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AFMD-81-105S 1 (1982-08-06)

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0UPPLEMENT TO A REPORT BY THE


Comptroller General


OF THE UNITED STATES




Defense Continues To Subsidize Sales Of

Secondary Items To Foreign Governments

Because Of Poor Pricing Policies



This report supplement contains GAO's anal-
ysis and response to the comments of the De-
partment of Defense subsequent to the GAO
report issued to the Congress on October 5,
1981.

GAO is responding to the comments at the re-
quest of the Chairman, House Committee on
Government Operations, who was concerned
about Defense's negative characterization of
the report and its contention that GAO used
unvalidated data to support its conclusions.

GAO has evaluated the Defense allegations
and concludes that the report is accurate and
the recommendations appropriate.











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