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How does this apply if there is a foreign graduate student working on a military project?

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As long as the project does not have any limitations on the free publication of the results and there are no foreign national or national security restrictions imposed on the project, foreign nationals may support the fundamental research of military projects.  Principal Investigators and others involved in the project should still take precautions to ensure that no data provided by the military is shared with foreign nationals.  But under the fundamental research exception, foreign nationals may generate research results for the project.

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