Summary

Pursuant to a congressional request, GAO reviewed the extent and legality of the government's continuing military supply relationship with Guatemala.

GAO noted that: (1) the United States cut off U.S. arms sales to Guatemala between fiscal years (FY) 1978 and 1984 because the State Department cited the country for human rights violations; (2) any significant increases in military sales or assistance are linked to additional improvements in human rights; and (3) from 1978 through 1984, Guatemala obtained military and dual-use equipment through U.S. companies' commercial sales. GAO found that: (1) the State Department controls arms sales by requiring licenses for the export of munition items; (2) approvals for licensed munition items peaked in FY 1979 at 62 percent, but dropped to a low in FY 1982; (3) all exported items controlled by the Department of Commerce are contained in the Commodity Control List, which identifies items for export control for mutual security reasons; and (4) Commerce approved applications for exports to the Guatemalan military totalling $55 million and $61 million to nonmilitary government agencies from January 1978 to February 1985. GAO also found that: (1) there was an illegal transfer of 10 U.S. M-41 tanks from Belgium to Guatemala in 1982; (2) there was no record of a request to transfer any M-41 tanks to Guatemala; (3) no foreign military sales (FMS) or military assistance program financing had been approved for Guatemala from FY 1976 through 1985; and (4) a $10 million FMS credit request for 1986 has been appropriated, but the appropriation restricts the types of assistance and is subject to the election of a civilian government and progress in human rights conditions.