Portions of sec. 7 follow:

SEC. 515. OVERSEAS MANAGEMENT OF ASSISTANCE AND SALES PROGRAMS. — (a) No military assistance advisory group, military mission, or other organization of United States military personnel performing similar military advisory functions under this Act or the Arms Export Control Act may operate in any foreign country unless specifically authorized by the Congress. The prohibition contained in this subsection does not apply to regular units of the Armed Forces of the United States engaged in routine functions designed to bring about the standardization of military operations and procedures between the Armed Forces of the United States and countries which are members of the North Atlantic Treaty Organization or other defense treaty allies of the United States.

(b) (1) In order to carry out his responsibilities for the management during the fiscal year 1978 of international security assistance programs conducted under this chapter, under chapter 5 of this part, or under the Arms Export Control Act, the President may assign members of the Armed Forces of the United States to perform necessary functions with respect to such programs in the countries specified in section 504 (a) (1) and in the Republic of Korea, Panama, Brazil, Morocco, Iran, Kuwait, and Saudi Arabia. Members of the Armed Forces assigned under this subsection shall have as their primary functions logistics management, transportation, fiscal management, and contract administration of country programs. It is the sense of the Congress that advisory and training assistance in the countries specified above shall primarily be provided by personnel who are not assigned under this subsection and who are detailed for limited periods to perform specific tasks.

(2) The total number of members of the Armed Forces assigned under this subsection to each country specified in paragraph (1) of this subsection may not exceed the number justified to the Congress in the congressional presentation materials, unless the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives are so notified..

(3) Members of the Armed Forces authorized to be assigned to Iran. Kuwait, and Saudi Arabia by paragraph (1) of this subsection may only be assigned to such countries on a fully reimbursable basis under section 21 (a) of the Arms Export Control Act, except that this requirement shall apply only to the extent that the number of members of the Armed Forces assigned to each such country exceeds six.

(c) The President may assign not to exceed three members of the Armed Forces to any country not specified in subsection (b) (1) to perform accounting and other management functions with respect to international security assistance programs conducted under this chapter, chapter 5 of this part, or under the Arms Export Control Act, except that not to exceed three additional members of the Armed Forces may be assigned to a country to perform such functions when specifically requested by the Chief of the Diplomatic Mission as necessary to the efficient operation of the Mission.

(d) The total number of members of the Armed Forces assigned to foreign countries under subsections (b) and (c) may not exceed 865 for the fiscal year 1978.

(e) Members of the Armed Forces assigned to a foreign country under subsection (b) or (c) shall serve under the direction and supervision of the Chief of the United States Diplomatic Mission in that country.

(f) Defense attachés may perform overseas management functions described in this section only if the President determines that the performance of such functions by defense attachés is the most economic and efficient means of performing such functions. The President shall promptly report each such determination to the Speaker of the House of Representatives and to the chairman of the Senate Committee on Foreign Relations and the chairman of the Senate Committee on Armed Services, together with a description of the number of personnel involved and a statement of the reasons for such determination. The number of defense attachés performing overseas management functions in a country under this subsection may not exceed the number of defense attachés authorized to be assigned to that country on December 31, 1976.

91 Stat. 615-616.

Southern African Special Requirements Funds

Section 8 of the International Security Assistance Act of 1977 (Public Law 95-92), approved on August 4, 1977, amends chapter 4 of part II of the Foreign Assistance Act of 1961, to authorize, inter alia, $80 million in security supporting assistance for the countries of south Africa. In this section Congress also declared its intent to support U.S. participation in a Zimbabwe Development Fund.

Portions of sec. 8 of the International Security Assistance Act of 1977 follow:

(c) Chapter 4 of part II of such [Foreign Assistance] Act [1961] is amended by adding at the end thereof the following new section:

"SEC. 533. SOUTHERN AFRICAN SPECIAL REQUIREMENTS FUNDS.-(a) (1) Of the funds authorized to be appropriated by section 532 for the fiscal year 1978, $80.000,000 shall be available only for the countries of southern Africa to address the problems caused by the economic dislocation resulting from the conflict in that region, and for education and job training assistance for Africans from Namibia and Zimbabwe (Southern Rhodesia). Such funds may be used to provide assistance to African refugees and persons displaced by war and internal strife in southern Africa. to improve transportation links interrupted or jeopardized by regional political conflicts, and to provide trade credits for the purchase of United States products to those countries in the region adversely affected by blocked outlets for their exports and by the overall strains of the world economy.

