Department of the Army Historical Summary: FY 1983

8

Logistics

This fiscal year the Army undertook a virtual revolution in logistics aimed at achieving one of its seven goals-the materiel goal-to equip and sustain a Total Army to win any land battle. It took the form of modifying the doctrine and techniques of management and planning, supply and maintenance, transportation, and security assistance used in support of a large modernized Army dispersed over a vast area.

To help decision makers manage and plan more efficiently, this year the Office of the Deputy Chief of Staff for Logistics (ODCSLOG) conducted thirty-three analytical studies of problems, assessments, solutions, conclusions, recommendations, and methodologies to measure performance in the general areas of installations and logistics. The ODCSLOG plans another twenty-nine studies for FY 84.

The ODCSLOG Force Structure Division contributed to better management and planning by participating in the Army Models Improvement Program (AMIP) and the Army Logistics Analysis Community Review Committee, and continuing to exercise responsibility for review of logistically oriented commercial study proposals. Its emphasis this past year has been twofold: first to improve the exercise of combat service support in the emerging combat models the Army is developing, and second, to reduce the possibility of duplicative studies and analyses resulting from the geographic dispersal of agencies and activities.

Immediate benefits resulted from the conversion of the munitions systems support study from a study endeavor to an ongoing Army staff management action this year. Data from the study furnished Europe with projected stockage objectives and production availability through FY 88. Europe is able to use this information to plan requests for equipment (the Call Forward Program) on a year-by-year basis through the supporting POM period. This approach enables the Army to forecast with more accuracy the storage and transportation funds needed to support theater requirements.

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The Army began testing the management and accountability of Army materiel at Fort Hood, Texas, this fiscal year. The one year test, which started in March 1983, monitored simplified procedures for documenting the loss adjustment of hand tools and conducting inventories of property belonging to III Corps. The purpose of the test was to examine the effects of current property regulations and procedures at the unit level, while still maintaining effective property responsibility. Test initiatives included considering hand tools costing less than $5.00 as expendable; authorizing unit commanders to adjust losses of hand tools when no negligence is suspected, where the total gross value of each loss does not exceed $100.00; maintaining at company level a document registering both expendable and durable items; and providing a clear definition of the responsibilities of the officer in charge and guidance to the personnel conducting the surveys and approving the survey reports.

The logistical revolution concerning supply and maintenance involved a number of activities this year. These included computer support for supply and maintenance studies, build up of ammunition stocks in Europe, funding Army Stock Fund, Army Industrial Fund (AIF), procurement appropriations, materiel condition status, depot maintenance program status, maintenance management improvement program, standard Army maintenance system, Army aircraft overhaul requirements, maintenance support activities, and base operations.

During FY 83, the Army used the Total Army Equipment Distribution Program (TAEDP)-a computer program for managing major pieces of Army equipment-as the principal data base to support key logistical studies and to support Army staff and congressional analyses of logistical issues, particularly concerning the equipment status of reserve components. These studies included the report of the Resource Management Review Select Committee in November 1982, "Equipping the Total Force" study (1982), "Project Relook," "Army Logistics Assessment," "Support Equipment Analysis," "Equipment Redistribution" study, "VCSA documentation" study, and Volume 11 of the DOD Force Readiness Report.

The Army undertook a major study this year to identify, assess, and resolve compatibility deficiencies between TAEDP and its sixteen contributing data sources. As a result of the study and follow-up actions taken to implement it, the Army made substantial progress this year in resolving data base problems,

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particularly concerning TAEDP's computability with TRADOC basis of issue plans and the SAMPAM (System for Automation of Materiel Plans for Army Materiel)/Procurement Data Base.

FY 83 also was a period of extensive improvement in TAEDP capabilities. Enhancements to TAEDP included an innovative requisition validation system, war reserve comparison/deviation products, a Force Integration Staff Officer worksheet report, Army Modernization Information Memorandum worksheet and the incorporation of fiscal year funding into the TAEDP distribution scheme. Ongoing enhancements nearing completion by September 1983 included TAEDP Associated Support Items of Equipment (ASIDE) products, revisions to the POMCUS Authorization Documents System (PADS), the inclusion of a HQDA major item substitution policy in TAEDP and various system maintenance improvements. The development of the TAEDP modernization program continued during FY 83 with the completion of the functional description and development of the technical specifications.

