In October 1989 the Department of Defense introduced its Corporate Information Management (CIM) initiative to reengineer its business practices and make better use of information technology. In May 1990, a Medical Functional Group was established within the Office of the Assistant Secretary of Defense for Health Affairs to institutionalize the CIM process within the Military Health Services System. This letter addresses our review of CIN's implementation in military health services--one of the eight functional areas selected for initial CIM implementation. At a time when health care costs are rising dramatically, CIM offers opportunities to reduce not only health care information technology expenses but, more important, the overall costs of providing care.

Contents: (1) U.S.-Israeli Relations and the Role of Foreign Aid; (2) U.S. Bilateral Military Aid to Israel: A 10-Year Military Aid Agreement; Foreign Military Financing; Ongoing U.S.-Israeli Defense Procurement Negotiations; (3) Defense Budget Appropriations for U.S.-Israeli Missile Defense Programs: Multi-Layered Missile Defense; High Altitude Missile Defense System; (4) Aid Restrictions and Possible Violations: Israeli Arms Sales to China; Israeli Settlements; (5) Other Ongoing Assistance and Cooperative Programs: Migration and Refugee Assistance; Loan Guarantees for Economic Recovery; American Schools and Hospitals Abroad Program; U.S.-Israeli Scientific and Business Cooperation; (6) Historical Background. Illustrations.