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ID-77-19A Perspectives on Military Sales to Saudi Arabia

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ID-77-19A Perspectives on Military Sales to Saudi Arabia DOCIJMERT FESUHE 03686 - [E3004272] Pers-actfves on Military Sales to Saudi Arabia. ID-77019A: B-165731. October 26, 1977. 43 pp. + 7 appendices (7 pp.). Report to the Congress: by Robert P. Keller, Acting Ccmptroller General. Issa e Area: International Ecmomic and Hilitazy Programs (600); International. Economic and Military Program: Foreign nilitarg Sales (605). Contact: International Div. Budget Function: Internaticnal Affairs: Conduct of Foreign Affairs (152). Organixaticn concerned: Department of Defense; Department of State. Congressional Relevance:,Hor;.se Committee on International Relations: Senate Committee on Foreign Relations; Congress. Authority: Aras Brport Control Act (P.L. 94-329). Saudi hrabia is a ma-for U.S. military sales customer. The United States has assisted Saud?. Arabia in defining its defense needs, which, in the absence of an imainent threat, appear to be to protect its borders and oil fields. Through sales of construction expertise, equipment, training, and canagement, the united States is helping to develop Saudi armed forces to meet these needs. Saudi Arabia is vital to the United States for political, eCOAOEiC, and geographical reasons. Fi~diAgS/COAClUSiOAS: PrOfd fiscal year 19% through September 30, 1976, U.f. military sales agreements with Sauai Arabia totaled over $12.1 billion. Construction represents the largest part, or about 631, cf total foreign military sales to Satdi Arabia. The corps of Engineers manages military sales construction. continued invclvenent can increase U.S. inflkwnce in Saudi Arabia and provide increased oppcrtoaities tc U.S. contractors and businessmen. U.S. inVOlVemeAt iA Saudi Arabia's armed forces modernizatioc program will continue for several years and may increase in magnitude. IA defining Saudi Arabia's defense reqoireaents, DOD has not explicitly included the capabilities of all Saudi forces. IS of March 1977, 912 DtiD personnel and approximately 2,961 contractor personnel uere involved in provid trig management, training, and services for Saudi Arabia unrf?.. rilitary sales a$ rseaants or commercial contracts. Incres. _ are planned fcr the near future. The lack of Saudi persome.. has impeded the progress cf gome modernization prcqr4ss. The continued U.S. presence could be important to i?.S. security objectives. Recoaaendations: In reviewing any future S. ldi Arabian request for additional aircraft, the Congress should request the Secretary of Defense to provide information cn the progress the ccuntry has made toward self-sufficiency in operating and maintaining its F-5 aircraft. The Secretary of Defense should have the U.S. military services include the nationa 1 guard forces in future evaluations k of Saudi Arabia's nilithry needs. At the <ime Congress is notified of a proposed sale, the Secretary of Defense should provide the estimafed number of U.S. ailitary personnel needed to carry out the sale and the impact on U.S. military preparedness of assigning such peracnnel. The Secretary of State should inform Congress at the tin6 of a proposed weapons sys:ee sale of the level of fatare noniticns support that may be rzqnired, such as air-to-air missiles and amaunitians