The Army continued to build up ammunition stocks in Europe at a reasonable rate this fiscal year. The FY 83 Call Forward Program goal was to ship 68,000 short tons of ammunition for the build-up of pre-positioned war reserves and support of training. Retrograde plans sought to remove 25,000 short tons of older, superfluous munitions for utilization elsewhere. The retrograde action releases valuable storage space for new stocks of munitions. Ammunition shipments through the end of the fiscal year reached 97 percent of the goals set.

During the year, the Army decided to implement a policy of simultaneous obligation of ASF requisitions beginning I October 1983. Simply, this means that an obligation will be recorded in the books of the requisitioner as well as the ASF when the requisition is submitted rather than when the supplies are actually received. Under the new arrangement, the Army could control requisitions at the time of submission rather than be subject to the whims of an unpredictable delivery system. It would obligate funds for these requisitions against the current fiscal year, and not have to worry about the ability to pay for it in subsequent fiscal years and would have the ability to charge price adjustments to the year of the requisition, where it can be controlled, as opposed to subsequent years, where the unknown amount of deliveries would occur. This change will effect the entire finance and accounting network, supply system, and every individual that controls funds.

The ASF experienced a slow, constant drain on the amount of cash available to pay bills this year, which complicated the

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conduct of day-to-day business. Contributing to the problem were changing demand patterns associated with force modernization, higher rate of progress payments allowed to contractors because of the economic situation in the country, relationships with non-Army defense agencies, and price changes not fully covered by pricing policies. Near the end of the fiscal year, stock fund managers initiated measures to guarantee solvency of the fund. For example, to provide management with information, they established a daily reporting system. Measures, such as these, improved the cash position of the stock fund by the end of the fiscal year.

Three actions taken during the year enabled AIF to achieve a more businesslike and efficient approach to operations and management. These actions were the Asset Capitalization Program (ACP), the Fiscal Year 1983 Appropriations Act, and Research and Development (R&D) Activities.

The ACP, which Congress approved for implementation this year, allows the purchase of capital equipment with AIF money, rather than with appropriated funds, the previous policy. The AIF receives cash to purchase equipment by charging the customers of the industrial fund for depreciation expense. The new program provides AIF managers more flexibility in making purchasing decisions, while fixing responsibility for good planning and management at the operating level.

The FY 83 Appropriations Act eliminated artificial civilian manpower ceilings in industrial fund activities. Now the employment of civilians is based on work load requirements. Initial feedback from these activities indicates that the new policy allows cost savings and a better response to changing work loads, a condition that is expected to continue into FY 84.

To provide more consistency in the way we do business in the Army, the Army finalized plans this fiscal year to remove R&D activities from the AIF. Of the three R&D activities that receive AIF funds, two are scheduled to receive appropriated funds in FY 84, and the remaining one at the end of FY 85.

Funding levels for appropriation financed secondary items in FY 83 amounted to $1,417 million, compared with $1,061 million in FY 82. The increase of $356 million reflects the need to support new weapons systems being fielded as part of the modernization program, and inflation. Funds for purchasing secondary items spare parts covers replenishment and initial spares necessary to support the modernized Army. Full funding for secondary items, including spare parts, supports the peacetime Army and maintains the combat-readiness of its equipment.

The Army made major changes this year in the procedures for reporting the materiel condition of weapons systems. It

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changed the frequency of reports from quarterly to monthly for Active Army units, but maintained quarterly reporting for the National Guard and Army Reserve. To help units report on a weapons systems basis, the new DA Pamphlet 738-750 now lists equipment configured as systems. These changes will enable managers to pinpoint problem areas and identify the subsystem contributing the most deficiencies.

Depot maintenance activities had an unfinanced requirement of $232 million this fiscal year as a result of both congressional reductions and increased demands. The projected unfinanced requirement through FY 85 is $ 131 million for the maintenance of Army materiel and $269 million for the maintenance of support activities.

Since 1979 the Army has maintained a Maintenance Management Improvement Program (MMIP) to eliminate serious maintenance shortfalls. The Army designed MMIP to attack root causes and to focus command attention on the tasks of upgrading maintenance operations, strengthening maintenance training, improving publication, and supporting tools and repair parts. DA Circular 750-83-3, published this fiscal year and effective 15 November 1983, defines objectives, assigns responsibilities, and establishes methods and implementation procedures for the MMIP

The Standard Army Maintenance System is an automated logistics management system, thirteen years in development, that will provide maintenance management from direct support and general support units at retail level up through DARCOM at the Army wholesale level. This year the ODCSLOG and the ODCSOPS sought unsuccessfully to obtain $17 million for system hardware and to accelerate fielding. Despite this set back, they initiated efforts to move the starting date for the operation of SAMS from January 1986 to January 1985. As has happened before in SAMS (Standard Army Maintenance System) history, the software for SAMS has reached a state of maturity, but the ADP equipment needed to process the system is still unavailable.

