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NSIAD-84-102 1 (1984-04-13)

handle is hein.gao/gaobabeml0001 and id is 1 raw text is: 







BY THE COMPTROLLER GENERAL

Report To The Chairman, Subcommittee On

Economic Stabilization,Committee On

Banking, Finance, And Urban Affairs
House Of Representatives
OF THE UN[TED STATES





Trade Offsets In Foreign Military Sales


Trade offsets involve shared manufacturing by a
foreign government or other arrangements
aimed at offsetting part of the cost of a weapon
system purchased from the United States
Various government and private industry offi-
cials have expressed concern about the in-
creased use and possible consequences of
offsets in foreign military sales GAO was asked
to review the policies, responsibilities, and data
bases of federal agencies regarding these offset
arrangements

This report contains information on each of these
areas It also suggests that the Congress may
wish to direct the administration to institute a
policy to resist offset demands by foreign govern-
ments purchasing military goods from the United
States when U.S assistance is provided. GAO
believes that foreign military sales credits or
grants should not be used directly or indirectly to
expand the industrial base of a foreign country at
the expense of the U S industrial base and U S
jobs. Exceptions to this general rule might be
made for foreign policy reasons






      AllD sP




  l           0u I                                            GAO/NSIAD-84-1 O2
  1CCou t4p                                                      APRIL 13, 1984

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