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The original documents are located in Box 48, folder "6/30/76 HR12203 Foreign Assistance
and Related Programs Appropriation Act 1976 (1)" of the White House Records Office:
Legislation Case Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
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copyright claim, please contact the Gerald R. Ford Presidential Library.
Exact duplicates within this folder were not digitized.
APPROVED JUN30 1976
16/30/76
GERALD FORD LIBRARY
THE WHITE HOUSE
ACTION
WASHINGTON
June 30, 1976
Last Day: July 10
71,176
MEMORANDUM FOR
JIM CANNON
H.R. 13680 as International Security
THE PRESIDENT
FROM:
threwings
SUBJECT:
Assistance and Arms Export Control
Act of 1976
Attached for your consideration is H.R. 13680, sponsored
by Representative Morgan and twelve others.
The enrolled bill replaces the security assistance authorization
bill (S. 2662) that you vetoed on May 7, 1976, and includes
authorizations of appropriations for FY 77. It:
-- authorizes appropriations for security assistance and
certain other programs of $3,979.9 million for FY 76
and the transition quarter and $2,983.5 million for
FY 77, placing individual country limitations on the
use of certain funds;
-- provides authority to stockpile defense articles for
foreign military forces and drawdown Defense stocks to
meet emergency requests;
-- terminates the general authority for grant military
assistance and military assistance advisory groups
after fiscal year 1977;
-- expands the Congressional role in the foreign military
sales program;
A detailed discussion of the provisions of the enrolled bill
is provided in OMB's enrolled bill report at Tab A.
Digitized from Box 48 of the White House Records Office Legislation Case Files at the Gerald R. Ford Presidential Library
OMB, NSC, Phil Buchen, Bill Seidman, Max Friedersdorf and
I recommend approval of the enrolled bill and the proposed
signing statement which has been cleared by the White
House Editorial Office (Smith). *
RECOMMENDATION
That you sign H.R. 13680 at Tab B.
That you approve the signing statement at Tab C.
Approve ARY
Disapprove
M THE
PRESIDENT
EXECUTIVE OFFICE OF THE PRESIDENT
UNITED
OFFICE OF MANAGEMENT AND BUDGET
SECURITY
STATEMENT
STATE
WASHINGTON, D.C. 20503
JUN 29 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13680 - International
Security Assistance and Arms Export
Control Act of 1976
Sponsors - Rep. Morgan (D) Pennsylvania
and 12 others
Last Day for Action
July 10, 1976.
Purpose
This bill replaces the security assistance authoriza-
tion bill (S. 2662) that you vetoed on May 7, 1976,
and includes authorizations of appropriations for
fiscal year 1977. It: (a) authorizes appropriations
for security assistance and certain other programs
of $3,979.9 million for fiscal year 1976 and the
transition quarter and $2,983.5 million for fiscal
year 1977, placing individual country limitations
on the use of certain funds; (b) provides authority
to stockpile defense articles for foreign military
forces and drawdown Defense stocks to meet
emergency requests; (c) terminates the general
authority for grant military assistance and mili-
tary assistance advisory groups after fiscal year
1977; (d) expands the congressional role in the
foreign military sales program; and (e) contains
other significant policy revisions.
Agency Recommendations
Office of Management and Budget Approval
Department of State
Approval (Signing
Statement attached)
Department of Defense
Approval (Informally)
National Security Council
Approval
GERALD
?
2
Agency for International
Approval
Development
Department of the Treasury
Arms Control and Disarmament
No objection
Agency
Department of Commerce
No objection
Department of Justice
Defers to other
agencies
(Informally)
Relation to Vetoed Legislation
This bill addresses the objections that you
expressed in your veto message as follows:
(1) Congressional veto by concurrent
resolution has been deleted in five areas -- human
rights, export licenses, termination of security
assistance on eligibility grounds, termination for
countries affording sanctuary to international
terrorists, and third country transfers -- thus
overcoming the constitutional objections you
raised. The new bill provides for Congress to
adopt joint resolutions in three of those areas --
human rights, export licenses, and termination
of assistance on eligibility grounds -- and requires
Presidential reports to Congress in the remaining
two areas. The provision in existing law for
congressional veto by concurrent resolution of
foreign military sales of $25 million or more has
been retained and extended to cover sales of major
defense articles of $7 million or more.
(2) The provision for lifting the embargo on
trade with Vietnam for a limited period has been
deleted.
(3) The $9.0 billion annual ceiling on govern-
ment-to-government (FMS) and commercial arm sales
was removed. The new bill expresses the sense of
Congress that the President be invited to make
recommendations on the feasibility of enacting the
ceiling within one year.
