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AFMD-81-28 1 (1981-01-30)

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REPORT BY THE                          .


Comptroller General


OF THE UNITED STATES


Better Accounting Needed For Foreign

Countries' Deposits For Arms Purchases


GA( found that improvements are needed in
the collection of and accounting for foreign
cou itries' funds deposited in the United
Statn for arms purchases. Also, definitive
guid lines are needed for implementing the
U.S. policy allowing foreign countries to
tran fer moneys not needed to meet current
obliat ions from their trust fund accounts to
inte est-bearing accounts.

GA) was asked by the Chairman of the Sub-
com  ittee on Limitations of Contracted and
Del gated Authority, Senate Judiciary Com-
mittee, to evaluate the impact of this policy
and determine if the interests of the United
Stat  are protected in the event a foreign
cou try cancels an arms purchase agreement.

This report discusses the problems GAO
fournd, reiterates the need for action on prob-
lem: previously identified, and recommends
cti ns to protect the interests of the United
Stat s.


IIIIIIII IIIIIIII
    114326


     AFMD-41.28
JANUARY 30, 1961


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