Report to the Honorable

John Conyers, Jr.,

House of Representatives

United States General Accounting Office

GAO

September 2001 DEFENSE TRADE

Information on U.S.

Weapons Deliveries to

the Middle East

GAO-01-1078
Page 1 GAO-01-1078 Military Assistance

September 21, 2001

The Honorable John Conyers, Jr.

House of Representatives

Dear Mr. Conyers:

The U.S. government provides military equipment, services, and training to

countries in the Middle East region1

 through a variety of military

assistance programs.2

 You asked us to identify (1) the amounts and types

of military equipment, services, and training the U.S. government has

delivered to the Middle East from fiscal year 1991 through fiscal year 2000,

and (2) the conditions placed on the use of selected U.S. weapon systems

delivered to the Middle East. We briefed you and your staff on August 2,

2001. As you requested, this letter provides the information covered in that

briefing.

From fiscal year 1991 through fiscal year 2000, the U.S. government

delivered about $74 billion in military equipment, services, and training to

countries in the Middle East. This included military items purchased by

these countries through the Foreign Military Sales program, as well as

those financed with grant funds provided through the Foreign Military

Financing program. In addition, military equipment, services, and training

is provided on a grant basis through the International Military Education

and Training program and under the Excess Defense Articles and

Emergency Drawdown authorities. The Foreign Military Sales and Foreign

Military Financing programs account for about 96 percent of the value of

military items the United States delivered to the region. The U.S. weapon

systems delivered include F-16 and F/A-18 fighter aircraft, Apache and

 1

 We included the following countries in the Middle East region in our review: Bahrain,

Egypt, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, United Arab

Emirates, and Yemen. In addition, we included the Palestinian Authority in our review due

to its location in the Middle East.

2

 For the purposes of this report, military assistance programs refers to security assistance

programs administered by the Department of Defense.

United States General Accounting Office

Washington, DC 20548

Results in Brief
Page 2 GAO-01-1078 Military Assistance

Cobra helicopters, M1A1 tanks, and AMRAAM,3 ATACMS,4 and Stinger

missiles.

State and Defense Department officials told us that conditions on the use

of U.S. military equipment, services, and training delivered to countries in

the Middle East, with few exceptions, are limited to standard conditions

that the U.S. government places on all transfers of U.S. military items. By

law, the United States may provide military items to foreign governments

only for internal security, legitimate self-defense, participation in

collective arrangements that are consistent with the United Nations’

charter, or civic action.5

 Use conditions are contained in general mutual

defense treaties and other international agreements, and sales agreements

for military equipment, services, and training sold to foreign governments.

In addition to the standard use conditions, we identified a limited number

of cases where the U.S. government applied specific use conditions to

weapon systems delivered to the Middle East. For example, U.S. manportable air defense systems (such as Stinger missiles) may not be

assembled for training or testing by the foreign government without prior

notice to U.S. military personnel located in overseas offices.6

The U.S. government provides military equipment, services, and training to

countries in the Middle East through several military assistance programs,

including the Foreign Military Sales program, Foreign Military Financing

program, International Military Education and Training program, Excess

Defense Articles authority, and Emergency Drawdown authority. These

programs are generally governed by the Arms Export Control Act, as

amended,7

 and the Foreign Assistance Act of 1961, as amended.8

 3

 Advanced Medium Range Air-to-Air Missile.

4

 Army Tactical Missile System.

5

 Military equipment and training may be used in developing countries to assist foreign

military forces to construct public works or to engage in other activities helpful to the

economic and social development of a country.

6

 The U.S. government requires that this condition be applied to all deliveries of manportable air defense systems, except for transfers to Australia, Japan, New Zealand, and

North Atlantic Treaty Organization countries.

7

 22 U.S.C. § 2751 et seq.

8

 22 U.S.C. § 2151 et seq.

Background
Page 3 GAO-01-1078 Military Assistance

Through the Foreign Military Sales program, the U.S. government sells

military equipment, services, and training to foreign governments under

sales agreements managed by the Defense Department. Although the Arms

Export Control Act generally requires the U.S. government to recover the

full estimated costs from the foreign government purchaser, U.S. grant

funds provided under the Foreign Military Financing program can be used

to purchase military items through the Foreign Military Sales program.