(4) The requirement in the earlier bill for
automatic termination of assistance to countries
engaging in discrimination against U.S. nationals
FORD
GERALD
3
has been changed to a requirement that the
President investigate and report to Congress
Rept
specific aspects of any case of discrimination
which keeps U.S. persons from performing
assistance or licensed functions.
(5) The new bill retains the provision
mandating the termination of grant military
assistance programs (MAP) and military assistance
advisory groups (MAAGs) after fiscal year 1977
unless specifically authorized.
Discussion
Amounts Authorized to be Appropriated
The tables attached to this memorandum summarize
the amounts authorized for fiscal year 1976, the
transition quarter, and fiscal year 1977.
Authorizations of appropriations for the 15-month
period ending September 30, 1976 total $3,979.9
million. Of this amount, $1,875.0 million is
for Israel, and repayment will be forgiven on
one-half. Authorizations for all accounts for
fiscal year 1976 and the transition quarter
exceed the Administration's request by $389.2
GERALD FORD LIBRARY
million. The grant MAP and security supporting
assistance reductions in 1976 are more than
offset by the large increases in FMS credits and
security supporting assistance in the transition
quarter. These increases result from the provision
in the bill which authorizes transition quarter
appropriations of one-fourth the 1976 rate.
For fiscal year 1977, the bill authorizes
appropriations of $2,983.5 million of which
$1 billion is for Israel with similar forgive-
ness provisions. The authorization for 1977
is $131.2 million less than the Administration
requested. Funds were cut in the areas of grant
MAP, foreign military credit sales, and security
supporting assistance.
Special Authorities
The bill contains permanent authority for the
FORD a LIBRA
4
President to determine that there is an emergency
requirement for military assistance and to order
the use of Department of Defense stocks or
services of value up to $67.5 million in any
fiscal year to meet such an emergency. Obliga-
tions incurred are authorized to be liquidated
by future grant MAP appropriations, but the
entire authority is contingent on the inclusion
of language in annual appropriation acts making
the authority effective in the same amount.
The bill permits reinstitution of the stockpiling
program, suspended in December, 1974, under
which defense articles funded by the military
departments are held in U.S. inventories as
war reserves for foreign nations. The value of
additions to such stockpiles is limited to $93.75
million in 1976 and the transition quarter and
$125 million in 1977.
Termination of Grant MAP and MAAGs
Beginning with fiscal year 1978, the general
authority for grant MAP is terminated. Each
country program thereafter must be authorized
separately. Authority is provided until the end
of fiscal year 1980 for wind up costs of programs
existing before September 30, 1977.
During fiscal year 1977, the number of MAAGs and
similar military groups is limited to 34, a
reduction of 10 from current levels. In fiscal
year 1978, no MAAG or similar mission may
continue unless specifically authorized by
Congress. However, the President would be per-
mitted to assign no more than three military
personnel to the chief of a diplomatic mission
to perform MAAG functions. Military attaches are
specifically prohibited from performing such
functions.
International Military Education and Training
As requested by the Administration, the bill
establishes the military training program as a
program separate from grant MAP. No termination
date is established for this program.
5
Expanded Congressional Role in Foreign Military Sales
A. Restriction on commercial sales. The bill
requires that all sales of major defense equip-
ment of $25 million or more must be on a
government-to-government (FMS) basis except for
sales to NATO countries which can continue through
commercial channels. Major defense equipment is
defined as any item of significant combat
equipment having a non-recurring research and
development cost of more than $50 million or a
total estimated production cost of more than $200
million.
B. Congressional review and veto by concurrent
resolution. Under current law, all proposed
government-to-government (FMS) sales of defense
articles and services valued over $25 million must
be submitted to the Congress and the Congress may
forbid such sales by passage of a concurrent
resolution within 20 days. As noted above, this
bill extends the existing reporting requirement and
congressional veto to cover all proposed government-
to-government sales (FMS) of "major defense
equipment" of $7 million or more, and also
extends the waiting period for congressional
action to 30 calendar days. The President may
exempt a sale from congressional veto by certifying
Beft?
to Congress that an "emergency exists which
requires such sale in the national security
interests of the United States."
GERALD FORD LIBRART
C. Arms sales policy. The bill requires
the President to conduct a comprehensive study of
arms sales policy "in order to determine whether
such policies and practices should be changed."
Pupt.
A report to Congress is due in one year. In
addition, the bill expresses the sense of Congress
that the aggregate value of all foreign military
sales, FMS and commercial, should not exceed
current levels.
