Department of the Army Historical Summary: FY 1984

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Logistics

The Office of the Deputy Chief of Staff for Logistics study program sponsored analyses to solve historic operational problems and then connect these problems to functional areas within Army goals. However, in FY 86 emphasis will be on guidance contained in the Army plan and Defense guidance, as well as significant problems determined by DCSLOG. The new studies will investigate present and future logistics problems rather than the solution of past problems and adjusting the solutions to current problems. The FY 84 program listed twenty-eight programs and the FY 85 nineteen. The Army War College and National Defense University received nineteen topics for potential student research projects. The Logistics Models Working Committee met several times in FY 84 to review logistics modeling problems and progress in solving them. The committee continued to remind logisticians and logistics modelers of the necessity for including NBC environmental conditions, combat damage, and other problems in the Combat Service Support area in combat and logistics models.

The ODCSLOG developed and implemented a series of initiatives to improve logistics capability. They improved the utilization of existing logistics manpower through increased productivity, better use of existing technology, more emphasis on external support, and reduced personnel and equipment requirements.

The Army increased productivity by decreasing unnecessary overhead and by using more materials handling equipment. The Army Vice Chief of Staff approved $700 million for additional materials handling equipment in nine logistics TOE units, such as the direct support ammunition company; petroleum, oils, and lubricants truck company; heavy transportation company; and terminal service company, for the years 1986 to 1990. Logisticians also exploited existing technology such as nondevelopmental items (NDI). This non developmental item materiel was off-the-shelf equipment employed in the civilian sector for the same tasks. Equipment for Southwest Asia water units, as well as POL handling equipment were excellent

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examples of NDI equipment, which the Army obtained from the manufacturer's existing stock. To ensure a quicker and more efficient response in time of crisis or conflict, the Army also increased host-nation support and contingency contracting.

In the area of strategic mobility, the Army continued the SL-7 conversion program and received the first four roll-on/roll-off vessels by the end of FY 84. The remaining four will be completed by March 1986. The investment in these ships represented the most significant enhancement of strategic sealift during the last decade. The Army also planned to field its second Lighter, Air Cushioned Vehicle (LACV-30) Company at Fort Story, Virginia, in October 1984. This will increase the LACV-30 fleet to 24 vehicles.

DCSLOG worked with USCENTCOM, the Military Traffic Management Command, the Third U.S. Army, and other DA agencies to develop afloat pre-positioning requirements for Southwest Asia. A key component to fulfilling these requirements was the Heavy Lift Pre-positioning Ship (HLPS) planned for deployment in the Indian Ocean. It will carry combat support and combat service support equipment such as cranes, forklifts, lighters, and tugs to offload the pre-positioning ships and the early arriving strategic sealift ships. In addition, DCSLOG supported the Navy sealift readiness program as well as Air Force strategic mobility enhancement programs. The latter included procurement of additional KC-10 and C-5B aircraft, development of the C-17, expansion of the civil reserve air fleet, and wing modification of the C-5A and C-130.

Logistic planners identified weak links in the CONUS, intertheater, and intratheater lift segments of the total mobility system. Breaking any of these links would seriously diminish U.S. military operations because of the American inability to sustain or reinforce the far-flung combat units. To improve further the Army war-fighting capability, DCSLOG's Strategic Mobility Division participated in the development of the Army Program Objective Memorandum (POM). Its contribution was the identification of critical mobility equipment and force requirements affecting the Army's transportation and mobility systems. As a result, these systems received significantly greater funding.

The Strategic Mobility Division also responded to a growing rail line abandonment threat posed by the relaxed abandonment procedures under the deregulation of the transportation industry. The division established a small $5 million program, for FY 85 to FY 89, to lease or purchase rail feeder lines serving key Army deployment and mobilization stations and facing rail carrier abandonment.

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The Total Army Equipment Distribution Program (TAEDP), an automated system which projects equipment requirements, assets, and distribution to Active and Reserve Components, POMCUS, and war reserve stocks from the budget year through the POM years, entered its modernization phase in September 1984. The improvements will increase the capability of the system, enhance its operation, and cut the report production time from eight weeks to two.

