United States General Accounting Office

GAO Report to Congressional Requesters

April 1995 GREECE AND

TURKEY

U.S. Assistance

Programs and Other

Activities

GAO/NSIAD-95-100

GAO United States

General Accounting Office

Washington, D.C. 20548

National Security and

International Affairs Division

B-260169 

April 17, 1995

The Honorable Benjamin A. Gilman

Chairman

The Honorable Lee H. Hamilton

Ranking Minority Member

Committee on International

 Relations

House of Representatives

This letter responds to your request for information on the amount of U.S.

assistance provided to Greece and Turkey from all funding sources

between years 1992 and 1994 as well as other benefits that the United

States may provide to these countries. As requested, we are also including

information on the costs and amount of equipment transferred to Greece

and Turkey under the Conventional Forces in Europe (CFE) Treaty.1

Results in Brief Between fiscal years 1992 and 1994, the United States provided Greece and

Turkey benefits through a wide variety of sources. These included about

$2.6 billion worth of defense-related assistance provided by grants and low

interest loans under the Foreign Military Financing (FMF) program,2

equipment transfers under Excess Defense Articles (EDA), and grants

under the International Military Education and Training (IMET) program.

The United States also gave defense-related equipment to these countries

under the CFE Treaty, which has a value of about $940 million.3

 The U.S.

government also provided Greece and Turkey with about $325.9 million

worth of economic-related aid. Economic-related assistance included the

Economic Support Fund (ESF), the International Narcotics Control

program, disaster relief assistance, and the American Schools and

Hospitals Abroad (ASHA) program.4

1

On November 19, 1990, member nations of the North Atlantic Treaty Organization and the former

Warsaw Pact signed the CFE Treaty. Under the treaty, the United States is allowed to transfer

equipment to other nations of the North Atlantic Treaty Organization. We reported on the

implementation of the CFE Treaty in Conventional Arms Control: Former Warsaw Pact Nations’ Treaty

Compliance and U.S. Cost Control (GAO/NSIAD-94-33, Dec. 14, 1993).

2

FMF figures used in this report represent the dollar value of contracts actually signed.

3

Defense Department officials stated that no decision has been made regarding what equipment, if any,

would be provided to Greece and Turkey in the future.

4

The ASHA program assists a select group of private U.S.-sponsored, non-profit schools and hospitals

that demonstrate American ideas and practices to citizens of other countries through the transfer of

U.S. technology and values.

Page 1 GAO/NSIAD-95-100 Greece and Turkey
B-260169 

In addition to aid, the U.S. government also has other military and

economic programs in these countries. About $337.5 million of loans and

loan guarantees were provided through the Export-Import (EXIM) Bank to

both countries while Commodity Credit Corporation loans were provided

to Turkey.

Although not considered to be assistance, the Department of Defense

(DOD) estimates that it incurred about $1.34 billion in costs associated with

the presence of 3,902 U.S. military personnel in both Greece 

(511 personnel) and Turkey (3,391 personnel) between fiscal years 1992

and 1994. These costs included items such as salaries and benefits for U.S.

military, operations and maintenance, family housing operations, and

military construction. DOD officials could not provide us with other specific

costs normally included in this category, such as leases of U.S. bases, and

local national salaries because they were not readily available at DOD

headquarters units. DOD officials stated they did not consider costs

associated with maintaining the forces to be a benefit to the host country.

The participation of Greece and Turkey in the Fulbright and International

Visitors Programs during this period cost the U.S. government about

$6.4 million. These programs are not considered to be economic or related

assistance because they benefit both the United States and the foreign

governments.

Table 1 provides information on types and costs of various U.S. programs

and activities in Greece and Turkey between fiscal years 1992 and 1994.

Page 2 GAO/NSIAD-95-100 Greece and Turkey
B-260169 

Table 1: U.S. Military and Economic

Assistance and Other Programs and

Activities in Greece and Turkey (Fiscal

Years 1992-94) 

