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ID-76-47 1 (1976-02-20)

handle is hein.gao/gaobaabjm0001 and id is 1 raw text is: COMPTROLLZR GZNERALPF THU UNi.D STATES WA 8 G? 4O D,. 10548 B-163742 FEB 0 1111111 1I II 1H ill 11111 I!IIJI i LM098290 To the Chairmen of the Sou.se and Senate Committees on Appropriations and Government Operations The Department of Defense submitted a statement to - y)ur Committee on November 12, 19'/5, advising that it 7 A does not plan to implement a recent recommendation we rin ' mcA nade-that--theA-mybe- eimb-ur-sed from military ansistance unds for $5.7 million in nonexcess defense articles :ransferred to Thailang Our recommendation was included oP-' .n our June 10, 1975, report to Senator Edward M. Kenneay, Excess Defense Articles-Valuation and Transfers of War Reserve Materials to Allies (ID-75-69), a copy of which was subsequently sent to your Committee. This report described, among other things, how the Department of Defense in 1974 transferred at least $5.7 million in M-16 rifles and other nonexcess eqaiipment to Thailand as excess Aefense articles. We pointed out that, although instructions had been issued to process the items under excess proced.ires, most of them were not charged against the fiscal year 1974 excess program. We recommended that the Army be reimbursed with military assistance program fundz fr all nonexcess items trans- ferred to Thailand in fiscal year 1974. The Deputy Assistant Secretary did not qluestion the accuracy of our finding on the transfer of non- excess equipment to Thailand. However, he stated that! the (i) Defenze decision on the transfer was based on political/military considera-Aons, (2) Department of State participated in the decision, (3) weapons were in consideration of certain U.S. obligations, and (4) trans- fer was pr-4ided for in a memorandum of understanding with Laos and in an oral agreement with Thailand. For these reasons, Defense does- not plan to reimburse the Army for this material. 3.18V1I VAV .LI3WOG jS38 ID-76-47 0- I-

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