U.S. Assistance to the Khmer Republic (Cambodia)

Assistance to the Khmer Republic (Cambodia) began in 1970 with the goal of supporting the country's military and economic development. The U.S. provided $516 million in military assistance and $216 million in economic assistance to Cambodia during fiscal years 1970-73. The assistance programs were administered by the Agency for International Development (AID) and the Department of Defense (DOD), with the overall supervision of the Secretary of State. The U.S. assistance to Cambodia was aimed at supporting the country's military effort in Indochina. However, the review found that problems existed concerning compliance with congressional restrictions. Management deficiencies impaired the effectiveness and efficiency of U.S. assistance. The review also found that not all costs of U.S. activities in Cambodia were reported to the Congress, even though reports of U.S. expenditures were prepared in compliance with the legislation. The review identified several issues with the economic assistance program. The AID-financed commodities for public sector projects, such as floating bridges, without evaluating Cambodia's capability to use or maintain them effectively. The AID provided some road-building equipment that another country had also provided. The U.S. contributed its full share of the 1972 pledge to the Cambodian Exchange Support Fund, even though other countries failed to provide matching amounts as intended. The review also found issues with the military assistance program. Procedures for receipt, transfer, and maintenance of equipment after turnover to Cambodia were inadequate during 1971 and 1972. Management of the ammunition program was also deficient. By 1973, considerable improvements had been made, or were planned, in each of these areas, even so, equipment accountability still needed attention. The review made several recommendations to address the issues identified. The Secretaries of State and Defense were recommended to fully inform the Congress of the type and organizational level of advisory assistance provided to the Cambodian military. The Secretary of State was recommended to apply and report all costs against the dollar limit, including those funded outside the Foreign Assistance Act and Public Law 480. The Administrator of AID was recommended to reassess the need for economic assistance in the amounts requested, considering Cambodia's ability to absorb and effectively use that assistance. The review also recommended that the Secretary of Defense have the Military Equipment Delivery Team continue to encourage the Cambodian military to further improve its management of equipment and material supported by the military assistance program. The United States was recommended to continue to press the Cambodian Government to correct the phantom troop problem. As to the improper sales of equipment by Vietnamese troops to Cambodian troops, the Secretary of Defense was recommended to have the Military Equipment Delivery Team take action to identify all U.S. military equipment illicitly purchased and eliminate an equal number of end items.