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<classification authority="sudocs">GA 1.13:NSIAD-96-64</classification>
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 <subject>Department of Defense contractors</subject>
 <subject>Foreign corporations</subject>
 <subject>Proprietary data</subject>
 <subject>Classified records</subject>
 <subject>Computer security</subject>
 <subject>Information disclosure</subject>
 <subject>Technology transfer</subject>
 <subject>Conflict of interest</subject>
 <subject>International trusteeships</subject>
 <subject>Intelligence gathering operations</subject>
 <identifier>B-2 Aircraft</identifier>
 <identifier>F-22 Aircraft</identifier>
 <identifier>F-117 Aircraft</identifier>
 <identifier>DOD Industrial Security Program</identifier>
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 <identifier>Switzerland</identifier>
 <identifier>Sweden</identifier>
 <identifier>France</identifier>
 <identifier>Netherlands</identifier>
 <identifier>Germany</identifier>
 <identifier>Worldwide Military Command and Control System</identifier>
 <identifier>D-5 Missile</identifier>
 <identifier>DOD Special Access Acquisition Program</identifier>
 <identifier>FBI National Security Threat List Program</identifier>
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<titleInfo>
 <title>Defense Industrial Security: Weaknesses in U.S. Security Arrangements With Foreign-Owned Defense Contractors</title>
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<abstract>Pursuant to a congressional request, GAO reviewed security arrangements
used to protect sensitive information from foreign-owned U.S. defense
contractors that perform on classified Department of Defense (DOD)
contracts.&lt;p/&gt;GAO found that: (1) security arrangements are intended to protect
foreign-owned U.S. defense contractors from undue foreign control and to
prevent foreign owners&apos; access to classified information; (2) there are
54 foreign-owned U.S. defense contractors operating under security
arrangements, such as voting trusts, proxy agreements, and special
security agreements; (3) although such companies are not permitted
access to classified information due to the risk of foreign control, DOD
authorized access to 12 of 33 special security agreement companies; (4)
each foreign-owned U.S. defense contractor must have a visitation
agreement with its parent company to protect against foreign owners&apos;
unauthorized access to classified information; (5) individuals contacted
by the parent company are required to report on the technical
discussions that took place under visitation agreements; (6) U.S.
citizens are selected for the boards of directors of foreign-owned U.S.
defense firms to protect against undue foreign control and unauthorized
access to classified information; and (7) most trustees feel they have
limited oversight roles and do not actively check on the implementation
of security policies or engage in management issues, and some appear to
have conflicts of interest.</abstract>
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<note>Chapter Report</note>
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 <topic>Department of Defense contractors</topic>
 <topic>Foreign corporations</topic>
 <topic>Proprietary data</topic>
 <topic>Classified records</topic>
 <topic>Computer security</topic>
 <topic>Information disclosure</topic>
 <topic>Technology transfer</topic>
 <topic>Conflict of interest</topic>
 <topic>International trusteeships</topic>
 <topic>Intelligence gathering operations</topic>
 <topic>B-2 Aircraft</topic>
 <topic>F-22 Aircraft</topic>
 <topic>F-117 Aircraft</topic>
 <topic>DOD Industrial Security Program</topic>
 <topic>Advanced Technology Bomber</topic>
 <topic>United Kingdom</topic>
 <topic>Switzerland</topic>
 <topic>Sweden</topic>
 <topic>France</topic>
 <topic>Netherlands</topic>
 <topic>Germany</topic>
 <topic>Worldwide Military Command and Control System</topic>
 <topic>D-5 Missile</topic>
 <topic>DOD Special Access Acquisition Program</topic>
 <topic>FBI National Security Threat List Program</topic>
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