COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.C. 20548 1IIIIIIIIIIIIIIllIllllllllllllllll LM095655 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 -2-
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)