(1) with respect to an excess defense article, the actual value of the article plus the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying the article, except that for purposes of section 632(d) such actual value shall not be taken into account;

(2) with respect to a nonexcess defense article delivered from inventory to foreign countries or international organizations under this Act, the acquisition cost to the United States Government, adjusted as appropriate for condition and market value;

(3) with respect to a nonexcess defense article delivered from new procurement to foreign countries or international organizations under this Act, the contract or production costs of such article;

(4) with respect to a defense service, the cost to the United States Government of such service; and

(5) 1163 with respect to military education and training or services provided under chapter 8 of part II of this Act, the additional costs that are incurred by the United States Government in furnishing such assistance.

(n) 1164 "Military education and training" includes formal or informal instruction of foreign students in the United States or overseas by officers or employees of the United States, contract technicians, contractors (including instruction at civilian institutions), or by correspondence courses, technical, educational, or information publications and media of all kinds, training aids, orientation, and military advice to foreign military units and forces.

(0) 1165 "Agriculture" includes aquaculture and fisheries.

(p) 1165 "Farmers" includes fishermen and other persons employed in cultivating and harvesting food resources from salt and fresh waters.

"(m) 'Value' means, other than in section 657 of this Act

"(1) with respect to excess defense articles, the gross cost incurred by the United States Government in repairing, rehabilitating, or modifying such articles;

"(2) with respect to nonexcess defense articles delivered from inventory to countries or international organizations under this Act, the standard price in effect at the time such articles are dropped from inventory by the supplying agency. Such standard price shall be the same price (including authorized reduced prices) used for transfers or sales of such articles in or between the Armed Forces of the United States Government, or, where such articles are not transferred or sold in or between the Armed Forces of the United States, the gross cost to the United States Government adjusted as appropriate for condition and market value; and

"(3) with respect to nonexcess defense articles delivered from new procurement to countries or international organizations under this Act, the contract or production costs of such articles. "Military assistance programs and orders shall be based upon the best estimates of stock status and prevailing prices: reimbursements to the supplying agency shall be made on the basis of the stock status and prices determined pursuant to this section. Notwithstanding the foregoing provisions of this section, the Secretary of Defense may prescribe regulations authorizing reimbursements to the supplying agency based on negotiated prices for aircraft, vessels, plant equipment and such other major items as he may specify: Provided, That such articles are not excess at the time such prices are negotiated: Provided further, That such prices are negotiated at the time firm orders are placed with the supplying agency.".

1163 Sec. 115(b)(1) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3140) added para. (5). The International Security and Development Assistance Authorizations Act of 1983 (sec. 101(b)(2) of the Further Continuing Appropriations, 1984; Public Law 98-151; 97 Stat. 972) added the reference to chapter 8 of part II. Pursuant to Public Law 98-151, this amendment was enacted as contained in title II of H.R. 2992, as reported by the House Committee on Foreign Affairs on May 17, 1983.

1164 Sec. 106(b) of the International Security Assistance and Arms Export Control Act of 1976 (Public Law 94-329; 90 Stat. 733) added subsec. (n).

1165 Sec. 103(b) of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 945) added subsecs. (o) and (p).

(q) 1166 "Major non-NATO ally" means a country which is designated in accordance with section 517 as a major non-NATO ally for purposes of this Act and the Arms Export Control Act (22 U.S.C. 2751 et seq.).

Sec. 645.1167 Unexpended Balances.-Unexpended balances of funds made available pursuant to this Act, the Mutual Security Act of 1954, as amended, or the Latin American Development Act, as amended 1168 are hereby authorized to be continued available for the general purposes for which appropriated, and may at any time be consolidated, and, in addition, may be consolidated with appropriations made available for the same general purposes under the authority of this Act.

Sec. 646.1169 Construction.-If any provision of this Act, or the application of any provision to any circumstances or persons shall be held invalid, the validity of the remainder of this Act, and of the applicability of such provision to other circumstances or persons shall not be affected thereby.

