Concern at the Use of Foreign-Made Motor Vehicles Abroad by the Department of Defense

Published by the Government Accountability Office on 1971-05-17.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                        COMPTROLLER       GENERAL       OF      THE        UNITED     STATES
                                        WASHINGTON.      D.C.     20548

Dear    Mr.   Chamberlain:

         In May 1968, you expressed                   concern      at the use of foreign-made
                                                        Le-----1.--1_-__              .,..,., -.
motor vehicles.abroad                   by the..Department         of Defense because of the
detr&ie~a~-'effects                 this might have on federal             expenditures       and the
UnXed.S'tates __.___  balance-of-payments
                     -?--. ..".. -.      --_ -__         position.       You  asked     this   Office
toXiiiXe            sltuatlon.

        We issued two reports            to the Congress --one in February            1970 on
the use of foreign            buses and another         in February     1971 on the use of
foreign     trucks.       Both reports        concluded    that significant     cost and
balance-of-payments            advantages       could be realized      by our military
forces,     at some overseas          locations,      if they were to use more American
vehicles      instead     of relying       so heavily     on contractors     who used mostly
foreign-made        vehicles,

         The Department    of Defense has recently    furnished       us information
indicating      that the Army has taken steps to significantly             increase                                   the
use of American       buses abroad.   The current   status     in Pacific       area
countries     commented on in our February      1970 report      follows:

               FY 1972 Bus
               Requirement                          Sources           of      buses        to be used

Japan                  55         32 American     buses are being phased-in      as replace-
                                  ments for foreign     buses,    Fiscal  year 1973 require-
                                  ments are to be satisfied      with American     buses.
Korea                 132         100 American     buses were delivered     and 32 additional
                                  American    buses currently   are planned    for delivery.
Thailand               44         44 American  buses                  are to          be delivered          as rcplace-
                                  ments for foreign                   buses.
Okinawa               143         A determination       was made that it would                                  be more
                                  economical      to continue  to lease foreign                                  buses.
Vietnam              334          153 American   buses are scheduled     for delivery   in
                                  June 1971.    An additional   111 American     buses now
                                  are on hand.    70 foreign  buses will     be leased
                                  during fiscal   year 1972.

                               50TH    ANNIVERSARY                    1921-         1971
        We are pleased     to have been of assistance           to you in this      matter.
Your interest      has resulted    in significant         economic  advantages      through
the increased      use of American       buses abroad by the Army,          We   estimate
that balance-of-payments         benefits     of about $1.2 million        and   cost
reductions      of approximately     $218,000     annually     will accrue to     the United
States     Government   because of the actions         for increased      use,   by the Army,
of American      buses in Japan,     Thailand     and Vietnam.

      When a reasonable    period   of time has elapsed,      we plan           to obtain,
from the Department     of Defense,   a report    on the actions    it          has taken
to increase  the use of American      trucks   abroad,  and we will             let you
know the results.

                                              Sincerely       yours,

                                              of the      United       States

The Honorable  Charles       E. Chamberlain
House of Representatives