PUBLIC LAW 102-138—OCT. 28, 1991 105 STAT. 711 Assistance Act of 1961 shall be exercised with regard to the Middle East for the objectives set forth in law and that the President should— (1) transfer defense articles and services only to those nations that have given reliable assurances that such articles will be used only for internal security, for legitimate self-defense, to permit the recipient country to participate in regional or collective arrangements or measures consistent with the Charter of the United Nations, or otherwise to permit the recipient country to participate in collective measures requested by the United Nations for the purpose of maintaining or restoring international peace and security; (2) transfer defense articles and services to nations in the region only after it has been determined that such transfers will not contribute to an arms race, will not increase the possibility of outbreak or escalation of conflict and will not prejudice the development of bilateral or multilateral arms control arrangements; and (3) take steps to ensure that each nation of the Middle East that is a recipient of United States defense articles and services— (A) affirms the right of all nations in the region to exist within safe and secure borders; and (B) supports or is engaged in direct regional peace negotiations. SEC. 323. MISSILE TECHNOLOGY. (a) ACQUISITION.—Section 73(a)(1)(A) of the Arms Export Control Act is amended by inserting "acquisition," before "design,". 22 USC 2797b. (b) NoNMARKET ECONOMIES.— Section 74(8)(B) of the Arms Export Control Act is amended by striking "countries where it may be 22 USC 2797c. impossible to identify a specific governmental entity referred to in subparagraph (A)" and inserting in lieu thereof "countries with nonmarket economies (excluding former members of the Warsaw Pact)". (c) MILITARY AIRCRAFT. —Section 74(8)(B)(ii) of the Arms Export Control Act is amended by striking "aircraft, electronics, and space systems or equipment" and inserting in lieu thereof: "electronics, space systems or equipment, and military aircraft". SEC. 324. REPORT ON CHINESE WEAPONS PROLIFERATION PRACTICES. President. (a) REQUIREMENT. —Within 90 days of the enactment of this Act the President shall submit a report to the Committee on Foreign Relations of the Senate and the Committee on Foreign Affairs of the House of Representatives on "Chinese Nuclear, Chemical, Biological, and Missile Proliferation Practices". (b) CONTENT.— Such report shall be transmitted in classified and unclassified forms and shall describe all actions and policies of the People's Republic of China which relate to improving the military capabilities of nations in the Middle East and South Asia, including a description of previous and potential future transfers of— (1) M-series ballistic missile systems, and of technology and assistance related to the production of such missile systems; (2) technologies capable of producing weapons-grade nuclear material; and (3) technology and materials needed for the production or use of chemical and biological arms.