The Ammunition Buildup Program in Europe continued on schedule and the Army planned to meet Defense Guidance levels of supply during FY 90. The FY 84 Call Forward Program necessitated shipping 75,000 short tons of ammunition for the Pre-positioned War Reserve Buildup and to support training activities. However, the Army delivered only 71,146 short tons. The Army also removed 3,338 short tons of older munitions for use elsewhere.

The FY 84 Army Stock Fund (ASF) program had $7,127.6 million in demands, $6,517.7 million in net sales, and $6,750.5 million in obligations. Congress mandated a reduction from 15 days to 11 days in the FY 84 stock fund cash standard. Partly as a result of this, the Army had $102.3 million of excess cash it could refund into O&M accounts during FY 85. Congress authorized the ASF to use Peacetime Inventory Augmentation Cash and appropriated $146.6 million dollars for the program, which supported the Army's Equipment Modernization Program as well as Equipment Modifications and Readiness Initiatives. Congress also appropriated $242 million for stock fund war reserves. The Army fully implemented the Simultaneous Obligation Policy in FY 84. This policy allowed the consumers to obligate their funds for items that would not be received before the end of the fiscal year. The Army realized a savings in money, time, and effort by eliminating a need for the year end Stock Fund By-Pass.

Army Industrial Fund (AIF) operation had revenues of $3,339.9 million and costs of $3,263.1 million in FY84. The Army, in response to OSD concerns about operating depot and arsenal supply functions within the AIF, directed the Army Concepts Analysis Agency to review these functions' management. The study concluded that it was cost effective to retain supply activities within AIE Furthermore, it determined that supply equipment acquisition should be incorporated under AIF's Asset Capitalization Program (ACP), a decision that ran counter to OSD's prohibition against using AIF revenue to finance the procurement of supply equipment through the ACP.

Congress provided $1,853.7 million for appropriation-financed secondary items in FY 84, an increase of $171.6 million over FY

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83's $1,682.1 million. The additional money was due to inflation and to the support for new weapon systems being fielded to modernize the Army.

The Fully Mission Capable (FMC) rate for missiles and vehicles (combat and tactical) fluctuated between 85 percent and 94 percent, while the Army's goal was 90 percent. Table 33 shows funding for depot maintenance.

TABLE 33 - FY84 DEPOT MAINTENANCE PROGRAM FUNDING
(In millions)

The Maintenance Management Improvement Program, established in 1979 to correct serious maintenance shortfalls throughout the Army, continued to enhance maintenance operations, strengthen maintenance training, and improve personnel management during FY 84. Furthermore, ODCSLOG conducted a Worldwide Maintenance Conference at the U.S. Army Ordnance Center and School, Aberdeen Proving Ground, Maryland. The conferees agreed on several maintenance improvement initiatives, which ODCSLOG incorporated into a Maintenance Master Plan and followed systematically to enhance the Army's maintenance operations.

The Army overhauled 236 aircraft in FY 84, with 132 from the Active Component and 104 from the Reserve Component. Table 34 shows a breakdown by type of aircraft.

TABLE 34 - BREAKDOWN BY TYPE OF AIRCRAFT

Maintenance support activities included maintenance engineering, new equipment training, developing and updating depot maintenance work requirements, updating and printing maintenance publications, provisioning, and technical assistance to

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troops in the field. The program received funding of $530 million, leaving an unfunded requirement for $349 million.

The Army operated and maintained 341 installations worldwide during FY 84. Base operations funding supports supply operations; maintenance of materiel (excluding combat vehicles and missile systems); administrative transportation services; laundry and dry-cleaning operations; unaccompanied personnel housing activities, administration, and furnishings; the Army Food Service Program; data processing; GSA and non-GSA real estate leases; fire and police services; and administration. Base operations cost $2,670.6 million in FY84, $52.8 million over the budgeted amount. Major commands reprogrammed funds from mission accounts to base operations to pay for priority requirements. President Reagan requested $2,834.2 million for FY 85 base operations. The increase of $216.4 million over FY84 included $107 million for program growth and $109.4 million for cost growth. Congress initially reduced this increase by $41.2 million, but finally approved $18 million for GSA lease rate increases and a $36.9 million readiness supplement for organizational maintenance and ammunition storage requirements.

