22 U.S.C. § 2765 | Annual estimate and justification for sales program

(a)

Report to Congress; contents

1 See References in Text note below.

Except as provided in subsection (d)  of this section, no later than February 1 of each year, the President shall transmit to the appropriate congressional committees, as a part of the annual presentation materials for security assistance programs proposed for the next fiscal year, a report which sets forth—

(1)

section 2778(j)(1)(C)(i) of this title an arms sales proposal covering all sales and licensed commercial exports under this chapter, as well as exports pursuant to a treaty referred to in , of major weapons or weapons-related defense equipment for $7,000,000 or more, or of any other weapons or weapons-related defense equipment for $25,000,000 or more, which are considered eligible for approval during the current calendar year, together with an indication of which sales and licensed commercial exports are deemed most likely actually to result in the issuance of a letter of offer or of an export license during such year;

(2)

section 2778(j)(1)(C)(i) of this title an estimate of the total amount of sales and licensed commercial exports, as well as exports pursuant to a treaty referred to in , expected to be made to each foreign nation from the United States;

(3)

the United States national security considerations involved in expected sales or licensed commercial exports to each country, an analysis of the relationship between anticipated sales to each country and arms control efforts concerning such country and an analysis of the impact of such anticipated sales on the stability of the region that includes such country;

(4)

an estimate with regard to the international volume of arms traffic to and from nations purchasing arms as set forth in paragraphs (1) and (2) of this subsection, together with best estimates of the sale and delivery of weapons and weapons-related defense equipment by all major arms suppliers to all major recipient countries during the preceding fiscal year;

(5)

(A)

an estimate of the aggregate dollar value and quantity of defense articles and defense services, military education and training, grant military assistance, and credits and guarantees, to be furnished by the United States to each foreign country and international organization in the next fiscal year; and

(B)

¹ for each country that is proposed to be furnished credits or guaranties under this chapter in the next fiscal year and that has been approved for cash flow financing (as defined in subsection (d)  of this section) in excess of $100,000,000 as of October 1 of the current fiscal year—

(i)

the amount of such approved cash flow financing,

(ii)

a description of administrative ceilings and controls applied, and

(iii)

a description of the financial resources otherwise available to such country to pay such approved cash flow financing;

(6)

section 2792(b) of this title section 2761(a) of this title an analysis and description of the services performed during the preceding fiscal year by officers and employees of the United States Government carrying out functions on a full-time basis under this chapter for which reimbursement is provided under or , including the number of personnel involved in performing such services;

(7)

section 2764(c) of this title section 2764 of this title 22 U.S.C. 2394(a)(5) the total amount of funds in the reserve under at the end of the fiscal year immediately preceding the fiscal year in which a report under this section is made, together with an assessment of the adequacy of such total amount of funds as a reserve for the payment of claims under guarantees issued pursuant to in view of the current debt servicing capacity of borrowing countries, as reported to the Congress pursuant to section 634(a)(5) of the Foreign Assistance Act of 1961 [];

(8)

section 2753(a)(1) of this title a list of all countries with respect to which findings made by the President pursuant to are in effect on the date of such transmission;

(9)

the progress made under the program of the Republic of Korea to modernize its armed forces, the role of the United States in mutual security efforts in the Republic of Korea and the military balance between the People’s Republic of Korea and the Republic of Korea;

(10)

the amount and nature of Soviet military assistance to the armed forces of Cuba during the preceding fiscal year and the military capabilities of those armed forces;

(11)

22 U.S.C. 2151 the status of each loan and each contract of guaranty or insurance theretofore made under the Foreign Assistance Act of 1961 [ et seq.], predecessor Acts, or any Act authorizing international security assistance, with respect to which there remains outstanding any unpaid obligation or potential liability; the status of each extension of credit for the procurement of defense articles or defense services, and of each contract of guaranty in connection with any such procurement, theretofore made under this chapter with respect to which there remains outstanding any unpaid obligation or potential liability;