D. Sales affecting U.S. combat readiness. The
President is required to report to the Congress
any sale if in his judgment such sale "could have
a significant adverse effect on combat readiness
of the Armed Forces of the United States." " The
report would have to contain a "certification that
FORD in LIBRART QUAVID
6
such sale is important to the security of the
United States. "
E. Repayment period. The maximum repay-
ment period for foreign military credit sales is
extended from 10 years to 12 years except in the
case of Israel where a repayment period of "not
less than twenty years following a grace period
of ten years on repayment of principal" is man-
dated for fiscal years 1976 and 1977.
F. Deferred payment on cash sales from
stock. Current law permits the President to defer
payment on cash sales from Department of Defense
stocks by up to 120 days after delivery without
interest charge. This bill requires that
interest be charged on any net amount due on
such sales not paid within 60 days of delivery
unless the President determines that "the
emergency requirements of the purchaser exceed
the ready availability to the purchaser of funds,"
in which case he may defer payment for a total of
120 days.
G. Agent Fees. The bill mandates reports
to the Congress by the Secretary of State on
political contributions, gifts, commissions, and
FORD i LIBRARY GERALD
fees in connection with foreign military sales or
commercial sales licensed or approved under the
Act. It also requires the Secretary of State to
establish recordkeeping and reporting requirements
for such fees, authorizes the President to
establish regulations prohibiting or limiting
fees, and provides criminal penalties for private
individuals not complying with these regulations.
H. Reporting. (1) The bill requires the
President to transmit an annual report to Congress
estimating sales, credits, and guarantees including
RP
an arms control impact statement for each purchas-
ing country. This statement is required to address
the impact of sales on our arms control efforts
with that country and on the stability of the
region in which the country is located.
FORD is LIBRARY 038870
7
(2) The bill requires the President to
transmit a detailed quarterly report concerning
all letters of offer and commercial sales of
major defense equipment of $1 million or more.
Additionally, on letters of offer for major
defense equipment of $7 million or more and on
Reyt
all letters of offer for $25 million or more,
the report must include a description of any
reciprocal sales agreement involved and a
domestic economic impact statement regarding such
agreement.
(3) The Secretary of State is required
to transmit within one year the results of a
comprehensive study on the effect of the sales
provisions of this bill in the area of U.S.
foreign policy, international trade and balance
of payments, U.S. unemployment and Defense
weapons procurement.
(4) The bill requires the President to
Rept
submit in early 1977 a report concerning sales
of excess defense articles.
Other Policy Provisions:
FORD & LIBRARY OFRALD
A. Nuclear transfers. The bill prohibits
economic, military and supporting assistance to
any country which delivers or receives reprocess-
ing or enrichment equipment, materials, or
technology unless the parties have agreed to place
all items under multilateral auspices and management
when available and the recipient country has
entered into an agreement with the International
Atomic Energy Agency (IAEA) to place all such
items and all nuclear fuel and facilities in
such country under IAEA safeguards. The President
may waive this prohibition if he determines that
it would have a serious adverse effect on vital
U.S. interests and if he has "received reliable
assurances that the country involved will not
acquire or develop nuclear weapons or assist other
nations in doing so." The bill provides that
following this determination, Congress may still
terminate or restrict assistance by joint
resolution.
GERALD 1865617 R FORD
8
B. International narcotics control. The bill
prohibits U.S. personnel from engaging or
participating in direct police arrest actions in
any foreign country in connection with narcotics
control efforts. In addition, the President is
Rept
required to transmit to Congress by April 30,
1977, a study concerning the possible use of
international or regional organizations for U.S.
narcotics control programs in foreign countries.
C. Extortion and illegal payments. The
President is required to transmit to Congress a
report on illegal payments or extortion concerning
officials of a foreign country receiving U.S.
Rept
security assistance. The report should include
the President's recommendation on the continuation
of a security assistance program for that country.
Specific Country or Regional Provisions
A. Angola. The concern of Congress is
expressed with respect to Soviet and Cuban
intervention in Angola. Additionally, all military
Pupt
assistance to Angola is prohibited unless the
President certifies to Congress that furnishing
assistance is important to U.S. national security
interests.
B. Chile. All military assistance and
GERALD FORD LIBRARY
commercial arms sales are prohibited after the
bill is enacted, with the exception of pipeline
deliveries. Economic assistance for Chile in the
transition quarter and fiscal year 1977 is limited
to $27.5 million (approximately $47 million
was requested) The President may double this
amount of economic assistance if he certifies to
Congress that the government of Chile is not
engaged in gross violations of human rights, has
allowed international organizations to investigate
allegations of violations, and is informing
families of prisoners of the prisoners' conditions
and the charges against them.
