PUBLIC LAW 101-189—NOV. 29, 1989 103 STAT. 1501 memorandum of understanding or related agreement on the international competitive position of United States industry. "(b) INTER-AGENCY REVIEW OF EFFECTS ON UNITED STATES INDUS- TRY.—Whenever the Secretary of Commerce has reason to believe that an existing or proposed memorandum of understanding or related agreement has, or threatens to have, a significant aaverse effect on the international competitive position of United States industry, the Secretary may request an inter-agency review of the memorandum of understanding or related agreement. If, as a result of the review, the Secretary determines that the commercial in- terests of the United States are not being served or would not be served by adhering to the terms of such existing memorandum or related agreement or agreeing to such proposed memorandum or related sigreement, as the case may be, the Secretary shall rec- ommend to the President the renegotiation of the existing memo- randum or related agreement or any modification to the proposed memorandum of understanding or related agreement that he consid- ers necessary to ensure an appropriate balance of interests. "(c) LIMITATION ON ENTERING INTO MOUS AND RELATED AGREE- MENTS. — A memorandum of understanding or related agreement referred to in subsection (a) may not be entered into or implemented if the President, taking into consideration the results of the inter- agency review, determines that such memorandum of understand- ing or related agreement has or is likely to have a significant adverse effect on United States industry that outweighs the benefits of entering into or implementing such memorandum or agreement.". (b) CLERICAL AMENDMENT.— The table of sections at the beginning of chapter 148 of such title is amended by striking out the item relating to section 2504 and inserting in lieu thereof the following: "2504. Defense memoranda of understanding and related agreements.". SEC. 816. OFFSETS IN RECIPROCAL DEFENSE PROCUREMENT AGREE- MENTS Section 825(c) of the National Defense Authorization Act, Fiscal Year 1989 (Public Law 100-456; 102 Stat. 2021) is amended— 10 USC 2505 (1) by transferring the text of paragraph (2) to the end of note, paragraph (1) and in that text striking out "the date of the enactment of this Act" and inserting in lieu thereof "September 29, 1988"; and (2) by inserting the following after "(2)": "In the negotiation President of U.S. or renegotiation of any memorandum of understanding between the United States and one or more foreign countries relating to the reciprocal procurement of defense equipment and supplies or research and development, the President shall make every effort to achieve an agreement with the country or countries concerned that would limit the adverse effects that offset arrangements have on the defense industrial base of the United States.". SEC. 817. SIMPLIFIED APPROVAL OF CONTRACTS IMPLEMENTING CER- TAIN INTERNATIONAL AGREEMENTS (a) EXCEPTION.— Paragraph (2) of section 2304(f) of title 10, United States (Dode, is amended— (1) by striking out "or" at the end of subparagraph (C); (2) by striking out the period at the end of subparagraph (D) and inserting in lieu thereof "; or"; and
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