Peace Operations: Estimated Fiscal Year 1995 Costs to the United States
(Briefing Report, 05/08/95, GAO/NSIAD-95-138BR).

Pursuant to a congressional request, GAO reviewed U.S. in peacekeeping
operations in fiscal year (FY) 1995 to date, focusing on: (1) federal
agencies' potential FY 1995 costs for peace operations; (2) the
potential U.S. share of United Nations' (UN) peacekeeping assessments;
and (3) how the defense budget provides the Department of Defense (DOD)
with the capability to participate in peace operations.

GAO found that: (1) federal agencies estimate they will spend $3.7
billion during FY 1995 for peace operations, of which $672 million has
not been funded; (2) this estimated cost could increase due to
additional or extended peace operations; (3) DOD participates in both
UN-sponsored and unilateral peace operations; (4) DOD estimated costs
represent 49 percent of the total costs and the State Department is
responsible for more than one-half of the remaining costs; (5) DOD also
estimates that it will need $274.4 million for outstanding FY 1994 peace
operations costs; (6) State will spend about $992.1 million to support
UN peace operation assessments, plus another $9.9 million for UN
peacekeeping operations in Israel and India-Pakistan; (7) the DOD budget
provides DOD with the capability to conduct peace operations, but it
does not fund the operations' incremental costs; and (8) it is too
difficult to estimate what portion of DOD investment and support costs
should be allocated to peace operations.

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

 REPORTNUM:  NSIAD-95-138BR
     TITLE:  Peace Operations: Estimated Fiscal Year 1995 Costs to the 
             United States
      DATE:  05/08/95
   SUBJECT:  International relations
             International cooperation
             Military intervention
             United Nations
             Defense capabilities
             Future budget projections
             Defense budgets
             Logistics
             Cost analysis
             Federal aid to foreign countries
IDENTIFIER:  Haiti
             Bosnia
             Southwest Asia
             Western Sahara
             Rwanda
             Burundi
             Cuba
             Iraq
             Israel
             India
             Pakistan
             Angola
             Mozambique
             El Salvador
             Croatia
             Lebanon
             Somalia
             Food for Peace Program
             USDA Food for Progress Program
             Airborne Warning and Control System
             F-15E Aircraft
             C-130 Aircraft
             
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Cover
================================================================ COVER


Briefing Report to the Chairman, Committee on the Budget, House of
Representatives

May 1995

PEACE OPERATIONS - ESTIMATED
FISCAL YEAR 1995 COSTS TO THE
UNITED STATES

GAO/NSIAD-95-138BR

Peace Operations


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

  DOD - Department of Defense
  USAID - U.S.  Agency for International Development

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


B-260431

May 3, 1995

The Honorable John R.  Kasich
Chairman, Committee on the Budget
House of Representatives

Dear Mr.  Chairman: 

Several U.S.  agencies and departments have participated to some
extent in peace operations in fiscal year 1995 to date.  In response
to your request, we are providing information on (1) these agencies'
potential fiscal year 1995 costs of peace operations, (2) the
potential U.S.  share of U.N.  assessments for peace operations, and
(3) the manner in which the annual defense budget provides the
Department of Defense (DOD) with the capability to participate in
peace operations.  On April 19, 1995, we briefed your staff on these
issues. 


   BACKGROUND
------------------------------------------------------------ Letter :1

As fiscal year 1995 began, the United States was involved in a number
of peace operations around the world, including operations in Haiti,
Bosnia, and Southwest Asia.  DOD and the Department of State are the
two lead agencies involved in U.S.  peace operations.  The U.S. 
Agency for International Development is the primary agency
responsible for providing humanitarian assistance and coordinating
U.S.  donations of food with the Department of Agriculture.  The
other agencies involved in peace operations are the Departments of
Justice, Commerce, Treasury, Transportation, and Health and Human
Services. 

The costs of most agencies' and departments' participation in peace
operations are paid from their congressional appropriations.  These
costs include expenditures for (1) direct participation of U.S. 
military forces, (2) the U.S.  share of U.N.  peacekeeping
assessments, and (3) humanitarian assistance.  We previously reported
on U.S.  and U.N.  activities related to peace operations, including
their cost and funding, and on DOD's fiscal year 1994 cost and
funding for peace operations.\1


--------------------
\1 Peace Operations:  Information on U.S.  and U.N.  Activities
(GAO/NSIAD-95-102BR, Feb.  11, 1995) and Peace Operations:  DOD's
Incremental Costs and Funding for Fiscal Year 1994
(GAO/NSIAD-95-119BR, Apr.  18, 1995). 