C. Turkey. The bill authorizes $31 million
in grant MAP for Turkey in fiscal year 1976 (as
compared with the budget request of $75 million),
FORD
GERALD
LIDHARY
9
and $50 million in fiscal year 1977, as requested,
but continues the prohibitions of existing law
with respect to such assistance. Thus, grant
assistance cannot be provided unless the President
certifies as to substantial progress toward a
Cyprus agreement and Turkish compliance with U.S.
law and implementing agreements. On the other
hand, the legislation permits the sale of $125
million in defense articles and services to
Turkey during the balance of fiscal year 1976 and
the transition quarter and $125 million during
fiscal year 1977, a softening of the present total
prohibition on grants or sales.
D. Portugal. There is a sense of Congress
statement that the President should take action to
alleviate food shortages in Portugal using existing
statutes.
E. Military forces in the Indian Ocean. The
bill expresses the sense of Congress that the
President should initiate negotiations with the
Soviet Union regarding control of military forces
in the Indian Ocean and report to the Congress not
later than December 1, 1976.
F. U.S. citizens imprisoned in Mexico. The
bill declares the intent of Congress that efforts
to secure stringent international drug enforce-
ment be combined with efforts to secure fair and
humane treatment for citizens of foreign countries
who are imprisoned. The provision requests the
President to communicate directly to the President
of Mexico the continuing concern of the United
States over the treatment of United States
citizens arrested in Mexico. The Secretary of
State is required to submit quarterly reports to
Congress on progress achieved toward full respect
for the human and legal rights of all United States
citizens detained in Mexico.
G. Lebanon. The bill expresses the sense
of the Congress that the situation in Lebanon poses
a serious danger to Middle East peace and contains
a request that the President use his good offices
to bring about peace.
10
H. Middle East policy. The bill declares
the sense of Congress that the United States will
continue to determine Middle East policy as
circumstances may require. It further declares
the authority contained in the joint resolution
approving the early warning system in Sinai
shall not be construed as constituting congressional
approval, acceptance, or endorsement of any
commitment other than the United States Proposal
for the Early Warning System in Sinai.
I. Korea. The bill requires the President
to report 90 days after enactment and annually
for the next five years on: (1) progress made by
the Republic of Korea in modernizing its armed
forces so as to achieve military self-sufficiency;
(2) the role of the United States in mutual
security efforts in Korea; and (3) prospects for
phased reduction of United States armed forces
assigned to Korea. In addition, the President is
requested to communicate "in forceful terms" to
the Government of Korea within 60 days after
enactment the concern of Congress regarding the
erosion of important civil liberties in Korea.
J. Base agreements with Spain, Greece, and
Turkey. The bill authorizes for 1977 the
appropriation of the amounts designated in the
FORD LIBRARY is GERALD
treaty and base agreements as soon as separate
approving legislation has been enacted for the
treaty and agreements.
Conclusions
The enrolled bill represents a major improvement
over the bill you vetoed in May. While it retains
several of the basic features of the earlier
bill and adds some new provisions, almost all of
the objectionable provisions you cited in your
veto message have been acceptably modified or
eliminated entirely. State's letter reflects a
similar assessment of the enrolled bill and
further notes that "the extensive new requirements
contained therein would create no insurmountable
difficulties while permitting the continuation of
security assistance as a significant tool of United
States foreign policy."
FORD is LIBRARY 078830
11
Congressional action in response to your constitu-
tional objections to use of the concurrent resolution
override device is particularly significant. As
noted above, only one such provision, which
reflects a refinement of existing law rather than
a totally new requirement, remains. Informally,
Justice has noted its constitutional objections
to this provision but defers to other agencies
more concerned with the bill as to whether there
are overriding policy considerations which warrant
approval of H.R. 13680.
State's enrolled bill letter states:
"We regard the action by the Congress
on the concurrent resolution issue to
be of major constitutional and
historical importance, and we believe
that this importance would be
enhanced if underscored by the
President. Accordingly, we have pre-
pared the enclosed signing statement
which we strongly recommend that the
President use if he decides to sign
H.R. 13680."
We support State's recommendation for a signing
statement and concur with the statement the Depart-
ment has proposed.
James m. Trey
Assistant Director for
Legislative Reference
Enclosure
FORD
FISCAL YEAR 1976
(appropriations in millions of dollars)
Authorization
Enrolled
Request
Bill
Difference
Grant Military Assistance
394.5
228.7
165.8
Foreign Military Training
30.0
27.0
-3.0
Foreign Military Credit Sales
1,065.0
1,039.0
-26.0
(Program)
(2,374.7)
(2,374.7)
(---)
(Authority to forgive
Israeli repayments)
(750.0)
(750.0)
(---)
Security Supporting Assistance
1,873.31/
1,766.2
-107.1
Middle East Special Requirements
Fund
50.0
50.0
---
Narcotics Control
42.5
40.0
-2.5
Contingency Fund
10.0
5.0
-5.0
Disaster Relief for Italy 2/
---
25.0
+25.0
International Atomic Energy Agency
---
1.03/
+1.0
Total
3,465.3
3,181.9
-283.4
1/ Of the total request, $25.0 million was for Cyprus relief. For 1976, $30
million has been authorized in a separate account under development
assistance.
