the Maritime Administration was detailed to the Interagency Task Force (ITF) on the African Emergency to help identify transportation bottlenecks in the movement of food. This representation has helped the ITF focus on the serious

technical and logistical problems involved in the unloading and internal distribution of food.

In June 1985, DOT was represented by a rail specialist on the six-man ITF team visit to Sudan to appraise the operating condition of the Sudan rail system. The team's report included an analysis on the present status of the system regarding roadbed and track structure, locomotive and car maintenance, management of the rail system, and its capacity to transport target quotas of food aid. The team concluded that, while many problems existed, the line has the capacity to transport target quotas of food in addition to handling available commercial business. It cannot, however, accomplish this in a safe, efficient, and economical manner unless drainage problems are corrected.

Currently, DOT personnel are assisting in the development of a logistical program for present and future transport of food grain and exploring other ways and means to help the peoples of Africa cope with their transport deficiencies and begin to rebuild these vital systems.

Caribbean Basin Initiative (CBI)

Beginning in the winter of 1985, under the chairmanship of DOT, the CBI Transportation Working Group (TWG) was established to consider transport problems inhibiting Caribbean and Central American investment, trade, and development, identify solutions, and seek to effect change through interacting with the private sector. The action program covered the following activities:

- Individual task groups were formed to address specific problems. One task group has developed a survey form for gathering essential data on Caribbean ports, another is investigating ways to improve the distribution of CBI-related transport information throughout the region.

Ocean and air carriers and other entities who identify sources of unnecessary costs are encouraged to clearly specify these problems in writing, propose solutions, and indicate why it would be in the best interests of the parties involved to cooperate in making the necessary changes.

- The TWG, in cooperation with AID, has announced two investment initiatives in transportation which, if undertaken by the private sector, may be supported by AID. Both initiatives are related to transportation investments in the Eastern Caribbean and are intended to increase port efficiency, improve shipping service, and promote trade in the Caribbean.

- DOT personnel in the Office of the Secretary will complete the second phase of an AID-financed study on maritime transport problems in the Eastern Caribbean in the fall of 1985.

Technical Assistance

The FAA and the FHWA are heavily involved in providing technical assistance to 60 countries and organizations to upgrade and improve air and land transport systems and, in some cases, assist governments in developing transport organizations for the management and future expansion of transport systems.

The FAA has technical assistance agreements with 55 countries and/or organizations located in every region of the world. These agreements primarily concern areas of flight inspection, radar information, navigation systems, supply support, training and certification of air personnel, and the leasing or loaning of equipment. Most of the costs for the assistance, including salaries for management personnel, are covered under cost-reimbursable arrangements with foreign entities. These activities are carried out under the FAA Act, as amended, to improve aviation systems worldwide for national and international aviation safety purposes and to maintain U.S. leadership in the aviation field.

The FHWA has ongoing agreements with Chad, Liberia, Panama, Uruguay, Costa Rica, Yemen, Kuwait, and Saudi Arabia to advise in such areas as road rehabilitation, training needs, bridge maintenance, and the development of national transport management organizations. The largest of these programs is with Saudi Arabia as described below.

Saudi Arabia

DOT continued implementation of a multi-million dollar reimbursable technical assistance program of technical assistance to the Saudi Ministry of Communications (MOC) to establish and manage a modern transportation system. Activities cover areas of highway planning, design, construction, and maintenance, railroad operations and maintenance, transport regulations, technical and management training of MOC personnel. The program is carried out by senior-level support at DOT Headquarters, 18 full-time specialists located in Riyadh, and 37 short-term specialists.

During 1985, the activities with MOC were reorganized to combine programs under the HIGHWAY and the TRANSNET projects, now called the TRANSPORT project. The entire team is now responsible to one Project Manager in the Office of the Secretary which has enabled DOT officials to carry out the program in a more integrated and efficient manner. Under the new plan, approximately 50% of each team member's effort will be devoted to developing a close working relationship with his Saudi counterpart. These relationships are to be advisory in nature, addressing significant issues and providing a continuous technology transfer. The development of these relationships is vital if there are to be long-term institutional improvements.

Training of Foreign Nationals

While

Many elements of DOT, primarily USCG, FAA, FHWA, and MARAD, are engaged in programs for training foreign nationals in various institutions and academies in the United States. precise figures are not yet available, DOT estimates that approximately 832 students participated in short or long-term study programs in the United States during 1985. The U.S. Navy

provides the funds for the USCG training and technical assistance activities under the Security Assistance Program. Other DOT modal administration costs are covered under various arrangements with the sending foreign countries and/or international organizations.