   RESULTS IN BRIEF
------------------------------------------------------------ Letter :2

Federal agencies' and departments' participation in peace operations
is estimated to cost $3.7 billion during fiscal year 1995; $672
million of this estimated cost has not been funded.  This estimated
cost could increase if the need for new operations arises or current
operations are expanded.  About $1.8 billion, or 49 percent, of the
estimated cost is DOD's estimated incremental costs\2 for its
involvement in peace operations.  These incremental costs include (1)
special payments, including imminent danger pay, family separation
allowance, and foreign duty pay for troops deployed to certain peace
operations; (2) operation and maintenance expenses in support of
deployed forces; (3) procurement of items such as forklifts and fire
support vehicles; and (4) limited military construction at Guantanamo
Bay, Cuba. 

Several nondefense agencies and departments will bear the remaining
estimated U.S.  government costs of $1.9 billion.  For example, the
estimated U.S.  share of special U.N.  peacekeeping assessments,
which are paid by the Department of State, is $992.1 million for
fiscal year 1995 peace operations.  However, the expansion of
existing missions or the approval of new missions could increase U.N. 
peacekeeping costs and hence the U.S.  share of those costs. 
According to U.N.  mission planners, several missions could undergo
changes or expansions, including the missions in Western Sahara and
Rwanda, and Burundi, which is considered a "hot spot," could be the
site of a new mission.  No estimate is available yet for the cost of
a mission in Burundi. 

DOD's annual budget provides it with the capability to conduct peace
operations but does not fund the operations' incremental costs.  As a
means of determining how funds are spent, programs can be divided
into "investment" and "support" categories.  Investment programs fund
the procurement of defense capital goods, such as weapons and
facilities; support programs fund the operation and maintenance of
defense forces and equipment.  Funding for each of these categories
contributes to military capability in different ways.  Investment
funding builds a stock of equipment that lasts for many years. 
Support funding provides the people and other resources to operate
and maintain the equipment.  This funding makes it possible for U.S. 
military forces to engage in peace as well as more traditional
military operations.  However, it would be difficult to estimate with
any reasonable assurance what portion of investment and support costs
should be applied to peace operations. 


--------------------
\2 As defined by the Omnibus Budget Reconciliation Act of 1990 (P.L. 
101-508), for use during Operation Desert Shield/Storm, incremental
costs are only those costs that would not have been incurred except
for the operation.  DOD is still using this definition. 


   SCOPE AND METHODOLOGY
------------------------------------------------------------ Letter :3

To obtain data on estimated U.S.  peace operations costs, we met with
representatives of the Departments of Defense, State, Agriculture,
Treasury, Commerce, Transportation, Justice, Health and Human
Services, the Office of Management and Budget, and the U.S.  Agency
for International Development.  At each organization, we discussed
how peace operation costs are budgeted and accounted for and asked
that they provide data on projected fiscal year 1995 costs for peace
operations.  For DOD's estimated costs of contingency operations, we
used the data contained in DOD's request for supplemental
appropriations.  We reviewed that data to distinguish between costs
related to operations that occurred in fiscal year 1994 and those
that are expected to occur in fiscal year 1995.  For nondefense
agencies and departments, we included costs for those programs or
activities that were related to ongoing peace operations.  We did not
independently verify reported costs. 

To identify the U.S.  share of U.N.  peacekeeping assessments, we
interviewed and obtained documents from State Department officials
responsible for these matters as well as finance officials at the
U.N.  Controller's Office and Department of Peacekeeping Operations. 
We compared the State Department's estimate with the U.N.  estimate
of the cost of peacekeeping missions to ascertain whether they were
consistent.  In addition, we interviewed officials at the U.S. 
Mission to the United Nations.  We also reviewed U.N.  documents on
the financing of individual missions and the status of member states'
peacekeeping contributions. 