2/ The Administration sought and received a $25 million 1976 supplemental
appropriation for Italy specifically without authorizing legislation
because of the need to provide timely aid to Italy.
3/ In addition to a voluntary contribution of $3.5 million authorized in
the development assistance bill; earmarked for safeguards activities.
R.FORD LIBRAST
TRANSITION QUARTER (JULY 1, 1976 - SEPTEMBER 30, 1976)
(appropriations in millions of dollars)
Authorization
Enrolled
Request
Bill
Difference
Grant Military Assistance
27.2
57.2
+30.0
Foreign Military Training
7.0
6.8
-.2 -
Foreign Military Credit Sales
30.0
259.8
+229.8
(Program)
(55.5)
(593.7)
(+538.2)
(Authority to forgive
Israeli repayments)
(---)
(187.5)
(+187.5)
Security Supporting Assistance
33.21/
441.6
+408.4
Middle East Special Requirement
Fund
10.0
12.5
+2.5
Narcotics Control
13.0
10.0
-3.0
Contingency Fund
5.0
1.2
-3.8
Disaster Relief for Italy
---
6.2
+6.2
Aid to Cypriot Refugees
---
2.52/
+2.5
International Atomic Energy Agency
---
.2
+.2
Total
125.4
798.0
+672.6
1/ Of the total request, $5.0 million was for Cyprus relief. This amount
has been authorized in a separate account, Aid to Cypriot Refugees.
2/ In addition to $5.0 million authorized in the development assistance bill.
FORD
FISCAL YEAR 1977
(appropriation in millions of dollars)
Authorization
Enrolled
Request 1/
Bill 2/
Difference
Grant Military Assistance
279.0
247.3
-31.7
Foreign Military Training
30.2
30.2
---
Foreign Military Credit Sales
840.0
740.0
-100.0
(Program)
(2,059.6)
(2,022.1)
(-37.5)
(Authority to forgive
Israeli repayments)
(500.0)
(500.0)
(---)
Security Supporting Assistance
1,886.5
1,860.0
-26.5
Middle East Special Requirements
Fund
35.0
35.0
---
Aid to Cypriot Refugees
-----
10.0
+10.0
Narcotics Control
34.0
34.0
---
Contingency Fund
10.0
5.0
-5.0
International Atomic Energy Agency
---
2.0
+2.0
Disaster Relief for Lebanon 3/
----
20.0
+20.0
Total
3,114.7
2,983.5
-131.2
1/ Request excludes funds for Spanish base agreement requested in separate
authorization.
2/ Such additional amounts are authorized to be appropriated as may be
necessary to carry out base agreements with Spain, Greece or Turkey
subject to enactment of legislation approving each arrangement.
3/ Authorization (in addition to $30 million previously authorized in the
case of Cyprus) is not tied to specific fiscal year; carried on this
table because funds have not been provided in 1976 or TQ appropriations.
BRARY
3
LIBRARY
BRARY
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON. D.C. 20503
29.00g.m.
JUN 29 1976
MEMORANDUM FOR THE PRESIDENT
Subject: Enrolled Bill H.R. 13680 - International
Security Assistance and Arms Export
Control Act of 1976
Sponsors - Rep. Morgan (D) Pennsylvania
and 12 others
Last Day for Action
July 10, 1976
Purpose
This bill replaces the security assistance authoriza-
tion bill (S. 2662) that you vetoed on May 7, 1976,
and includes authorizations of appropriations for
fiscal year 1977. It: (a) authorizes appropriations
for security assistance and certain other programs
of $3,979.9 million for fiscal year 1976 and the
transition quarter and $2,983.5 million for fiscal
year 1977, placing individual country limitations
on the use of certain funds; (b) provides authority
to stockpile defense articles for foreign military
forces and drawdown Defense stocks to meet
emergency requests; (c) terminates the general
authority for grant military assistance and mili-
tary assistance advisory groups after fiscal year
1977; (d) expands the congressional role in the
foreign military sales program; and (e) contains
other significant policy revisions.