for tank guns. (Author/SK) GAO’Fdrm l%UtEV. 6 771 ICAU NO 21 U.S. GENERAL ACCOUNTING OFF ICE 4 (Destrov wovIotI, l Qltmm) APPROVAL FOR OISTRIBUTION OF REPORT No.,of-11 TITLE OF HtPOH T PER5PECTIVESON MILITARY SALES TO SAW ARABIA -aON NUMBER B-NUMBER OATE ISSUED CHECK ONE 46346-ID-77-?9A 165731 I Qmm!m El UNRESTRICTED ‘HE ACCOMPANYING LETTERS ARE FOR SiGNATURE BY: -- cl RESTRICTF D El THE COMPTROLLER GENERAL 0IREC70l?. u ’ q CLASSIFIED ;PEClAL INSTRUCTIONS: l ntS rWrwXzd report will be available for general distrlbiltion: This is the UNCLASSIFIED version of the days after issuance classified report 10-77-19 i= notified bv OCR on is to be made after xic addresseels):- e-days after irsuartce INITIAL EXTERNAL OIS~RIBUTION SENATE COMMITTEE ON APPROPRIATIONS I I I I SE&ATE SlJBCO’!!w: ON Foreign Operations IAoo:oor~rtmns 5ubcomm~ttc-e) x SENATE COMMITTEE ON GOVERNMENTAL AFFAlRS Y PERMANENT SUBCOMMITTEE ON INVESTIGATIONS I SENATE COMMI fTEE ON GOVERNMEN CAL AFFAIRS i Y ANAGEMCNT ASSISTANT COMPTROLLER GENERAL. POLICY AND PROGRAM PLANNING. RM. 7124 OFFICE OF CoNGRESS:ONAL RELATIONS - RM. 7023 DIREZUR OF ORIGINATING DIVISION OR OFFICE J. Km Fasick .~~4804 1 COGNIZANT OEPUTY DIRECTOR. 73- ~~COGNIZANT ASSOCIATE DIRECTOR, Eranb: c - tn&an . R& 4874 Aif- COGNIZANT ASSISTANT DIRECTOR, .I;mPc+c -RM. GF-ci%l Pentagon M/ I INFORMATION OFFICER - RM. 7015 *&,To EACH PA~~~ICIPATING REGIONAL AND BRANQ~ OFFICE European Branch CODES GUDGET FUNCTIONS ORGANIZATIONS ISSUE AREASLINES OF EFFORT 0152 DDD DST 0600 0605 DETERMIN#.llON OF QUANTITY TO BE PREPARED OUANTITY EXTERNAL DISTRIBUTION INITIAL OISTRIBUTION INTERNAL DISTRIBUTION 57 TOTAL INfTlAL DISTRIBUTION ,.& 7 RECURRING SUDSEOUFNT DISTRIBUTION DIVISION ISTO CHECK APPLICABLE BOX(ES1: dp ALL d SELECTED.SUBJF.CTS 0 NONE 5% SIJBSEOJENT .b RESERVE STOCK 2 3$C DISTRIBUTION PRoVlSI@N FOR DISTRIBUTION TO THE NEWS MEDIA AND BfdAlL - -- RESERVE BYHAND ~&. L P - -- STOW. 4scJ PROVISION FOR ADDITIONAL QUANTITIES. IF NECESSARY 0 1 TOTAL SUBSEQUENT DISTRIBUTION AND RESERVE STOCK L 1265 TOTAL QUANTITY TO BE PREPARED FOR FLIRTHER INFORMATION CONTACT James D. Abts h PERSPECTIVES ON MILITARY SALES TO SAUDI ARABIA . 46346.IO-77-19A Runu RMYU msTm!4auflQ . Ho. Of COClLS (Icclmoot Secretary of Defense Attn: Assistant for Audit Reports (OASD) (C) Audit Rm 3A336 Pentagon D.C. 70301 Secretary of the Army Attn: The Inspector General and Auditor General DAIG/AI 4. Rm lE717 Pentagon, Washington, D.C. 20310 I I Secretary of the Air Force / : qttn: Assistant Auditor General AFIACUA J30 I ti 4D172 Pentagon, Washington, 0.C; 20330 I Comptroller of the Navy (NCB4) Rm 50830 Pentagon A 7 Washington, D.C. 20350 I Secretary of State Director, GAO Liaison Staff Attn: I 4 Rm 4253 department of State Representative Edward P. Boland 4 F House Committee on Appropriations . Pa 2624 RHOB c 7nq;le; Robert N. Giaimo House Committee on Appropriations Rm 2207 RHOB Subcommltttie on Legislative and National Security House CorrPnittee on Government Operations Congressman Christopher J. Clodd Attn: Mr. Peter Lennon Rm 224 Cannon Office Building Congressman Norman D. Dicks A- Attention: Mr. Krepon *:A Z , - U.S. lmlLarL ACCOUNTING “FWLE APPROVAL FDR RELEASE AND DfSTRJGUTlOH OF REPDRT IcaMouUh~~ SHEET) CA0 FOXY )I11 Wm. WInnj PERSPECTIVES ON MILITARY SALES TO SAUDI ARAbiA 46346-ID-77-19 A #mu LXTL#U #s7mBunoH . HO. 01 con= : House Committee on Armed Services X I Senate