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Indigo How Military Sales Trust Funds Operate: Saudi Arabian And Iranian Funds Compared: Fgmsd-80-26 | Erin Mills Town Centre
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The Department of Defense (DOD) is requiring the military departments to estimate potential termination liability reserves for foreign military sales agreements. A report discussed the Saudi Arabian, Iranian, and other military sales trust funds and the need for a central clearinghouse controlling disbursements from military sales trust funds.
Although since 1970 DOD has normally required foreign customers to pay, in advance, an amount sufficient to cover, at all times, all costs and damages associated with a sales agreement including potential termination costs, the military services have not uniformly implemented that policy. Information gathered in 1979 will determine the amount of funds necessary to protect the financial interest of the United States should future cancellations occur. Until such funds are collected, the financial interests of the United States will not be fully protected.
The Department of Defense (DOD) is requiring the military departments to estimate potential termination liability reserves for foreign military sales agreements. A report discussed the Saudi Arabian, Iranian, and other military sales trust funds and the need for a central clearinghouse controlling disbursements from military sales trust funds.
Although since 1970 DOD has normally required foreign customers to pay, in advance, an amount sufficient to cover, at all times, all costs and damages associated with a sales agreement including potential termination costs, the military services have not uniformly implemented that policy. Information gathered in 1979 will determine the amount of funds necessary to protect the financial interest of the United States should future cancellations occur. Until such funds are collected, the financial interests of the United States will not be fully protected.
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