Dollars in millions

Source Greece Turkey

Military and economic assistance

FMF grants and loans $948.5 $1,355.0

EDA 133.9 187.4

IMET 1.0 7.5

CFE Treaty transfers 373.0 567.0

ESF 0 321.0

International narcotics programs 0 1.1

Disaster aid 0 0.4

ASHA 1.4 2.0

Total $1,457.8 $2,441.4

Other economic programs

EXIM loans and loan guarantees 2.7 249.5

Commodity Credit Corporation loans 0 85.3

Total 2.7 334.8

Other activities

Cost of U.S. military presence 280.5 1,056.2

Student exchange programs 1.9 4.5

Total $282.4 $1,060.7

The governments of Greece and Turkey also pay cash to purchase

defense-related goods and services from DOD through the Foreign Military

Sales (FMS) program or through private contractors under the Commercial

Sales program. Also, Greece and Turkey pay cash to lease military

equipment from the U.S. government. Between fiscal years 1992 and 1994,

DOD and the State Department reported that the potential dollar volume of

the cash sales transactions is about $9.6 billion, about $2.9 billion for

Greece and $6.7 billion for Turkey.5

5

About $4.6 billion of the $9.6 billion represents direct commercial sales. State Department officials

stated that the total dollar value of commercial sales represents the value of export licenses approved

for U.S. contractors and the governments of Greece and Turkey. In our report Export Controls:

License Screening and Compliance Procedures Need Strengthening (GAO/NSIAD-94-178, June 14,

1994), we reported that government officials noted that the value of direct commercial sales deliveries

as a result of these licenses could be as little as 40 to 60 percent of the value originally reported when

the license was approved. Thus, the dollar value of items delivered on these licenses could range from

about $1.8 billion to about $2.8 billion. The approximately $5 billion in FMS represents the value of the

contracts actually signed.

Page 3 GAO/NSIAD-95-100 Greece and Turkey
B-260169 

Between fiscal years 1992 and 1994, Greece and Turkey obtained a variety

of weapon systems from the United States under the FMF and FMS

programs, commercial sales, EDA, the CFE treaty, and leases. These systems

included fixed-wing aircraft, helicopters, missiles, mortars and torpedoes,

M-60A3 and M-60A1 tanks, M-113 armored personnel carrier, and M-110

Howitzers.

Appendixes I through X provide further details on the various sources of

funding and other benefits as well as the types of equipment provided to

Greece and Turkey by fiscal year for the period fiscal years 1992 through

1994.

Scope and

Methodology

We obtained information for this report from the Department of State and

DOD, the U.S. Agency for International Development, EXIM, the Department

of Agriculture, and the U.S. Information Agency in Washington, D.C. We

conducted our review between December 1994 and February 1995. We did

not verify the information provided by the various agencies. We also did

not obtain written agency comments on a draft of this report. We

presented the data as provided by agency officials.

Unless you release its contents earlier, we plan no further distribution of

this report until 10 days after its issuance. At that time, we will send copies

of the report to the Secretaries of Agriculture, Defense, and State; and the

Administrator, the U.S. Agency for International Development; the

Director, U.S. Information Agency; and the President, Export-Import Bank.

We will also provide copies to others on request.

If you or your staff have any questions, I can be reached on (202) 512-4128.

Major contributors are Andres Ramirez and Ronald D. Hughes.

Joseph E. Kelley

Director-in-Charge

International Affairs Issues

Page 4 GAO/NSIAD-95-100 Greece and Turkey
Page 5 GAO/NSIAD-95-100 Greece and Turkey
Contents

Letter 1

Appendix I 

U.S. Military and

Economic Assistance

to Greece (FY

1992-94)

8

Appendix II 

Other Economic

Programs in Greece

(FY 1992-94)

9

Appendix III 

Other Activities in

Greece (FY 1992-94)

10

Appendix IV 

Other Military

Programs in Greece

(FY 1992-94)

11

Appendix V 

Equipment Provided

to Greece by Fiscal

Year and Source

12

Appendix VI 

U.S. Military and

Economic Assistance

to Turkey (1992-94)

13

Page 6 GAO/NSIAD-95-100 Greece and Turkey
Contents

Appendix VII 

Other Economic

Programs in Turkey

(FY 1992-94)

14

Appendix VIII 

Other Activities in

Turkey (FY 1992-94)

15

Appendix IX 

Other Military

Programs in Turkey

(FY 1992-94)

16

Appendix X 

Equipment Provided

to Turkey by Fiscal

Year and Source

17

Table Table 1: U.S. Military and Economic Assistance and Other

Programs and Activities in Greece and Turkey

3

Abbreviations

ASHA American Schools and Hospitals Abroad

CFE Conventional Forces In Europe

DOD Department of Defense

EDA Excess Defense Article

ESF Economic Support Fund

EXIM Export-Import Bank

FMF Foreign Military Financing

FMS Foreign Military Sales

IMET International Military Education and Training

Page 7 GAO/NSIAD-95-100 Greece and Turkey
Appendix I 

U.S. Military and Economic Assistance to

Greece (FY 1992-94)