Through the Foreign Military Financing program, the U.S. government

provides selected countries with grant funds to purchase military

equipment, services, and training. As stated above, these funds can be

used to purchase military items through the Foreign Military Sales

program, or in some cases can be used to purchase such items directly

from U.S. companies. In addition, Israel may use a portion of these grant

funds to purchase military items directly from its indigenous companies.

Purchases made directly from companies are generally referred to as

direct commercial sales.

The U.S. government funds military training for foreign governments

through the International Military Education and Training program. In

addition, it provides military equipment, services, and training to foreign

governments, on a grant basis, under the Excess Defense Articles9

 and

Emergency Drawdown10 authorities. Under these authorities, the U.S.

provides military items directly from Defense Department stocks.

Through these military assistance programs, the U.S. government places

conditions on deliveries of U.S. military equipment, services, and training

to foreign governments. These conditions restrict the use of such

equipment to certain authorized purposes and restrict the transfer of the

equipment to third parties. Conditions may also specify security measures

to be taken to protect the equipment or require special inventory checks

by U.S. personnel. For the purpose of this review, we focused on use

restrictions.

 9

 22 U.S.C. § 2321j.

10 22 U.S.C. § 2318.
Page 4 GAO-01-1078 Military Assistance

The U.S. government delivered about $74 billion in military equipment,

services, and training to countries in the Middle East from fiscal year 1991

through fiscal year 2000. Table 1 shows the total value of U.S. military

assistance that was delivered, by country, for the 10-year period. The data

is arranged by each of the five military assistance programs we included in

our review. 11 The amounts shown for the Foreign Military Financing

program represent only the portion that was used for direct commercial

sales.12 The remainder of the Foreign Military Financing funds are included

as part of the Foreign Military Sales totals since these funds were used to

purchase items through that program. Table 1 shows the value of

deliveries of military items purchased by countries in the Middle East

through the Foreign Military Sales program or purchased as direct

commercial sales using funds provided through the Foreign Military

Financing program, as well as military items provided on a grant basis

through the International Military Education and Training program and

under the Excess Defense Articles and Emergency Drawdown authorities.

Over the last 10 years, the Foreign Military Sales and Foreign Military

Financing programs have accounted for about 96 percent of the value of

military items the United States has delivered to the Middle East. The four

largest recipients of military items in the Middle East have been Saudi

Arabia, Israel, Egypt, and Kuwait. Syria and the Palestinian Authority did

not receive U.S. military assistance during this period.13

 11 The five programs we reviewed account for the majority of military assistance dollars to

the Middle East, although the U.S. government has other means of delivering military

assistance to foreign governments. For example, military equipment, services, and training

can also be provided through Peacekeeping Operations, International Narcotics Control

and Law Enforcement, and Nonproliferation, Anti-terrorism, Demining, and Related

Programs.

12 The total value of Foreign Military Financing grant funds appropriated to the Middle East

during fiscal years 1991 to 2000 is over $33 billion, including $19 billion to Israel, $13 billion

to Egypt, and $567 million to Jordan. However, these appropriated amounts have not all

been disbursed as of August 2001.

13 While the Palestinian Authority did not directly receive U.S. military assistance, the U.S.

government indirectly provided the Palestine Police with $4 million in fiscal year 1994 and

$5 million in fiscal year 1995 for non-lethal assistance. This assistance consisted of trucks,

jeeps, uniforms, and medical equipment obtained from Defense Department stocks under

Emergency Drawdown authority for Israel and then provided to the Palestine Police.

