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LCD-79-224 1 (1979-08-14)

handle is hein.gao/gaobaazol0001 and id is 1 raw text is: 





REPORT BY THE                                             l1lI1ll42



Comptroller General


OF THE UNITED STATES





Effects Of Reduced Funds For

Transportation Overseas Of

Military Exchange Merchandise



In fiscal year 1979 the military exchanges
received over $70 million a year in appro-
priated fund support to ship merchandise
overseas. This is a reduction of $9 million
from the services' original request.

The Defense Subcommittee of the Senate
Appropriations Committee asked GAO to
review the impact of this reduction and
of other aspects of transportation funding
for exchange goods. GAO found that:

    --Price increases to offset fiscal year
    1979 budget reductions are not pro-
    bable.

    --Price increases averaging 3 percent;
    reduced contributions to the services'
    morale, welfare, and recreation pro-
    grams; and increased stock of for-
    eign merchandise are probable if all
    appropriated funds are eliminated.

    --Space available transportation offers
    no real solution to prevent increases
    in transportation costs.





              U                                                 110142


                                                                  L C D-79-224
                  -Ict r AAUGUST 14, 1979

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