Cato Institute
Policy Analysis
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Over the past four
separate the appropriate regulatory aspects
part of the secretary's job description and an
of the FMS program (for example, making
important item on the agenda of many of the
years, Congress
sure U.S. sophisticated weapons are not sold
department's foreign trade missions. The
has added a cool
to outlaw states) from the promotional, pro-
department's Office of Strategic Industries
$30 billion to
sales activities that have been encouraged in
includes a "defense advocacy" function that
part because DSCA's entire budget is depen-
promotes arms exports both within the U.S.
the Pentagon
dent on posting a relatively high volume of
government and with potential foreign buy-
budget--mostly
FMS sales every year.40
ers. The office has also published a series of
for big-ticket
The State Department, which is supposed
"defense market assessments," which give
to be the lead policymaking body in the fed-
U.S. firms detailed data on the state of the
weapons systems
eral government on arms sales, has a split
arms market in key regions such as Europe,
built in the dis-
personality concerning military exports. The
Asia, and Latin America. The assessments
department's bureaus on human rights and
also provide step-by-step instructions on how
tricts or states of
arms control are often voices for restraint on
to do business in those regions. The follow-
congressional
sales of particular dangerous technologies or
ing excerpt from the department's descrip-
leaders.
on exports to particularly repressive regimes.
tion of "How to Do Business in Indonesia"
But the department's Office of Defense
gives a flavor of the agency's attitude toward
Trade Controls, which oversees the licensing
foreign arms sales:
of commercial export of items on the U.S.
munitions list, was "retooled" during the
Sales to the Indonesian military
Bush administration to be more "transparent
require the use of a local agent. . . .
and user-friendly." The new openness re-
Companies will need to identify an
dounds to the benefit of U.S. arms-exporting
appropriate military products man-
firms--not to the average taxpayer, who may
ager, often a retired military official.
have concerns about the kinds of regimes
. . . The local representative or agent
that are getting U.S. military technology.
can set up appointments with pro-
Ever since the Bush administration, State
jects officers, and market, promote,
Department personnel at overseas embassies
and demonstrate defense products on
have been graded for promotion in part on
behalf of the manufacturer. Selecting
how helpful they are to U.S. defense firms.
the right agent is a critically impor-
Furthermore, the department coordinates
tant step for your company, and assis-
the Defense Trade Advisory Group--a panel
tance with preliminary selection can
made up almost exclusively of executives
be provided by the USF&CS [the
from weapons-exporting companies--which
Commerce Department's U.S. For-
eign and Commercial Service].42
has had great influence in recent years on
such issues as lifting the ban on sales of
advanced U.S. combat aircraft to Latin
Given recent revelations about the levels of
America (just one of many matters on which
cronyism and corruption in Indonesia prior to
the Clinton administration took the Defense
the downfall of the Suharto regime in 1997, the
Trade Advisory Group's advice). A conserva-
matter-of-fact tone of the Commerce Depart-
tive estimate of State Department resources
ment's advice on finding former Indonesian mil-
devoted to arms export promotion is $3.7
itary officers to help U.S. weapons exporters mar-
million and 75 personnel.41
ket their wares in Jakarta is stunning. The
Commerce Department's dismissive attitude
The Commerce Department also plays a
toward human rights in Indonesia is equally trou-
significant role in pitching U.S. defense
bling:
equipment to foreign buyers. Since the late
Ron Brown took over as secretary of com-
Instances of human rights abuses
merce in the first Clinton term, promoting
have given rise to concern in the U.S.
sales of U.S. defense equipment has become
14