View source for Foreign Military Sales Act of 1968

{{Infobox U.S. legislation
| shorttitle        = Foreign Military Sales Act of 1968
| othershorttitles  =
| longtitle         = An Act to consolidate and revise foreign assistance legislation relating to reimbursable military exports.
| colloquialacronym = FMSA
| nickname          =
| enacted by        = 90th
| effective date    = October 22, 1968
| public law url    = http://www.gpo.gov/fdsys/pkg/STATUTE-82/pdf/STATUTE-82-Pg1320-2.pdf
| cite public law   = 90-629
| cite statutes at large = {{usstat|82|1320}}
| acts amended    =
| acts repealed   =
| title amended   = [[Title 22 of the United States Code|22 U.S.C.: Foreign Relations and Intercourse]]
| sections created =
| sections amended = {{unbulleted list|{{Usc-title-chap|22|24}} § 1934|{{Usc-title-chap|22|32}} §§ 2151, 2341–2345, 2382, 2392, 2394, 2399a, 2403}}
| leghisturl      =
| introducedin    = House
| introducedbill  = {{USBill|90|H.R.|15681}}
| introducedby    = [[Thomas E. Morgan]] ([[Democratic Party (United States)|D]]–[[Pennsylvania|PA]])
| introduceddate  = February 29, 1968
| committees      = [[United States House Committee on Foreign Affairs|House Foreign Affairs]], [[United States Senate Committee on Foreign Relations|Senate Foreign Relations]]
| passedbody1     = House
| passeddate1     = September 10, 1968
| passedvote1     = [http://www.govtrack.us/congress/votes/90-1968/h419 312–29]
| passedbody2     = Senate
| passedas2       = <!-- used if the second body changes the name of the legislation -->
| passeddate2     = October 10, 1968
| passedvote2     = passed voice vote
| conferencedate  =
| passedbody3     =
| passeddate3     =
| passedvote3     =
| agreedbody3     = <!-- used when the other body agrees without going into committee -->
| agreeddate3     = <!-- used when the other body agrees without going into committee -->
| agreedvote3     = <!-- used when the other body agrees without going into committee -->
| agreedbody4     = <!-- used if agreedbody3 further amends legislation -->
| agreeddate4     = <!-- used if agreedbody3 further amends legislation -->
| agreedvote4     = <!-- used if agreedbody3 further amends legislation -->
| passedbody4     =
| passeddate4     =
| passedvote4     =
| signedpresident = [[Lyndon B. Johnson]]
| signeddate      = October 22, 1968
| unsignedpresident = <!-- used when passed without presidential signing -->
| unsigneddate    = <!-- used when passed without presidential signing -->
| vetoedpresident = <!-- used when passed by overriding presidential veto -->
| vetoeddate      = <!-- used when passed by overriding presidential veto -->
| overriddenbody1 = <!-- used when passed by overriding presidential veto -->
| overriddendate1 = <!-- used when passed by overriding presidential veto -->
| overriddenvote1 = <!-- used when passed by overriding presidential veto -->
| overriddenbody2 = <!-- used when passed by overriding presidential veto -->
| overriddendate2 = <!-- used when passed by overriding presidential veto -->
| overriddenvote2 = <!-- used when passed by overriding presidential veto -->
| amendments      = [[Foreign Military Sales Act of 1971]]
| SCOTUS cases    =
}}
The '''Foreign Military Sales Act of 1968''', {{USStatute|90|629|82|1320-2|1968|10|22}}, was supplemental legislation to the [[Arms Control and Disarmament Act of 1961]] and the [[Foreign Assistance Act|Foreign Assistance Act of 1961]]. The Act discloses the United States commitment and sustainment to a world free from the dangers of armaments and the scourge of war.
The Foreign Military Sales Act supported the policy of regional arms control, disarmament agreements, and the discouragement of arm races. The H.R. 15681 bill authorized the sales of military equipment by the United States government. The United States law explicitly declares the sales of defense services and military articles to benevolent countries with the economic means to maintain and support a military force of adequate strength.
The H.R. 15681 legislation was passed by the 90th U.S. Congressional session and endorsed by the 36th President of the United States Lyndon Johnson on October 22, 1968.<ref>{{cite web |url=https://www.congress.gov/bill/90th-congress/house-bill/15681/ |title=H.R. 15681 - Foreign Military Sales Act of 1968 |series=P.L. 90-629 ~ 82 Stat. 1320 |publisher=Congress.gov}}</ref>
==Provisions of the Act==
The Foreign Military Sales Act established governance for United States foreign military sales authorizations and military export controls.
'''Foreign military sales authorizations''' specifies transaction criteria as;
* ''Cash sales from stock'' – The United States may sell defense articles from the stocks of the Department of Defense and defense services of the Department of Defense to any friendly country or international organization if such country or international organization agrees to pay not less than the value thereof in United States dollars.
* ''Procurement for cash sales'' – The United States may without requirement for charge to any appropriation or contract authorization otherwise provided, enter into contracts for the procurement of defense articles or defense services for sale for United States dollars to any friendly country or international organization if such country or international organization provides the United States government with a dependable undertaking.
