Effects of Reduced Funds for Transportation Overseas of Military Exchange Merchandise

LCD-79-224: Published: Aug 14, 1979. Publicly Released: Aug 14, 1979.

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In fiscal year 1979 the military exchanges received over $70 million in appropriated fund support to ship merchandise overseas. This was a reduction of $9 million from the services' original request.

Despite the cut in the budget request for funds to transport merchandise overseas for military exchange systems, none of the services plan to increase prices. If all appropriated funds are eliminated, the likely outcome would be an average price increase of 3 percent; reduced contributions to the services' moral, welfare, and recreation programs; and reduced funding of exchange facility construction projects. In addition, increased stock of foreign merchandise is probable if all appropriated funds are eliminated. Space available transporation is not a feasible option for making up losses in funding and is not a solution to prevent increases in transportation costs.

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