This year the Army codified its policy concerning aircraft overhaul requirements. Before FY 74 the Army based its aircraft overhauls on an engineering estimate that an aircraft airframe required a depot-level structural inspection and overhaul every five years. This meant that the Army was overhauling 20 percent of its total aircraft fleet every year. An evaluation of airframes being inspected and overhauled, on this calendar basis, revealed a wide disparity in airframe conditions ranging from little or no depot-level attention required to a major reworking of critical structural components. These revelations became the basis for the Army's new philosophy termed On Condition Maintenance

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(OCM). Under OCM; a depot trained Airframe Condition Evaluation (ACE) team would evaluate aircraft of both active and reserve components, at the owning unit's airfield. After assigning a series of points to airframe areas needing depot-level inspection and overhaul, the team would rank every aircraft in numerical order of total points awarded. Based on this ranking, they would call first into the depot the aircraft most in need of repair. OCM has provided the Army with a sound methodology to identify and correct structural deficiencies only on those airframes that need it. The result has been an average reduction in the numbers of aircraft called in each year for overhaul from 205 to 105, with a coinciding reduction in cost.

The Pavement Maintenance Management System (PAVER) is an on-line, interactive decision support system to assist pavement maintenance managers in the Army, Air Force, and Navy to program their maintenance activities for roads, streets, and airfields, so that they can extend the service life of the pavement and use to best advantage the limited funds available for such maintenance. This system, which is on the Boeing Computer Service, is now available to private and public sectors for use. The University of Illinois Department of Continuing Education provides the training for using PAVER to all DOD elements as well as to city, state, and foreign government transportation planning commissions. The University has trained more than 125 people in and out of the government.

Late passage of the FY 83 Defense Appropriation Act combined with numerous large unspecified budget reductions forced many installations to reprogram funds this year from other Operations and Maintenance Appropriation programs. For the first time, Base Operations were responsible for funding bachelor housing furnishings, administration, the Army lease program, and project VIABLE. To improve spending and decrease money obligations late in the year, the bases committed funds early for annual contractual obligations and for supply costs upon requisition instead of receipt. These approaches shifted spending away from previous year-end patterns. Base Operations' total money obligations, for this fiscal year, amounted to $2.4 billion, or 14.9 percent of the total obligations of the Operations and Maintenance Appropriation.

In the area of transportation, this fiscal year the Army focused on continuing the development of programs begun in previous years and the initiation of a new computer system. The programs carried over from last fiscal year included the CONUS

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Mobility Analysis, logistics over the shore, containerized shipping and the improvement of two computer software systems-the Department of the Army Standard Port System Enhanced (DASPS-E) and the Department of the Army Movement Management Systems (DAMMS). The new computer system initiated in FY 83 was called the Transportation Coordinator, an Automated Command and Control Information System (TC ACCIS).

This year the ODCSLOG Strategic Mobility Division maintained its course in developing a systematic method of assessing the Total Army strategic mobility system. The long term goal is to establish a process that will identify system deficiencies and choke points, consolidate visibility over Army mobility programs, and take corrective measures to ensure a balanced capability. This effort, which is called the Army Strategic Mobility System Assessment (ASMSA), will encompass the total "origin to foxhole" system, including men and materiel outbound from CONUS, strategic movement, and intratheater delivery. Specifically designed to support the Army logistics assessment program, ASMSA will initially concentrate on capabilities to support the European theater, followed by the Southwest Asia and Pacific theaters. ODCSLOG began coordinating its efforts with Army MACOMs to obtain information and recommendations concerning study methodology and system capabilities. ASMSA intends to define for the Army those areas where resource investments will yield the greatest return in terms of total system capability.

