The Impact of Balance of Payment Considerations upon Logistical Support of U.S. Armed Forces Europe 1960-1974

摘要

The purpose of this study is to reconstruct the impact of balance of payment considerations upon our logistical posture in Western Europe, 1960-1974, and to identify any changes that may be dictated to related Department of Defense policies and procedures. The findings of the study indicate that the redirection of procurements to stateside purchasing activities has substantially added to budgetary costs and has impaired supply responsiveness. Moreover, rapid growth within the commercial sector of the United States balance of payment account has appreciably reduced the significance of military overseas expenditures. These considerations have caused the author to hypothesize that the return of procurements to stateside purchasing activities is no longer justified if the domestic price exceeds the cost from foreign sources. Rather, procurements should be made where the dual requirements of cost effectiveness and supply responsiveness are best satisfied. The study analyzes data and information obtained from the Congressional Record, the Office of the Secretary of Defense (Comptroller), the Army and Air Force European Commands, as well as reports and studies of independent agencies. Research indicates that the impact of balance of payments considerations upon our European military forces occurred in three general phases. From 1960-1963, a series of 'quick-fix' actions were taken to achieve prompt and measurable reductions in overseas spending. The period 1964-1970 was characterized by procedural refinements and emphasis upon sharing the balance of payment burden with our European Allies. Since 1971, there has been an evolution of concepts for achieving more direct supply support from the United States.