Committee on Armed Services X I .I Subcommittee on Military Personnel / I 1 House committee on Armed Services - I X -, Sukorr,nittee on Manpower and Personnel Senate Conmittee on Armed Services x Subcommittee on International Security and Scientific Affairs, House Committee on International Relations I 4ttn: Fcrrest Frank 1 + X 1'1 Sene:e (.ommittee on Foreign Relations . Rttn: Chief of Staff X Joint Economic Committee VJ 9ttn: Richard Kaufman f X I I 5e?ator William Proxmire, Chairman, Subcommittee on Worities and Economy in Government, Joint Economic Tommitt i- \ttn: Ann Lesher, Room 5241 LJSOB X -L Inspector General, Foreign Assistance lepartment of State 1 X Armed Services Investigative Subcommittee House Committee on Armed Services X I > , REPORT TO THE CONGRESS BY THE C’OMPTROLLER GENERrlL (3 THE UNITI STATES Perspectives On Military Sales To Saudi Arabia This IS an unclassified version of d more de- tailed classlfted report. Saudi Arabia IS a major U.S. military sales customer. From fis- cal year 1950 through September 30, 1976, nlilitary sales to Saud1 Arabia amounted to more than 512 billion. Over 60 percent of this amount represents the value of construction projects for which the U.S. Army Corps of Engineers has man agement responsibility. Lack of Saudi personnel has Impeded the progres: of som, modermzatron programs, incteasmg the probability that U.S. person- nel will be Involved in Saudi Arabia longer than orlgrnally planned. IO-77.19A OCTOBER 26, 1977 COMPTROLLER GENERAL OF THE UNITED STATES WAsnINGToN. D.C. mm48 B-165731 To the President of the senate and the Speaker of the House of Representatives Saudi Arabia is a major U.S. foreign military sales custcner. U.S e involvement in Saudi Arabia is expected to increase as the United States and its allies become increas- ingly dependent on Saudi oil. This is the unclassified version of the classified report which identifies the mili- tary hardware, training, and construction services sold to that country and analyzes the U.S. rationale for doing so. It contains recommendations to increase congressional over- sight of the foreign military sales program in Saudi Arabia. Our -eview was made pursuant to the Budget and Account- ing Act, 1921 (31 U.S.C. 531, and the Accounting and Auditing Act of lY50 (31 U.S.C. 67:. cge are sending copies of this report to the Director, Off ice of Xanagement and Budget, and to the Secretaries of State and Defense. of the United States COMPTROLLER GENERAL'S PERSPECTIVES ON MILITARY REPORT TO THE CONGRESS SALES TO SAUDI ARABIA Departments of State and Defense -w---mDIGEST From fiscal yc,ar 1950 through September 30, 1976, U.S. military sales agreements with Saudi Arabia totaled over $12.1 billion. Sales began increasing in fiscal year 1972 and from then through September lY76 they amounted to about $8.3 billion. Saudi Arabia is important to the United States for economic and political reasons, in short because of its oil. Military szles must be viewed within the context of total U.S. interests in Saudi Arabia. (See p. 4.) Over the years, the two countries have enjoyed a good relation- ship and indications are that the Saudis as well as the United States want this to continue. In the early 197Os, at the time of the British withdrawal from the Persian Gulf, Saudi Arabia began to modernize its armed forces.
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