The ASMSA program, and the actions resulting from it, affect planning for operations on foreign shores. The logistics over the shore (LOTS) program is primarily concerned with operations by the Rapid Deployment Force in regions without extensive port facilities. During FY 83, the Strategic Mobility Division (ODCSLOG) continued to pursue an aggressive five-year watercraft program to provide sufficient LOTS capability to support contingency operations in those areas of the world where commercial ports are inadequate, unavailable, or denied. This fiscal year the Army put into operation the first lighter, air cushion vehicle (LACV-30) company and awarded contracts for twelve additional LACV-30 craft required to field a second LACV-30 company. In addition, the Army continued steps that will enable it to eventually incorporate Navy-developed causeway systems and equipment into the Army's watercraft inventory and LOTS capability.

Containerized shipping has become one of the most important innovations in moving supplies and equipment in the last three decades. In FY 83, the ODCSLOG tasked the U.S. Army Concepts and Analysis Agency (USACAA) to develop a computer model and methodology for analyzing containerization in a

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theater of operations. In September 1983, USACAA presented a preliminary report of phase I of the study, titled the Containerized Cargo Distribution Analysis (COCADA). Unified Commands and MACOMs can apply the methodology developed in phase I to analyze the maximum possible containerization in a theater of operations. The phase II follow-on, scheduled for FY 84 will continue developing a model to determine the impact of various policies on the utilization of containers and their equipment on all the components of a theater distribution system force structure, facilities, storage locations, and the transportation network available to move containers.

The Army initiated efforts this year to develop a new computer system to support transportation. The TC ACCIS will link the Military Traffic Management Command (MTMC) with installation transportation offices throughout CONUS. The Defense Communications Agency and the Joint Deployment Agency are developing the prototype system, which the Army hopes to test as a joint system in May 1985. The Army also continued to develop other automated systems begun in previous years. The development of the DASPS-E made progress toward a fielding target date of May 1985. In FY 83, the Army conducted a Software Qualification Test (SQT) and continued to produce DASPS-E hardware with delivery expected to be on schedule for all eleven sites. The Army also made progress developing a functional description for the DAMMS Redesign, an on-line interactive system to manage the theater transportation pipeline and commit and manage theater-level truck assets. The Army hopes to complete DAMMS Redesign in November 1984 and to field the DAMMS Movement Planning Module, to USAREUR in January 1985 and to EUSA in February 1985. The DAMMS Movement Planning Module automates the theater wartime movements program and provides the capability to analyze transportation networks, intermediate trans-ship points, and receipt and asset capabilities.

The logistics revolution also extended to the area of security assistance. Here the Army continued to conduct programs in security assistance designed to assist friends and Allies to acquire and maintain the means of defending themselves. This year these programs, which support U.S. foreign policy, involved 122 countries and international agencies, consisted of Foreign Military Sales (FMS) programs; Military Assistance Programs (MAPs); International Military Education and Training Programs (IMETP) and Coproduction programs.

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This fiscal year, the Army participated in the development of several security assistance legislative initiatives intended to improve the management of the security assistance program. Among these were proposals for antiterrorism training, reciprocal exchange of U.S. and foreign students between military professional schools in the U.S. and abroad, reprogramming of funds allocated to IMETP, and removal of prohibitions on U.S. strategic trade with China.

The Army also embarked on a CSA initiative to increase Allied combat capability, through the remainder of this century, by improving U.S. equipment presently in Allied hands. The Army is determined to improve U.S. weapons in the inventories of those countries that desire high technology from the United States but cannot afford it. Hence, it is looking first at "middle developed" countries such as Turkey, Greece, Spain, Portugal, and Korea to see to what degree it can apply already developed product improvements to the inventories of these countries and produce cost-effective results. By supplying the technology, training, or production equipment required for in-country production, the Army intends the receiving country to gain the advantages of an expanded economy and an increased ability to sustain itself in war. As the occasion arises, the Army may also apply such product improvements to Army Reserve, National Guard, and Active Army equipment assets to improve Total Army combat capability.

Also during FY 83, the U.S. Army School of the Americas (USARSA) at Fort Gulick, Panama, which provides military education in Spanish, enrolled more than 18,000 students. USARSA offers a wide spectrum of courses ranging from professional development training to training for cadets, officers, and enlisted personnel of participating Latin American countries. On 19 November 1982, eighty-eight infantry officer candidates from Honduras received their commissions, becoming the first officer candidate class to graduate from USARSA in its thirty-six year history. A total of 41,283 students from twenty Latin American countries have graduated since 1946 when USARSA was founded.

