Small arms proliferation is a significant security concern for the United States because regional conflicts in areas such as the Balkans, the Middle East, and Africa require peacekeeping and humanitarian operations which are rendered much more dangerous as small arms spread. The report did not disclose Washington's response to the re-export of prohibited U.S. technologies to Iran or Iraq. In 1989, the General Accounting Office, the watchdog agency of Congress, reported five cases of unauthorized transfers of U.S. weapons and components. The illegal transfers stemmed from 18 coproduction agreements. In its interim report, the U.S. commission recommended the elimination or significant reduction of defense offset agreements.
Offsets provide a purchasing country with subcontracts or buy-backs as part of a weapons sale.
The final report is expected to be completed by October. Other members of the commission which began in 1999 include the secretaries of commerce, defense and state in the outgoing Clinton administration as well as the heads of Boeing and Lockheed Martin.