About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


ID-82-30 1 (1982-05-05)

handle is hein.gao/gaobabdgu0001 and id is 1 raw text is: W UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 IWERNATIONAL DIVISION 5 VA( 1332 B-206903 The Honorable Caspar W. Weinberger JI427 The Secretary of Defense Dear Mr. Secretary: Subject: Agreements on Inter-NATO Defense Trade (ID-82-30) We reviewed the general Memorandums of Understanding between the Department of Defense and 11 allies of the North Atlantic Treaty Organization (NATO) to determine whether these agreements had provided increased reciprocal opportunities for firms of one country to compete for defense procurements by another country. We were unable to do so because the Department of Defense has not established an adequate data system to provide a base for determining the impact of the agreements on defense trade. The broad policy of Rationalization, Standardization, and Interoperability (R/S/I) became the cornerstone of U.S. policies within NATO in the 1970s. To address NATO cooperative armaments needs, the Department of Defense encouraged common production of weapons and entered into Memorandums of Understanding to reduce barriers to inter-NATO defense trade. The Department believes these programs will improve NATO defense markets and maximize competition, thereby improving overall economic efficiency and combat effectiveness. The Department of Defense has made extensive use of Memoran- dums of Understanding which can be divided into two types--general and specific. The general Memorandums established broad principles for more open defense procurement opportunities through eliminating restrictions on a reciprocal basis. The specific Memorandums are used to encourage collaboration on individual weapons systems. This letter focuses on the general Memorandums. The Office of International Acquisition has negotiated general Memorandums of Understanding with 11 NATO allies--Canada, Germany, Italy, the United Kingdom, Norway, the Netherlands, Portugal, Bel- gium, Denmark, France, and Turkey--to promote: (483337)