Department of the Army Historical Summary: FY 1969


Military Assistance and Foreign Liaison

The Army's military assistance responsibility includes funding, training, logistic support, and production, while the foreign liaison function is concerned primarily with visits and accreditations.

Military Assistance

Military Assistance Program funds in fiscal year 1969 continued the rapid decline that began in 1966. The original request for fiscal year 1969 was for $420 million in new funds; this figure was ultimately reduced by the Congress to $375 million. The size of the final appropriation reflects the growing cost of the Vietnam War, the competition of domestic programs, and a certain amount of congressional opposition to the Military Assistance Program and other oversea commitments. The Army's goal is to replace grant aid with sales wherever possible, the obvious limitation being that those countries with the greatest need for assistance can least afford to pay for it.

Foreign Military Training

The foreign military training program for fiscal year 1969 exceeded $24 million for grant aid and service-funded training plus some $3.8 million for foreign military sales training. These funds supported approximately 9,100 training spaces in the United States, 8,250 spaces overseas, 66 orientation tours for senior military personnel, 35 mobile training teams, and 62 field training service personnel.

The Army training program for Vietnam continued to accelerate during fiscal year 1969, with over 951 Vietnamese receiving training in the United States. Of this number 253 were trained in engineer skills, 127 in communication techniques, and 162 in infantry-associated skills. To acquire managerial and technical proficiencies needed at home, 31 Vietnamese officers attended U.S. universities at both the graduate and undergraduate level with a view to obtaining degrees in public administration, engineering, and other career programs. In furtherance of the Republic of Vietnam Air Force improvement and modernization program, 95 Vietnamese Air Force students received rotary-wing pilot and mechanic training at U.S. Army schools. This number is expected to increase substantially during fiscal year 1970.


International Logistics

The materiel portion of the 1969 Army Military Assistance Program totaled $310 million and included varying degrees of support for 29 countries and international organizations. Grant aid recipients received $262 million in materiel, for which the Army was reimbursed, and $191 million without reimbursement during the fiscal year. Materiel delivered was predominantly from prior-year undelivered balances or from that readily available as excess to the Army's needs.

Aid to Thailand and Laos continued to require increased attention as a result of the conflict in Vietnam. Support for these countries had been transferred from the Military Assistance Program to military department appropriations in 1967, but planning, programing, and supply support remained essentially the same as under the Military Assistance Program. During fiscal year 1969, $68 million in materiel orders were received for Thailand and Laos, and deliveries of $72 million were made.

Continuous surveillance and close scrutiny have been applied to limit to the absolute minimum the gold flow resulting from the grant aid program. Foreign currencies instead of U.S. dollars were used wherever possible; offshore procurement was reduced; and oversea travel was curtailed.

To supplement the limited funds available, the Office of the Secretary of Defense, in conjunction with the Department of the Army and the other services, developed procedures whereby items not required by the military departments would be transferred to the Military Assistance Program at no cost. Although only partially implemented during fiscal year 1969, the results have been favorable. During the year, materiel valued at $134 million was transferred to military assistance recipients at no cost to their programs. A salient feature of this program is to encourage a country to accept materiel "as-is, where-is" and perform rehabilitation and pay shipping charges from its own finances. It is anticipated that, as these programs become fully operational, future year deliveries at no cost to the Military Assistance Program will be at a higher level than that achieved during fiscal year 1969.

During the year, posthostilities planning progressed to the point where a general over-all military assistance plan had been published. This subject is receiving increased attention, and emphasis is now being placed on developing detailed guidance necessary for a smooth transition to a posthostilities posture. The return of Laos and Thailand, as well as Vietnam, to Military Assistance Program funding is being studied.

The 5-year Spanish base rights agreement expired on September 26, 1968, and a new agreement was being negotiated as the year closed. The Army has actively participated in the negotiations concerning the proposed military assistance aspects of the base agreements.


As a result of various diplomatic difficulties in Peru, the U.S. military mission there was requested to leave the country. Despite the expulsion, military assistance grant aid shipments continued, and negotiations were under way to create a new complement of U.S. personnel to administer the program in Peru.

Due to increased North Korean aggression and infiltration, the supply of Army materiel for the prior and current year Korean military assistance program has been expedited, including a shipment of large numbers of individual weapons to arm the Republic of Korea Homeland Defense Reserve Forces.

Continued improvement in the economic conditions and industrial capability of some military assistance recipients has resulted in reductions in materiel support without materially affecting military posture. For example, the materiel program for the Republic of China in fiscal year 1969 is well below the levels provided just three or four years ago. Of considerable impact in this regard has been the availability of excess equipment in Southeast Asia. The Republic of China, through its U.S. military advisers, has been extremely active and effective in obtaining useful equipment from property disposal yards and other excess sources.