Security assistance to NATO members and other European countries remained a high priority this fiscal year as the Army continued to participate in programs to improve the combat effectiveness of its European Allies. Significant developments occurred in foreign military sales, cooperative initiatives and efforts for future arms development and production in three areas: 1) NATO countries have agreed to make the total NATO defense market available to the defense industry of all alliance partners. This "two-way street" has had little success between other NATO

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countries and the U.S., but projects between European members have multiplied. 2) They have implemented dual production armament programs so that weapon systems of one NATO country are available to other NATO forces at low unit cost. Negotiations for coproduction of modern weapons by non-NATO European Allies also continued to advance this year. 3) Also, "family of weapons" agreements are now in force for new developmental projects, so that NATO countries can incorporate modern technology in various systems without duplicating research and development costs.

By the end of the fiscal year, the following major trends in security assistance to NATO members became evident: I) Allied efforts to assist NATO's two poorest members, Portugal and Turkey, had not progressed significantly in producing the extensive modernization necessary. The Allies will have to increase efforts at strengthening and modernizing NATO's southern flank. 2) The Allies also will have to review carefully dual production arrangements because of DOD concern about the impact on the U.S. production base and the accompanying release of sensitive defense technology. 3) Constant solicitation of Allies for sales of certain weapons must continue in order to provide sufficient orders to keep production lines going and, in some instances, to expand their base. Long production lead times continue to frustrate modernization efforts, even when funds become available. 4) The basis for security assistance to some NATO Allies requires shifting from perceived relative formulas to recognized requirements. In FY 83, the Allies directed their treaty negotiations toward this goal by consistently pressing for "best efforts" pledges. Nevertheless, they concluded some accords that linked specific aid amounts to percentage formulas based on aid received by other nations. 5) Although the U.S. and Greece concluded a lease rights treaty, the U.S. is still negotiating with Portugal for such an agreement.

The Army participated in security assistance programs outside of NATO as well. During FY 83 the existing security assistance programs for Saudi Arabia continued to expand. Ongoing programs included the mechanization of two Army brigades and the Saudi Arabian National Guard (SANG) modernization program. Substantial U.S. security assistance to Egypt has helped to stabilize the readiness posture of the Egyptian Armed Forces, which had continued to diminish as aging Soviet equipment became inoperative for want of spare parts. Due to the immensity of Egypt's modernization program, and given current funding authorization levels, it is unlikely that the security assistance program will make a significant impact on the Egyptian Armed

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Forces' readiness posture until FY 86. Since 1982, the Egyptian IMETP has continued at the level of $2 million, one of the largest in the world, with over 300 officers trained in CONUS this year alone. Jordan, also, is one of the largest IMETP recipients.

Because a strong and integrated armed forces is essential to Lebanon's survival and to any hope for peace, the U.S. government has provided approximately $262 million in military assistance. M48A5 tanks, M 198 artillery howitzers, M13A2 Armored Personnel Carriers (APCs), and communication equipment are among the major items Lebanon is receiving. In addition, mobile training teams, totaling approximately 100 trainers, covered subjects ranging from logistics and maintenance of communications, armor, ammunition, and artillery to basic and advanced individual and unit infantry training. This fiscal year, DOD dispatched thirty-seven teams to Lebanon to assist in the rebuilding process.

Israel continues to maintain a generally recognized margin of superiority over any combination of potential opponents. They used fiscal year 1983 foreign military sales financing for air defense, armored and tracked vehicles, artillery, missiles, and ammunition.

Twenty-six Latin American countries received U.S. security assistance during FY 83. The high points of the security assistance program during this period consisted of congressional approval of authorizations of $10.5 million for Honduras, $8.5 million for El Salvador, and $3.25 million for Jamaica. Central America continued to demand the bulk of U.S. security assistance in the hemisphere. One program established a RMTC for Central America in Honduras.

Military-to-military relations with Latin America, however, continued to suffer as a result of U.S. support for Great Britain during the Falkland Islands War between Argentina and the United Kingdom. As a result of this crisis, western solidarity against Soviet or Cuban supported insurgencies and subversion weakened considerably, and thus dampened the effects of the U.S. security assistance effort in the region.