To obtain information on how the annual defense budget permits DOD to
participate in peace operations, we reviewed DOD financial documents
describing the purposes for which the funds in DOD's major
appropriations accounts can be spent.  We also reviewed the Secretary
of Defense's report on the bottom-up review to ascertain which
military forces are expected to participate in peace operations. 

We did our work between December 1994 and April 1995 in accordance
with generally accepted government auditing standards.  We provided a
draft copy of this briefing report to the organizations involved and
incorporated their comments where appropriate. 

Section I through III includes the detailed information from our
briefing to your staff and appendix I shows a breakout, by country,
of the estimated U.S.  share of special U.N.  assessments for peace
operations for fiscal year 1995. 


---------------------------------------------------------- Letter :3.1

We are providing copies of this report to the Chairmen of the Senate
and House Committees on Appropriations, the Senate Committees on
Armed Services and Foreign Relations, and the House Committees on
National Security and International Relations.  We will also send
copies to the Secretaries of Defense, State, Agriculture, Treasury,
Transportation, Justice, Commerce, and Health and Human Services; the
Administrator, U.S.  Agency for International Development; the
Director, Office of Management and Budget; and the Secretary General
of the United Nations.  Copies will also be made available to others
upon request. 

If you or your staff have any questions about this report, please
contact me at (202) 512-3504.  The major contributors to this report
are listed in appendix II. 

Sincerely yours,

Richard Davis
Director, National Security
 Analysis


Briefing Section I BACKGROUND
============================================================== Letter 

U.S.  Participation in Peace Operations

The United States participates in peace operations in three principal
ways.  One way is with direct military support.  Since October 1994,
U.S.  military forces have been used in several locales, including
Haiti, the region in and around former Yugoslavia, and Somalia.  At
the peak of the U.S.  military intervention in Haiti in October 1994,
the United States had about 39,000 military personnel deployed in and
around Haiti.  As of January 1995, that number had fallen to about
5,700.  The U.S.  military has also provided logistical support for
peace operations.  For example, about 700 military personnel have
been involved in providing humanitarian supplies to Bosnia through
relief flights and airdrops. 

A second way in which the United States participates in peace
operations is through financial support.  The largest amount of
financial support is that provided to the United Nations to pay for
the costs of U.N.  peacekeeping missions.  Most U.N.  peacekeeping
missions are financed through special assessments.  The United
Nations has assigned a peacekeeping assessment rate to each member
country.  The United States is currently assessed 31.2 percent of
U.N.  peacekeeping budgets, by far the largest share of any U.N. 
member country.  Prior to the dissolution of the Soviet Union, the
U.S.  peacekeeping assessment rate was 30.4 percent.  The United
States will continue to pay that rate through fiscal year 1995.  The
United States has informed the United Nations that as of October 1,
1995, it plans to pay U.N.  peacekeeping assessments at a rate of 25
percent. 

A third way in which the United States participates in peace
operations is by providing support for humanitarian and refugee
programs.  The United States does this through donations to
international organizations, including the United Nations, and to
private voluntary humanitarian organizations that are involved in
providing humanitarian aid and assistance.  This assistance can be in
the form of financial aid and other donations, such as agricultural
commodities, and through the processing of and

Types of Peace Operations Involving DOD

Peace operations is a broad and imprecise term.  The Secretary of
Defense's 1995 Annual Report to the President and the Congress
includes peace operations under the broader category termed
contingency operations.  The Secretary's report describes contingency
operations as military operations that go beyond the routine
deployment or stationing of U.S.  forces abroad but fall short of
large-scale theater warfare.  Included under the term contingency
operations are (1) smaller-scale combat operations such as the
military intervention in Panama; (2) peace operations such as the
recently concluded operation in Somalia; and (3) other key missions,
including humanitarian and refugee assistance, such as last year's
support of Rwandan refugees. 

Most of the operations in which the United States is participating in
fiscal year 1995 are in support of U.N.-authorized peace operations. 
However, the Department of Defense's (DOD) characterization of
individual operations as combat, peace, or humanitarian is in a state
of flux.  DOD has characterized some operations that are being
conducted in support of U.N.-authorized peace operations as
humanitarian operations.  It has also changed its characterization of
operations from that in the Secretary of Defense's 1994 Annual
Report.  For example, the Secretary's 1994 report characterized DOD's
operation in Northern Iraq as U.S.  forces acting in support of U.N. 
peace operations, while the Secretary's 1995 report characterizes it
as humanitarian and refugee assistance. 

