International Agreements

In response to a congressional request GAO examined the status of the implementation of and funding for the 1982 U.S.-German agreement for logistic support to U.S. forces in Germany in time of war or crisis to determine the potential for budget reductions. GAO found that there was no potential to reduce funds since: (1) the two countries and the North Atlantic Treaty Organization (NATO) share the costs to establish and maintain support; (2) 40 percent of the procured equipment would come from German sources while 60 percent would come from U.S. sources; (3) NATO had not determined what it would fund; and (4) changes in monetary rates and cost uncertainties for equipment could result in a U.S. cost share in excess of the current funding estimates.