* ''Credit sales'' – The United States is authorized to finance procurements of defense articles and defense services by friendly countries and international organizations on terms of repayment to the United States government of not less than the value thereof in United States dollars within a period not to exceed ten years after the delivery of the defense articles or the rendering of the defense services.
* ''Guaranties'' – The United States may guarantee any individual, corporation, partnership, or other juridical entity doing business in the United States (excluding United States government agencies) against political and credit risks of nonpayment arising out of their financing of credit sales of defense articles and defense services to friendly countries and international organizations. Fees shall be charged for such guaranties.
'''Military export controls''' specifies transaction criteria as;
* ''Authorization and aggregate ceiling on foreign military sales credits'' – There is authorized to be appropriated to the United States to carry out this Act not to exceed $296,000,000 for the fiscal year 1969. Unobligated balances of funds made available pursuant to this section are authorized to be continued available by appropriations legislation to carry out this Act. The aggregate total of credits or participation in credits, extended pursuant to this Act (excluding credits covered by guaranties), not exceed $296,000,000 for the fiscal year 1969.
* ''Prohibition against certain military export financing by export-import bank'' – Notwithstanding any other provision of law, no funds or borrowing authority available to the [[Export-Import Bank of the United States|Export-Import Bank]] of the United States shall be used by such Bank to participate in any extension of credit in connection with any agreement to sell defense articles and defense services entered into with any economically less developed country after June 30, 1968.
* ''Regional ceilings on foreign military sales'' – The aggregate of the total amount of military assistance pursuant to the Foreign Assistance Act of 1961, as amended, of cash sales shall not exceed $75,000,000 in the fiscal year 1969 for Latin American countries and not exceed $40,000,000 in the fiscal year 1969 for African countries.
* ''Foreign military sales credit standards'' – The United States shall establish standards and criteria for credit and guaranty transactions in accordance with the foreign, national security, and financial policies of the United States.
* ''Foreign military sales to less developed countries'' – If the United States finds that any economically less developed country is diverting development assistance to military expenditures, or is diverting its own resources to unnecessary military expenditures, to a degree which materially interferes with its development, such country shall be immediately ineligible for further sales and guarantees until the United States is assured that such diversion will no longer take place.
* ''Reports on commercial and governmental military exports'' – The [[United States Secretary of State|Secretary of State]] shall transmit to the [[Speaker of the United States House of Representatives|Speaker of the House of Representatives]] and the [[Senate Committee on Foreign Relations]] semiannual reports of all exports during the preceding six months of significant defense articles on the United States munitions list to any foreign government, international organization, or other foreign recipient or purchaser, by the United States under this Act or any other authority, or by any individual, corporation, partnership, or other association doing business in the United States.
* ''Fiscal provisions relating to foreign military sales credits'' – Cash payments received shall be available solely for payments to suppliers (including the military departments) and refunds to purchasers and shall not be available for financing credits and guaranties. Amounts received from foreign governments and international organizations as repayments for credits, extended amounts received from the disposition of instruments evidencing indebtedness, and other collections (including fees and interest) shall be transferred to the miscellaneous receipts of the Treasury.
==See also==
* [[Arms Export Control Act|Arms Export Control Act of 1976]]
* [[Defense Security Cooperation Agency]]
* [[United States Foreign Military Financing|Foreign Military Financing]]
* [[Foreign Military Sales]]
* [[Military–industrial complex]]
==References==
{{reflist}}
==External links==
* {{cite web |url=https://archive.org/details/4731549.1966.001.umich.edu/page/116 |title=Special Message to the Congress on the Foreign Aid Program - February 1, 1966 |last=Johnson |first=Lyndon B. |date=February 1, 1966 |trans-title=Public Papers of the Presidents, Lyndon Johnson 1966 |location=Washington, D.C. |publisher=National Archives and Records Service |website=Internet Archive |pages=117–125}}
* {{cite web |url=https://archive.org/details/4731573.1968.001.umich.edu/page/198 |title=Special Message to the Congress on the Foreign Assistance Programs: "To Build the Peace" - February 8, 1968 |last=Johnson |first=Lyndon B. |date=February 8, 1968 |trans-title=Public Papers of the Presidents, Lyndon Johnson 1968 |location=Washington, D.C. |publisher=National Archives and Records Service |website=Internet Archive |pages=199–208}}
* {{cite web |url=http://www.dsca.mil/programs/fmf |title=Foreign Military Financing (FMF) |website=Defense Security Cooperation Agency |accessdate=30 September 2013}}
* {{cite web |url=http://www.dsca.mil/programs/fms |title=Foreign Military Sales (FMS) |website=Defense Security Cooperation Agency |accessdate=30 September 2013 |archive-url=https://web.archive.org/web/20130928183134/http://www.dsca.mil/programs/fms |archive-date=28 September 2013 |url-status=dead }}
[[Category:1968 in American law]]
[[Category:1968 in international relations]]
[[Category:United States foreign relations legislation]]
[[Category:United States federal defense and national security legislation]]
[[Category:20th-century military history of the United States]]
[[Category:Arms control]]
[[Category:Foreign Military Sales]]
[[Category:90th United States Congress]]