Some operations that involve the United States in fiscal year 1995
are unilateral operations.  These include the increase in U.S. 
military capability in South Korea in response to heightened tensions
and the enforcement of a revised U.S.  migration policy designed to
prevent Cuban migrants from reaching the United States. 

Regardless of how DOD characterizes each operation, a common
characteristic of these operations is that their incremental costs
are not included in its annual budget.  To fund these operations, DOD
has to absorb their costs within its existing budget and forgo
planned activities or seek supplemental

Principal Civilian Agencies Involved in Peace Operations

Civilian federal agencies and departments involved in peace
operations carry out a variety of activities.  Among the civilian
agencies and departments, the Department of State and the U.S. 
Agency for International Development (USAID) have the largest roles,
both financially and programmatically. 

The State Department is one of the two lead agencies (DOD is the
other) responsible for planning and implementing U.S.  peace
operations.  In addition, the State Department pays the United
Nations for the U.S.-assessed share of U.N peacekeeping budgets as
well as additional voluntary contributions.  State also provides
funding to other organizations to support multinational forces,
provide police monitors, enforce economic sanctions, and assist with
refugees. 

USAID provides humanitarian assistance through U.N.  and private
organizations and directly to individual countries in the form of
food, medical care, and other humanitarian and economic recovery
assistance.  Agencies like USAID and the Department of Agriculture
participate in these operations based on humanitarian needs.  Their
programs are often conducted in concert with peace operations.  In
Haiti, USAID supports an expanded feeding program and extended health
services implemented through private voluntary organizations.  It
also supports efforts to help small farmers.  In fiscal year 1995, it
is sponsoring programs in 21 countries.  However, not every effort is
undertaken to support U.S.  or U.N.-led peace operations.  We
excluded the costs of those programs unrelated to ongoing peace
operations.  For example, the United States has supported U.N. 
peacekeeping forces in Israel since 1948.  However, we did not
include a $1.2 billion USAID program to provide economic support to
Israel because the

Other Civilian Agencies Involved in Peace Operations

Other federal agencies play a more limited role in support of peace
operations.  The Department of Agriculture donates agricultural
commodities to countries as part of the Food for Progress Program. 
Agriculture also provides concessional loans for the purchase of U.S. 
agricultural commodities as part of the Food for Peace Program. 
Although these commodities provide humanitarian relief, program
participation is based on market development potential and food need
rather than involvement in peace operations. 

The Department of Justice expects to incur expenses associated with
peace operations in Haiti, Bosnia, Somalia, and Cuba.  For example,
the Community Relations Service, an organization of the Department of
Justice, has cooperative agreements with domestic voluntary agencies
to assist Cuban and Haitian migrants.  The Department of Commerce
expects to broaden commercial programs and support for U.S. 
businesses in countries classified as peacekeeping areas, including
Haiti and Macedonia.  The Department of Health and Human Services
provides disease control services in some countries where peace
operations are ongoing. 

The Department of the Treasury and the Department of Transportation
also expect to incur expenses relating to peace operations.  For
example, the Coast Guard, an organization of the Department of
Transportation, is providing support to the Navy in the enforcement
of U.N.-U.S.  sanctions in Southwest Asia.  The Department of the
Treasury provides personnel to enforce sanctions supporting the U.S. 
policy regarding the former Yugoslavia. 


Briefing Section II COSTS AND
FUNDING FOR PEACE OPERATIONS
============================================================== Letter 

Estimated Costs for Peace Operations



   (See figure in printed
   edition.)

\a DOD operations include both activities in support of
U.N.-authorized peace operations, such as the one in former
Yugoslavia, and unilateral U.S.  military operations, such as the
operation in Cuba enforcing U.S.  migration policy. 

\b The Department of Health and Human Services plans to spend

The total estimated fiscal year 1995 cost of U.S.  participation in
peace operations is about $3.7 billion.  DOD has the largest portion
of this amount, with $1.8 billion in estimated incremental costs, or
about 49 percent of the total estimated cost.  DOD's estimated
incremental costs include (1) special payments for imminent danger
pay, family separation allowance, and foreign duty pay for troops
deployed to certain peace operations; (2) operation and maintenance
expenses in support of deployed forces; (3) the procurement of items
such as forklifts and fire support vehicles; and (4) limited military
construction at Guantanamo Bay, Cuba. 

