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Friday, October 1, 2010     GET YOUR INTELLIGENCE BRIEFING

State Dept. loses track of U.S. arms exports to
the Gulf states

WASHINGTON — Congress has learned it was being denied information regarding the flow of U.S. arms exports to the Gulf.

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The General Accountability Office, the fiscal watchdog of Congress, said the federal government has not been providing sufficient details of U.S. weapons deals with the six Gulf Cooperation Council states. GAO said the State Department accounting of arms exports to the GCC was sloppy and inaccurate.

"GAO cannot determine the total value of authorized arms transfers to the governments of Gulf countries in part because State's DCS [direct commercial sales] database also includes arms transfers authorized for U.S. military units stationed in those countries," GAO said in a report on Sept. 29.


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This marked the second GAO report in September 2010 on the lack of transparency in U.S. arms exports, Middle East Newsline reported. The reports came amid plans by the administration of President Barack Obama to export up to $60 billion in combat platforms and other weapons to Saudi Arabia.

The report said U.S. exports to Saudi Arabia and the United Arab Emirates account for more than 88 percent of authorizations by the Foreign Military Sales program, directed by the State Department. GAO said FMS authorized about $22 billion in arms transfers to the six GCC states.

"State's database system does not have the capability to separate authorizations by end-user or separate multiple authorizations that cover the same equipment," the report, titled "U.S. Agencies Need to Improve Licensing Data and to Document Reviews of Arms Transfers for U.S. Foreign Policy and National Security Goals," said.

GAO determined that at least $6 billion of the $21 billion authorized in military exports between 2005 and 2009 were allocated for the U.S. military presence in the GCC. The report said some of the license values were counted twice.

"For example, in 2008, State authorized a $47 million arms agreement with Bahrain and a subsequent $43 million license for aircraft parts," the report said. "Because the $43 million license was part of the $47 million agreement, the value of this equipment is included twice."

Congress has also complained of the failure of the administration to justify the huge U.S. arms deals with the GCC. The report said neither the State Department nor the Defense Department documented "how arms transfers to Gulf countries advanced U.S. foreign policy and national security goals."

In a review of 28 arms transfer authorizations to the GCC, the congressional agency determined that the State Department failed to document criteria for arms sales. The Pentagon was also said to have failed to justify the release of U.S. technology for seven out of 13 FMS authorizations. State assesses such criteria as interoperability as well as impact on the U.S. defense industrial base, while the Pentagon has been responsible for the flow of sensitive technology.

"Due to a lack of complete documentation, we cannot verify if U.S. agencies consistently reviewed authorizations," the report said. "The partial absence of documentation of agencies' reviews, however, raises concerns that U.S. priorities are not consistently considered before such sales are authorized."

In 2008, Congress passed an amendment that the State Department must also assess Middle East arms requests for their impact on Israel. For more than 40 years, the United States has pledged to Israel that it would retain a "qualitative military edge" over its Arab neighbors.

GAO urged the State Department to improve the clarity and utility of its arms export data, particularly that of commercial weapons sales. The Pentagon was also urged to documents its reviews of arms transfer requests.

"State and DoD [Department of Defense] agreed with the recommendations, but State noted that it would need additional resources to improve DCS reporting," the report said.



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