22 U.S.C. § 3402: Supplemental authorization…

Summary

Provides a one-time aid package tied to U.S. foreign military financing. It authorizes $370,000,000 for fiscal year 1979 to be used by the President for loan guarantees under the Arms Export Control Act. The money can only back guarantees for Egypt and Israel. Guaranteed loan principal may total up to $3,700,000,000: $2,200,000,000 only for Israel and $1,500,000,000 only for Egypt. These guarantees are in addition to other FY1979 limits and any weapons sales still must be reviewed under the normal Arms Export Control Act procedures; the authorization is not approval of any specific weapons. Loans made with these guarantees must be repaid over at least 30 years and include a 10-year initial grace period on paying principal. Congress also notes both countries carry large external debts and says loan terms might need to be changed in future years because of that.

Title 22, §3402

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Congressional findings; use of Arms Export Control Act procedures

The Congress finds that the legitimate defense interests of Israel and Egypt require a one time extraordinary assistance package due to Israel’s phased withdrawal from the Sinai and Egypt’s shift from reliance on Soviet weaponry. The authorizations contained in this section do not, however, constitute Congressional approval of the sale of any particular weapons system to either country. These sales will be reviewed under the normal procedures set forth in section 36(b) of the Arms Export Control Act [22 U.S.C. 2776(b)].

(b)Authorization of appropriation

In addition to amounts authorized to be appropriated for the fiscal year 1979 by section 31(a) of the Arms Export Control Act [22 U.S.C. 2771(a)], there is authorized to be appropriated to the President to carry out that Act [22 U.S.C. 2751 et seq.] $370,000,000 for the fiscal year 1979.

(c)Principal amounts of guaranteed loans

Funds made available pursuant to subsection (b) of this section may be used only for guaranties for Egypt and Israel pursuant to section 24(a) of the Arms Export Control Act [22 U.S.C. 2764(a)]. The principal amount of loans guaranteed with such funds may not exceed $3,700,000,000 of which $2,200,000,000 shall be available only for Israel and $1,500,000,000 shall be available only for Egypt. The principal amount of such guaranteed loans shall be in addition to the aggregate ceiling authorized for the fiscal year 1979 by section 31(b) of the Arms Export Control Act [22 U.S.C. 2771(b)].

(d)Repayment schedule

Loans guaranteed with funds made available pursuant to subsection (b) of this section shall be on terms calling for repayment within a period of not less than thirty years, including an initial grace period of ten years on repayment of principal.

(e)Modification of terms of guaranteed loans

(1)The Congress finds that the Governments of Israel and Egypt each have an enormous external debt burden which may be made more difficult by virtue of the financing authorized by this section. The Congress further finds that, as a consequence of the impact of the debt burdens incurred by Israel and Egypt under such financing, it may become necessary in future years to modify the terms of the loans guaranteed with funds made available pursuant to this section.

(2)Repealed. Pub. L. 97–113, title VII, § 734(a)(4), Dec. 29, 1981, 95 Stat. 1560.

Notes & Related Subsidiaries

Editorial Notes

References in Text

That Act, referred to in subsec. (b), means the Arms Export Control Act, Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1320, which is classified principally to chapter 39 (§ 2751 et seq.) of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 2751 of this title and Tables.

Amendments

1981—Subsec. (e)(2). Pub. L. 97–113 struck out par. (2) which required annual reports respecting economic conditions in Israel and Egypt and their external debt burdens, covered in provisions respecting external debt burdens of Egypt, Israel, and Turkey in section 723 of Pub. L. 97–113, title VII, Dec. 29, 1981, 95 Stat. 1552, not classified to the Code.

§3402 Supplemental Authorization of Foreign Military Sales Loan Guaranties for Egypt and Israel