(12)

(A)

a detailed accounting of all articles, services, credits, guarantees, or any other form of assistance furnished by the United States to each country and international organization, including payments to the United Nations, during the preceding fiscal year for the detection and clearance of landmines, including activities relating to the furnishing of education, training, and technical assistance for the detection and clearance of landmines; and

(B)

for each provision of law making funds available or authorizing appropriations for demining activities described in subparagraph (A), an analysis and description of the objectives and activities undertaken during the preceding fiscal year, including the number of personnel involved in performing such activities;

(13)

section 2794(9) of this title a list of weapons systems that are significant military equipment (as defined in ), and numbers thereof, that are believed likely to become available for transfer as excess defense articles during the next 12 months; and

(14)

such other information as the President may deem necessary.

(b)

Congressional request for additional information

Not later than thirty days following the receipt of a request made by any of the congressional committees described in subsection (e) for additional information with respect to any information submitted pursuant to subsection (a), the President shall submit such information to such committee.

(c)

Submission of information in unclassified form or classified addendum with unclassified summary

The President shall make every effort to submit all of the information required by subsection (a) or (b) wholly in unclassified form. Whenever the President submits any such information in classified form, he shall submit such classified information in an addendum and shall also submit simultaneously a detailed summary, in unclassified form, of such classified information.

(d)

2
2 So in original. Two subsecs. (d) have been enacted.
  “Cash flow financing” defined

22 U.S.C. 2311(a)(3)3

3 So in original. The semicolon probably should be a period.

For the purposes of subsection (a)(5)(B) of this section, the term “cash flow financing” means the dollar amount of the difference between the total estimated price of a Letter of Offer and Acceptance or other purchase agreement that has been approved for financing under this chapter or under section 503(a)(3) of the Foreign Assistance Act of 1961 [] and the amount of the financing that has been approved therefor; 

(d)

²  Transmission of information to Congress

The information required by subsection (a)(4) of this section shall be transmitted to the Congress no later than April 1 of each year.

(e)

“Appropriate congressional committees” defined

As used in this section, the term “appropriate congressional committees” means the Committee on Foreign Relations and the Committee on Appropriations of the Senate and the Committee on Foreign Affairs and the Committee on Appropriations of the House of Representatives.

Pub. L. 90–629 Pub. L. 94–329, title II, § 209(a)June 30, 197690 Stat. 739 Pub. L. 95–384, § 18Sept. 26, 197892 Stat. 740 Pub. L. 96–92Oct. 29, 197993 Stat. 706 Pub. L. 96–533, title IDec. 16, 198094 Stat. 3133 Pub. L. 97–113, title VII, § 732Dec. 29, 198195 Stat. 1557 Pub. L. 99–83, title IAug. 8, 198599 Stat. 198 Pub. L. 104–164, title I, § 102(d)July 21, 1996110 Stat. 1423 Pub. L. 105–118, title V, § 519Nov. 26, 1997111 Stat. 2411 Pub. L. 107–228, div. B, title XII, § 1232Sept. 30, 2002116 Stat. 1433 Pub. L. 111–266, title I, § 104(c)Oct. 8, 2010124 Stat. 2799 Pub. L. 113–276, title II, § 208(a)(3)Dec. 18, 2014128 Stat. 2993(, ch. 2, § 25, as added , , ; amended , , ; , §§ 13, 14, , ; , §§ 104(c), 107(d), , , 3137; , , ; , §§ 112, 113, , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

section 113(2) of Pub. L. 99–83Subsection (d) of this section, referred to in subsec. (a), preceding par. (1), probably means the subsec. (d) added by , relating to transmittal of information to Congress.

