[Congressional Record Volume 140, Number 40 (Thursday, April 14, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: April 14, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                      VALUABLE INFRASTRUCTURE LOST

 Mr. LAUTENBERG. Mr. President, when it comes to collecting 
taxes, Uncle Sam does not accept excuses. Americans know that if they 
do not settle their accounts by April 15, the IRS will come knocking, 
demanding that they pay up. Uncle Sam should be as strict with our 
European allies as he is with the American taxpayer. We should demand 
they pay us for the infrastructure we leave behind as we close military 
bases and withdraw our troops from Europe.
  With the demise of the Soviet Union and the reduced threat of an 
invasion of Western Europe, the Pentagon announced plans to close or 
reduce our presence at 867 military sites overseas. Most are in Europe, 
where America has already closed 434 military sites. These closures are 
part of an overall plan to reduce U.S. troop strength in Europe from 
323,432 in 1987 to 100,000 by the end of 1996.
  When we close bases in Europe, we bring our troops home, but we leave 
buildings, roads, sewers, and other physical improvements behind. This 
valuable infrastructure, which cost us $6.5 billion to build, 
represents a significant American investment in the collective security 
of the West. Through a series of ``residual value'' agreements, some 
allies have acknowledged they will inherit all the structures we built. 
As a result, they agreed to repay us for what we leave behind.
  Despite those agreements, so far we have gotten a lot of talk and 
very little cash. We have recouped only $33.3 million, less than 1 
percent of our initial investment. Most of that money was recovered in 
1989.
  Mr. President, our military draw- down has been rapid since 1990, but 
our European allies do not appear to be in a similar hurry to pay us 
what they agreed to pay. In Germany, we have already withdrawn from 
over 60 percent of the military sites slated for closure. Yet the 
German Government has only budgeted $25 million this year to compensate 
us--when our overall capital investment in German bases is almost $4 
billion. To be sure, the amount we can recover from Germany is subject 
to negotiations. The $4 billion capital investment may not reflect the 
current value of the facilities.
  However, the U.S. Government has been slow to respond to our allies' 
reluctance to pay. The Pentagon will not even say how much it is asking 
our allies to pay, or when it must be paid. Imagine Uncle Sam refusing 
to tell a taxpayer what his tax bill is or refusing to demand that it 
be paid.
  Clearly, collecting this money from the allies will not be easy. 
Europe's economies have lagged behind ours. German citizens are no more 
eager to pay America for its military infrastructure than many 
Americans were to pay to maintain that infrastructure for the past 40 
years. But, a deal is a deal.
  It is not as if our Government is abandoning Europe by asking for 
compensation. We spent $10 billion last year just to operate our forces 
and maintain military installations in foreign countries, mostly in 
Europe. That does not include the substantial cost of paying our 
soldiers and buying their weapons. In fact, in fiscal year 1993, 
according to Department of Defense figures, our NATO allies paid less 
than 25 percent of the costs of maintaining troops in their countries 
while Japan paid more than 75 percent. If the European allies matched 
the Japanese contributions, the Congressional Budget Office estimates 
we could save the United States taxpayer $9.6 billion over 5 years.
  The NATO allies have not just failed to pay for the infrastructure we 
leave behind. They also refuse to pay for the infrastructure required 
to keep our forces at foreign bases today. And the cost of that 
infrastructure is rising. The administration wants Congress to provide 
more than $300 million to support new military infrastructure and 
projects in NATO countries next year.
  Even worse, the money we spend to defend Europe is cutting into our 
own military readiness to respond to conflicts, according to Gen. David 
Maddox, commander in chief, U.S. Army, Europe.
  With a little persistence, our Government should be able to recoup 
billions from our NATO allies. After the Persian Gulf war, the 
international community pledged $54 billion to offset costs of United 
States military activities. With a nudge from the Congress, our 
Government pressed the gulf allies until they provided every penny. We 
can and should do the same in this case.
  Mr. President, the American Government should not treat our allies 
better than its own citizens. Every American knows the consequences of 
not paying their taxes. The Pentagon ought to take a page from the IRS. 
It should knock a bit harder on the allies' door, and persist in 
demanding that we receive fair compensation for the value of the 
multibillion-dollar investment we are leaving behind in Europe.
  The PRESIDING OFFICER. The majority leader.

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