Sec. 647.1170 Dependable Fuel Supply.-It is of paramount importance that long-range economic plans take cognizance of the need for a dependable supply of fuels, which is necessary to orderly and stable development and growth, and that dependence not be placed upon sources which are inherently hostile to free countries. and the ultimate well-being of economically underdeveloped countries and which might exploit such dependence for ultimate political domination. The agencies of government in the United States are directed to work with other countries in developing plans for basing development programs on the use of the large and stable supply of relatively low cost fuels available in the free world.

Sec. 648.1171 Special Authorization for Use of Foreign Currencies.-Subject to the provisions of section 1415 of the Supplemental Appropriation Act, 1953,1172 the President is authorized, as a demonstration of good will on the part of the people of the United States for the Polish and Italian people, to use foreign currencies accruing to the United States Government under this or any other Act, for assistance on such terms and conditions as he may specify, in the repair, rehabilitation, improvement, and maintenance of cemeteries in Italy serving as the burial place of members of the armed forces of Poland who died in combat in Italy during World War II.

Sec. 649.1173 Limitation on Aggregate Authorization for Use in Fiscal Year 1966. * * ** [Repealed-1978]

1166 Sec. 147(a)(2) of Public Law 104-164 (110 Stat. 1435) added subsec. (q).

1167 22 U.S.C. 2404. Sec. 304 of the FA Act of 1963 (Public Law 88-205) amended sec. 645, which formerly read as follows: "Unexpended balances of funds made available pursuant to this Act or the Mutual Security Act of 1954, as amended, are hereby authorized to be continued available for the general purposes for which appropriated, and may at any time be consolidated, and, in addition, may be consolidated with appropriations made available for the same general purposes under the authority of this Act.".

1166 Sec. 303(c) of the FA Act of 1965 (Public Law 89-171) struck out "Public Law 86-735" and inserted in lieu thereof "the Latin American Development Act, as amended".

1166 22 U.S.C. 2405.

1170 22 U.S.C. 2406.

1171 22 U.S.C. 2407. Added by sec. 303 of the FA Act of 1964 (Public Law 88-633).

1172 See 31 U.S.C. 1306.

1173 Sec. 649, added by the FA Act of 1965 (Public law 89-171), was repealed by sec. 604 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat.

Sec. 650,1174 Use of United States Armed Forces.-The furnishing of economic, military, or other assistance under this Act shall not be construed as creating a new commitment or as affecting any existing commitment to use Armed Forces of the United States for the defense of any foreign country.

Sec. 651.1175 Sale of Supersonic Planes to Israel. *** [Repealed-1978]

Sec. 652.1176 Limitation Upon Exercise of Special Authorities.-The President shall not exercise any special authority granted to him under section 506(a), 552(c)(2), 1177 or 610(a) 1178 of this Act unless the President, before 1179 he intends to exercise any such authority, notifies the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate in writing of each such intended exercise, the section of this Act under which such authority is to be exercised, and the justification for, and the extent of, the exercise of such authority.

Sec. 653.1180 Change in Allocation of Foreign Assistance.— (a) 1181 Not later than thirty days after the enactment of any law appropriating funds to carry out any provision of this Act (other than section 451 or 637) or the Arms Export Control Act, 1182 the President shall notify the Congress of each foreign country and international organization to which the United States Government intends to provide any portion of the funds under such law and of

1174 22 U.S.C. 2409. Added by sec. 302(b) of the FA Act of 1967 (Public Law 90-137). 1175 Sec. 651, added by the FA Act of 1968 (Public Law 90-554), was repealed by sec. 604 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 961).

1176 22 U.S.C. 2411. Added by sec. 8 of the Special Foreign Assistance Act of 1971 (Public Law 91-652); amended by sec. 304(a)(1) of the FA Act of 1971 (Public Law 92-226). Sec. 652 formerly read as follows:

"Sec. 652. Limitation Upon Additional Assistance to Cambodia. -The President shall not exercise any special authority granted to him under sections 506(a) and 614(a) of this Act for the purpose of providing additional assistance to Cambodia, unless the President, at least thirty days prior to the date he intends to exercise any such authority on behalf of Cambodia (or ten days prior to such date if the President certifies in writing that an emergency exists requiring immediate assistance to Cambodia), notifies the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate in writing of each such intended exercise, the section of this Act under which such authority is to be exercised, and the justification for, and the extent of, the exercise of such authority.".

