NATO Expansion: Hidden Costs   


NATO is throwing a party and inviting new nations as guests - even though
nobody has figured out how much it will cost or who will pay. 

As the Senate prepares to open the second session of the 105th Congress next
Monday, some are rushing to ratify the inclusion of Poland, Czech Republic,
and Hungary into NATO before basic cost questions are answered.  This could
leave U.S. taxpayers on the hook for unknown billions -- even though
expansion may be unnecessary and dangerous.

The Clinton Administration, NATO allies, and the potential new members
continue to tap dance around the cost minefield. Total cost estimates,
depending on military strategy and risk, range from the RAND Corporation
estimate of $14 to $110 billion to the U.S. Congressional Budget Office's
figures of $61 to $125 billion.  The Administration presents a rosier
estimate of around $30 billion.

Dividing up this unknown total is an even greater cause for worry.  The
Administration expects current and potential new members to cover 85 percent
of the costs.  Others expect the U.S. to pay.  According to French President
Jacques Chirac, "France does not intend to raise its contribution to NATO
because of the cost of enlargement."  New members, hardly economic
powerhouses, would be expected to increase military spending by 60 percent
under the Administration's plan.  According to former U.S. Ambassador to
Russia Jack Matlock, " We're going to have a dilemma that we either
encourage them [new NATO members] to divert resources they don't have or we
end up fooling the American people about what it's going to cost them." 

Many defense experts argue that expanding NATO would put the U.S. at
additional risk.  Russia views NATO expansion as a direct threat -
especially because second-round enlargement plans include neighbors such as
Latvia, Lithuania, and Estonia and a NATO presence in the Black and Baltic
Seas.  Despite claims that Russia will quietly accept expansion, Deputy
Chairman of the Russian Parliament's Defense Committee makes no bones about
it, stating, "we will be rivals."

For more information contact Cena Swisher at cena@taxayer.net or (202)
546-8500 x108.


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     THE WASTE BASKET                  January 21, 1997

     A Weekly Bulletin on Wasteful Government Spending
     from Taxpayers for Common Sense
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