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The national security issues surrounding U.S. arms sales policies and practices have been the subjects or our research tor the past ten years. In this study the authors' were determined to conduct a more focussed analysis of emerging policy issues tor security assistance; namely, the relationship between technology transfer and security assistance policies of the U.S. Government. This book assesses the development or indigenous arms production capabilities or recipients or U.S. security assistance. In particular we examine a seldom analyzed level of technology transfer: the transfer or less than state-of-the-art technologies and production capabilities to allies through routine security assistance decisions.