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Highlights

GAO discussed the U.S. military drawdown in Europe, focusing on: (1) the status of the drawdown and changing requirements; (2) U.S. and host nation financial obligations related to base closures in Europe; and (3) efforts to dispose of excess equipment. GAO noted that: (1) negotiations with Germany concerning the residual value of U.S. real property investments are deadlocked and need high-level intervention; (2) the United States has made progress in terminating thousands of local national employees at bases scheduled for closing; (3) in December 1991, a new tariff agreement increased U.S. liabilities for severance payments but reduced litigation and expedited the termination process; (4) Congress has withheld $175 million in operating and maintenance obligation authority until the Department of Defense notifies Congress that European allies' contributions have offset the cost of U.S. forces in Europe; (5) congressional action has not resulted in any significant increase in allied contributions; and (6) a two-thirds reduction of forces in Europe will result in excess equipment being turned over to the disposal offices without appropriate screening for current requirements.

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