The Secretary of Defense published a ten-point program and twenty-five initiatives in FY 83 to tighten procurement procedures. The Army Materiel Command, at the direction of ODCSLOG, established a task group to analyze the Army's initial provisioning and replenishment parts acquisition process. The Army also developed the SPRINT (Spare Parts Review Initiatives) program to reduce the cost of spare parts. In FY 85, SPRINT provided auditable savings of $53.6 million. Competition for supplying spare parts increased 51 percent in FY 84, with a goal of 55 percent in FY 85. Furthermore, the balance of unpriced instruments dropped by 64 percent during FY 84.

ODCSLOG continued to improve the capabilities of CON11S installations to receive and outload cargo to support early deploying or mobilizing units. The Army programmed approximately $45 million through FY 89 to upgrade installation rail lines, build loading facilities, and purchase blocking/bracing material and rail car spanners. However, shortfalls remained and ODCSLOG and the MACOMs will identify and rank unfunded requirements in the next POM.

The Logistics Evaluation Agency, in coordination with FORSCOM and the Military Traffic Management Command, completed an evaluation of the 800-mile roadmarch policy. The agency

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concluded that although the Army's wheeled vehicles could deploy up to 800 miles or more, other logistical and operational factors, previously not considered, also affected current DA policy. Therefore, the Army changed from an 800-mile policy to one-day road march policy to minimize the wear and tear on wheeled vehicles that might result in decreased operational capability. The policy also increased the planning for and use of commercial transportation within CONUS.

ODCSLOG pursued an aggressive Logistics Over the Shore program to modernize the Army's watercraft fleet and to increase its capability to support operations where commercial ports are inadequate, unavailable, or denied. The Army fleet proved its capability by successfully participating in the FY 84 Joint LOTS II exercise. The Army also appropriated funds in FY 84 to purchase the first of four Logistics Support Vehicles (LSV), each capable of hauling 2,000 short tons of dry cargo and requested FY 85 funding for a second LSV In addition, the FY 85 budget request included funding for a new Commercial Landing Craft, Utility, and Navy-developed causeway systems such as the Roll-on/Roll-off Discharge Platform and the Floating Causeway.

The Army continued to update its nontactical vehicle (NTV) fleet, which supports training, medical, security, facility maintenance, sanitation, and other houskeeping functions. However, 33 percent of the fleet remained over-age and overmileage at the end of FY 84. In July 1984, the U.S. Army Materiel Systems Analysis Activity began a major study to develop a more economically sound replacement policy for the NTV fleet. The Army started another study to investigate interchanging M880 trucks and NTVs to save money. Furthermore, the ODCSLOG, through the Model Installation Program, granted exceptions to the NTV leasing policy. Five test activities received long-term NTV lease authority without the requirement that they obtain exceptions to the NTV leasing policy for long-term leases. Planners thought that this experiment could lead to Army wide long-term leasing policy changes.

The Army continued to redesign the DA Movements Management System (DAMMS) to provide an on-line capability to manage theater movements during peacetime and war. The redesigned system, DAMMS-R, consisted of three parts. The first was the basic DAMMS-R, which manages theater physical distribution and will be fielded to USAREUR in later FY 87. Second, the Mode Management Module, manages theater-level Army transportation assets and will be fielded with the basic DAMMS-R. The third element was the Movements Planning Module, which analyzes the trans-

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portation network and develops the wartime movements program. It will be fielded to USAREUR in the fourth quarter of FY 85 and, subject to acquisition and force structure actions, to Eighth U.S. Army and Third U.S. Army.

