Greece and Turkey: U.S. Assistance Programs and Other Activities (Letter
Report, 04/17/95, GAO/NSIAD-95-100).

This report provides information on the level of U.S. assistance
provided to Greece and Turkey between 1992 and 1994 as well as other
benefits that the United States may provides to these countries.  GAO
also includes information on the costs and amount of equipment
transferred to Greece and Turkey under the Conventional Forces in Europe
Treaty.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-95-100
     TITLE:  Greece and Turkey: U.S. Assistance Programs and Other 
             Activities
      DATE:  04/17/95
   SUBJECT:  International relations
             Foreign economic assistance
             Foreign military assistance
             Federal aid to foreign countries
             Military personnel
             Foreign aid programs
             Military operations
             Advanced weapons systems
             Foreign military sales
             Technology transfer
IDENTIFIER:  Greece
             Turkey
             Warsaw Pact
             North Atlantic Treaty Organization
             DOD Foreign Military Financing Program
             International Military Education and Training Program
             DOD Excess Defense Articles Program
             Economic Support Fund
             Dept. of State International Narcotics Control Program
             AID American Schools and Hospitals Abroad Program
             Foreign Military Sales Program
             Fulbright-Hays Exchange Program
             International Visitor Program
             NATO
             
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Cover
================================================================ COVER


Report to Congressional Requesters

April 1995

GREECE AND TURKEY - U.S. 
ASSISTANCE PROGRAMS AND OTHER
ACTIVITIES

GAO/NSIAD-95-100

Greece and Turkey


Abbreviations
=============================================================== ABBREV

  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

Letter
=============================================================== LETTER


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


--------------------
\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). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :1

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

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. 



                             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


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. 


--------------------
\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. 

\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. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :2

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. 


---------------------------------------------------------- Letter :2.1

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


U.S.  MILITARY AND ECONOMIC
ASSISTANCE TO GREECE (FY 1992-94)
=========================================================== Appendix I

                    (Dollars in millions)

                     Fiscal     Fiscal     Fiscal
Type of AID       Year 1992  Year 1993  Year 1994      Total
----------------  ---------  ---------  ---------  =========
FMF grant            $350.0     $315.0     $283.5     $948.5
 and loans\a
EDA\b                  33.1       52.6       48.2      133.9
IMET                    0.6        0.3        0.1        1.0
CFE transfers\c                                        373.0
ASHA program            0.8          0        0.6        1.4
============================================================
Total                $384.5     $367.9     $332.4   $1,457.8
------------------------------------------------------------
\a In 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. 

\b DOD information indicates that the dollar volume of EDA is based
on the current value of equipment. 

\c DOD could not provide a dollar value for equipment by fiscal year. 


OTHER ECONOMIC PROGRAMS IN GREECE
(FY 1992-94)
========================================================== Appendix II

                    (Dollars in millions)

                     Fiscal     Fiscal     Fiscal
Transaction       Year 1992  Year 1993  Year 1994      Total
----------------  ---------  ---------  ---------  =========
EXIM loans and         $2.7         $0         $0       $2.7
 loan
 guarantees\a
------------------------------------------------------------
\a Loan and loan guarantee amounts are based on the value of final
commitments. 


OTHER ACTIVITIES IN GREECE (FY
1992-94)\A
========================================================= Appendix III

                    (Dollars in millions)

                     Fiscal     Fiscal     Fiscal
Source            Year 1992  Year 1993  Year 1994      Total
----------------  ---------  ---------  ---------  =========
Military presence
------------------------------------------------------------
U.S. military        $ 50.9      $33.5      $24.3     $108.7
 salaries
Operations and         82.9       42.8       33.3      159.0
 maintenance
Family housing          2.0        1.8        1.4        5.2
 operations
Military                  0        7.6          0        7.6
 construction
============================================================
Total                $135.8      $85.7      $59.0     $280.5
Student                $0.6       $0.6       $0.7       $1.9
 exchange
 programs
------------------------------------------------------------
\a DOD 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. 


OTHER MILITARY PROGRAMS IN GREECE
(FY 1992-94)
========================================================== Appendix IV

                    (Dollars in millions)

                     Fiscal     Fiscal     Fiscal
Transactions      Year 1992  Year 1993  Year 1994      Total
----------------  ---------  ---------  ---------  =========
FMS cash             $235.3   $1,328.5     $ 24.6   $1,588.4
Military
 commercial           599.0      504.1      157.1    1,260.2
 sales
U.S.-leased             3.2          0          0        3.2
 military
 equipment
============================================================
Total                $837.5   $1,832.6     $181.7   $2,851.8
------------------------------------------------------------

EQUIPMENT PROVIDED TO GREECE BY
FISCAL YEAR AND SOURCE
=========================================================== Appendix V

                          Fiscal     Fiscal     Fiscal  Tota
Source                 Year 1992  Year 1993  Year 1994     l
---------------------  ---------  ---------  ---------  ====
FMF/FMS transfers\a
------------------------------------------------------------
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 sales\b
------------------------------------------------------------
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)-              1          0        0 1
 Ship
DDG 24 (Waddell)-              0          1          0     1
 Ship
Global Positioning           n/a        n/a          1     1
 System
------------------------------------------------------------
\a Includes 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. 