Dollars in millions

Type of AID

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FMF grant

and loansa $350.0 $315.0 $283.5 $948.5

EDAb 33.1 52.6 48.2 133.9

IMET 0.6 0.3 0.1 1.0

CFE transfersc 373.0

ASHA program 0.8 0 0.6 1.4

Total $384.5 $367.9 $332.4 $1,457.8

aIn fiscal year 1992, Greece received $320 million worth of loans and $30 million in grants. All

FMF funds are loans for fiscal years 1993 and 1994. State and DOD personnel stated that grants

were discontinued at the end of fiscal year 1992.

bDOD information indicates that the dollar volume of EDA is based on the current value of

equipment.

cDOD could not provide a dollar value for equipment by fiscal year.

Page 8 GAO/NSIAD-95-100 Greece and Turkey
Appendix II 

Other Economic Programs in Greece (FY

1992-94)

Dollars in millions

Transaction

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

EXIM loans and loan

guaranteesa $2.7 $0 $0 $2.7

aLoan and loan guarantee amounts are based on the value of final commitments.

Page 9 GAO/NSIAD-95-100 Greece and Turkey
Appendix III 

Other Activities in Greece (FY 1992-94)a

Dollars in millions

Source

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

Military presence

U.S. military 

salaries $ 50.9 $33.5 $24.3 $108.7

Operations and

maintenance 82.9 42.8 33.3 159.0

Family housing

operations 2.0 1.8 1.4 5.2

Military 

construction 0 7.6 0 7.6

Total $135.8 $85.7 $59.0 $280.5

Student exchange

programs $0.6 $0.6 $0.7 $1.9

aDOD officials could not provide us with specific costs for items such as leases of U.S. bases,

local national salaries, local expenditures and contracts, and exercises and U.S. ship visits

because they were not readily available in records maintained in DOD headquarters units.

Page 10 GAO/NSIAD-95-100 Greece and Turkey
Appendix IV 

Other Military Programs in Greece (FY

1992-94)

Dollars in millions

Transactions

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FMS cash $235.3 $1,328.5 $ 24.6 $1,588.4

Military

commercial sales 599.0 504.1 157.1 1,260.2

U.S.-leased military

equipment 3.2 0 0 3.2

Total $837.5 $1,832.6 $181.7 $2,851.8

Page 11 GAO/NSIAD-95-100 Greece and Turkey
Appendix V 

Equipment Provided to Greece by Fiscal

Year and Source

Source

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FMF/FMS transfersa

Stinger Missile 250 0 0 250

81-MM Mortar 49 0 0 49

UH-1H Helicopter 0 6 24 30

Harpoon Missile 0 18 0 18

Hellfire Missile 0 0 12 12

Commercial salesb

Patrol Boat n/a n/a n/a

M-16 rifle n/a n/a n/a

Excess defense articles

A-7E Aircraft 26 0 0 26

A-7K Aircraft 0 0 10 10

C-130B Aircraft 5 0 0 5

AH-1P Helicopter 0 6 9 15

TAH-1P Helicopter 0 2 0 2

SH-2F Helicopter 0 6 0 6

UH-1N Helicopter 0 0 2 2

SM-1 Block V

Missile 144 0 0 144

M85 machine gun 100 0 0 100

M240 machine gun 240 0 0 240

M901 TOW Carrier 0 0 80 80

CFE transfer

M-60A3 Battle Tank 133 179 0 312

M060A1 Battle Tank 359 0 0 359

M-113 Armored Personnel

Carrier 150 0 0 150

M-110 Howitzer 72 12 0 84

Lease equipment

FF 1075 (Troppe)-Ship 1 0 0 1

DDG 24 (Waddell)-Ship 0 1 0 1

Global Positioning System n/a n/a 1 1

aIncludes both FMF and FMS. DOD officials stated that they could not separate the individual

items by either FMF or FMS because the data was not readily available.

bDOD officials could not provide us with the quantities of patrol boats or M-16 rifles. They also

stated that in addition to these items other goods and services were also provided.

Page 12 GAO/NSIAD-95-100 Greece and Turkey
Appendix VI 

U.S. Military and Economic Assistance to

Turkey (1992-94)

Dollars in millions

Type of AID

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FMF grant and loansa $500.0 $450.0 $405.0 $1,355.0

EDAb 48.4 116.0 23.0 187.4

IMET 3.4 3.1 1.0 7.5

CFE transfersc 567.0

ESF 1.0 200.0 120.0 321.0

International

narcotics program 0.3 0.4 0.4 1.1

Disaster aid 0.4 0 0 0.4

ASHA 1.2 0.7 0.1 2.0

Total $554.7 $770.2 $549.5 $2,441.4

aIn fiscal year 1992, Turkey received $25 million worth of loans and $475 million in grants. All FMF

funds are loans for fiscal years 1993 and 1994.

bDOD information indicates that the dollar volume of EDA is based on the current value of

equipment.

cDOD officals could not provide dollar value of CFE equipment by fiscal year.

