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088972 1 (1973-03-19)

handle is hein.gao/gaobacuya0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 0 INTERNATIONAL DIVISION FAR EAST BRANCH 1833 KALAKAUA AVENUE HONOLULU, HAWAII 96815 MAR 19 1973 Colonel Errol E. Hayes, Jr. Commander, U.S. Army Taiwan Materiel Agency Box 19 A2O San Francisco 96263 Dear Colonel Hayes. We wish to bring to your attention an opportunity to substantially reduce repair costs at the Taiwan Materiel Agency (THA) through the use of excess Chinese Army repair parts. We noted during our recent follow-up review of the Military Assistance Program (MAP) on Taiwan, that the Chinese Army had excess quantities of many of the same parts that TMA is presently using in its rebuild programs. Since a major source of the Chinese parts over the years has been the U.S. MAP, the excesses according to regulation should be made available to meet known U.S. requirements. We believe that the potential savings from using them could amount to several hundred thousand dollars. The excesses, though, are not now being reported, and so have not been made available for use by TMA. We are also reporting this matter to the Chief of the Military Assistance Advisory Group (MAAG) - China for his action. POTENTIAL FOR SAVINGS THROUGH USE OF MAP EXCESSES We were unable during our visit to determine TMA's total parts requirement, but estimated that the parts for just the scheduled rebuilding of two major vehicles (about 3500 1/4-ton and 3/4-ton trucks) would cost $2.2 million. We understand there are about 1500 different parts used in rebuilding of the two vehicles. To find out to what extent these same parts might be available and excess in the Chinese inventory, we compared 96 of them against the Chinese stock status report0 The 96 items were taken from TMA Listings of parts currently on order, or recently purchased in Taiwan. They wexe selected randomly except that we included all 20 parts that had been identified as causing either actual or potential work stoppages. Of the 96 items examined, 56 were listed in the Chinese inventory, and 25 of those showed an excess quantity on hand valued at about $81,000 (see enclosure). Six of the excess items were among those identified by TMA as work-stoppage items. 4 pp'I

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