The Army also worked on upgrading another theater of operations system, the DA Standard Port System (DASPS). Logisticians expect DASPS-Enhanced to be fully fielded by the end of FY 87 in six MTMC OCONUS ports and in seven terminal battalions (three Active, four Reserve) for contingency operations. Problems encountered during software acceptance testing delayed fielding, but these will be solved by the first half of 1985 and one system will enter the system every two months. Fielding on the DAS3 B-Model computer will begin in Europe in June 1985, in the Far East in January 1986, and in the 7th Transportation Group in July 1986.

The Army designed the Transportation Coordinator Automated Command and Control Information System (TC ACCIS), a joint prototype automated system development project, to improve timeliness, accuracy, and availability of unit movement information at brigade, battalion, division transportation office, and installation transportation office level. The project, cochaired by the joint Deployment Agency and the WWMCCS (Worldwide Military Command and Control System) Information System Programs Management Office, used the 24th Infantry Division (Mechanized) and the MTMC Eastern Area Command to test TC ACCIS. A demonstration of the prototypes operation will be conducted in May 1985.

The Automated Air Load Planning System (AALPS) interfaced with and supported TC ACCIS. The Defense Advanced Research Projects Agency originally developed AALPS to test radio packet switching technology. However, the system contained a load planning and documentation capability that the XYIII Airborne Corps successfully used. The Army planned to field a fully deployable military version by September 1986.

The Army staff, recognizing that foreign and allied countries relied heavily upon rail movement of war materiel, decided to reestablish a railway operating capability in the Total Army. Therefore, the Army included funds in the POM for FY 86-90 to establish railroad training for members of U.S. Army Reserve railroad units. This was the first railway training in the Army since it removed railroad operations and associated training from the Active Army in 1972. The Western Nebraska Technical College in Sidney, Nebraska, received a contract to perform MOS skill training.

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Security Assistance

Security assistance is the transfer of military and economic assistance, through sales, grants, leases, and loans, to friendly foreign governments to support United States foreign policy. Authorized by the Foreign Assistance Act, as amended, and the Arms Export Control Act, as amended, FY 84 security assistance programs aided 124 countries and international agencies. These programs included the Foreign Military Sales Program, the Military Assistance Program, the International Military Education and Training Program (IMET), and the Coproduction Program.

Foreign Military Sales (FMS) are government-to-government transactions for defense equipment, engineer instruction services, and training from the U.S. government. The Army managed FMS programs worth $3.8 billion out of a total DOD amount of $14.6 billion. The Military Assistance Program provides defense items and related services other than training to foreign governments on a grant basis. During FY 84, new program orders amounted to $8.4 million for 15 countries. The International Military Education and Training Program also works on a grant basis by instructing military and related civilian personnel in the United States, in overseas military facilities, or by mobile training teams. The FY 84 program consisted of $21.2 million for 78 countries. Coproduction enables a foreign government, commercial firm, or international organization to acquire the technical expertise to assemble or manufacture an Army weapon system either in its entirety or in part. A Memorandum of Understanding requires foreign producers to purchase United States components. The cumulative value of active, pending, and closed FY 84 coproduction programs was $6.9 billion.

The Conference of American Armies (CAA), a biennial meeting initiated in 1960, provides a forum for Commanders of American Armies to discuss security issues of mutual interest. The forum promotes cohesion, improves hemispheric security, and strengthens inter-American friendship. The U.S. Army established the Interim Permanent Secretariat in January 1982 to provide for a continued information exchange among the CAA members. The XV Conference voted not to accept the Interim Permanent Secretariat but to have its mission and functions assumed by the host country of the next CAA. The Republic of Chile accepted responsibility for the XVI CAA as well as the U.S. CSA's offer of an officer to assist in operating the secretariat. The first selectee reported to the Chilean Army in January 1984.