1177 Sec. 105(b)(2) of Public Law 99-83 (99 Stat. 196) inserted “552(c)(2)”.

1178 Sec. 117(b) of the International Security and Development Cooperation Act of 1980 (Public Law 96-533; 94 Stat. 3141) struck out “or 614(a)" at this point.

1179 Sec. 103(c) of Public Law 104-164 (110 Stat. 1424) struck out "prior to the date" and inserted in lieu thereof "before".

1180 22 U.S.C. 2413. Added by sec. 304(b) of the FA Act of 1971 (Public Law 92–226). 1181 The Foreign Operations, Export Financing, and Related Programs Appropriations Act, 2005 (division D of Public Law 108-447; 118 Stat. 2809), provided the following:

“DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

"SEC. 521. For the purpose of this Act 'program, project, and activity' shall be defined at the appropriations Act account level and shall include all appropriations and authorizations Acts earmarks, ceilings, and limitations with the exception that for the following accounts: Economic Support Fund and Foreign Military Financing Program 'program, project, and activity' shall also be considered to include country, regional, and central program level funding within each such account; for the development assistance accounts of the United States Agency for International Development 'program, project, and activity' shall also be considered to include central, country, regional, and program level funding, either as: (1) justified to the Congress; or (2) allocated by the executive branch in accordance with a report, to be provided to the Committees on Appropriations within 30 days of the enactment of this Act, as required by section 653(a) of the Foreign Assistance Act of 1961.".

1182 Sec. 1209(b)(1) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 279) added "or the Arms Export Control Act".

the amount of funds under that law, by category of assistance, that the United States Government intends to provide to each.1183

(b) 1184 The provisions of this section shall not apply in the case of any law making continuing appropriations and may not be waived under the provisions of section 614(a) of this Act.

Sec. 654.1185 Presidential Findings and Determinations. (a) In any case in which the President is required to make a report to the Congress, or to any committee or officer of either House of Congress, concerning any finding or determination under any provision of this Act, the Foreign Military Sales Act, or the Foreign Assistance and Related Programs Appropriation Act for each fiscal year, that finding or determination shall be reduced to writing and signed by the President.

(b) No action shall be taken pursuant to any such finding or determination prior to the date on which that finding or determination has been reduced to writing and signed by the President.

(c) Each such finding or determination shall be published in the Federal Register as soon as practicable after it has been reduced to writing and signed by the President. In any case in which the President concludes that such publication would be harmful to the national security of the United States, only a statement that a determination or finding has been made by the President, including the name and section of the Act under which it was made, shall be published.

(a) No committee or officer of either House of Congress shall be denied any requested information relating to any finding or determination which the President is required to report to the Congress, or to any committee or officer of either House of Congress, under any provision of this Act, the Foreign Military Sales Act, or the

1183 Sec. 21(1) of the FA Act of 1974 (Public Law 93-559) struck out "Notwithstanding any other provision of law the United States Government shall not provide to any foreign country or international organization any funds under that law which exceeds by 10 per centum the amount of military grant assistance or security supporting assistance, as the case may be, which the President notified the Congress that the United States Government intended to provide that country or organization under that law, unless the President (1) determines that it is in the security interests of the United States that such country or organization receive funds in excess of the amount included in such notification for that country or organization, and (2) reports to Congress at least ten days prior to the date on which such excess funds are to be provided to that country or organization, each such determination, including the name of the country or organization to receive funds in excess of such per centum, the amount of funds in excess of that per centum which are to be provided, and the justification for providing the additional assistance.".

