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NSIAD-93-120R 1 (1993-01-06)

handle is hein.gao/gaobackey0001 and id is 1 raw text is: tC4B2.0 United States General Accounting Office Washngton, D.C. 20548 National Security and International Affairs Division B-251538 January 6, 1993 The Honorable Earl Hutto Chairman, Subcommittee on Readiness 148236 Committee on Armed Services House of Representatives Dear Mr. Chairman: In response to your request, we reviewed the grant of U.S. excess defense articles from Subic Bay Naval Base to the armed forces of the Philippines under section 519 of the Foreign Assistance Act of 1961. Specifically, you asked us to determine the Navy's procedures for identifying excess items, the rationale for granting excess items under section 519, procedures to prevent theft and looting, condition of the equipment granted, and the feasibility of returning any of the articles to the United States for donation to other federal and/or state agencies. You also asked us to determine why the acquisition value of vehicles granted and sold was misstated in the Defense Security Assistance Agency's (DSAA) notification to Congress. In a later discussion, we agreed that because of the short time remaining before the United States vacated Subic and because of your special interest, our work would focus on the excess vehicles granted. We briefed your staff on November 10, 1992, on the results of our work. The Navy initially planned to sell as many excess items, including vehicles, as possible through the Defense Reutilization and Marketing Office (DRMO).1 However, according to the Departments of Defense and State, the 1988 Review of the Military Bases Agreement requires the United States to give the Philippines the first opportunity to acquire any excess, removable defense items, at mutually agreed terms, when the United States vacates a base in the The DRMO is an element of the Defense Reutilization and Marketing System at which excess property is normally located for disposal without giving priority to any specific client. GAO/NSIAD-93-120R Philippines C t2 /L 36

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