Pub. L. 90–629Oct. 22, 196882 Stat. 1321 section 2751 of this titleThis chapter, referred to in subsecs. (a)(1), (5)(B), (6) and (d), was in the original “this Act”, and this chapter, referred to in subsec. (a)(11), was in the original “the Arms Export Control Act”, both of which mean , , , which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

section 112(b) of Pub. L. 99–83Subsection (d) of this section, referred to in subsec. (a)(5)(B), probably means the subsec. (d) added by , defining cash flow financing.

Pub. L. 87–195Sept. 4, 196175 Stat. 424 section 2151 of this titleThe Foreign Assistance Act of 1961, referred to in subsec. (a)(11), is , , , which is classified principally to chapter 32 (§ 2151 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 113–2762014—Subsec. (e). substituted “Foreign Affairs” for “International Relations”.

Pub. L. 111–266, § 104(c)(1)section 2778(j)(1)(C)(i) of this title2010—Subsec. (a)(1). , inserted “, as well as exports pursuant to a treaty referred to in ,” after “commercial exports under this chapter”.

Pub. L. 111–266, § 104(c)(2)section 2778(j)(1)(C)(i) of this titleSubsec. (a)(2). , inserted “, as well as exports pursuant to a treaty referred to in ,” after “commercial exports”.

Pub. L. 107–2282002—Subsec. (a)(13), (14). added par. (13) and redesignated former par. (13) as (14).

Pub. L. 105–118, § 519(1)1997—Subsec. (a). , substituted “appropriate congressional committees” for “Congress” in introductory provisions.

Pub. L. 105–118, § 519(2)Subsec. (b). , substituted “any of the congressional committees described in subsection (e)” for “the Committee on Foreign Relations of the Senate or the Committee on Foreign Affairs of the House of Representatives”.

Pub. L. 105–118, § 519(3)Subsec. (e). , added subsec. (e).

Pub. L. 104–1641996—Subsec. (a)(12), (13). added par. (12) and redesignated former par. (12) as (13).

Pub. L. 99–83, § 113(1)1985—Subsec. (a). , substituted “Except as provided in subsection (d) of this section, no” for “No”.

Pub. L. 99–83, § 112(a)Subsec. (a)(5). , designated existing provisions as subpar. (A) and added subpar. (B).

Pub. L. 99–83, § 112(b)Subsec. (d). , added subsec. (d) defining “cash flow financing”.

Pub. L. 99–83, § 113(2), added subsec. (d) relating to transmittal of information to Congress.

Pub. L. 97–1131981—Subsec. (a). , in provision preceding par. (1), required transmission of the report no later than Feb. 1 of each year and substituted provision for annual presentation materials for programs proposed for next fiscal year for provision for presentation materials for programs proposed for each fiscal year.

Pub. L. 97–113Subsec. (a)(1). added par. (1) which incorporated provisions of former subsec. (d)(1) of this section. See subsec. (d) amendment note. Former par. (1) covered in par. (3).

Pub. L. 97–113Subsec. (a)(2). added par. (2). Former par. (2), which required the report to contain an estimate of amount of credits and guaranties expected to be extended to each country under sections 2763 and 2764 of this title, covered in par. (5).

Pub. L. 97–113Subsec. (a)(3). added par. (3) which incorporated provisions of former par. (1) requiring the report to contain an estimate of amounts of expected sales to each country under sections 2761 and 2762 of this title, including detailed explanations of foreign policy and United States national security considerations in expected sales to each country, and (5) requiring inclusion of an arms control impact statement for each purchasing country, covering (A) an analysis of the relationship between expected sales to each country and arms control efforts relating to that country, and (B) the impact of such expected sales on the stability of the region that included the purchasing country. Former par. (3) redesignated (7).

Pub. L. 97–113Subsec. (a)(4). added par. (4) which incorporated provisions of former subsec. (e), which had required executive estimates of international arms traffic, including estimates on an annual basis of the sale and delivery of weapons and weapons-related defense equipment by all major arms suppliers to all major recipient countries during the preceding three years. Former par. (4) covered in par. (8).

