Chairman MCCLELLAN. Proceed. Mr. JOHNSON. The next case is the Challe case. A Belgian gun dealer named Andre Challe bought a large supply of small arms from the Foreign Excess Sales Office (FESO), then in Kaiserslautern. The weapons were undemilitarized. He promised the American authorities at Kaiserslautern that he would demilitarize the arms. He had no such intention. Our property disposal officials did not check to see what he was doing with the weapons. The Belgian police foiled Challe's plans to sell the weapons. But even then American efforts to settle the issue were inept. The Belgian Navy notified the U.S. Military Assistance Group (MAAG), Belgium-Luxembourg, Oct. 29, 1962, that it wished to return 321 submachine guns, 142 M-1 rifles, 24 signal pistols, 70 very pistols, and four shotguns. (Exhibit 60 is letter, National Defense Ministry (Belgium), No. ZGN 411/60691, dated Oct. 29, 1962, with attached list of MAP property.) (Exhibit 60a is letter, MAAG (Brussels), Ser. 16062, dated Nov. 16, 1962, with attached Report No. 9-62, dated Dec. 1, 1962.) There weapons had been given to the Belgians under the U.S. Military Assistance Program (MAP). They were in excellent condition, with an original acquisition value of $57,415.50. The U.S. Navy did not need the guns, and recommended they be disposed of through the property disposal channels of the U.S. Army/Europe. (Exhibit 61 is Naval Speed Letter, Ser. 75-63, dated July 11, 1963.) (Exhibit 61a is Naval Speed Letter No. S72, dated July 24, 1963.) (Exhibit 61b is letter, National Defense Ministry (Belgium), No. ZGN 411/58089, dated Aug. 16, 1963.) (Exhibit 61c is letter, MAAG (Brussels), Ser. 105, dated Sept. 17, 1963, with attached Report No. N-9-63-62937.) (Exhibit 61d is letter, MAAG (Brussels), Ser. 68-64, dated May 15, 1964, with first endorsement, dated July 7, 1964.) (Exhibit 61e is letter, Navy's Hqs. (Belgium), No. ZS4/Mat-1/ 56787, dated July 18, 1964, with attached list of MAP property.) (Exhibit 61f is voucher No. D-3319-65, dated Aug. 23, 1964, with attached Report No. N-9-63-6237.) Norman Gieseler, contracting officer at Kaiserslautern, issued an invitation for bid (IFB) on the weapons on November 8, 1964. The delay was attributed to screening and other administrative processes. On December 16, 1964, Gieseler awarded the contract to gun dealer Andre S. Challe, a Belgian national. Fifty U.S. dollars was Mr. Challe's winning bid. (Exhibit 62 is contract No. O.I. 5237, dated Dec. 16, 1964.) Chairman MCCLELLAN. All those weapons were $50? Mr. JOHNSON. Yes, sir. That was his bid. Chairman MCCLELLAN. Was he the successful bidder? Mr. JOHNSON. Yes, sir; he got the weapons. Chairman MCCLELLAN. Are these some of the pictures of them? Mr. JOHNSON. Those are the type weapons he purchased; yes, sir. Chairman MCCLELLAN. Let those be filed as exhibits and appropriately identified. (The photographs referred to were marked "Exhibit Nos. 94, 94A, 94B, and 94C" for reference and follow :) FIGURE 9.-Automatic rifle of the same type that was sold as surplus EXHIBIT No. 94B FIGURE 11.-.45 caliber Thompson submachine gun of the same type that was sold as surplus FIGURE 12.-Machine gun of the same type that was sold as surplus Mr. JOHNSON. (Exhibit 62a is letter, Mr. Gieseler to Mr. Challe, dated Dec. 16, 1964.) The weapons were at a Belgian military depot at Ostende. Demilitarization would be done by Mr. Challe. The conditions of demilitarization were specific. The submarine guns were to be thoroughly crushed or cut through by torch or power shear. Cutting was to preclude reweld. Essential and related parts were also to be cut through or crushed. Similar demilitarization requirements were called for on the rifles, the shotguns, and the pistols. Mr. Challe was to pay for the work, and the contract said that if demilitarization was not complete, the weapons would be returned to the United States. Challe had 45 days to do the work. On December 16, 1964, Gieseler wrote to Challe. The letter authorized him to take the weapons from the Belgian Navy (in their undemilitarized condition). Gieseler kept no serial number records for the weapons, and Challe performed no demilitarization work. Even if he had, there was no way to verify it. Without serial numbers there was no way to check the weapons he would have demilitarized against the arms he received. The question was academic. Mr. Challe did not demilitarize the arms, and Gieseler never bothered to try to find out if he did. |