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Pentagon denies US wants 'cost + 50%' from allies for bases

AFP  |  Washington 

Acting denied Thursday reports that the has a "cost-plus-50 percent" formula for allies to pay for the US military presence on their soil.

Earlier this week, reported that is pushing the formula as a basis for Germany, and other allies to compensate for US troops based in their countries.

But told the that such reports were "erroneous." "We won't do cost-plus-50 percent," he said in a hearing.

He said US partners should pay their "fair share" when they can, but there was no such business-like formula.

"We're not going to run a business and we're not going to run a charity," said.

"Payment comes in lots of different forms. At the end of the day, people need to carry their fair share," he said.

"Not everyone can contribute. It is not about cost-plus-50 percent." Shanahan did not say whether Trump, who built a multibillion-dollar fortune in the business, himself has advocated the formula.

Since coming into office, Trump has warned US allies, especially in NATO and East Asia, to pay more for the US presence.

The has said that means NATO allies need to be spending two percent of their on defense.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 14 2019. 22:20 IST