1184 Sec. 1209(b)(3) of the International Security and Development Cooperation Act of 1985 (Public Law 99-83; 99 Stat. 279) redesignated this former subsec. (c) as subsec. (b), and struck out the former subsec. (b), which read as follows:

"(b) Notwithstanding any other provision of law, no military grant assistance, assistance under chapter 4 of part II of this Act, assistance under chapter 1 of part I of this Act, or assistance under chapter 6 of part II of this Act, may be furnished to any country or international organization in any fiscal year, if such assistance exceeds by 10 percent or more the amount of such military grant assistance, under chapter 4 of part II of this Act, assistance under chapter 1 of part I of this Act, or assistance under chapter 6 of part II of this Act, as the case may be, set forth in the report required by subsection (a) of this section, unless

"(1) the President reports to the Congress, at least ten days prior to the date on which such excess funds are provided, the country or organization to be provided the excess funds, the amount and category of the excess funds, and the justification for providing the excess funds; and

"(2) in the case of military grant assistance or assistance under chapter 4 of part II of this Act or assistance under chapter 6 of part II, the President includes in the report under paragraph (1) his determination that it is in the security interest of the United States to provide the excess funds.

This subsection shall not apply if the excess funds provided in any fiscal year to any country or international organization for any category of assistance are less than $1,000,000.".

1185 22 U.S.C. 2414. Sec. 304(b) of the FA Act of 1971 (Public Law 92-226) added sec. 654.

Foreign Assistance and Related Programs Appropriation Act for each fiscal year, even though such report has not yet been transmitted to the appropriate committee or officer of either House of Congress.

SEC. 655.1186 ANNUAL MILITARY ASSISTANCE REPORT.

(a) REPORT REQUIRED.-Not later than February 1 of each year, the President shall transmit to the Congress an annual report for the fiscal year ending the previous September 30.

(b) 1187 INFORMATION RELATING TO MILITARY ASSISTANCE AND MILITARY EXPORTS.-Each such report shall show the aggregate dollar value and quantity of defense articles (including excess defense articles), defense services, and international military education and training activities authorized by the United States and of such articles, services, and activities provided by the United States, excluding any activity that is reportable under title V of the National Security Act of 1947, to each foreign country and international organization. The report shall specify, by category, whether such defense articles

(1) were furnished by grant under chapter 2 or chapter 5 of part II of this Act or under any other authority of law or by sale under chapter 2 of the Arms Export Control Act;

(2) were furnished with the financial assistance of the United States Government, including through loans and guarantees; or

(3) were licensed for export under section 38 of the Arms Export Control Act and, if so, a specification of those defense articles that were exported during the fiscal year covered by the report,1188 including, in the case of defense articles that are firearms controlled under category I of the United States Munitions List, a statement of the aggregate dollar value and quantity of semiautomatic assault weapons, or spare parts for such weapons, the manufacture, transfer, or possession of which is unlawful under section 922 of title 18, United States

1186 22 U.S.C. 2415. Sec. 1324(c) of the National Defense Authorization Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 481) added a new sec. 655, requiring an annual report on military assistance, military exports, and military imports for each of 1996 and 1997. Sec. 148 of Public Law 104-164 (110 Stat. 1435) amended and restated sec. 655, requiring a report in each fiscal year.

An earlier sec. 655-Limitations Upon Assistance to or for Cambodia-was added by the FA Act of 1971, and was repealed by sec. 604 of the International Development and Food Assistance Act of 1978 (Public Law 95-424; 92 Stat. 961).

1187 Sec. 1306(a) of the Arms Control, Nonproliferation, and Security Assistance Act of 1999 (division B of the Admiral James W. Nance and Meg Donovan Foreign Relations Authorization Act, Fiscal Years 2000 and 2001 (H.R. 3427, enacted by reference in sec. 1000(a)(7) of Public Law 106-113; 113 Stat. 1536), amended and restated subsec. (b), which formerly read as follows: "(b) INFORMATION RELATING TO MILITARY ASSISTANCE AND MILITARY EXPORTS.-Each such report shall show the aggregate dollar value and quantity of defense articles (including excess defense articles), defense services, and international military education and training authorized by the United States, excluding that which is pursuant to activities reportable under title V of the National Security Act of 1947, to each foreign country and international organization. The report shall specify, by category, whether such defense articles

"(1) were furnished by grant under chapter 2 or chapter 5 of part II of this Act or under any other authority of law or by sale under chapter 2 of the Arms Export Control Act; or "(2) were licensed for export under section 38 of the Arms Export Control Act.”.

1188 Sec. 702 of the Security Assistance Act of 2000 (Public Law 106-280; 114 Stat. 861) added "and, if so, a specification of those defense articles that were exported during the fiscal year covered by the report".