Foreign Assistance Act of 1973

Summary

Foreign Military Sales and Assistance Act - Part I: General Provisions - Assigns to the Secretary of State the responsibility for direction and continuous supervision of operations carried out under this Act. States that the Secretary shall be responsible, among other things, for determining whether sales shall be made or assistance provided to a country under the Act and the amount of the sale or assistance. Directs the President to prescribe procedures to assure effective direction and control by the Chief of the U.S. Diplomatic Mission in each country concerning all activities and programs within that country carried out under the new Act. Provides the Chief shall be responsible for submission of all recommendations pertaining to programs under the Act. Defines terms used in the Act. States that notwithstanding any provision of law enacted before the effective date of this Act, no money appropriated to carry out any provision or part II or part III of this Act shall be available for obligation or expenditure unless the appropriation thereof has been previously authorized by law; or in excess of an amount previously prescribed by law. Requires that after June 30, 1973, any military or supporting assistance or military sales to Laos or South Vietnam must be made pursuant to the authority of this Act. States conditions of eligibility which foreign countries must agree to before any defense articles can be provided. Requires the President to refuse a request for a transfer to another country of a defense article of U.S. origin unless under current U.S. policy the article would be provided by the United States. Requires the President to give prior notice to the Speaker of the House and the Senate Committee on Foreign Relations of his intention to consent to a request for transfer of material of U.S. origin to a third country and to provide appropriate details of the arrangement. Part II: Military Sales, Credit Sales, and Guaranties - Authorizes the President to sell defense articles from the stocks of the Department of Defense and defense services of the Department of Defense to any foreign country or international organization agrees to pay not less than the value thereof in United States dollars. States that payment is to be made in advance or, as determined by the President to be in the best interests of the United States, within a reasonable period not to exceed one hundred and twenty days after the delivery of the defense articles or the rendering of the defense services. Authorizes the U.S. government to finance the sale of defense articles and defense services to less developed countries and international organizations through direct credit arrangements. Establishes a maximum repayment period of ten years after delivery, the maximum allowed under existing law. Requires that the interest rate charged on the unpaid balance be not less than the rate charged by the Export-Import Bank for loans of comparable maturity to finance procurement of military materials or services, or the current rate for long term Treasury borrowings, whichever is greater. Continues the authority for the President to guarranty commercial loans to foreign countries for purchase of defense articles or defense services. Authorizes the appropriation to the Secretary of State in fiscal year 1974 of $200,000,000 to finance sales and guaranties under the Act. Establishes a ceiling for fiscal year 1974 of $700,000,000 on the aggregate total of credits, or participations in credits the face amount of guaranties issued under provisions of this Act, and the amount of assistance extended by the Export-Import Bank on military sales to less developed countries. Establishes an annual ceiling of $150,000,000 on the amount of U.S. government military assistance grants, credit sales, guaranties of credits, and the value of vessels or boats that can be provided to the Nations of Latin America, excluding grants for training. Part III: Military Assistance - Provides the authority for the President to furnish military grant assistance to foreign countries from July 1, 1973 to June 30, 1975. Requires the President to phase-out the grant military assistance program so that by not later than June 30, 1975, no additional grant-assistance shall be provided. Authorizes the appropriation to the Secretary of State of $250,000,000 for fiscal year 1974. Directs the Secretary to distribute this appropriation to specified countries. Provides that any foreign country which uses defense articles or defense services furnished to that country under this Act, the Mutual Security Act or any predecessor foreign assistance Act, in substantial violation of the provisions of this chapter or any agreements entered into under any of such Acts shall be ineligible for further assistance. Sets forth conditions to which a military grant recipient shall agree. Requires that the record showing the name of any foreign country or international organization and the amount of military assistance to be provided, or that has been provided, by the United States to such country or organization for any fiscal year under this or any other law shall be made available to the public. Authorizes the President to furnish military training to any foreign country or international organization. Authorizes the appropriation of $25,000,000 for fiscal year 1974 for foreign military training purposes. Restricts the number of foreign military students to be trained in the United States in any fiscal year to not more than the number of foreign civilians brought to the United States under the Mutual Educational and Cultural Exchange Act of 1961 in the preceding fiscal year. Requires that on and after July 1, 1975, no military assistance advisory group, military mission, or other organization of the United States Government in a foreign country shall be established or continued unless the group, mission, or organization is authorized by law specifically for that country and the country agrees to pay the entire costs for the operation of the group or mission. Authorizes the appropriation to the Secretary of State of $80,000,000 for fiscal year 1974 for supporting assistance to be distributed to specified countries. Part IV: Miscellaneous Provisions - Prohibits the sale, loan, lease, or other transfer of any vessel or boat of the United States Government (including, but not limited to, any battleship, aircraft carrier, cruiser, destroyer, or submarine) to a foreign country or international organization except under the provisions of this Act. Requires that no funds appropriated under the Act shall be available after the expiration of a 35-day period which begins on the date the General Accounting Office or a committee of the Congress charged with considering legislation, appropriations or expenditures under this Act has delivered to the office of the head of any agency carrying out that provision a written request that it be furnished any document or other material in its custody or control relating to programs under the Act until there has been furnished to the Committee or the General Accounting Office the document or other material so requested. Requires a comprehensive annual report on foreign assistance and related transactions. Sets forth what is to be contained in such report. Provides that 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 International Development Act, or the Foreign Assistance and Related Programs Appropriations Act for each fiscal year, the finding or determination shall be reduced to writing and signed by the President. Provides for technical conforming amendments in existing law.

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3 official files

• Public Law (PDF)

  Public Law · EN · 18 December 1973

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• Public Law

  summary · EN · 17 December 1973

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• Introduced in Senate

  summary · EN · 3 April 1973

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