NATO interest in security assistance remained high in FY 84 as its members continued to improve combat effectiveness through

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weapons modernization. However, budget constraints allowed only gradual progress toward the attainment of all objectives. Furthermore, long production lead times continued to plague NATO modernization efforts. The United States maintained its firm commitment to weapons standardization and interoperability, as well as to increased host-nation support. The United States initiated important cooperative efforts for future arms development and production in three areas. First was the "two way street" in which reciprocal procurement agreements among NATO countries made the total NATO defense market available to all members of the alliance. By the end of FY 84, the "two way street" had improved between some NATO countries and between the United States and several NATO allies. Second, NATO completed plans for the dual production and coproduction of armaments already past the development phase. This reduced the unit cost of some weapons in each NATO nation's inventory. Negotiations to extend the coproduction of modern weapons to non-NATO European allies continued during FY 84. Third, NATO allies signed agreements for sharing new developmental projects so that modern technology could be incorporated into new systems without incurring redundant research and development costs.

In FY 84, the United States negotiated security assistance treaties with Greece and Turkey that shifted away from relative, perceived formulas to recognized requirements. Nevertheless, several agreements required offsets or linked specific amounts of aid to percentage formulas based on assistance received by other countries. Allied efforts significantly assisted Turkey's modernization of its forces, especially tanks and aircraft. The United States furnished technical data to Turkey to convert 2,800 M48 tanks into M48A5s. Turkey had purchased, through foreign military sales, hardware (including 2,120 conversion kits) and support services valued at $550 million by the end of FY 84. Turkey has converted over 200 tanks thus far and is expected to reach its maximum annual conversion capability of 500 in 1985.

On 14 February 1984, the Netherlands signed Letters of Offer and Acceptance for 160 Patriot missiles, 20 launchers, and miscellaneous support items. This acceptance, worth $300 million, was the first firm commitment by a foreign country to acquire the Patriot air defense system. In negotiations held prior to the acceptance, the United States agreed to waive up to $33 million of nonrecurring expenses. These were subject to the Dutch and the U.S. Army agreement on areas of cooperation, in which the United

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States will receive in-kind compensation, calculated in constant dollars, over ten years.

The United States, under basic and implementing air defense agreements signed in December 1983 and July 1984, will sell at least 680 Patriot missiles, 100 launchers, and associated support equipment to the Federal Republic of Germany. The Letters of Offer and Acceptance will be signed in February 1985. This acquisition was a complex program, with the United States supplying an equal number of Patriot fire units and the Federal Republic of Germany procuring, manning, and supporting 27 Roland fire units for defense of U.S. bases in Germany, as well as additional Roland systems to protect several FRG/U.S. co-located bases. Both countries worked on developing cooperative logistics support, configuration management, and other programs that will include eventually the Netherlands and other Patriot users (other European countries showed an interest in Patriot, but did not begin the acquisition process). The FRG/U.S. program was valued at well over $2 billion. The United States continued negotiations with Switzerland on coproduction of the TOW 2 and Basic Stinger missile systems and the MOD FLIR Night Sight for the Leopard 2 tank. The TOW 2 and MOD FLIR Memorandum of Understanding will be signed in early 1985 with a Stinger Memorandum of Understanding having a lower Swiss priority.

The security assistance programs in the Asia/Pacific region enhanced the security of the Republic of Korea, Thailand, and Pakistan; protected base rights in the Philippines; and maintained a defense relationship with countries such as Malaysia and Indonesia, which are strategically close to key sea lines of communications. FY 84 foreign military sales for the region that supported the above objectives are shown below:

Thailand received the only Military Assistance Program grant funds ($5,000) for defense items and services. The United States allocated $9.896 million of International Military Education and Training Program funds to the region in FY 84 so that 1,279 students could receive military training within the United States.

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The People's Republic of China, as a result of a 2 June 1984 presidential directive, became eligible for foreign military sales in FY 84. These sales included publications, training materials, and site surveys to investigate the feasibility of future purchases. Incursions by the Socialist Republic of Vietnam's Army along the Thailand-Kampuchian border caused Thailand to make several emergency requests for support. In addition, these incursions prompted members of the Association of Southeast Asia Nations to speed up their modernization. programs, which resulted in increased security assistance requirements.