"(2) Of the funds made available under this section, not more than the following amounts may be made available for the following:

"Botswana

Lesotho

Swaziland

Regional programs for education, training, and refugee assist

ance

$15, 000, 000

15, 000, 000 5, 000, 000

45, 000, 000

"(c) (1) None of the funds made available under this section may be used for military, guerrilla, or paramilitary activities in any country.

"(2) No assistance may be furnished under this section to Mozambique, Angola, Tanzania, or Zambia. except that the President may waive this prohibition with respect to any such country if he determines (and so reports to the Congress) that furnishing such assistance to that country would further the foreign policy interests of the United States.

"(d) It is the sense of the Congress that the United States should support an internationally recognized constitutional settlement of the Rhodesian conflict leading promptly to majority rule based upon democratic principles and upholding basic human rights. The Congress declares its intent to support United States participation in a Zimbabwe Development Fund. The Congress intends to authorize the necessary appropriation when progress toward such an internationally recognized settlement would permit establishment of the Fund."

91. Stat. 618.

Argentina

Section 11 of the International Security Assistance Act of 1977 (Public Law 95–92), approved on August 4, 1977, amends the Foreign Assistance Act of 1961 by adding a new section 620B, stating that after September 30, 1978, no assistance may be furnished to Argentina under the Military Assistance, Security Supporting Assistance.

or International Military Education and Training chapters of part II of the Foreign Assistance Act of 1961, as amended. Section 11 also prohibits foreign military sales and financing and licenses for the export of Munitions List items or data to or for the Government of Argentina under the Arms Export Control Act.

91 Stat. 619, 620.

Israel

In section 26 of the International Security Assistance Act of 1977 (Public Law 95-92), approved on August 4, 1977, Congress made the following policy statement on U.S. arms sales to Israel:

In accordance with the historic special relationship between the United States and Israel and previous agreements and continuing understandings, the Congress joins with the President in reaffirming that a policy of restraint in United States arms transfers, including arms sales ceilings, shall not impair Israel's deterrent strength or undermine the military balance in the Middle East.

91 Stat. 625.

Portugal

Section 4 of the International Security Assistance Act of 1977 (Public Law 95-92), approved on August 4, 1977, amends the Foreign Assistance Act of 1961 to authorize a balance of payments sup port loan of up to 300 million dollars to Portugal to help it gain financial stability.

The text of sec. 4 of the International Security Assistance Act of 1977 reads as follows:

SEC. 4. Chapter 10 of part I of the Foreign Assistance Act of 1961 is amended by adding at the end thereof the following new section:

"SEC. 497. BALANCE OF PAYMENTS LOAN FOR PORTUGAL.—(a) In recognition of the established interest of the United States in fostering a democratie government in Portugal, in maintaining the strength of the North Atlantic Treaty Organization alliance, and in supporting European economic recovery. the purpose of this section is to provide essential balance of payments assistance to Portugal.

"(b) The President is authorized to make balance of payments support loans to Portugal as part of a special international effort to assist that country in the development and implementation of a program to gain financial stability and economic recovery.

"(c) There are authorized to be appropriated to the President not to exceed $300,000,000 for the fiscal year 1978 to carry out the purposes of this section. which amount is authorized to remain available until expended." 91 Stat. 614.

Zaire

Section 25 of the International Security Assistance Act of 1977 (Public Law 95-92), approved on August 4, 1977, prohibits fiscal

year 1978 assistance for any military or paramilitary operations in Zaire unless, inter alia, the President determines and reports to Congress that such assistance should be furnished in the national security interests of the United States.

