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088971 1 (1973-03-19)

handle is hein.gao/gaobacuxz0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE INTERNATIONAL DIVISION FAR EAST BRANCH 1833 KALAKAUA AVENUE HONOLULU, HAWAII 96815 MAR 19 173 Major General John W. Barnes Chief, Military Assistance Advisory Group, Republic of China P. 0, Box 13 APO 96263 Dear General Barnes. During our recent follow-up review on the Military Assistance Program (MAP) for the Republic of China, we noted a continuing problem which we believe merits your attention. We found that the U.S. Army's Taiwan Materiel Agency (TMA) was still purchasing some of the same repair parts that the Chinese Army had in excess quantities. A major Chinese source of the parts, and hence the excesses, was the U.S. MAP. The Military Assistance Manual and related regulations provide that MAP-furnished materiel in excess of Chinese needs should be reported for redistribution, and returned when valid U.S. needs for the materiel are identified. We believe that if these procedures were followed, the savings in TMA procurement could amount to several hundred thousand dollars. At present, though, the excesses are not being reported or made available to TMA. POTENTIAL FOR SAVINGS THROUGH USE OF MAP EXCESSES TMA administers a program on Taiwan for the rebuild of general purpose vehicles, armored personnel carriers, tractors, and other equipment, as well as major components for some of these items. Much of this same type equipment, and related repair parts, have been obtained by the Chinese Armed Forces through MAP. During our visit we were unable to determine TMA's total parts requirement, but we estimated that the parts for just the scheduled rebuild of two major vehicles--about 3,500 1/4-ton and 3/4-ton trucks-- would cost about $2.2 million. There are about 1,500 different parts

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