The security assistance program for Pakistan continued as one of the largest conducted by the Army. Since Pakistan opposed the Soviet occupation of Afghanistan and suffered over 200 civilian deaths in Soviet cross-border attacks, Pakistan needed a modern, mobile force to deter potential aggressors. Nonetheless, Congress cut $25 million of foreign military sales credits from the $325 million requested by the Reagan administration and included in President Carter's 1981 five-year aid package of $3.2 billion dollars. The remaining funds purchased 100 M48A5 tanks, 24 M901 Improved TOW vehicles, 75 M198 155-mm. howitzers, 40 M110A2 howitzers, 33 M88AI recovery vehicles, as well as Cobra attack helicopters and M109A2 howitzers.

Security assistance to the Middle East/North Africa region supported United States foreign policy objectives of lasting peace in the region, reducing hostilities between Israel and the region's Arab states and providing an alternative to Soviet military equipment. The region continued to receive the lion's share of worldwide foreign military sales credits ($3.366 billion of $5.7 billion) with Israel ($1.7 billion, $850 million forgiven) and Egypt ($1.365 billion, $465 million forgiven) as the major recipients. Israel spent most of its FMS funds on maintenance, logistics, and research and development projects. Egypt used the bulk of its funds to pay for previously delivered equipment and the development of supply and logistics systems. Egypt ordered 384 Chaparral missiles and 25 fire units worth $120 million and Hawk Product Improvement Program II with a value of close to $62.4 million. The United States and Egypt started the coproduction of 105-mm. tank ammunition, which the Egyptians managed ;successfully However, both Israel and Egypt faced serious economic troubles-Israel with balance of payments deficits and a per-annum 400 percent inflation during the first seven months of the year and Egypt with an overall fiscal deficit. In addition, Egypt possessed a large deteriorating Soviet equipment inventory that needed replacement.

The military and political situation remained unstable in Lebanon during FY 84, and the gradual withdrawal of American military

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personnel continued. Prior to FY 83, the Lebanese paid in cash, but during FY 84 they relied heavily upon FMS credits and were $70 million behind on their payments by the end of the fiscal year. Many analysts considered FY 84 as a crossroads year in the United States-Jordanian relations, since congressional limitations on weapon sales and funding limitations made Jordan question its perception of the United States as a reliable partner in defense.

Saudi Arabia made more than $3.1 billion in FMS cash purchases during FY 84. The Saudis emphasized training and modernizing the land forces and the National Guard as well as improving the Air Force's air defense posture. During May 1984, Saudi Arabia asked the United States to sell them Stinger missiles, because of the increased number of air attacks on Persian Gulf shipping. President Reagan directed that the Army sell 400 missiles, along with support equipment and spare parts, to the Saudis. They were taken from U.S. Army stocks. Furthermore, a mobile training team provided training in the missiles' operation. The Saudi Arabian Land Forces requested 100 M60A3 tanks with tank thermal sights in June 1983. They signed the contract in December 1983 with first delivery expected in the second quarter of FY 85. The sale included support equipment and spare parts. However, since the land forces already operated M60A1 tanks, the Saudis purchased only special tools and support equipment required for the newer tanks.

Kuwait spent most of its FMS funds on training and integrating the Hawk surface-to-air missile into its air defense system. The Hawk program will cost approximately $58.8 million and will begin arriving in late 1986 and early 1987. The Bahrain FMS program continued at a modest level with the cash purchase of seven M198 howitzers. On 7 December 1983, USACE agreed to design Phase I of the new Suman Air Base for the Bahrain Defense Forces with a construction cost programmed at $155 million. The number of International Military Education on Training Program students significantly increased in Oman. Likewise, Qatar primarily limited its small FMS purchases to training, as did the United Arab Emirates. The latter began predelivery officer and enlisted maintenance training in FY 84 for the five I-Hawk batteries purchased in 1983. The Yemen Arab Republic spent most of their $4 million of Military Assistance Program funds on supplying and maintaining previously purchased equipment. They also used nearly $1 million in International Military Education and Training Program funds for sending thirty-one students to the United States and several in-country training teams.