Agency Recommendations
Office of Management and Budget Approval
Department of State
Approval (Signing
Statement attached)
Department of Defense
Approval (Informally)
National Security Council
Approval
)
GERALD
Attached document was not scanned because it is duplicated elsewhere in the document
6/30 - 10:00 am
Research copy
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
Date:
Time:
June 30
910am
LOG NO.: on/je
FOR ACTION: NSC/S
CC (for information):
Jack Marsh
Max Friedersdorf
Bill Seidman
Jim Cavanaugh
Ken Lazarus
Phil Buchen
to RED
Ed Schmults
Robert Hartmann
6/30 GPM 10:19
TDIS,
FROM THE STAFF SECRETARY
house 123
6/30/10:50
DUE: Date: June 30
Time: 1100am
REGRARED
SUBJECT:
H.R. 13680 - International Security Assistance and
Arms Export Control Act of 1976
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
please return to Judy Johnston, Ground Floor West Wing
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
delay in submitting the required material, please
James M. Cannon
telephone the Staff Secretary immediately.
For the President
THE WHITE HOUSE
ACTION MEMORANDUM
WASHINGTON
LOG NO.:
Date: June 30
Time:
910am
FOR ACTION: NSC/S
CC (for information):
Jack Marsh
the
Max Friedersdorf Bill Seidman Pater
Jim Cavanaugh
Ken Lazarus
Ed Schmults
Robert Hartmann
Phil Buchen
FROM THE STAFF SECRETARY
DUE: Date: June 30
Time: 1100am
SUBJECT:
H.R. 13680 - International Security Assistance and
Arms Esporo Control Act of 1976
ACTION REQUESTED:
For Necessary Action
For Your Recommendations
Prepare Agenda and Brief
Draft Reply
X For Your Comments
Draft Remarks
REMARKS:
please return to Judy Johnston, Ground Floor West Wing
AMWU GERALD LIBRURY FORD
PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED.
If you have any questions or if you anticipate a
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K. R. COLE, JR.
telephone the Staff Secretary immediately.
For the President
STATEMENT BY THE PRESIDENT
ON SIGNING H.R. 13680 INTO LAW
Today I am signing into law H.R. 13680, the
International Security Assistance and Arms Export
Control Act of 1976. This measure authorizes
appropriations to carry out security assistance and
other programs in the fiscal years 1976 and 1977,
and makes extensive changes in the methods,
organization, and procedures through which those
programs are carried out.
On May 7, 1976, I returned to the Congress
without my approval S.2662, the predecessor of
the bill which I am signing today. I did so
because that bill contained numerous provisions
which would have seriously undermined the consti-
tutional responsibility of the President for the
conduct of the foreign affairs of the United
States. That bill embodied a variety of restrictions
that would have seriously inhibited my ability to
implement a coherent and consistent foreign policy,
and some which raised fundamental constitutional
difficulties as well.
The present bill, H.R. 13680, imposes new
requirements, restrictions and limitations on the
implementation of security assistance programs.
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Many of these new requirements are based on
congressional desires to increase the flow of
information regarding the scope and direction of
security assistance programs worldwide. Others
impose new substantive restrictions reflecting
new policies, or policies not heretofore expressed
in law.
Most of the unacceptable features of the
earlier bill have either been dropped from H.R. 13680
or have been modified into an acceptable form.
I am pleased to note, for example, that this bill
does not attempt to impose an arbitrary and unwieldy
annual ceiling on the aggregate value of government
and commercial arms sales, a ceiling which would
have served to hinder, rather than foster, our
efforts to seek multilateral restraints on the pro-
liferation of conventional weaponry, and which could
have prevented us from meeting the legitimate
security needs of our allies and other friendly
countries. In addition, the provisions on dis-
crimination and on human rights in this bill go far
toward recognizing that diplomatic efforts, rather
than absolute statutory sanctions, are the most
effective way in which this country can seek further
progress abroad in these areas of deep concern to
all Americans, and that the Executive Branch must
have adequate flexibility to make these efforts bear
fruit.
-3-
I am especially pleased to note that with
one exception the constitutionally objectionable
features of S.2662, whereby authority conferred
on the President by law could be rescinded by the
adoption of a concurrent resolution by the Congress,
have all been deleted from H.R. 13680. The manifest
incompatibility of such provisions with the express
requirements of the Constitution that legislative
measures having the force and effect of law be
presented to the President for approval and, if dis-
approved, be passed by the requisite two-thirds
majority of both Houses was perhaps the single most
serious defect of the previous bill, and one which
went well beyond security assistance and foreign
affairs in its implications. Moreover, such provisions
would have purported to involve the Congress in
the performance of day-to-day Executive functions
in derogation of the principle of separation of
powers, resulting in the erosion of the fundamental
constitutional distinction between the role of the
Congress in enacting legislation and the role of the
Executive in carrying it out.