One program of particular note involves the USCG work with the Departments of State and Defense to provide training in search and rescue (SAR) and other relevant maritime skills to naval officers of Thailand, Malaysia, and other Southeast Asian countries. At State's request, a team of two USCG officers visited these and other Far Eastern countries to assess the training requirements for personnel from these countries who are involved with the rescue of Vietnamese refugees at sea. Orientation visits to the United States of key government policy makers for SAR briefings and appropriate training for selected country personnel are being carried out.

International Visitors

During FY 85, DOT Headquarters staff received approximately 800 visitors who wished to discuss such topics as technical problems, research programs, funding for transport projects, deregulation and other policies, and transport systems planning. Requests for arranging visit programs come primarily from foreign embassies, USIA foreign visitor programs, and from contacts with DOT specialists in international organizations.

Budget and Resources

DOT does not have a special appropriation for carrying out international activities. A total budget figure for supporting these activities would defy estimation because of the varied missions of DOT entities and their interwoven advisory, operational, and regulatory responsibilities. Costs are (a) borne by the participating entities, (b) funded through arrangements with other government agencies or international organizations, and (c) through cost-reimbursable technical assistance agreements with foreign governments. The Department believes that the policy of having DOT operating administrations support non-reimbursable international cooperation activities from program funds assures that only activities producing technical benefits will be pursued.

DOT maintains small, full-time international staffs in the Office of the Secretary, the U.S. Coast Guard, the Federal Highway Administration, the Maritime Administration, and a somewhat larger contingent in the Federal Aviation Administration, whose members provide policy guidance and coordinate and monitor cooperative activities. Some staff members perform these functions in addition to their regular operational activities. For example, the Coast Guard finds it impossible to accurately identify discrete costs associated with international exchange activities as these are conducted in conjunction with, and in support of, its own domestic responsibilities for marine safety, search and rescue, aids to navigation, environmental protection, military readiness, enforcement of laws and treaties, and polar ice-breaking. funds the salaries, travel, and overhead expenses for two full-time professionals and one support staff person to conduct technical assistance studies on particular problems in developing countries. These professionals are assisted from time to time by other DOT staff members as, during 1984 and

AID

1985, on African and Caribbean Region activities. The Department's senior-level personnel and specialists in the Secretary's office and modal administrations conduct the important, substantive discussions with foreign counterparts on cooperation programs and policy issues. Man-hours (in terms of dollars) expended by these staff members on international exchange programs have been roughly estimated as they are not easily identifiable from related international work in areas of policy and trade and their primary program management responsibilities.

Considering the above realities, DOT estimates that in carrying out its international exchange activities during FY 85 it spent approximately $22,750,000 for salaries and travel expenses of Headquarters personnel and approximately $740,000 for participation in work of various international

organizations.

Chapter 13

Defense

International Cooperation for Technological Excellence

The security of the United States and other nations of the Free World is enhanced by combined efforts of international armaments cooperation and the exchange of military technology, when in our national interests, and the denial of militarily critical technology to potential adversaries.

Our Allies are continuing to make major advances in both basic and applied technologies. Our objective continues to be to infuse Allied technological advances into our own technological base and to persuade our Allies and other friendly nations to increase their own fielded conventional capabilities. Through sustained industry-to-industry and government-to-government cooperation in technology with our Allies, we improve the efficiency and effectiveness of our defense resources, further our progress in achieving interoperability, and strengthen the economic and political bases for Alliances. We continue also to seek to persuade them to cooperate more fully with us in slowing the flow of Free World technology to the East.

NATO Armaments Cooperation and Defense Trade

The 1986 Department of Defense Authorization Act provides specific authority to set aside $200M of funds authorized for the Services and the Defense Agencies for exclusive use by NATO cooperative programs in the research, development, production, and fielding of armaments systems. New projects to complement existing cooperative efforts are also planned and increased transatlantic defense industrial cooperation is moving forward on a number of fronts. The Services have taken actions focusing on increased interaction and cooperation with our NATO partners.

Department of Defense activities in NATO armaments cooperation are intended to achieve economies of scale afforded by coordinated research, development, production and logistic support programs. This can only be accomplished through U.S. and its Allies equitably sharing and protecting mutually developed technology to avoid unnecessary expenditure and duplication of effort. In establishing operational and design requirements for future major weapons systems, the United States consults with European counterparts. Cooperative joint research, development, production and acquisition programs are being thoroughly explored, particularly where: common operational and design requirements can be established; mission effectiveness would be maintained at an acceptable level; technology sharing, on a bilateral basis, would provide near equal benefits to cooperating nations; economies of scale and/or avoidance of duplicative costs are possible; and standardization and interoperability of NATO forces and equipment would be enhanced.

NATO Defense Research Group (DRG)

The Defense Research Group (DRG) is the highest level forum within NATO for the presentation and discussion of scientific and technical research needs of the Alliance. The U.S. Delegate is the Deputy Under Secretary of Defense for Research