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1976/06/30 HR13680 International Security Assistance and Arms Export Control Act of 1976 (1)
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1976/06/30 HR13680 International Security Assistance and Arms Export Control Act of 1976 (1)
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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 Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 remain with them. If you think any of the information displayed in the PDF is subject to a valid 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 delay in submitting the required material, please 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. -2- 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 -4- 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. -5- 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. - 2 - 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. - 3 - 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 - 4 - 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