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B-176241 1 (1972-08-18)

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          COMPTROLLER GENERA       Wigttp
                    WASHINGTON, D.C. Z048

                    RELEASED


AUG 1 8 1972


B-176241


Dear Mr. Wampler:


     Enclosed is a summary of our inquiry into the Air Force decision
to close its anhydrous hydrazine manufacturing plant at Saltville,
Virg ia. This report is in responseto your reiest dated June 8,
1972. The summary of our inquiry is also being submitted today to
Senator William B. Spong,Jr.

     Even though we found that the Air Force estimate of expected
savings from the plant's closure was excessive, we have developed
no information showing that the decision was in error.

     We have not obtained comments from the Department of the Air
Force or Olin Corporation on the matters discussed in the summary.

     We plan to make no further distribution of this report unless
copies are specifically requested and then we shall make distribution
only after your agreement has been obtained or public announcement
has been made by you concerning the contents of the report.

                                      Sincerely yours,




                                      Comptroller General
                                      of the United States


Enclosure


The Honorable William C. Wampler
House of Representatives


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