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094432 1 (1971-03-26)

handle is hein.gao/gaobadxkr0001 and id is 1 raw text is: i - 'L, IT T . . .. - - , T - ,IIY Was~n tc:: D, ,U. 2 054 _ STAT4FL,T T OF k C 77 ELf4ER B. STAATS, C ThO'T ,LL>L :AA OF T-HE U11T1Fi S-4JTFS J BEFURE THE StJBJYJMMTTEE ON LEGISLD.TIO, fl1D MIT IPY OP ERflo)S HOUSE GO VEdJNT1NT OPEAT'IONS COgIKiTTEE LM094432 Mr. Chairman and Members of the Subcommittee: We appear this morning in response to your request to discuss our report of March 17, 1971, entitled Defense Industry Profit Study. It is my understanding that your request originated at the suggestion of several members Df the House of Representatives to obtain our views with respect to critical comments made by the press, in particular, the alle- gation that GAO had been subjected to prespures from defense contractors and the defense agencies, and had altered the facts and conclusions in its report as a result of such pressures. While I welcome this hearing, I should like to express my regret that a few, but widely circulated, premature, inaccurate, and misleading press stories have made this hearing necessary. In my opinion, such re- ports are a disservice to the Office which I head and to the Congress of which the General Accoanting Office is a part. I am pleased that most press accounts, issued following the release of the GAO report, have been generally accurate and objective. In summary, I would like to emphasize these points: 1. It has been the policy of the GAO for many years to refer draft reports of this Office to the agencies, organizations, and others speci- fically affected to obtain their views. This is done to enable us to

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