Troop Stationing in Germany : Value and Cost.

An analysis of the political and economic aspects of troop stationing in West Germany, as practiced by the United States, the United Kingdom, and France. Foreign troop stationing in the Federal Republic of Germany (FRG) has become an institution since the end of World War II, and its demise would jeopardize the interests of all participants. However, the financial problems of troop stationing have not been dealt with properly because they have been dealt with as problems of international exchanges rather than budgetary cost sharing problems. To neutralize or offset their balance of payments deficits and alleviate international monetary crises, the United States and the United Kingdom have drawn the FRG into various agreements to purchase arms or other imports, and more recently to extend bank credit through securities purchases. Since troop stationing was not the source of the monetary tensions after 1958 that rendered the payment deficits of these countries onerous, offset arrangements tied to troop stationing should not be expected to alleviate international monetary crises. Future troop stationing policy should depend decisively on the weight of the rationales in the countries' foreign policies. Budgetary factors should play a more important role. Balance of payments neutralization should play the least role. Future allied policy should include affirmation to West Germany that troop stationing is the long-term commitment it has become. West Germany should assume a larger portion of stationing costs, commensurate with its interest in maintaining allied force protection. 144 pp.