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![handle is hein.gao/gaobaagsn0001 and id is 1 raw text is:
-, iNIEDT STATU-S GENERAL ACoOUNTx INC FF:CE
, -, WASH i TNCT'N, D.C. 'ZN8
LM098240
LNauMt-.AICEM.T 15.UL.- ;I
The Honorable
The Secre.tdr7 of Defense'
DeCar Mr.Scca:
// ]- The Chatrsan si the House .Aoraoriaz;,::s Ocrrnte at a .ei-_atI, 0o
wge d~etk.r.ine %,thr orei- ...countries are heicha.ed t', , cost
o L arnCin Z.zrnica[ as. s ra c .r;C eS rencerec - i.lln tfle
zoreizn count.>; v the Decar-.E nt if DefenSe.
The mD'ir .I,:fh.,ser of thece ser-zes is n o -.a-.
Conrzfcts ich Iran for the sale af these se.--icer du';u 7 fiscal year
1976 totaled Z'} . -.illion, As a result -f a recent review c0 '2
costs with prvdin U.S. technics[ assista:icza ac t-ezn-
ing t the lr..niat: A-ed Forces, -uditors assig'ec to th2 Office oZ
the ..put:/ ... Secret aci of De f'ns Arerk that
roughl y.$>,5 - io-w- in czs - -,hih 4-1iL e 43 'r71 by the U.S
Goverrme2 0,% fi a 1 ve2r 1970 S il not be recovered. in their Reporc
on Review of jecurity Assistance Program in lran dated February 26,
1976 the Defense auditors concluded that mnLh of the 5255 million
shud be charged to Iran and recem.ended that (1) a studys be made to
insure that all costs of providing services to the Iranian Arced Forces
are identified and (2) reimbursement for such costs be obtained.
Although Defenee offtoials concurred, they have not taken action to
car:y out the recomrendations .Lor cou'd we find an indication that
they planned to do so.
The Office of the Chamn. n has requested that w report this
matter to ycu to insurn that oromot action is taken to iritiate the
recoanended scuy so that
--reiTbursable costs incurred in providing technical
assistance .nd t-aining in !ran during fiscal year
1976, which were not included in the fiscal year
1976 Sales contracts with iran, are identifie
amd recovered and
l'CGA D- 76-64
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