The one exception to this laudable action is
the retention in H.R. 13680 of the "legislative veto"
provision regarding major governmental sales of
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military equipment and services. This is not a
new provision, but has been in the law since 1974.
To date no concurrent resolution of disapproval
under section 36 (b) has been adopted, and the
constitutional question has not been raised
directly. Accordingly, I feel that I am able to
accept the retention of this provision, while
reserving my position on its constitutionality.
In my message of May 7 I expressed my serious
concern that the termination of military assistance
and military assistance advisory groups after
fiscal year 1977 would result in a serious impact
upon our relations with other nations whose security
is important to our own security and who are not
yet able to bear the entire burden of their defense
requirements. That concern remains. H.R. 13680
retains language recognizing that it may be
necessary and desirable to maintain military
assistance programs and military assistance advisory
groups in specific countries even after September 30,
1977. Accordingly, this bill will not deter the
Executive Branch from seeking at the appropriate
time the necessary authority for the continuation
of such programs as the national interest of the
United States may require.
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H.R. 13680 will require that many changes
be made in present practices and policies regarding
the implementation of security assistance programs.
Some of these new requirements I welcome as distinct
improvements over existing law. There are others
for which the desirability and need is less clear.
Nevertheless, I shall endeavor to carry out the
provisions of this bill in a manner which will give
effect to the intent of the Congress in enacting
them. As time goes by and experience is gained,
both the Executive and the Congress will come to
know which of the provisions of this bill will
be effective and workable, and which others require
modification or repeal.
This bill recognizes that security assistance
has been and remains a most important instrument
of United States foreign policy. My approval of
H.R. 13680 will enable us to go forward with
important programs in the Middle East, in Africa,
and elsewhere in the world aimed at achieving our
goal of international peace and stability.
DEPARTMENT OF STATE
Washington, D.C. 20520
JUN 2 8 1976
Dear Mr. Lynn:
Reference is made to your request for the views and
recommendations of the Department of State with respect
to H.R. 13680, an enrolled bill.
The enrolled bill, the International Security Assis-
tance and Arms Export Control Act of 1976, contains
authorizations of appropriations to carry out security
assistance and certain other programs in FY 1976, the
transition quarter, and FY 1977, and makes major changes
in the basic legislation governing the organization,
management and procedures for carrying out these programs.
This bill authorizes a total of $3,191,900,000 in
new appropriations in FY 1976 and $2,973,500,000 in FY
1977 for the purpose of carrying out security assistance
and certain other programs in those years. Within these
aggregate totals, appropriations of $196,700,000 in FY
1976 and $177,300,000 in FY 1977 are authorized for mili-
tary assistance materiel programs, $1,039,000,000 in FY
1976 and $740,000,000 in FY 1977 for foreign military
sales credits and guaranty programs, and $1,766,000,000
in FY 1976 and $1,860,000,000 in FY 1977 for security
supporting assistance programs worldwide. In addition,
appropriations for the transition quarter are authorized
in an amount not exceeding one-fourth of each FY 1976
authorization contained in the bill.
The bill is patterned on S. 2662, the bill which the
President vetoed in May. It retains the basic features
of the earlier bill with little or no change, while elim-
inating or significantly improving most of the objection-
able provisions referred to by the President in the message
accompanying his veto of S. 2662. Among the retained
features of the previous bill are provisions for the
termination of military materiel assistance programs and
military assistance advisory groups after FY 1977 except
as may be specifically authorized by law, separate
authorization for grant military education and training
The Honorable
James T. Lynn, Director,
Office of Management and Budget.
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programs, extensive reporting requirements regarding
foreign military sales and the export of commercially-sold
defense articles and services, new requirements and pro-
cedures governing third-party transfers of defense articles
and services and ineligibility for military assistance and
foreign military sales, relaxation of the restrictions of
section 620 (x) of the Foreign Assistance Act of 1961 on
security assistance to Turkey, and new requirements regarding
reporting and recordkeeping with respect to fees of military
sales agents and other payments.
H.R. 13680 also contains some provisions not found in
the earlier bill. Of these, the most significant is Section
305, which would prohibit economic and security assistance
to countries delivering or receiving nuclear reprocessing
or enrichment equipment or technology unless the delivering
and receiving countries agree to place such items under mul-
tilateral auspices when available and unless the recipient
has placed all such equipment and technology, as well as
all its nuclear fuel and facilities, under International
Atomic Energy Agency safeguards. The President may nonethe-
less furnish assistance by Executive order effective not
less than 30 days from promulgation if he determines and
certifies to the Congress that termination of assistance
would have a "serious adverse effect on vital United States
interests" and that he has received "reliable assurances"
that the country in question will not acquire or develop
nuclear weapons or assist others in so doing. The Congress
may nevertheless terminate such assistance by joint
resolution.
