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International Affairs: Reimbursement of Foreign Military Sales to Saudi Arabia

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Report Type Reports and Testimonies
Report Date Feb. 14, 1978
Report No. 105784
Subject
Summary:

A foreign military sale to Saudi Arabia consisted of 2,314 cargo trucks and 40 dump trucks costing a total of $28,445,162. According to the terms of the sale, transportation of these vehicles would be handled by the U.S. Army as a reimbursable service. Records indicate that the Army was billed more than $9 million for port handling and ocean transportation services while Saudi Arabia paid only about $3.5 million. The U.S. Army could lose about $5.5 million on transportation on this case. This case should be reviewed by the U.S. Army Tank Automotive and Readiness Command and necessary amendments issued to Saudi Arabia to recover the full transportation costs paid by the Army.

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