Page:United States Statutes at Large Volume 96 Part 2.djvu/600

 96 STAT. 1962

PUBLIC LAW 97-392—DEC. 29, 1982

Public Law 97-392 97th Congress An Act Dec. 29, 1982 [H.R. 6758] Arms Export Control Act, amendment.

To authorize the sale of defense articles to United States companies for incorporation into end items to be sold to friendly foreign countries.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Arms Export Control Act is amended by inserting after chapter 2A the following new chapter: "Chapter 2B.—SALES TO UNITED STATES COMPANIES FOR INCORPORATION INTO END ITEMS

22 USC 2770.

22 USC 2778.

"Defense articles," and "defense services." 22 USC 2794.

30. GENERAL AUTHORITY.—(a) Subject to the conditions specified in subsection (b) of this section, the President may, on a negotiated contract basis, under cash terms (1) sell defense articles at not less than their estimated replacement cost (or actual cost in the case of services), or (2) procure or manufacture and sell defense articles at not less than their contract or manufacturing cost to the United States Government, to any United States company for incorporation into end items (and for concurrent or follow-on support) to be sold by such a company on a direct commercial basis to a friendly foreign country or international organization pursuant to an export license or approval under section 38 of this Act. The President may also sell defense services in support of such sales of defense articles, subject to the requirements of this chapter: Provided, however. That such services may be performed only in the United States. The amount of reimbursement received from such sales shall be credited to the current applicable appropriation, fund, or account of the selling agency of the United States Government. "(b) Defense articles and defense services may be sold, procured and sold, or manufactured and sold, pursuant to subsection (a) of this section only if (1) the end item to which the articles apply is to be procured for the armed forces of a friendly country or international organization, (2) the articles would be supplied to the prime contractor as government-furnished equipment or materials if the end item were being procured for the use of the United States Armed Forces, and (3) the articles and services are available only from United States Government sources or are not available to the prime contractor directly from United States commercial sources at such times as may be required to meet the prime contractor's delivery schedule. "(c) For the purpose of this section, the terms 'defense articles' and 'defense services' mean defense articles and defense services as defined in sections 47(3) and 47(4) of this Act.". "SEC.

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