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129910 1 (1986-05-20)

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           UNITED STATES GENERAL ACCOUNTING OFFICE
                  WASHINGTON, D.C.   20548

                                FOR RELEASE ON DELIVERY
                                Expected at 9:30 a.m.
                                Tuesday, May 20, 1986
129910
                        STATEMENT OF

                        JOAN M. McCABE

  ASSOCIATE  DIRECTOR, NATIONAL SECURITY AND INTERNATIONAL

                      AFFAIRS DIVISION

               U.S. GENERAL ACCOUNTING OFFICE

                         BEFORE THE

       LEGISLATION AND NATIONAL SECURITY SUBCOMMITTEE

          HOUSE COMMITTEE ON GOVERNMENT OPERATIONS


ON


           PROBLEMS IN CONSTRUCTING EMBASSY FACILITIES

                         IN CAIRO, EGYPT

Mr. Chairman, Members of the Subcommittee:

     I am pleased to be here to discuss our recent report to you

on Overseas Construction:  Problems in Constructing Embassy

Facilities in Cairo, Egypt.  That report describes the activities

of the State Department's Foreign Buildings Office  (FBO) in

constructing the ambassador's residence in the Giza area and the

new chancery.

     Our work disclosed serious deficiencies in FBO's activities

on these two projects.  Specifically, we  found that (1) design

problems and changes caused delays and added costs,  (2) FBO

contracted with builders without adequately evaluating their

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