Page 13 GAO/NSIAD-95-100 Greece and Turkey
Appendix VII 

Other Economic Programs in Turkey (FY

1992-94)

Dollars in millions

Transaction

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

EXIM loans and

loan guaranteesa $148.8 $73.4 $27.3 $249.5

Commodity Credit

Corporation loansb 21.4 38.1 25.8 85.3

Total $170.2 $111.5 $53.1 $334.8

aLoan and loan guarantee amounts are based on the value of final commitments.

bLoans are based on the value of the registered exports.

Page 14 GAO/NSIAD-95-100 Greece and Turkey
Appendix VIII 

Other Activities in Turkey (FY 1992-94)

Dollars in millions

Source

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

Military presence

U.S. military salaries $170.9 $147.8 $138.7 $457.4

Operations and 

maintenance 198.2 230.1 131.9 560.2

Family housing

operations 12.2 11.3 12.3 35.8

Military

construction 0.4 0 2.4 2.8

Total $381.7 $389.2 $285.3 $1,056.2

Student exchange

programs 1.5 1.5 1.5 4.5

Page 15 GAO/NSIAD-95-100 Greece and Turkey
Appendix IX 

Other Military Programs in Turkey (FY

1992-94)

Dollars in millions

Transaction

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FMS cash $1,328.7 $ 280.1 $1,789.2 $3,398.0

Commercial

military sales 661.1 2,064.4 607.5 3,333.0

U.S.-leased military

equipment 0 14.5 0 14.5

Total $1,989.8 $2,359.0 $2,396.7 $6,745.5

Page 16 GAO/NSIAD-95-100 Greece and Turkey
Appendix X 

Equipment Provided to Turkey by Fiscal

Year and Source

Source

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FMF/FMS transfersa

F-16C Aircraft 22 16 24 62

F-16D Aircraft 0 8 3 11

UH-1H Helicopter 0 15 0 15

Maverick Missile 26 0 0 26

Seasparrow Missile 20 0 0 20

TOW Missile 10 10 0 20

Harpoon Missile 0 4 10 14

Sparrow Missile 0 36 0 36

Stinger Missile 0 12 0 12

Commercial salesb n/a n/a n/a

M-16 rifle n/a n/a n/a

Excess defense articles

C-130 Aircraft 2 0 2 4

O-2 Aircraft 6 0 0 6

T-38 Aircraft 40 0 0 40

KC-135 Tanker

Aircraft 0 0 10 10

AH-1P Helicopter 22 27 0 49

TAH-1P Helicopter 0 4 0 4

SH-2F Helicopter 0 0 14 14

M85 machine gun 0 822 110 932

M421A1 Duster Artillery 0 37 0 37

CPE transfer

M-60A3 Battle Tank 493 175 0 668

M-60A1 Battle Tank 84 190 0 274

M-133 Armored

Personnel Carrier 189 61 0 250

M-110 Howitzer 69 3 0 72

Lease equipment

KG-40 Parallel Units 1 1 0 2

M85 machine guns 0 1 0 1

FF-1093 

(Capodanno)- Ship 0 1 0 1

FF-1076 (Fanning)-

Ship 0 1 0 1

FF-1063

(Reasoner)-Ship 0 1 0 1

(continued)

Page 17 GAO/NSIAD-95-100 Greece and Turkey
Appendix X 

Equipment Provided to Turkey by Fiscal

Year and Source

Source

Fiscal Year

1992

Fiscal Year

1993

Fiscal Year

1994 Total

FF-1092 (Thomas C.

Hert)-Ship 0 1 0 1

Global Positioning

System 0 1 0 1

aIncludes equipment from U.S. FMF and FMS cash. DOD officials stated that they could not

separate the individual items by either FMF or FMS because data was not readily available.

bDOD officials could not provide us with the quantity of M-16 rifles provided. In addition to the

M-16 rifles, commercial transfers during fiscal years 1992 and 1993 consisted primarily of

support, equipment, spare parts, and support services. According to DOD, there were no

commercial sales of any other major equipment during fiscal year 1994.

(711116) Page 18 GAO/NSIAD-95-100 Greece and Turkey
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