With regard to the foreign military sales program, fiscal year 1969 was the first year of operation under the Foreign Military Sales Act of 1968. The 1968 statute separated foreign military sales from the Foreign Assistance Act of 1961 and imposed several new restraints on the sales program. Under the provisions of the new law, the so-called revolving fund was abandoned; the Department of Defense was required to obtain from Congress each year such funds as are required to finance those foreign military credit sales for which no other credit is available. Congress also annulled the authority of the Department of Defense to guarantee Export-Import Bank credit to the less developed countries, and placed a ceiling on the foreign military sales credit program.

During the fiscal year, the Army sold materiel and services valued at $558 million to 57 countries and 4 international organizations under the foreign military sales program. Materiel thus sold ranged from the most sophisticated missile systems and Army aircraft to rifles, repair parts, and support equipment. Through accelerated management, 2,543 outstanding sales cases were balanced and closed out in supply records.

The Army's Logistical Orientation Tour Program brought nine groups of high-ranking military personnel from eight countries to the United States during the year. The purpose of these tours was to acquaint foreign personnel with new military systems and equipment of interest to them. Demonstrations of the TOW heavy antitank weapon and Hueycobra helicopter were conducted in Europe for members of the NATO community. One Chinook and one Cobra helicopter were made


available to U.S. industry for demonstrations at the 1969 Paris International Aviation and Space Salon.

The Army participated in 16 coproduction programs with six foreign nations and the North Atlantic Treaty Organization. Valued at $1.4 billion, these programs will result in an expenditure of approximately $506 million in the United States for goods and services. Countries involved are the Federal Republic of Germany, Italy, the Netherlands, Norway, Japan, and the Republic of China. Items being coproduced are the M-113 armored personnel carrier, M-60 tank, UH-1D helicopter, NIKE-HAWK missile, M-109 self-propelled howitzer, wheeled vehicles, M-72 light antitank weapon, and certain small arms.

In the co-operative logistics support area, the supply support arrangement is one of the major forms of support. Under the terms of such an arrangement, the participating country is provided continuing logistic support including secondary items and repair parts required for all mutually agreed-upon end items of U.S. origin or design. The participating country deposits with the Treasurer of the United States sufficient funds to reimburse the Army for the cost of materiel to be held for the country in the Army supply system plus appropriate service charges. At the end of fiscal year 1969, the supply support arrangement program was valued at $162.8 million and involved 17 foreign countries and 1 international organization. The Army is supporting a variety of items ranging from conventional weapons, vehicles, and communication equipment to the more sophisticated missile systems such as SERGEANT, PERSHING, and HAWK.

The supply support arrangement program is basically concerned with support in peacetime. Under the terms of an addendum to the arrangement with the Federal Republic of Germany, however, the United States has agreed to provide repair parts support to Germany during an emergency period or a conflict involving NATO, as mutually agreed. The extent of this support is limited to the assets funded by Germany in peacetime and established in the U.S. supply system.

Another form of co-operative logistic support is a contractual agreement between the Army and a foreign nation to provide maintenance for specified end items and their components. During fiscal year 1969, the Army provided maintenance support and related services valued at $2 million.

In October 1968, the Office of the Secretary of Defense amplified earlier policy concerning logistic support of equipment furnished under the international logistics program. In general, the Army is responsible for insuring that plans are developed for providing support for U.S. equipment in the hands of friendly foreign countries throughout the life cycle of equipment as determined by the country. A long-range program has been established for the orderly and continuous development of support plans.


Foreign Liaison

Each year many foreign dignitaries visit the United States as guests of the Secretary of Defense, the Secretary of the Army, the Chairman of the Joint Chiefs of Staff, and the Chief of Staff of the U.S. Army. The Army's Foreign Liaison Office conducts their tours, some for "very important persons" and others connected with the Military Assistance Program. In 1969 this office supervised 21 VIP tours and 85 Military Assistance Program tours involving 1,606 allied officers. In addition, the Foreign Liaison Office arranged some 10,500 visits by foreign nationals to various U.S. military installations and commercial facilities. Approximately 3,000 written requests for information were received from foreign military attaches and processed by the office during the year. The Foreign Liaison Office also handled requests for accreditation of foreign personnel as liaison officers, exchange officers, and special project officers to Army staff sections and other activities. At the close of fiscal year 1969, approximately 530 foreign officers had received accreditation.


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