Pub. L. 97–113Subsec. (a)(5). added par. (5) which incorporated provisions of former par. (2) requiring the report to contain an estimate of amount of credits and guaranties expected to be extended to each country under sections 2763 and 2764 of this title. Former par. (5) covered in par. (3).

Pub. L. 97–113Subsec. (a)(6). added par. (6).

Pub. L. 97–113Subsec. (a)(7). redesignated former par. (3) as (7).

Pub. L. 97–113 section 2753(a)(1) of this titleSubsec. (a)(8). added par. (8), which incorporated provisions of former par. (4), requiring the report to contain a list of all findings in effect on date of its transmission made by the President pursuant to , together with a full and complete justification for each finding, explaining how sales to each country with respect to which findings were made would strengthen the security of the United States and promote world peace.

Pub. L. 97–113Subsecs. (a)(9) to (12). added pars. (9) to (12).

Pub. L. 97–113Subsec. (b). substituted “Committee on Foreign Affairs” for “Committee on International Relations”, and “with respect to any information” for “with respect to any estimate”.

Pub. L. 97–113Subsec. (c). substituted “Whenever the President” for “In the event the President”.

Pub. L. 97–113Subsec. (d). incorporated in subsec. (a) introductory text and subsec. (a)(1), provisions of former subsec. (d)(1) which had required transmission to the Speaker of the House and the chairman of the Senate Foreign Relations Committee the Arms Sales Proposal covering sales and licensed commercials exports under this chapter (other than such transactions to members of North Atlantic Treaty Organization, Japan, Australia, and New Zealand) of major weapons or weapons-related defense equipment for $7,000,000 or more, or of any other weapons or similar equipment for $25,000,000 or more, which were eligible for approval during fiscal year beginning October 1 of such year and had required identification in the reports of sales and licensed commercial exports deemed most likely actually to result in issuance of a letter of offer or of an export license during such fiscal year, and subsec. (d)(2) which had required Presidential six month written notifications of Congress of any change in the Arms Sales Proposal for such fiscal year, together with reasons therefor.

Pub. L. 97–113Subsec. (e). incorporated, in subsec. (a) introductory text and subsec. (a)(4), provisions of former subsec. (e) which had required transmission to Congress on or before Nov. 15 of each year executive estimates of international arms traffic, including estimates on an annual basis of the sale and delivery of weapons and weapons-related defense equipment by all major arms suppliers to all major recipient countries during the preceding three years.

Pub. L. 96–533, § 107(d)Subsec. (d)(1). , included coverage of licensed commercial exports and substituted “letter of offer or of an export license” for “letter of offer”.

Pub. L. 96–92, § 13(1)1979—Subsec. (d). –(4), designated existing provision as par. (1), substituted “major weapons or weapons-related defense equipment” for “major defense equipment” and “weapons or weapons-related defense equipment” for “defense articles or defense services”, required identification of sales likely to result in issuance of a letter of offer in the furnished reports, and added par. (2).

Pub. L. 96–92, § 14Subsec. (e). , added subsec. (e).

Pub. L. 95–384, § 18(b)1978—Subsec. (c). , substituted “subsection (a) or (b)” for “this section”.

Pub. L. 95–384, § 18(a)Subsec. (d). , added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 1985 Amendment

Pub. L. 99–83Oct. 1, 1985section 1301 of Pub. L. 99–83 section 2151–1 of this titleAmendment by effective , see , set out as a note under .

Executive Documents

Delegation of Functions

Mar. 8, 2013section 2751 of this title section 2751 of this titleFor delegation of functions of the President under this section, with certain conditions, see section 1(g) of Ex. Ord. No. 13637, , 78 F.R. 16129, set out as a note under . Functions were previously delegated by Ex. Ord. No. 11958, which was formerly set out as a note under and was revoked, subject to a savings provision, by section 4 of Ex. Ord. No. 13637.