Another feature not present in S. 2662 is the authori-
zation of additional security supporting assistance programs
for African countries, specifically Zambia and Zaire, with
the proviso that no such funds may be used for "military,
guerilla, or paramilitary activities in either such country
or in any other country".
The most significant distinction between this bill and
S. 2662 is that almost all of the provisions of the vetoed
bill that were cited by the President in his veto message
have, in this bill, either been eliminated in their entirety
or so modified as to remove the source of the President's
objections. The $9,000,000,000 annual ceiling on government
and commercial arms sales in S. 2662 has been replaced by a
sense-of-the-Congress provision that the aggregate value of
such sales in any fiscal year "should not exceed current
levels". The provision suspending the President's authority
to control certain trade with North and South Vietnam has
been eliminated from this bill.
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The provisions of this bill with respect to human
rights and discrimination are likewise greatly improved
over the provisions on the same subject in S. 2662. That
no security assistance be furnished to governments engaging
in a consistent pattern of gross violations of internation-
ally recognized human rights is made a strong statement of
policy rather than an outright legal prohibition, and the
constitutionally-objectionable concurrent resolution
"legislative veto" feature of the earlier bill has been
replaced by a joint resolution provision. The discrimina-
tion provision has been modified so that it no longer retains
the objectionable mandatory and automatic sanctions of the
earlier bill. While this provision does retain some poten-
tial for causing difficulty, it should present no unmanage-
able problems.
Perhaps the most noteworthy feature of H.R. 13680 is
that it no longer contains the several concurrent resolution
"legislative veto" provisions that were a principal focus of
the President's veto of S. 2662. In certain instances, such
as third-party transfers of defense articles and services,
the concurrent resolution veto has been removed entirely.
In other instances, such as human rights, it has been
replaced by provisions permitting action to be taken by con-
stitutionally adequate joint resolution. In only one respect,
namely section 36 (b) of the Foreign Military Sales Act pur-
porting to empower the Congress to disapprove FMS cases
valued at $25 million or more, has the concurrent resolution
feature been preserved, and this reflects a refinement of
existing law rather than representing a new requirement.
We regard the action by the Congress on the concurrent
resolution issue to be of major constitutional and historical
importance, and we believe that this importance would be
enhanced if underscored by the President. Accordingly, we
have prepared the enclosed signing statement which we
strongly recommend that the President use if he decides to
sign H.R. 13680.
On balance, the Department of State believes that
H.R. 13680 represents a major improvement over the bill
vetoed by the President in May, and that the extensive new
requirements contained therein would create no insurmountable
difficulties while permitting the continuation of security
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assistance as a significant tool of United States foreign
policy. We accordingly recommend that the President sign
H.R. 13680, utilizing the enclosed signing statement.
Sincerely yours,
Robert
Assistant Secretary for
Congressional Relations
DIPARTMENT OF COMMERCE
K4-5/75,12
GENERAL COUNSEL OF THE
UNITED STATES DEPARTMENT OF COMMERCE
UNITED STATES OF AMERICA
Washington, D.C. 20230
JUN 2 2 1976
Honorable James T. Lynn
Director, Office of Management
and Budget
Washington, D. C. 20503
Attention: Assistant Director for Legislative Reference
Dear Mr. Lynn:
This is in reply to your request for the views of this Department
concerning the Conference Report on H. R. 13680, entitled
"To amend the Foreign Assistance Act of 1961 and the
Foreign Military Sales Act, and for other purposes, 11
to be cited as the "International Security Assistance and Arms Export
Control Act of 1976".
The Department of Commerce would have no objection to approval
by the President of H. R. 13680.
Enactment of this legislation is not expected to involve any increase
in the budgetary requirements of this Department.
Sincerely,
7.5.2mith General Counsel
REVOLUTION
AMERICAN
BICENTENNIAL
1776-1976
0
:
UNITED STATES ARMS CONTROL AND DISARMAMENT AGENCY
WASHINGTON, D.C. 20451
June 29, 1976
Mr. James M. Frey
Assistant Director
for Legislative Reference
Office of Management and Budget
Washington, D.C. 20503
Dear Mr. Frey:
By Enrolled Bill Request dated June 28, 1976, you
requested the views and recommendations of this Agency on
enrolled bill H.R. 13680, the "International Security As-
sistance and Arms Export Control Act of 1976".
Confirming the information we provided to Mr. George
Gilbert of your office by telephone on June 28, 1976, the
U.S. Arms Control and Disarmament Agency interposes no
objection to H.R. 13680 and recommends that the President
approve the enrolled bill.
Sincerely,
James James General L. Counsel Malone L. Molone