\b DOD 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. 


U.S.  MILITARY AND ECONOMIC
ASSISTANCE TO TURKEY (1992-94)
========================================================== Appendix VI

                    (Dollars in millions)

                     Fiscal     Fiscal     Fiscal
Type of AID       Year 1992  Year 1993  Year 1994      Total
----------------  ---------  ---------  ---------  =========
FMF grant and        $500.0     $450.0     $405.0   $1,355.0
 loans\a
EDA\b                  48.4      116.0       23.0      187.4
IMET                    3.4        3.1        1.0        7.5
CFE transfers\c                                        567.0
ESF                     1.0      200.0      120.0      321.0
International
 narcotics              0.3        0.4        0.4        1.1
 program
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
------------------------------------------------------------
\a In 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. 

\b DOD information indicates that the dollar volume of EDA is based
on the current value of equipment. 

\c DOD officals could not provide dollar value of CFE equipment by
fiscal year. 


OTHER ECONOMIC PROGRAMS IN TURKEY
(FY 1992-94)
========================================================= Appendix VII

                    (Dollars in millions)

                       Fiscal     Fiscal     Fiscal
Transaction         Year 1992  Year 1993  Year 1994    Total
------------------  ---------  ---------  ---------  =======
EXIM loans and
 loan guarantees\a     $148.8      $73.4      $27.3   $249.5
Commodity Credit
 Corporation             21.4       38.1       25.8     85.3
 loans\b
============================================================
Total                  $170.2     $111.5      $53.1   $334.8
------------------------------------------------------------
\a Loan and loan guarantee amounts are based on the value of final
commitments. 

\b Loans are based on the value of the registered exports. 


OTHER ACTIVITIES IN TURKEY (FY
1992-94)
======================================================== Appendix VIII

                    (Dollars in millions)

                     Fiscal     Fiscal     Fiscal
Source            Year 1992  Year 1993  Year 1994      Total
----------------  ---------  ---------  ---------  =========
Military presence
------------------------------------------------------------
U.S. military        $170.9     $147.8     $138.7     $457.4
 salaries
Operations and        198.2      230.1      131.9      560.2
 maintenance
Family housing         12.2       11.3       12.3       35.8
 operations
Military                0.4          0        2.4        2.8
 construction
============================================================
Total                $381.7     $389.2     $285.3   $1,056.2
Student
 exchange               1.5        1.5        1.5        4.5
 programs
------------------------------------------------------------

OTHER MILITARY PROGRAMS IN TURKEY
(FY 1992-94)
========================================================== Appendix IX

                    (Dollars in millions)

                       Fiscal     Fiscal     Fiscal
Transaction         Year 1992  Year 1993  Year 1994    Total
------------------  ---------  ---------  ---------  =======
FMS cash             $1,328.7    $ 280.1   $1,789.2  $3,398.
                                                           0
Commercial              661.1    2,064.4      607.5  3,333.0
 military sales
U.S.-leased                 0       14.5          0     14.5
 military
 equipment
============================================================
Total                $1,989.8   $2,359.0   $2,396.7  $6,745.
                                                           5
------------------------------------------------------------

EQUIPMENT PROVIDED TO TURKEY BY
FISCAL YEAR AND SOURCE
=========================================================== Appendix X

                       Fiscal     Fiscal     Fiscal
Source              Year 1992  Year 1993  Year 1994    Total
------------------  ---------  ---------  ---------  =======
FMF/FMS transfers\a
------------------------------------------------------------
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 sales\b        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               0         37          0       37
 Artillery

CPE transfer
------------------------------------------------------------
M-60A3 Battle Tank        493        175          0      668
M-60A1 Battle Tank         84        190          0      274
M-133 Armored             189         61          0      250
 Personnel Carrier
M-110 Howitzer             69          3          0       72

Lease equipment
------------------------------------------------------------
KG-40 Parallel              1          1          0        2
 Units
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
FF-1092 (Thomas C.
 Hert)-Ship                 0          1          0        1
Global
 Positioning                0          1          0        1
 System
------------------------------------------------------------
\a Includes 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. 

\b DOD 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. 