Morocco's FMS program focused on improving the logistical support system, particularly the Royal Moroccan Army's Southern Com-

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mand, as the war in the Sahara continued to dominate Moroccan military requirements. Tunisia received 54 M60A3 tanks as a major part of the Tunisian Armed Forces' five-year modernization program.

The United States, in the Sub-Saharan region, increased its commitment to those nations threatened by subversion as well as those countries whose location or long-standing support for American interests made them important partners in the United States' African strategy. Thirty-six African nations south of the Sahara qualified for some form of security assistance in FY 84. The four countries with the most aid (Zaire-$7.8 million; Kenya-$23.6 million; Somalia$33 million; Sudan-$46.5 million) received 86 percent of the security assistance. The International Military Education and Training Program remained one of the most successful long-range programs in Africa with 33 nations using its funds. The programs with the largest number of students were Sudan (132), Kenya (126), Liberia (55), Somalia (47), and Zaire (41). The Seychelles Islands, Swaziland, and Upper Volta entered the IMET program during FY 84.

Relations between Somalia and Kenya, both linked to the United States by base access agreements, remained peaceful during FY 84. However, Somalia and Kenya continued serious fighting with Ethiopia along the poorly defined borders. Therefore, the United States security assistance improved the Somalia defensive capability without giving them the wherewithal to conduct offensive operations against Ethiopia or Kenya. The Army delivered six M198 155mm. howitzers to Somalia in September 1984 and planned to supply twelve more in FY 85. Total cost was close to $13.2 million. Major elements of the Kenyan program were Hughes 500 helicopters and engineer equipment. The provision of repair parts during FY 84 enhanced Kenya's helicopter readiness.

The United States responded to a request for expedited assistance from Sudan in early FY 84. In April 1984, the Army supplied, via a C-5A aircraft, 650 armor vests, 96 radios, as well as other Army communications equipment. From June to September 1984, Sudan also received 36 V150 Commando armored cars worth nearly $13.1 million. President Reagan continued to use his emergency draw down authority under Section 506A to provide Chad with weapons, ammunition, individual clothing and equipment, and spare parts. Chad also purchased 24 M151A2 ¼-ton and 16 M35A2 2 ½-ton vehicles with $2 million of FY 84 Military Assistance Program Funds.

Twenty-seven countries in the Western Hemisphere received U.S. security assistance during FY84, with El Salvador, Honduras, and Costa Rica accounting for over one-half of these funds. In addition, Congress provided El Salvador with $131,750,000 in Military Assistance Program

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funds through four supplemental bills. Congress also appropriated $15 million for the peacekeeping operations of seven Caribbean countries on Grenada. El Salvador expanded its UH-1H helicopter fleet from 19 to 44 aircraft and purchased four Hughes 500 helicopters to use as gunships. Using FMS credit, the government bought 50 reconditioned M35A2 trucks and utilized MAP funds to purchase 120 more. The Army also provided small arms, mortars, grenade launchers, night vision equipment, communications equipment, ammunition, uniforms, and general supplies. During FY 84, the United States obligated nearly $7 million in MAP funds from the country accounts of El Salvador and Honduras for the operation and maintenance of the Regional Military Training Center in Trujillo, Honduras.

The Army provided five Operations and Plans Training Teams for instructing El Salvadoran Armed Forces personnel, as well as U.S. mobile training teams, for teaching Caribbean Peace Force Special Service Units about peacekeeping operations on the island of Grenada. Meanwhile, United States/Panamanian negotiations over keeping the United States Army School of the Americas at Fort Gulick, Panama, failed because of unresolved issues about Panamanian sovereignty. On 26 September 1984, the Army moved the school to Fort Benning, Georgia.

