U.S.-Korea Coproduction:

A Review of the M-16 Rifle Program

NSIAD-88-117: Published: Apr 11, 1988. Publicly Released: May 6, 1988.

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Pursuant to a congressional request, GAO reviewed the Republic of Korea's compliance with its memorandum of understanding with the United States regarding M-16 rifle coproduction.

GAO found that Korea violated the understanding by: (1) producing M-16 rifles and rifle parts in excess of the authorized level; and (2) entering into M-16 sales agreements with third parties without prior U.S. government consent. GAO also found that: (1) a U.S. firm rescinded its commercial production and technical assistance agreement with Korea after Korea transferred ownership and operation of the plant to a Korean firm; (2) the U.S. firm and Korea are engaged in a legal dispute regarding patent rights and royalties; (3) the United States and Korea have not legally terminated the understanding; and (4) the U.S. government provided limited M-16 program monitoring and oversight.

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