22 U.S.C. § 2791 : US Code - Section 2791: General provisions

    (a) Considerations in procurement outside United States
      In carrying out this chapter, special emphasis shall be placed on
    procurement in the United States, but, subject to the provisions of
    subsection (b) of this section, consideration shall also be given
    to coproduction or licensed production outside the United States of
    defense articles of United States origin when such production best
    serves the foreign policy, national security, and economy of the
    United States. In evaluating any sale proposed to be made pursuant
    to this chapter, there shall be taken into consideration (A) the
    extent to which the proposed sale damages or infringes upon
    licensing arrangements whereby United States entities have granted
    licenses for the manufacture of the defense articles selected by
    the purchasing country to entities located in friendly foreign
    countries, which licenses result in financial returns to the United
    States, (B) the portion of the defense articles so manufactured
    which is of United States origin, and (C) whether, and the extent
    to which, such sale might contribute to an arms race, aid in the
    development of weapons of mass destruction, support international
    terrorism, increase the possibility of outbreak or escalation of
    conflict, or prejudice the development of bilateral or multilateral
    arms control or nonproliferation agreements or other arrangements.
    (b) Information to Congress on credit sales and guaranties
      No credit sale shall be extended under section 2763 of this
    title, and no guarantee shall be issued under section 2764 of this
    title, in any case involving coproduction or licensed, production
    outside the United States of any defense article of United States
    origin unless the Secretary of State shall, in advance of any such
    transaction, advise the appropriate committees of the Congress and
    furnish the Speaker of the House of Representatives and the
    President of the Senate with full information regarding the
    proposed transaction, including, but not limited to, a description
    of the particular defense article or articles which would be
    produced under a license or coproduced outside the United States,
    the estimated value of such production or coproduction, and the
    probable impact of the proposed transaction on employment and
    production within the United States.
    (c) Availability of funds for procurement outside United States
      Funds made available under this chapter may be used for
    procurement outside the United States only if the President
    determines that such procurement will not result in adverse effects
    upon the economy of the United States or the industrial
    mobilization base, with special reference to any areas of labor
    surplus or to the net position of the United States in its balance
    of payments with the rest of the world, which outweigh the economic
    or other advantages to the United States of less costly procurement
    outside the United States.
    (d) Responsibility of Secretary of Defense with respect to sales
      and guaranties
      (1) With respect to sales and guaranties under sections 2761,
    2762, 2763, 2764, 2769 and 2770 of this title, the Secretary of
    Defense shall, under the direction of the President, have primary
    responsibility for - 
        (A) the determination of military end-item requirements;
        (B) the procurement of military equipment in a manner which
      permits its integration with service programs;
        (C) the supervision of the training of foreign military
        (D) the movement and delivery of military end-items; and
        (E) within the Department of Defense, the performance of any
      other functions with respect to sales and guaranties.

      (2) The establishment of priorities in the procurement, delivery,
    and allocation of military equipment shall, under the direction of
    the President, be determined by the Secretary of Defense.
    (e) Revocation and suspension provisions of contracts for sale and
      export licenses; appropriations for refunds
      (1) Each contract for sale entered into under sections 2761,
    2762, 2769 and 2770 of this title, and each contract entered into
    under section 2767(d) of this title, shall provide that such
    contract may be canceled in whole or in part, or its execution
    suspended, by the United States at any time under unusual or
    compelling circumstances if the national interest so requires.
      (2)(A) Each export license issued under section 2778 of this
    title shall provide that such license may be revoked, suspended, or
    amended by the Secretary of State, without prior notice, whenever
    the Secretary deems such action to be advisable.
      (B) Nothing in this paragraph may be construed as limiting the
    regulatory authority of the President under this chapter.
      (3) There are authorized to be appropriated from time to time
    such sums as may be necessary (A) to refund moneys received from
    purchasers under contracts of sale entered into under sections
    2761, 2762, 2769 and 2770 of this title, or under contracts entered
    into under section 2767(d) of this title, that are canceled or
    suspended under this subsection to the extent such moneys have
    previously been disbursed to private contractors and United States
    Government agencies for work in progress, and (B) to pay such
    damages and costs that accrue from the corresponding cancellation
    or suspension of the existing procurement contracts or United
    States Government agency work orders involved.
    (f) Use of civilian contract personnel in foreign countries
      The President shall, to the maximum extent possible and
    consistent with the purposes of this chapter, use civilian contract
    personnel in any foreign country to perform defense services sold
    under this chapter.