Security assistance to African countries this year emphasized mobile maintenance training teams and nation-building projects. The security assistance program in Somalia concentrated on establishing a system to sustain the equipment provided in FY 82. To support Chad stability, when Libyan-backed rebels invaded the country, the president authorized $25 million in emergency assistance, in the form of airlifts of vehicles, weapons, ammunition, individual clothing, equipment, and spare parts. The fiscal year program in Djibouti provided the initial funding for engineer construction equipment. In Kenya, security assistance

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continued emphasis on the helicopter program and the delivery of TOW missiles in June 1983 to enhance Kenya's antitank readiness. Security assistance to Morocco consisted of completing the M48A5 tank conversion program, an airlift of artillery ammunition, and the second U.S.-Morocco Joint Military Commission in Washington in May, which stressed enhancement of their logistics infrastructure and support capabilities.

The Army participated in a number of security assistance programs in Europe this year, including those in Denmark, Switzerland, and Turkey. In June 1983, Denmark received the first two leased batteries of Improved Hawk missiles, and in the next fiscal year will receive two more. Because Denmark expressed interest in obtaining a fifth and sixth battery, under acceptable financial terms, the Army was exploring a composite lease-purchase arrangement for Denmark at the end of this fiscal year.

Switzerland has continued its negotiations to both procure and coproduce the basic TOW and the basic Stinger missile systems. The Swiss also announced, on 24 August 1983, that they were acquiring 210 German Leopard-2 tanks, after three years of testing and evaluating both the U.S. M 1 tank and the Leopard-2 tank. Among the reasons for choosing the Leopard-2 tank were availability date of 1984 versus 1986 for MI, greater participation in coproduction combined with lower overall total cost, and the fact that the Leopard-2 "speaks German."

In June 1980, Turkey received the technical data for converting 2,800 M48 series tanks to the M48A5 configuration and, under a U.S.-Turkey lease agreement, plant equipment. The plan was for Turkey to purchase 500 conversion kits annually from the U.S. through FY 86, while increasing in-country productions, until Turkey was producing 44 of the 57 subkits in each kit. By the end of FY 83, Turkey had completed three tanks, and expects to complete 180 in 1984 and to attain a maximum capability of 500 per year when a second conversion line opens in 1985. The total foreign military sales value of the program at the end of FY 83 equaled $240 million.

Several widespread events continued to affect security assistance programs for the Pacific region during FY 83. These were the instability in the Indian Ocean area and Southwest Asia caused by the Soviet invasion of Afghanistan and the threat of further Soviet advances into Pakistan and Iran; Socialist Republic of Vietnam (SRV) occupation of Kampuchea (Cambodia) coupled with Thailand's tacit allowance of anti-Vietnamese elements operating from inside Thailand; internal problems in the Philippines; and the potential for conflict on the Korean peninsula.

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Under the FY 83 Taiwan FMS training program, Taiwan personnel continued to receive U.S. Army training primarily of a technical nature in approximately thirty-five courses of instruction. This type of training represented follow-on support for defense articles previously furnished Taiwan.

The United States contributed to South Korean security through a commitment embodied in the Mutual Defense Treaty of 1954, the maintenance of U.S. troops in Korea, an extensive military sales program, IMETP training, and technical cooperation in development of selected Korean defense industries. Extensive coproduction and coassembly programs operated effectively this year, to include small arms munitions, M16 rifles, Vulcan air defense guns, helicopters, and tank munitions.

Japan continued to purchase military equipment, services, and training of a defensive nature from the United States. Japan also continued to conduct a vigorous licensed production program. This program enhances Japan's defense posture, expands the Japanese defense production industrial base, and increases its capability for wartime sustainability and interoperability with U.S. forces. Coproduction agreements with the U.S. involved production of such systems as 8-inch howitzers, Nike Hercules and Improved Copperhead, Stinger, Patriot missile systems, and the AH-1 S helicopter. During the year, Japanese Ground Self Defense Forces received professional or technical training in the United States and approximately 1,600 personnel participated in the I-Hawk (Improved) and Nike annual service practice at Fort Bliss, Texas.

The threat of Socialist Republic of Vietnam (SRV) incursions along the Thai-Kampuchea border continued to stimulate Thai concerns and requests for security assistance. The U.S. delivered artillery and air defense equipment on an expedited basis to demonstrate U.S. support for the government of Thailand.

The U.S. government continued to emphasize the importance of the U.S.-Pakistan relationship. It targeted security assistance on deficiencies in Pakistani defenses and obsolescence of existing equipment. Pakistans' needs included armor, air defense, and other combat capabilities. The U.S. security assistance relationship developing with Pakistan, however, tended to stultify U.S. relations with India.

