to Africa, is amended as follows: (1) Section 512 is redesignated as section 508. (2) Strike out "shall be furnished on a grant basis" in the first sentence and substitute "or sales shall be furnished under this Act". (3) Strike out "The value of grant programs of defense articles" in the second sentence and substitute "The total value of military assistance and sales". (4) Strike out "other than section 507" in the second sentence. (5) Strike out "$25,000,000" and substitute ''$40,000,000". (n) Section 513, which relates to the certification of recipient's capability, IS amended as follows: (1) Section 513 is redesignated as section 509. (2) I n subsection (a), strike out "section 507" and substitute "chapter3". (0) Section 514, which relates to administration of sales and exchange programs involving defense articles and services, is amended as follows: (1) Section 514 is redesignated as section 521. (2) Insert the following new chapter heading before such new section 521:

457

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"CHAPTER 3—FOREIGN MILITARY SALES".

(3) I n the section caption strike out "AND EXCHANGE". (4) I n subsection (a), strike out "or exchange". (5) At the end of subsection (a), add the following: "It is the purpose of this chapter to authorize measures consonant with that objective to enable allied and other friendly foreign countries, having sufficient wealth to develop and maintain their defense capacities without undue burden to their economies, to acquire defense articles and defense services on a reimbursable basis. In carrying out this chapter, special emphasis shall be placed on procurement in the United States, but consideration shall also be given to co-production or licensed production outside the United States of defense articles of United States

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