In addition to DOD's estimated 1995 incremental costs of $1.8
billion, DOD estimates that it will pay $274.4 million in costs
related to fiscal year 1994 peace operations.  These costs include
$126.3 million to liquidate Feed and Forage Act obligations\1 and
$148.1 million to replenish stock items used in 1994 in support of
peace operations.\2 Also, DOD's estimated incremental cost for fiscal
year 1995 does not include $461.6 million for Operation Vigilant
Warrior, the U.S.  response to threatening Iraqi troop movements near
Kuwait's border.  We have not characterized this operation as a peace
operation. 

The State Department has the second largest estimated cost for peace
operations, about $1.2 billion, or about 32 percent of the total
estimated U.S.  costs.  The bulk of the State Department's cost is
the estimated U.S.  share of special U.N.  peacekeeping assessments
($992.1 million), which is discussed in depth later in this report. 
State also incurs costs for additional voluntary peacekeeping
contributions and for refugee programs. 

The other U.S.  agencies and departments that participate in peace
operations had a combined estimated cost of $655.5 million, or 18
percent of the total.\3 USAID has the largest share of this

DOD's Estimated Incremental Costs for Peace Operations



   (See figure in printed
   edition.)

\a As mentioned previously, DOD's operations include both activities
in support of U.N.-authorized peace operations, such as the one in
former Yugoslavia, and unilateral U.S.  military operations, such as
operations in Cuba enforcing the U.S. 

Most of DOD's estimated incremental costs are for operations in four
areas--Southwest Asia, Haiti, Cuba, and Bosnia.  These costs total
about $1.7 billion, or 94 percent of DOD's total estimated
incremental costs.  Within Southwest Asia, DOD is participating in
operations to (1) enforce U.N.  sanctions against Iraq, (2) enforce
the no-fly zone over both northern and southern Iraq, and (3) provide
humanitarian relief to the population of northern Iraq. 

Among the military services, the Army and the Air Force have the
largest share of estimated incremental costs--$562.8 million and
$764.5 million, respectively.  Most of the Army's costs are for the
operation in Haiti.  Most of the Air Force's costs are for the
operations in Southwest Asia and Bosnia.  The Navy has estimated
costs of $437.3 million, most of which are for the operation
involving Cuba.  The combined estimated cost of other defense
agencies, including the U.S.  Special Operations Command, the Defense
Health Program, and the Defense Intelligence Agency, is $56.1
million, which is spread among several operations. 

DOD's fiscal year 1995 incremental costs could be more than the
estimated $1.8 billion because of new or expanded operations.  This
was the case in fiscal year 1994.  For example, in February 1994, DOD
requested a supplemental appropriation of $1.2 billion to cover
anticipated incremental costs, primarily for operations in Somalia,
Bosnia, Iraq, and Haiti.  In July 1994, DOD requested another
supplemental appropriation, which when approved totaled $299.3
million, to cover costs for the new operations in Cuba and Rwanda. 
DOD ended fiscal year 1994 with final incremental costs of $1.9
billion, or about $410 million more than its supplemental

Estimated State Department Costs for Peace Operations

As previously discussed, the State Department has estimated costs of
$1.2 billion for peace operations.  The bulk of these costs, $992.1
million, is the estimated U.S.  share of special U.N.  peacekeeping
assessments.  An additional $9.9 million is the estimated cost of
supporting U.N.  peacekeeping operations in Israel and
India/Pakistan.  The United States pays for this cost through its
regular payment to the U.N.  budget. 

In its fiscal year 1995 appropriation, State received $533.3 million
to pay assessed expenses of international peacekeeping activities. 
The appropriation act permitted State to use some of this
appropriation to pay arrearages accumulated in fiscal year 1994 and
earlier periods.  As of January 1995, State had paid $213.2 million
for these arrearages.  The remaining $320.1 million of its fiscal
year 1995 appropriation was available to pay 1995 U.N.  peacekeeping
assessments.  Based on its estimated share of special U.N. 
peacekeeping assessments, which as of March 1995 was expected to
total $992.1 million, State would have unfunded assessments of $672
million.\4 Legislation under congressional consideration would apply
some of DOD's peace operation costs as credit toward U.N. 
assessments, although the United Nations would still assess the
United States for 31.2 percent of the expenses of international
peacekeeping. 