In FY 83, ninety-one countries participated in Army FMS programs. The program for Supreme Headquarters Allied Powers, Europe (SHAPE), valued at $5 thousand, represents the smallest, the one for Saudi Arabia, valued at over $22 billion, was the largest. Other large programs that the Army has continued this fiscal year are $2.6 billion for Israel, $2.1 billion for Egypt,

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$1.3 billion for Jordan, $1.0 billion for Korea, and $1.0 billion for Germany. The programs for these six countries comprise over 75 percent of the total value of the Army's security assistance open cases.

Total new orders in the Department of Defense for FY 83 for security assistance equaled $18.3 billion, of which the Army managed share amounted to $4.2 billion. Security assistance new business is generated from amendments and modifications to prior year cases and new orders implemented during the year. At the end of FY 83, the FMS programs amounted to $42.0 billion. The status of this program at the close of the fiscal year is indicated in Table 17.

TABLE 17 - ARMY SECURITY ASSISTANCE OPEN PROGRAMS,
30 September 1983

COE: Corps of Engineers
DLA: Defense Logistics Agency
GSA: General Services Administration

The Corps of Engineers (COE) has a substantial construction program in Saudi Arabia, which accounts for most of the $17.7 billion managed by the corps. The COE plays a supervisory role, while both U.S. and foreign civilian contractors accomplish 90 percent of the workload.

The general upward trend in equipment diversions continued during FY 83. President Reagan approved diversions to support Allies and friendly nations faced with ongoing or imminent threats, or to fulfill certain foreign policy commitments. The principal recipients were El Salvador, Lebanon, and Honduras. This year's diversions involved 102 armored personnel carriers, 1,033 radios and 2,050 TOW missiles. In addition, the Army diverted 677,022 rounds of large caliber ammunition during the fiscal year, a 233 percent increase over the 203,319 rounds diverted the previous year.

Current high demand items are those pieces of equipment and weapons systems used by the Active Army and provided to FMS customers. The most important ones are the M60 series tanks; the M48 series tanks; the M 109 series howitzers; the M 110 series howitzers; the M 113 series carriers; the M 198 series

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howitzers; the TOW launchers and missiles; the I-Hawk missiles and battery sets; the Chaparral missiles and launchers; the Stinger weapons system; the 155-mm. artillery ammunition; and radios.

The Army is currently building a stock pile of these high demand items through the Special Defense Acquisition Fund (SDAF). In anticipation of urgent foreign requirements, the SDAF purchases the short supply items minimizing the need for future diversions from Army units. This fiscal year the Army SDAF program spent $98.5 million for 54 M 198 howitzers including support items and ammunition, 1,424 AN/VRC-12 radios, 1,810 AN/PRC-77 radios, and 600 Stinger missile systems. They also procured 81,000 rounds of 155-mm. HE (M107) projectiles and 21,052,080 rounds of 5.56 cartridge balls.

Since FY 80, the Army's MAP has been diminishing, as former grant aid recipients become foreign military sales purchasing nations. Consequently, congressional appropriations for the MAP program are gradually phasing out. During FY 83, OSD allotted $8.4 million in grant aid to Army programs in fifteen countries for training aids and devices under IMETP The total ongoing undelivered grant aid programs for all previous years involved thirty countries and had a value of $579.0 million.

Coproduction enables a foreign government, commercial firm, or international organization to acquire the technical "know how" to assemble or manufacture an Army weapons system in whole or in part. The Army initiated its first coproduction program with NATO in 1960 for the Hawk missile system. Since then the Army has participated in thirty-two projects with thirteen foreign countries and NATO. FY 83 coproduction programs include the AH-1S helicopter with Japan, the Stinger missile system with Germany and NATO, and 105-mm. ammunition with Egypt. A memorandum of understanding requires the foreign producers to purchase U.S. components. The total dollar value for all coproduction projects through FY 83 amounted to $6.4 billion, of which $2.4 billion will be returned to the United States.

The Personnel Exchange Program (PEP) established new positions this fiscal year with Ecuador, Bolivia, Colombia, Honduras, Paraguay, Portugal, Spain, and Venezuela. In addition, the PEP approved two new positions with the British Army. At the end of the fiscal year, the PEP had ninety-eight finalized positions, and another ten in some stage of discussion.

