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U.S. Code as of:
01/19/04
Section 4542. Technical data packages for large-caliber cannon: prohibition on transfers to foreign countries; exception
(a) General Rule. - Funds appropriated to the Department of
Defense may not be used -
(1) to transfer to a foreign country a technical data package
for a defense item being manufactured or developed in an arsenal;
or
(2) to assist a foreign country in producing such a defense
item.
(b) Exception. - The Secretary of the Army may use funds
appropriated to the Department of Defense to transfer a technical
data package, or to provide assistance, described in subsection (a)
if -
(1) the transfer or provision of assistance is to a friendly
foreign country (as determined by the Secretary of Defense in
consultation with the Secretary of State);
(2) the Secretary of the Army determines that such action -
(A) would have a clear benefit to the preservation of the
production base for the production of cannon at the arsenal
concerned; and
(B) would not transfer technology (including production
techniques) considered unique to the arsenal concerned, except
as provided in subsection (e); and
(3) the Secretary of Defense enters into an agreement with the
country concerned described in subsection (c) or (d).
(c) Coproduction Agreements. - An agreement under this subsection
shall be in the form of a Government-to-Government Memorandum of
Understanding and shall include provisions that -
(1) prescribe the content of the technical data package or
assistance to be transferred to the foreign country participating
in the agreement;
(2) require that production by the participating foreign
country of the defense item to which the technical data package
or assistance relates be shared with the arsenal concerned;
(3) subject to such exceptions as may be approved under
subsection (f), prohibit transfer by the participating foreign
country to a third party or country of -
(A) any defense article, technical data package, technology,
or assistance provided by the United States under the
agreement; and
(B) any defense article produced by the participating foreign
country under the agreement; and
(4) require the Secretary of Defense to monitor compliance with
the agreement and the participating foreign country to report
periodically to the Secretary of Defense concerning the
agreement.
(d) Cooperative Project Agreements. - An agreement under this
subsection is a cooperative project agreement under section 27 of
the Arms Export Control Act (22 U.S.C. 2767) which includes
provisions that -
(1) for development phases describe the technical data to be
transferred and for the production phase prescribe the content of
the technical data package or assistance to be transferred to the
foreign country participating in the agreement;
(2) require that at least the United States production of the
defense item to which the technical data package or assistance
relates be carried out by the arsenal concerned; and
(3) require the Secretary of Defense to monitor compliance with
the agreement.
(e) Licensing Fees and Royalties. - The limitation in subsection
(b)(2)(B) shall not apply if the technology (or production
technique) transferred is subject to nonexclusive license and
payment of any negotiated licensing fee or royalty that reflects
the cost of development, implementation, and prove-out of the
technology or production technique. Any negotiated license fee or
royalty shall be placed in the operating fund of the arsenal
concerned for the purpose of capital investment and technology
development at that arsenal.
(f) Transfers to Third Parties. - A transfer described in
subsection (c)(3) may be made if -
(1) the defense article, technical data package, or technology
to be transferred is a product of a cooperative research and
development program or a cooperative project in which the United
States and the participating foreign country were partners; or
(2) the President -
(A) complies with all requirements of section 3(d) of the
Arms Export Control Act (22 U.S.C. 2753(d)) with respect to
such transfer; and
(B) certifies to Congress, before the transfer, that the
transfer would provide a clear benefit to the production base
of the United States for large-caliber cannon.
(g) Notice and Reports to Congress. - (1) The Secretary of the
Army shall submit to Congress a notice of each agreement entered
into under this section.
(2) The Secretary shall submit to Congress a semi-annual report
on the operation of this section and of agreements entered into
under this section.
(h) Arsenal Defined. - In this section, the term "arsenal" means
a Government-owned, Government-operated defense plant that
manufactures large-caliber cannon.
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