Of the remaining $193.2 million in estimated fiscal year 1995 costs,
the majority ($119 million) is for refugee programs in the former
Yugoslavia, Mozambique, and Rwanda.  The balance of State's estimated
costs are for additional voluntary peacekeeping contributions, which
are paid from State's other appropriated

Factors That Could Affect U.N.  Peacekeeping Assessments

U.N.  estimates of peacekeeping costs totaled $3.2 billion for the 15
missions that were financed through special U.N.  peacekeeping
assessments and continued into 1995.  According to U.N.  officials,
it is difficult to predict the costs of peace operations because
events can change the nature of the mission and its costs.  This
estimate reflected the closure of three peacekeeping missions in
early 1995; changes in the missions in Angola, Rwanda, and Western
Sahara; and the maintenance of the other missions at their 1994 level
throughout 1995.  Regarding the closure of peacekeeping missions, the
missions in Somalia and Mozambique closed in the first quarter of
1995 and the mission in El Salvador will end on April 30, 1995. 

The expansion of existing missions or approval of new missions could
increase U.N.  peacekeeping costs and hence the U.S.  share of those
costs.  The peace operation with the greatest uncertainty,
complexity, and cost is the U.N.  Protection Force in the former
Yugoslavia, which includes Bosnia and Croatia.  The United Nations
estimated that maintaining the mission at its current level will cost
$1.7 billion in 1995; this amount is included in its total
peacekeeping estimate of $3.2 billion.  On March 31, 1995, the United
Nations restructured this mission under three separate mandates. 
Cost estimates for the missions under the separate mandates have not
yet been developed. 

In early February 1995, U.N.  mission planners projected that several
missions could undergo changes or expansions.  For example, the
mission in Lebanon could be reduced, while the missions in Angola,
Haiti, Western Sahara, and Rwanda could expand.  In addition, U.N. 
mission planners believe that Burundi, which is considered a "hot
spot," could be the site of a new mission.  The U.N.  cost estimate
reflects the expanded missions in Angola, Haiti, and Rwanda and a
partial expansion in Western Sahara.  No estimate is yet available
for the cost of a mission in Burundi. 

Briefing Section III

--------------------
\1 DOD invoked its Feed and Forage Act authority in fiscal year 1994,
under 41 U.S.C.  section 11, to incur obligations in advance of
appropriations for expenses associated with Haiti. 

\2 Regarding the replenishment of stocks, we previously reported that
DOD's inventory management is 1 of 18 areas that are at "high risk"
for fraud, waste, abuse, and mismanagement.  We believe that
substantial savings could be realized by reducing DOD's inventory of
spare and repair parts, medical supplies, and other support items. 

\3 We did not include costs that are reimbursed by DOD or the State
Department.  In addition, it should be noted that the proportion of
estimated U.S.  costs for DOD, the State Department, and other
agencies and departments do not add due to rounding. 

\4 The $9.9 million in peacekeeping payments financed through the
regular U.N.  budget is fully funded. 


HOW DOD'S BUDGET SUPPORTS PEACE
OPERATIONS
============================================================== Letter 

DOD's Budget and Peace Operations

DOD does not budget for the cost of military operations or
contingencies, including peace operations.  It budgets to be ready to
conduct such operations.  The Congress provides DOD with annual
appropriations, which enables it to be ready to conduct operations
the National Command Authority directs.  During fiscal years 1985-94,
the Congress provided DOD with $2.8 trillion for military programs. 

The Congressional Research Service has reported that many analysts
find it useful to divide defense programs into "investment" and
"support" categories as a means of determining how much funding is
devoted to the procurement of defense capital goods, such as weapons
and facilities, and how much goes for programs to operate and
maintain defense forces and equipment.  Funding for each of these
categories contributes to military capability in different ways. 

Investment funding builds a stock of equipment and facilities that
lasts for many years.  The investment category encompasses the
procurement; research, development, test, and evaluation; and
military construction appropriation titles. 