The action to improve coding of Foreign Area Officer (FAO) manpower requirements continued throughout the fiscal year. The FAO steering committee met on 10 March 1983 to define

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career development for regional additional skill identifiers. The Army also revised DA Pamphlet 600-3, in which Chapter 48 provides general FAO career development requirements.

As for education for FAOs, the Army logistics office in Hong Kong developed a new in-country studies program of instruction for China FOAs. The Army also established a new correspondence language course for foreign area officers, who are unable to attend the five month resident course in basic French and Spanish at Fort Bragg, North Carolina. The School of International Studies, under the guidance and testing of the Defense Language Institute, Monterey, California, supervises the course. The school initiated a cooperative degree program with Campbell University (located in Buie's Creek, North Carolina) and plans to expand this program to include the University of North Carolina, North Carolina State, East Carolina University, and the University of South Carolina. The Chief of the Strategy Plans and Policy Directorate, Americas-Asia Division and the Director of the School of International Studies signed a memorandum of agreement to publish a FAO newsletter twice a year. They have scheduled the first newsletter for early 1984.

A total of 6,724 foreign students received military training in the Continental United States under U.S. Army sponsorship during FY 83, and 2,553 under the FMS program. Training funded under the IMETP equaled approximately $12 million, under FMS about $24.5 million. Participating countries fund the International Fellows Program (IFP) for foreign students at the Army War College, through FMS or IMETP During the 1983-84 academic year, Australia, Austria, Egypt, Germany, Italy, Israel, Japan, Jordan, Korea, Mexico, Morocco, Netherlands, Nigeria, Saudi Arabia, Singapore, and Tunisia participated.

In January 1983, the Assistant Comptroller of the Army, Security Assistance Division, held a meeting to discuss and resolve problems involving financial management and control of IMETP-TLA (Travel and Living Allowance). Those attending were from the Department of the Army staff and Major Army Commands (MACOMs) responsible for IMETP-TLA. The meeting resulted from a study made in 1977 by the Office Chief of Staff Management Division titled "The Army Security Assistance Program Study" report (TASAPS-77) and a study performed by Stephen J. Lesley, Foreign Training Officer, Security Assistance Division. Both studies identified problems with the present system of executing TLA (Travel and Living Allowance) and especially those encountered by the overseas commands that seemed to result from distance and time restrictions. To better track funds to the program, respond to emergency requirements, and eliminate large unobligated balances at year-end, the attendees at

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the January meeting recommended that the Army transfer the management of the TLA function from the Army's component of the Unified Command to TRADOC-Security Assistance Training Field Activity (SATFA). The centralization of TLA funding at TRADOC, the Army believes will greatly improve the execution of the IMETP appropriation. Having appropriation directorship, program, funds, and accounting centralized at one place will result in optimum utilization of funds, timely response to the program, and preclude a possible violation. The Army anticipates that the centralization of TRADOC-SATFA will occur in FY 85, when TRADOC will have acquired the necessary people and automation to undertake the responsibility. Meanwhile, the U.S. Army Finance and Accounting Center (USAFAC) will serve as interim financial manager and finance and accounting office for the IMETP-TLA funding program.

Plans moved forward in FY 83 to establish a permanent secretariat for the Conference of American Armies (CAA), which has been meeting biennially since 1960, to deliberate security issues of mutual interest. Toward this end, the Interim Permanent Secretariat (IPS), headed by Chief of Staff of the Army, General Edward Meyer, took a number of steps. They developed, for approval by member armies, changes to conference regulations to establish a permanent secretariat, promoted the implementation of the XIV CAA Agreements through publication of a bimonthly Conference Information Bulletin, proposed professional staff officer-level seminars to continue the dialogue of conference themes, and assisted the host country in the preparation and conduct of the XV CAA.

This year's modification of logistics doctrine and improvements in logistics techniques in concert with the modernization effort has, to paraphrase General Donald R. Keith, Commanding General, U.S. Army Materiel Development and Readiness Command, helped to prepare the Army for the broad range of scenarios it will face as it evolves into the Army of the 1990s. The Army's task, however, is far from over. At the end of FY 83, Lt. Gen. Richard H. Thompson, Deputy Chief of Staff for Logistics, stated: "We have turned the corner in logistics. We have identified today's problems and established mechanisms to anticipate tomorrow's, but we must keep up the momentum in order to achieve the materiel goal. The way to do this is to continue the logistics revolution."

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