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ID-81-36 1 (1981-04-27)

handle is hein.gao/gaobabbvn0001 and id is 1 raw text is: 




BY THE COMPTROLLER GENERAL

Report To The Chairman,

Committee On Foreign Relations

United States Senate

OF THE UNITED STATES




Appropriateness Of Procedures

For Leasing Defense Property

To Foreign Governments


The Department of Defense and the military
departments have used the authority of Title
10, United States Code, Section 2667 to lease
property to foreign governments. This legisla-                   115049
tion was originally intended to permit the
lease of military equipment within the United
States.

In 1980, military equipment valued at $48.4
million was leased rent free to Turkey, Hondu-
ras, and the Dominican Republic. In January
1981, six helicopters valued at $5.9 million
were leased rent free to El Salvador. GAO be-
lieves that transfer of military equipments on
this basis is tantamount to grant aid which
should be authorized only under the Foreign
Assistance Act.

The use, care, and maintenance of leased
property has not been routinely verified dur-
ing the time it is leased and because there
is no standard policy for billing and collecting
lease payments, their status cannot always be
determined.


      D S  L





                                                                    I D-81-36
                                                                APR IL 27, 1981


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