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DCCUIMENT VISUME
03394 - [A2493627]
Foreign MH41tary Sales: A Potential Drain on the U.S. Defense
Posture. LCD-77-440; B-165731. September 2, 1977. 40 pp. + 9
appendices (21 pp.).
Report to Ithe Congress; by Elmer B. Staats, Comptroller General.
Issue Area: Military Preparedness Plans (800); Facilities and
Material management (7001 .International Economic and
Military Programs (600).
Contact: Lcgistics and Communications Div.
Budget Function: National Defense: Department of Defense -
Military (except procurement & contracts) (051).
Organizaticn Concerned: Department of Defense; Department of
State; Department of the Treasury.
Congressional Pelevance: House Committee on Armed Services;
Senate Ccmmittee on Armed Services; Congress.
Authority: Arms Export -ontrol Act.
In the past 7 years, foreign military sales volume grew
from $952 million to o'er $8.7 billion. The United States has
dominated the world arms market since 1965 and now controls it
by almost 50%. Findings/Conclusions: Foreign military sales
include some of the most advanced weapons and support systems in
the U.S. inventory and represent a large percentage of new
veapone and equipment. The chief customers have changed from
primarily North Atlantic Treaty Organization countries to Middle
East countries. Ihere are indications, based on Department of
Defense (DCD) assessments, that foreign deliveries have affected
U.S. defense capabilities adversely. Problems affecting arms
sales management include: (1) foreign sales agreements providing
for future support which could magnify problems of production
limitations and competing demands for key components; (2) over
45% cf suppcrt requirements for spare and repair parts have not
been forecasted; (3) management information systems for foreign
military sales do not identify future support requirements for
U.S. and foreign customers; and (4) inadequate consideration has
been given to the cumulative effect of foreign military sales on
weapon systems with common components. Recommendations: The
Secretary of Defense should require: inclusion of detailed
impact statements in the foreigr military sales decisionmaking
process; a supply support agreement or other mechanism to be a
part of any sale when it is feasible, so thet DOD can program
and fund future support without adverse effects on U.S. defense
capabilities; and deelopment of a forecasting mechanism to
identify the probable quantities of future critical support
items for U.S. and foreign sales customers. (Author/HTW)](ViewImageLocal?handle=hein.gao/gaobaacpt0001&div=1&collection=&method=preview&ext=.png&size=3)