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NSIAD-83-53 1 (1983-09-30)

handle is hein.gao/gaobabndz0001 and id is 1 raw text is: UNITEp STATES GENERAL ACCOUNTING OFFICE -/ . WA HINGTOr, DC. oa, NATIONAL SECURITY AND !NTERNATIONAL AFFAIRS DIVISION RELEASED September 30, 1983 B-208698 The Honorable John Glenn United States Senate 122749 Subject: Potential Impact of Expanding Coverage of the 1982 Amendment to the Arms Export Control Act (GAO/NSIAD-83-53) Dear Senator Glenn: P.L. 97-392, 96 Stat. 1962 (1982) authorizes the President to sell U.S. defense articles and services to U.S. companies for incorporation into end items for commercial export only if: (1) the end item to which the articles apply is to be procured for the armed forces of a friendly country or international organization, (2) the articles would be supplied to the prime contractor as government-furnished equipment or materials if the end item were being procured for the use of the United States Armed Forces, and (3) the articles and services are available only from United States Government sources or are not available to the prime contractor directly from United States commercial sources at such times as may be required to meet the prime contractor's delivery schedule. The Senate Foreign Relations Committee, in its report on the legislation (S. Rep. No. 97-586), stated that it intended to limit the scope of this authority to those defense articles: * * * that are in fact being provided by the United States Government to the prospective United States private purchaser or its U.S. competitor in connection with United States Government procurements of similar end items for the use of the Department of Defense. On May 31, 1983, you asked for our comments on a proposal to modify the language of the Senate Foreign Relations Committee report to allow Government arsenals to sell defense articles and services to contractors for assembling at contractors' plants and subsequent commercial export, whether or not the contractors currently receive such defense articles and services for incor- poration into end items delivered to the Department of Defense (DOD). (~ (463712)

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