Amounts and Types of

U.S. Military

Assistance Delivered

to the Middle East
Page 5 GAO-01-1078 Military Assistance

Table 1: Value of U.S. Military Assistance Deliveries to the Middle East, Fiscal Years 1991-2000a

Dollars in millions

Country

Foreign Military

Sales

Foreign Military

FinancingCommercial Sales

Excess Defense

Articles

Emergency

Drawdown

International

Military Education

& Training Total

Saudi Arabia $33,526.7 0 0 0 0 $33,526.7

Israel 6,365.6 $10,812.4 $767.4 $818.0 0 18,763.4

Egypt 10,030.9 2,097.9 539.4 13.5 $12.3 12,694.1

Kuwait 5,520.0 0 0 0 0 5,520.0

United Arab

Emirates

1,380.0 0 0 0 0 1,380.0

Jordan 351.6 57.6 386.4 139.3 11.9 946.9

Bahrain 615.7 0 402.8 0 1.3 1,019.7

Lebanon 135.7 0 58.8 0 4.0 198.5

Oman 95.1 0 56.4 0 1.5 153.1

Yemen 5.8 0 0 0 0.5 6.3

Qatar 4.8 0 0 0 0 4.8

Total $58,031.8 $12,967.9 $2,211.3 $970.8 $31.6 $74,213.4

a

Totals may not add due to rounding.

Source: GAO analysis of Defense Department data.

The weapon systems that the U.S. government has delivered to countries

in the Middle East include fighter aircraft, helicopters, tanks, missiles, and

cluster bombs. Figure 1 identifies some of the weapon systems that have

been delivered to specific countries.
Page 6 GAO-01-1078 Military Assistance

Figure 1: Selected U.S. Weapon Systems Delivered to the Middle Easta

a

Lebanon, Qatar, Syria, and the Palestinian Authority have not received any of the above

U.S. weapon systems from fiscal years 1991 through 2000.

Source: GAO’s analysis of the Defense Department’s data.
Page 7 GAO-01-1078 Military Assistance

State and Defense Department officials told us that conditions on the use

of U.S. military equipment, services, and training delivered to countries in

the Middle East, with few exceptions, are limited to standard conditions

that the U.S. government places on all transfers of military items.

According to these officials, the U.S. government carefully reviews each

proposed military transfer to prevent sensitive military items from going to

countries that would misuse them or to limit the military technology

provided.14 For example, Army officials told us that the TOW15 2B missile is

sold to only a few countries, because it has more capability than the TOW

2A. Of the countries identified in figure 1, only Kuwait has received the

TOW 2B missile. Several State and Defense Department officials cited this

review process as the reason the U.S. government generally does not place

specific use restrictions, in addition to standard use conditions, on military

items transferred to foreign governments.

U.S. laws governing military assistance include conditions on the transfer

of U.S. military equipment, services, and training. Both the Arms Export

Control Act16 and the Foreign Assistance Act17 define the purposes for

which U.S. military items can be transferred. These purposes are internal

security, legitimate self-defense, participation in collective arrangements

that are consistent with the United Nations’ charter, or construction of

public works or other economic and social development activities.

The U.S. government signed mutual defense treaties and other

international military assistance agreements with foreign governments in

the Middle East when military assistance was first provided to those

countries. These treaties and international agreements include, by

reference, the use conditions found in the Arms Export Control or Foreign

Assistance Acts, or in some cases, include similar language to the use

conditions provided by these acts. For example, a 1988 memorandum of

understanding between the United States and Egypt for the coproduction

of the M1A1 tank states that defense articles, services, and technology

transferred to Egypt must be used in accordance with the Arms Export

 14 See Foreign Military Sales: Review Process for Controlled Missile Technology Needs

Improvement (GAO/NSIAD-99-231, Sept. 29, 1999) for information on the review process

for military transfers.

15 Tube-launched, Optically-tracked, Wire-guided.

16 22 U.S.C. § 2754.

17 22 U.S.C. § 2302.

Conditions on the Use

of U.S. Military

Equipment

Delivered to the

Middle East
Page 8 GAO-01-1078 Military Assistance

Control Act. In another example, a 1952 mutual defense assistance

agreement states that Israel may use U.S. military equipment only to

maintain its internal security, for legitimate self-defense, or to participate

in United Nations collective security arrangements. This is similar to the

language contained in the Arms Export Control and Foreign Assistance

Acts.

