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LCD-79-209 1 (1979-02-23)

handle is hein.gao/gaobaayrj0001 and id is 1 raw text is: ~1014,66 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LGSISAND COMMUNICATIOS :n flI DII1FEB 2 3 1878 .... DIVISION .. ...... ......... 6 0 I LTG Richard L. West . ....C$5 Comptroller of the Army Dear General West: We have completed our survey of the payment for transportation of material to Saudi Arabia in connection with the presence of the U. S. Army Corps of Engineers in that country. The objective of our survey, conducted under assignment code 943330, was to determine whether ....adeuate-- controls an- procedures--ex ist to assure that- the-United-States Government does not absorb transportation costs which should be paid by the host country. During the survey we noted one matter that we believe shoul& be brought to--your attention. This involves failure to use available billings in computing the amount of r-eimbursement due from--Sa-udi Arab-ia for the-cost of .... _transporting merchandise to commissaries serving United States personnel engaged in the Corps' program. As dis- - cussedin .more -letail-below, .thisaproblem should be .... resolved by the implementation of revised procedures __we _suggested- to-1hq-apropriate Army officials during--- . . our survey. BACKGROUND A diplomatic agreement between Saudi Arabia and the United States for construction of mil facilities _(known as the i - Assistance Agreement was signed on May 14l-965. I-hs been the basis o the -Corps involvement -----in Saudi Arabia. Under the agreement, the Corps is-authorized to provide complete engineering and construction management services for the design and construction of specified facilities for the Saudi military forces. . n_ 7 -_1ivacordance- with- th EngiheirAssistan-e --A-gree@men-t, ' Saudi Arabia makes deposits to the Chase Manhattan Bank in the form__of irrevocable letters of credit for the Corps' services and construction cost. The U.S. Treasury withdraws unds- from this -account -and makes-them available to the Corps.- i lll 11 Iii II ____ ___ILC D-7 9-209 11103826 (943330) 108666

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