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SUMMARY
of

BURDENSHARING AMENDMENT

Section by Section

For the last several years Congressman Barney Frank has the lead the effort to require our wealthy European allies to increase the amounts they contribute towards the costs incurred by the United States Government for the stationing of U.S. troops in their countries. This increase in contribution, or burdensharing, has been the focus of an amendment that Congressman Frank has offered to the annual Defense Authorizations. In 1994 and 1995 this Burdensharing amendment passed in the House of Representatives with strong bipartisan support. Unfortunately, the Senate has yet to pass a similar amendment, and the final versions of the Defense Authorizations have included supportive but unenforceable Burdensharing language.

Update: On May 16, 1996, the House of Representatives gave final approval to an amendment sponsored by Representatives Barney Frank, Christopher Shays (R-CT), Richard Gephardt (D-MO), Fred Upton (R-MI), Ron Dellums (D-CA), Bill Martini (R-NJ), and Elizabeth Furse (D-OR) which will increase financial support from America's allies for the cost of the foreign U.S. military presence. The amendment is estimated to save $11.5 billion or more over the next six years and was overwhelmingly approved by a 353-62 margin.

The following is a summary of the amendment Congressman Frank has offered for the past two years.

FINDINGS

Chronicles the imbalance in the common defense burden which the U.S. has and continues to shoulder.. For example, as a percentage of Gross Domestic Product (GDP), the U.S. spends more than our NATO allies and more than our Asian allies on defense spending. While security interests need to be broadly defined to include other spending besides military expenditures, the U.S. also contributed more to foreign aid than any other country in the world from 1990-93. The findings also detail the success of previous Congressional burdensharing efforts with regards to Japan.

PROPOSAL

Assigns four areas in which the President is required to seek greater contributions from countries where U.S. military forces are permanently stationed. These increases in contributions from allied countries can be made in one or more of the following four areas.

(1) Have host nations gradually increase their contributions over four years to 75% of the nonpersonnel costs incurred by U.S. military forces stationed on their soil.

(2) Have an allied country increase its defense spending as a percentage of GDP by 10% or at least to a level equal to that of the U.S. by September 30, 1997. For example, in 1993 Germany spent 1.9%of its GDP on defense. If the President chose to pressure Germany on this issue, Germany would need to increase its defense spending as a percentage of its GDP by 10% (1.9+.19 = 2.09%) or to a level equal to that of the U.S., which for that year was 4.7%.

(3) Have a foreign country increase its budgetary outlays for foreign assistance by 10% or to a level equal to that of the U.S. For example, from 1990-1993 the US spent $59 billion on foreign assistance, while the United Kingdom spent $12.6 billion. Under this option, the U.K. would need to increase its foreign aid spending by 10% (12. 6 + 1.26= $13.86 billion) or to a level commensurate with the U.S.

(4) Have countries increase contributions of military assets to multinational, UN or regional peace operations. This action would allow the U.S. to pressure allies to contribute more assets to peace keeping operations so that we would not forced to provide troops and supplies in disproportionate numbers for future missions. This lever will help prevent the U.S. from having to bear an unfair amount of the responsibility in future peacekeeping missions, such as the current operation in Bosnia.

In order to achieve the above goals, the amendment creates a menu of options for the President to use to spur countries to increase their contributions.

(1) Reduce troop levels stationed abroad;

(2) Impose taxes or fees similar to those that other nations impose on the US forces stationed in the foreign nation;

(3) Reduce through rescission, impoundments or line-item veto, the amount the U.S. contributes to the NATO Budget or other bilateral aid accounts;

(4) The President is also authorized to take any other action which is already authorized by law to achieve these goals.

Presidential reporting requirements.

(1) Requires the President to report on his success of achieving increased contributions and on alternative configurations for stationing U.S. troops abroad, taking in to account the sealift and airlift capabilities of the U.S. Armed Forces. The reports are to be submitted to Congress by March 1, 1997 in order to allow for a sufficient time for evaluation before the next Defense Authorization.

BACKGROUND

This amendment represents a collective effort by Representatives Christopher Shays and Barney Frank, the House Democratic Leadership and the House National Security Committee's Democratic leaders, and the Department of Defense and the Department of State to craft language which will help us tackle the burdensharing issue in a comprehensive and sophisticated manner. This year's amendment passed the House by a margin of 353-62. The amendment is a more refined version of the burdensharing language that was part of the Shays/Frank/Upton/Furse amendment offered to H.R. 1530, National Defense Authorization Bill, and passed with strong bipartisan support by a vote of 273 to 156 in May 1995.

TALKING POINTS

Currently, Japan pays for 79 percent ($4.6 billion) of the U.S. military's non- personnel costs incurred by stationing troops in Japan. Moreover, the United States and Japan signed a new Special Measures Agreement this year which will increase Japan's contribution toward the cost of stationing U.S. troops in Japan by approximately $30 million a year over the next five years.

In addition, Korea pays for 63 percent ($1.8 billion) of the U.S. military's non- personnel costs incurred by stationing U.S. troops in Korea.

Of the total $8 billion in non-personnel costs the United States military generates in Europe, the U.S. shoulders 76 percent or $6.3 billion of them. Collectively, European NATO nations only contribute $2 billion (24 percent) towards these non-personnel costs.

For 1993-4, the United States spent $1,153 per capita on military expenditures, while European NATO countries only spent $419. The United States' government also spent 20.1 percent of its budget on military expenditures in 1993-94, while European NATO countries only spent 6.2 percent.

1996 Potential Burdensharing Amendment Cost Savings

Annual Potential Savings in Millions of Dollars

From European Contributions Towards U.S. Military Non-Personnel Costs in European NATO Nations

Source: Congressional Budget Office, April 1996

1996 BURDENSHARING CONTRIBUTIONS

In-Direct vs. Direct Payments (in Millions of Dollars)

Japan pays DOD $3.8 billion in direct contributions for 45,938 American troops which totals $8,330 per soldier stationed in Japan.

European NATO nations pay DOD $46 million in direct contributions for 116,190 American troops which totals $396 per soldier stationed in European NATO nations.

Out of a total of 116,190 U.S. troops in Europe, the U.S. has stationed 106, 774 of them or 92 percent in Germany, Italy and the United Kingdom. Moreover, 70 percent of the U.S. troops stationed in NATO member nations are stationed Germany.

In 1995, the U.S. defense overseas funding for NATO member nations totalled $10 billion. Of that total, $6.6 billion or 66% was spent on Germany.

 

OVERSEAS TROOP LEVELS

COUNTRY	ARMY	NAVY	AIR FORCE	MARINES	TOTAL
Japan	1,979	6,907	15,331	21,181	45,398
Korea	27,486	282	8,960	68	36,796
EUROPE
Belgium	899	510	106	30	1,545
Denmark	1	19	12	8	40
France	4	19	12	8	40
Germany	63,773	16,988	306	127	81,204
Greece	17	178	238	59	492
Italy	2,644	4,012	5,047	158	11,861
Luxembourg	1	0	0	6	7
Netherlands	421	297	18	14	750
Norway	10	60	29	12	111
Portugal	12	17	58	9	96
Spain	6	218	2,326	122	2,672
Turkey	283	3,065	270	18	3,363
United Kingdom	159	11,440	1,924	186	13,709
Total Europe:	68,230	36,833	10,351	776	116,190

 

Miliatary Expenditures as

	% of Government Budget	$ Per Capita
European NATO Nations	6.2%	$419
United States	20.1%	$1153

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