The Army security assistance country programs varied greatly in size and technical sophistication. The smallest program was Paraguay's, with a value of $3,500. The largest was for Saudi Arabia, worth over $23 billion. Other significant programs included Egypt ($2.5 billion), Taiwan ($1.5 billion), Jordan ($1.3 billion), and Germany ($1.0 billion). These six country programs comprised over 75 percent of the Army's open program security assistance.

Security assistance new business was generated from amendments and modifications to prior year cases (orders) and new orders implemented during the current fiscal year. The Foreign Military Sales open programs totaled $44.4 billion by the end of FY 84. The status of this program at the close of the fiscal year is shown in Table 35.

TABLE 35 - FOREIGN MILITARY SALES
(In billions)

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Most of $18.9 billion managed by the Corps of Engineers was for its substantial construction program in Saudi Arabia. The Corps limited its responsibility to a supervision/management role with 90 percent of the work performed by U.S. and foreign civilian contractors.

Equipment diversions declined in FY 84 with diversions from U.S. Army stocks approved only to satisfy national political commitments or to support allies and friendly countries faced with ongoing or imminent threats. During FY 84, 167 tanks, 47 helicopters, 132 recoilless rifles, 91 howitzers, 579 machine guns, 872 radios, and 299 mortars were diverted. The number of rounds of large-caliber ammunition diverted during FY 84 dropped from 677,000 during FY 83 to 240,000. El Salvador and Honduras were the major recipients of diverted assets during the fiscal year.

The following items were in highest demand by FMS customers during FY 84: towed howitzers; self-propelled howitzers; personnel/weapons carriers; tank recovery vehicles; TOW launchers and missiles; I-Hawk missiles and battery sets; Chaparral launchers and missiles; Stinger weapons systems; artillery ammunition; and radios.

Unfortunately, FMS customers competed for the same items fielded by Army forces and diversion of this materiel reduced Army readiness. The Army initiated the Special Defense Acquisition Fund (SDAF) to purchase and stockpile long lead time, high-demand items in anticipation of urgent foreign requirements, thus reducing the diversion of these items from Army stocks. The following items were among those purchased with the $175 million FY 84 SDAF program: 54 M198 towed 155-mm. howitzers; 2,120 TOW -2 missiles; 1,120 Stinger missiles; 621 M151 X-ton vehicles; 2,000 M60 machine guns; 1,800 .50 caliber machine guns; 75 M1 13A2 armored personnel carriers; 21,800 rounds, 105-mm. tank ammunition; and 11,000 rounds, 155-mm. artillery ammunition.

The Coproduction Program's cumulative value of active, pending, and closed projects totaled $6.9 billion, of which $2.5 billion will eventually be returned to the U.S. economy. During FY 84 the United States participated in coproduction projects with Egypt, Germany, Italy, Japan, Korea, the Netherlands, Norway, the Philippines, Switzerland, Taiwan, Turkey, and the United Kingdom.

The Army realized during FY 84 that it lacked the capability to train and prepare all its Foreign Area Officers (FAO) to meet requirements. As a partial solution, the Army established a new FAO site in Liberia and one in Portugal. The Liberian site broadened the slim FAO training base in Sub-Saharan Africa. The FAO training tour was twelve months long and covered area orientation,

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travel, and research. Training at the Portugal site included attendance at the Portuguese Armed Force Staff College for one year and four to six months of subsequent area orientation, travel, and research. Each site trained one FAO annually.

During FY 84, 7,386 foreign students from 108 countries received military training under U.S. Army sponsorship. Of these, 2,572 took 3,586 courses through the International Military Education and Training Program (grant aid) and 4,874 participated in 5,567 courses in the Foreign Military Sales Program (paid by foreign government). Total value (including some travel and living allowances) of foreign training amounted to $53 million (IMET-$14.5 million; FMS-$38.5 million). In addition, students from Canada, Colombia, France, Germany, Indonesia, Italy, Japan, Kenya, Korea, Lebanon, Nigeria, Pakistan, Peru, the Philippines, Sudan, Thailand, Turkey, the United Kingdom, and Venezuela participated in the International Fellows Program at the U.S. Army War College.

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