Defense Trade

Pursuant to a congressional request, GAO examined the the Department of Defense's (DOD) initiatives to change export and procurement policies and procedures that relate to the transfer or sale of defense articles and services that may have national security implications.

GAO noted that: (1) in 1999, DOD compiled a list of 81 initiatives designed to facilitate cross-border industrial relationships and address possible security risks; (2) at the time of this report, 43 of the initiatives are ongoing, 21 are completed, 17 have been terminated, placed on hold, duplicated other initiatives, or the status was uncertain; (3) 47 of the initiatives addressed disclosure of classified information, export controls, industrial base, and industrial security procedures and policies; (4) the remaining 34 initiatives focused on efforts to reinvent the Foreign Military Sales Program; (5) some of the initiatives were developed to improve the timeliness and effectiveness of internal business practices while others sought to change export and procurement policies; and (6) senior officials within the Office of the Secretary of Defense were responsible for developing the initiatives and invited high-level officials from the military departments and the Departments of State and Commerce to participate in their discussions.