The Defense Department uses sales agreements when it sells U.S. military

equipment, services, and training to foreign governments through the

Foreign Military Sales program. These sales agreements contain a number

of standard terms and conditions, including conditions similar to those

found in the Arms Export Control and Foreign Assistance Acts or in

military assistance agreements. The standard use conditions require the

purchaser to use the defense articles sold only for the purposes specified

in any mutual defense assistance agreement, bilateral treaty, or regional

defense treaty. If no such agreements or treaties exist, then defense

articles are only to be used for internal security, individual self-defense, or

civic action.

We reviewed over 80 sales agreements for weapon systems sold to the

Middle East and found that those for man-portable air defense systems

(such as Stinger missiles) contained use conditions in addition to the

standard use conditions. The sales agreements require foreign

governments to notify U.S. military personnel located in overseas offices

prior to assembling the components of the man-portable air defense

systems for training or testing. In addition, these components may not be

assembled except in the event of hostilities or imminent hostilities, as part

of regularly scheduled training, for testing, or to defend high-priority

installations or activities.

We also identified a limited number of instances where additional use

conditions were placed on a particular weapon system delivered to

specific countries in the Middle East. These conditions were not included

in the sales agreements, but were conveyed to the foreign governments

through memoranda of understanding or formal discussions. For example,

prior to selling fighter aircraft to one country in the Middle East, the

U.S. government received assurances from the foreign government,

through formal discussions, that the aircraft would not be based near one

of the country’s borders. In another example, the U.S. government signed a

memorandum of understanding by which the foreign government agreed

to use the U.S. weapon system only within that country’s borders.
Page 9 GAO-01-1078 Military Assistance

We provided copies of this report to the Departments of Defense and

State. Neither department provided written comments. However, both had

technical suggestions, which we incorporated as appropriate.

To identify the amounts and types of U.S. military equipment, services, and

training provided to countries in the Middle East from fiscal year 1991

through fiscal year 2000, we reviewed data on Foreign Military Sales,

Foreign Military Financing, and International Military Education and

Training programs. In addition, we reviewed data on military items

provided under Excess Defense Articles and Emergency Drawdown

authority. We excluded data on military items sold directly to the Middle

East by U.S. companies, except for those paid for with Foreign Military

Financing grant funds. To aggregate the military assistance data, we used

delivery values for all but one of the programs we reviewed. For the

delivery value of military items that foreign governments purchased

directly from companies using Foreign Military Financing grant funds, we

used the amounts obligated by those countries for each fiscal year because

that information was not available for deliveries. Defense Department

officials told us that the amounts obligated would most closely correspond

with military item deliveries. Defense Department officials also told us

that under the Foreign Military Sales program, the term delivered indicates

that a sales agreement has been signed and implemented, but due to

production lead-time or other factors, physical delivery of the items may

take place at a later date.

To identify the conditions the U.S. government places on the use of

military equipment, services, and training, we reviewed the Arms Export

Control Act, the Foreign Assistance Act, key mutual defense treaties and

other international military assistance agreements, Defense Department

guidance, and over 80 sales agreements for selected weapon systems. We

also interviewed State and Defense Department officials responsible for

U.S. military assistance programs to discuss use conditions on military

items.

We performed our review from May through September 2001 in

accordance with generally accepted government auditing standards.

We are sending copies of this report to the Chairman and Ranking

Minority Member, Committee on International Relations, U.S. House of

Representatives; the Chairman and Ranking Minority Member, Committee

Agency Comments

Scope and

Methodology
Page 10 GAO-01-1078 Military Assistance

on Foreign Relations, U.S. Senate; and other interested committees and

subcommittees of the House and Senate. We are also sending copies to the

Secretaries of State and Defense, and the Director, Office of Management

and Budget. We will also make copies available to others on request.

Please contact me at (202) 512-4841 if you have any questions concerning

this report. Key contributors to this assignment were Thomas J.

Denomme, John Neumann, Jeffrey D. Phillips, John Van Schaik, and

Michael C. Zola.

Sincerely yours,

Katherine V. Schinasi

Director

Acquisition and Sourcing Management

(120072)
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