The text of sec. 25 follows:

No assistance of any kind may be furnished for the fiscal year 1978 for the purpose, or which would have the effect, or promoting or augmenting, directly or indirectly, any military or paramilitary operations in Zaire unless and until the President determines that such assistance should be furnished in the national security interests of the United States and submits to the Speaker of the House of Representatives and the Committee on Foreign Relations of the Senate a report containing

(1) a detailed description of the assistance proposed to be furnished, including the amounts of such assistance, the categories and specific kinds of assistance proposed, and the purposes for which such assistance will be used; and

(2) a certification that the President has determined that the furnishing of such assistance is important to the national security interests of the United States and a detailed statement, in unclassified form, of the reasons supporting such determination.

91 Stat. 625.

In order to assist Zaire in responding to the May 1978 hostilities in Shaba province, the President made a determination under section 25 on May 18, 1978, the text of which follows:

Pursuant to the authority vested in me by section 25 of the International Security Assistance Act of 1977, I hereby determine that:

(a) The furnishing to Zaire of not to exceed $2,500,000 in international military education and training for the fiscal year 1978 under chapter 5 of part II of the Foreign Assistance Act of 1961, the extension to and utilization by Zaire of not to exceed $17.500,000 for the fiscal year 1978 in credit under the Arms Export Control Act, and the utilization by Zaire of the uncommitted balance of credit extended to Zaire under the Arms Export Control Act in any prior fiscal year, are important to the national security interests of the United States; and

(b) Such assistance should be furnished to Zaire in the national security interests of the United States.

You are requested on my behalf to report this determination to the Congress, as required by law. You are also requested to keep the Congress fully and currently informed on the specific details of how the assistance to Zaire is utilized.

Prohibitions on U.S. Training of Foreign Marine Corps

In a memorandum dated January 14, 1977, James H. Michel, Assistant Legal Adviser for Politico-Military Affairs, advised a bureau within the Department of State that there is no legal authority under

the Foreign Military Sales and International Military Education and Training programs to provide police training to a foreign government's marine corps which has responsibility for maintaining civil order. Portions of Mr. Michel's opinion follow:

According to the proposal, the initial training would be sold under the Foreign Military Sales program (FMS) and would be continued on a grant basis under the International Military Education and Training program (IMET). The available description of the [foreign] Marines' functions indicates that the personnel to receive the training are responsible not only for coastal security and the security of naval bases, but also for maintaining civil order and, in coastal villages, for operating as police, customs and port authorities.

In view of the civil law enforcement responsibilities of the Marine Corps [of the inquiring foreign government], it is the opinion of this office that the proposed training is not authorized by law. With respect to IMET, the specific prohibition in section 660 of the Foreign Assistance Act operates as a bar to the use of funds for this purpose. Moreover, civil law enforcement is not an authorized purpose for which sales can be made under section 4 of the Arms Export Control Act.

Section 660 of the Foreign Assistance Act of 1961, as amended, prohibits the use of any funds made available to carry out that Act for training, advice or financial support to foreign police or other law enforcement forces. This prohibition, which became effective July 1, 1975, continues and expands a provision enacted the previous year which had not applied to training activities carried out within the United States. The agreed interpretation of this law is that it precludes assistance under the Foreign Assistance Act to units of foreign armed forces having combined military and law enforcement responsibilities. .

Although section 660 is not directly applicable to sales of defense articles and defense services, including training, it is clear that the intent of Congress underlying that provision was broader than the avoidance of U.S. funding for foreign law enforcement. The relevant legislative history indicates that Congress was also concerned about identification of the United States Government with the police in the eyes of the local populace. No matter how enlightened our training program, a substantial risk that abuses and repression by U.S. trained police will be attributed in part to the U.S.G. is unavoidable.

Accordingly, it is necessary that we be vigilant in the administration of the FMS program to avoid efforts to obtain on a sales basis training which may not lawfully be furnished on a grant basis by virture of section 660 and which does not serve the authorized purposes of the Foreign Military Sales program. In this regard, section 4 of the Arms Export Control Act provides that one of the authorized purposes for which sales may be made is internal security. From the context in which this purpose is stated, and from the Act's general statement of policy, it is clear that the law means internal security in a military (e.g. anti-insurgency) sense