PUBLIC LAW 101-513—NOV. 5, 1990 104 STAT. 2061 EXCESS DEFENSE ARTICLES 22 USC 2321m note. SEC. 596. (a) The Congress finds that impending changes in the United States armed forces are likely to result in increased availability of excess defense articles to meet security assistance requirements. The Congress urges the President to make maximum use of available excess defense articles as a cost-effective supplement to funded security assistance programs to meet the legitimate defense requirements of eligible allies and friends. Accordingly, the President is urged to establish policies sind procedures to ensure that excess assets are applied against such requirements. Accordingly, the Foreign Assistance Act of 1961 is amended as follows: (b) Chapter 2 of part II of the Foreign Assistance Act of 1961 is amended by adding the following at the end: "SEC. 519. ADDITIONAL AUTHORITIES RELATING TO MODERNIZATION 22 USC 232im OF MILITARY CAPABIUTIES. — (a) AUTHORITY TO TRANSFER EXCESS DEFENSE ARTICLES.— Notwithstanding any other provision of law (except title V of the National Security Act of 1947) and subject to subsection Q3), the President may transfer to countries for whom a foreign military financing program was justified for the fiscal year in which the transfer is authorized, such nonlethal excess defense articles as the President determines necessary to help modernize the defense capabilities of such countries, in accordance with the provisions of this section. "(b) LIMITATIONS ON TRANSFERS. —The President may transfer nonlethal excess defense articles under this section only if— "(1) the equipment is drawn from existing stocks of the Department of Defense; (2) no funds available to the Department of Defense for the procurement of defense equipment are expended in connection with the transfer; "(3) the President determines that the transfer of the nonlethal excess defense articles will not have an adverse impact on the military readiness of the United States; and ' (4) the President determines that transferring the articles under the authority of this section is preferable to selling them, after taking into account the potential proceeds from, and likelihood of, such sales, and the comparative foreign policy benefits that may accrue to the United States as the result of either a transfer or sale. "(c) NOTIFICATION TO CONGRESS. —The President shall notify the President. Committees on Appropriations, Armed Services, and Foreign Relations of the Senate, and the Committees on Appropriations, Armed Services, and Foreign Affairs of the House of Representatives fifteen days before transferring nonlethal excess defense articles under subsection (a), in accordance with the regular notification procedures of those committees. "(d) WAIVER OF REQUIREMENT FOR REIMBURSEMENT OF DOD EXPENSES. — Section 632(d) shall not apply with respect to transfers of nonlethal excess defense articles under this section. "(e) ANNUAL REPORT.— Commencing in 1991, not later than President. December 15 of each year, the President shall transmit to the committees described in subsection (c) a report with respect to the previous fiscal year which contains— "(1) a list of the countries to which the President has furnished nonlethal excess defense articles under the authority of this section; and
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