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1 1 (February 21, 2020)

handle is hein.crs/govcaff0001 and id is 1 raw text is: FF.ri E.$~ & February 21, 2020 Transfer of Defense Articles: Foreign Military Sales (FMS) The United States sells more than $55 billion worth of defense articles and services annually to foreign governments to advance U.S. security and economic interests. Such purchases are managed primarily through the Foreign Military Sales program (FMS), through which the U.S. government procures defense articles as an intermediary for foreign partners. This adds value for customers by ensuring that they have the same contract benefits and protections that apply to the U.S. military's acquisition of its own defense articles and services. In turn, the U.S. benefits from a government-to-government relationship in the sale intended to comply with U.S. foreign and security policy, as well as to help ensure militarily interoperable weapons systems among allies and partners. Congress authorized the FMS program in the Arms Export Control Act (AECA) of 1976 (22 U.S.C. §2751 et seq.) and provides active oversight of the program through annual Figure I. Foreign Military Sales (FMS) Process Department of State and Foreign Operations Appropriations Acts and the National Defense Authorization Acts. Such oversight is also seen in the congressional response to executive branch notifications of foreign arms sales. Through these mechanisms, Congress may limit or prohibit FMS to certain countries, or encourage the use of FMS in other cases. The sale of defense articles to Taiwan is not formally subject to the AECA. Rather, FMS-like transfers to Taiwan are authorized pursuant to the Taiwan Relations Act of 1979, P.L. 96-8, 22 U.S.C. §3301 et seq. The Department of Defense (DOD) uses the FMS infrastructure for defense articles procured and transferred to foreign partners through the Foreign Military Financing (FMF) program. It also uses the infrastructure under other Title 10 authorities (e.g., 10 U.S.C §333), though these are not considered FMS cases. Source: Defense Security Cooperation Agency (DSCA), annotated by CRS. Notes: LOR: Letter of Request. LOA: Letter of Offer and Acceptance. NSPM: CFM: Country Financial Management Division, DSCA. -ou -g,,,r.,ess k ,, Pursuant to Title 22, United States Code, all security assistance programs are subject to the continuous supervision and general direction of the Secretary of State, to serve U.S. foreign policy interests. The State Department's Bureau of Political-Military Affairs (PM) administers FMS, and DOD is the implementing agency, through the Defense Security Cooperation Agency (DSCA). 22U.5 §27.$a 0.k . . .,(§28 l..us......XyX XXXX :1s ....y .. . .. . A22~x 221i) US.(§ 3&( t~~.. ..... MtCAAPoe AFC ~ 2(I ARA Se. 2,2 US~(~2752N~PM..............(b~ . . . . . . . . . 4. ,- f Z 1;-, gognpo 'popmm- , goo g 'S a X

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