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B-159451 1 (1974-02-12)

handle is hein.gao/gaobaagrk0001 and id is 1 raw text is: 




                   COMFTROLLER GENERAL OF THE UNITED STATES
                            WASHINGTON. D.C. 20548



    B-159451                                        FEB3 12 1974 672

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                                                        LM096762
    The Honorable Patricia Schroeder
4- House of Representatives

    Dear Mrs. Schroeder:

         In your August 29, 1973, letter, you asked us to examine
    the financingof Dqpatment ofefnseDOD) contracts in
    Ind-g jai. During a later meeting with your office, it was
    agreed that we would limit our examination to determining if
    DOD, in reporting to the Congress on the Military Assistance
    Service Funded (MASF) program, had used the value o    he
    contracts shown on the list of the U.S. Defense Attache Office
    in Saigon.

         We found that DOD's reports to the Congress have not
    reflected the entire value of contracts shown on the Attache
Office's list.

         Until fiscal year 1966 the United States furnished
    military assistance to the Vietnamese and other free world
    forces in Vietnam through the Military Assistance Program.
    In 1966 the Congress authorized the use of military funds to
    support Vietnamese and other free world forces in Vietnam.
    This arrangement is known as the MASF program. The Secretary
    of Defense had requested this program on the grounds that
    separate financial and logistics systems for U.S. and other
    military assistance forces in Vietnam would be too cumbersome,
    time consuming, and inefficient. The Secretary stated that a
    similar problem during the Korean War had been solved by pro-
    graming, budgeting, and funding all requirements under mili-
    tary appropriations. In authorizing the MASF program, the
    Congress stated:

         Within thirty days after the end of each quarter,
         the Secretary of Defense shall render to Congress
         a report with respect to the estimated value by
         purpose, by country, of support furnished from such
         appropriations.  (Underscoring supplied.)



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