Support funding provides the manpower and other resources to operate
and maintain the equipment.  The effect of support funding on
military capability is more temporary because training and
maintenance must be done regularly to maintain armed forces at the
required level of effectiveness.  The support category encompasses
the military personnel, operation and maintenance,

How Investment Funding Supports Peace Operations

Investment funding provides military personnel with the equipment
they use in peace operations.  The procurement title provides DOD
with the funds to buy the weapons and other hardware needed for peace
operations.  U.S.  military personnel have used a wide array of
weapons and equipment in peace operations.  Both the Army and the
Marine Corps have used helicopters, tanks, armed personnel carriers,
trucks, and other vehicles.  The Air Force has used a wide array of
aircraft, including the E-3 Airborne Warning and Control System for
surveillance and command and control, F-15Es for enforcement of
no-fly zones, and C-130s for transportation and airdrops of
humanitarian aid.  The Navy has used a wide array of ships and
aircraft, including carrier battle groups and other major ships, in
the enforcement of no-fly zones and sanctions. 

The research, development, testing, and evaluation title provides DOD
with funds to maintain state-of-the-art technology for its weapon
systems, ships and aircraft, communication and intelligence equipment
and systems, vehicles, and facilities.  While it takes many years to
develop new weapons, many of the aircraft, tanks, and other equipment
cited above were developed with funding from this title.  Recent
efforts to develop less-lethal equipment for use in peace operations
is also being funded from this title. 

The military construction title provides funds for the construction
of facilities related to all aspects of the lives of military
personnel--living, working, training, and recreation.  This title
also provides troops with facilities while they are involved in peace
operations. 

DOD does not for the most part depreciate its equipment, nor does it
have a system of applying costs for research and development or any
other investment item to any specific operation.  Therefore, it would
be extremely difficult to estimate with any reasonable assurance what
portion of the cost of investment items

How Support Funds Facilitate Peace Operations

Support funding pays military personnel and provides them with the
capability to operate and maintain the equipment and facilities
needed to participate in peace operations.  The military personnel
title funds the base pay and allowances of military personnel. 
Whether at their home station in the United States or abroad or
deployed from their home station, military personnel draw the same
base pay.  When deployed to peace operations, they sometimes become
eligible for special pay, such as imminent danger pay, which is part
of the incremental costs of these operations. 

The operation and maintenance title provides the funds to maintain
normal operations, including training military troops to accomplish
their missions.  This training provides the military personnel that
deploy to peace operations with the skills necessary to execute their
part of the operations.  Among other things, such as sustaining
military personnel at their home stations, this title provides the
funds to maintain weapons and other equipment so that they are ready
to be used in peace operations. 

The family housing title provides DOD funds to, among other things,
operate, maintain, improve, and replace military family housing. 
This title supports the involvement of DOD's troops in peace
operations by providing housing for their families and dependents. 

Except for base military pay, which can be estimated with some
precision, many assumptions would have to be made in order to
allocate support costs to peace operations.  For example, while it
might be possible to allocate a portion of DOD's military training
costs to peace operations--using a combination of DOD's total
training costs compared to that portion of its personnel that were
involved in peace operations--DOD does not have a system to
accumulate and distribute such costs.  Other parts of the support
costs, such as the maintenance of facilities, would be even more
difficult to approximate. 


U.N.  PEACEKEEPING ASSESSMENTS
=========================================================== Appendix I

Estimated U.S.  Share of Special U.N.  Peacekeeping Assessments



   (See figure in printed
   edition.)

\a The United States will contribute an additional $9.9 million for
two peacekeeping operations--Israel and India/Pakistan--that are
financed through the regular U.N.  budget. 


MAJOR CONTRIBUTORS TO THIS REPORT
========================================================== Appendix II

NATIONAL SECURITY AND
INTERNATIONAL AFFAIRS DIVISION,
WASHINGTON, D.C. 

Steven H.  Sternlieb, Assistant Director
Frances W.  Scott, Evaluator
Lisa M.  Quinn, Evaluator

NORFOLK FIELD OFFICE

Lindsay B.  Harwood, Evaluator-in-Charge
Carleen C.  Bennett, Evaluator
J.  Larry Peacock, Evaluator

NEW YORK FIELD OFFICE

Gerda M.  Lloyd, Site Senior

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