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ID-80-9 1 (1980-01-04)

handle is hein.gao/gaobaback0001 and id is 1 raw text is: RESTRICTED , Net to be released outsde the General Accounting Office except on the basis of specific approval Cby th e-ot ongrual v -m .641' 00 - BY THE 7 P -LLER 5EN-RAL I 11 Report To The Committee ttdr On Foreign Relations United States Senate RELEASED (? ---HE UNITED STATES What Would be the Impact of Raising Or Repealing The Commercial Arms Sales Ceiling? Congress has prohibited the commercial sale of major defense equipment valued at more than $35 million. Sales over that amount must be made through U.S. Government channels except for sales to the closest U.S. allies who were exempted from the require- ment. The ceiling has had a limited impact. Gen- erally it has complicated firms' market- ing/sales activities, but has had a direct ef- fect on only a few manufacturers. Ad- ditionally, factors other than the ceiling tend to keep significant sales out of the com- mercial channel. Elimination of the ceiling without enacting other controls would prevent Congress from exercising its oversight over a few types of sales now forced into the foreign military sales channel. GAO identified and analyzes a number of alternatives to the current ceiling. 111255 ID-80-9 JANUARY 4, 1980 fl Vq 7

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