Page:United States Statutes at Large Volume 87.djvu/753

 87 STAT. ]

PUBLIC LAW 93-189-DEC. 17, 1973

available to carry out this chapter and based on the depreciated value of the article at the time of loss or destruction. "(c)(1) I n the case of any loan of a defense article or defense service made under this section, there shall be a charge to the appropriation for military assistance for any fiscal year while the article or service is on loan in an amount based on— " (A) the out-of-pocket expenses authorized to be incurred in connection with such loan during such fiscal year; and " (B) the depreciation which occurs during such year while such article is on loan. "(2) The provisions of this subsection shall not apply— " (A) to any particular defense article or defense service which the United States Government agreed, prior to the date of enactment of this subsection, to lend; and " (B) to any defense article or defense service, or portion thereof, acquired with funds appropriated for military assistance under this Act." (2) In section 504(a)— (A) strike out "$500,000,000 for the fiscal year 1972" and insert in lieu thereof "$512,500,000 for the fiscal year 1974"; and (B) strike out "forty countries" and insert in lieu thereof "thirty-one countries". (3) Section 505 is amended by adding the following new subsections at the end thereof: "(e) In considering a request for approval of any transfer of any weapon, weapons system, munitions, aircraft, military boat, military vessel, or other implement of war to another country, the President shall not give his consent under subsection (a)(1) or (a)(4) to the transfer unless the United States itself would transfer the defense article under consideration to that country, and prior to the date he intends to give his consent to the transfer, the President notifies the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate in writing of each such intended consent. the justification for giving such consent, the defense article for which he intends to give his consent to be so transferred, and the foreign country to which that defense article is to be transferred. In addition, the President shall not give his consent under subsection (a)(1) or (a)(4) to the transfer of any significant defense articles on the United States Munitions List unless the foreign country requesting consent to transfer agrees to demilitarize such defense articles prior to transfer, or the proposed recipient foreign country provides a commitment in writing to the United States Government that it will not transfer such defense articles, if not demilitarized, to any other foreign country or person without first obtaining the consent of the President. "(f) Effective July 1, 1974, no defense article shall be furnished to any country on a grant basis unless such country shall have agreed that the net proceeds of sale received by such countrv in disposing of any weapon, weapons system, munition, aircraft, military boat, military vessel, or other implement of war received under this chapter will be paid to the United States Government and shall be available to pay all official costs of the United States Government payable in the currency of that country, including all costs relating to the financing of international educational and cultural exchange activities in which that country participates under the programs authorized by the Mutual Educational and Cultural Exchange Act of 1961." (4) In section 506(a)— (A) strike out "the fiscal year 1972" in each place it appears and insert in lieu thereof "the fiscal year 1974"; _ (B) strike out "vital to the security" and insert in lieu thereof "in the security interests"; and

22-150 O - 75 - 48

721

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