This is a very wide distribution and a very wholesome one, I think, from the standpoint of our economy.

Now listen to this. The total estimated cost of the 109 fleet naval vessels being built or awarded or assigned but not yet under construction, or authorized but not yet awarded or assigned, is about $5,482 million. The total estimated cost of the 335 boats and craft is about $21 million, making a total estimated cost of about $5,503 million for all naval vessels, boats and landing craft in the current building program.

That is the building program, $5,503 million, plus what is in this bill here.

All of the money necessary for the program now going on has been appropriated.

Sixteen conversions of existing vessels are now in the current program. The total estimated cost of these conversions is about $841 million. Thus the combined total cost of the Navy's current construction and conversion programs, including vessels and craft authorized but not yet awarded or assigned, is estimated at about $6,344 million. Now, I want that in the record at this point.

Now, in this connection I think it is highly important that our attention be called to the fact that under the law after a board of officers of the Navy makes its survey of ships, that the Navy has the authority to declare that ship no longer of need to the service and order it to be scrapped. But they are laying before the committee the program and decisions of the Board to see if there is any objection from the

committee.

I want to make a report on that.

Under existing law, the Secretary of the Navy designates a Board of Naval Officers to examine naval vessels. These vessels are examined about once every 3 years.

When the Board finds a vessel unfit for service, it submits a written report to the Secretary stating fully the reasons for its opinion. If the Secretary concurs, he strikes the name of that vessel from the Naval Vessel Registry.

There are today some 43 vessels which the Board has found to be unfit for further service and the Navy desires to dispose of these ships under existing law.

I felt that it would be well if the committee got some information with respect to the ships to be disposed of and we will receive some information about that at this time.

I might say that the ships involved are battleships, cruisers, and small aircraft carriers. I am advised that the battleships all are at least 35 years old and that it would be economically infeasible to modernize them or use them for any other purpose.

Eight of the cruisers are at least 25 years of age with the remainder having been completed either before or during the early years of World War II.

The carriers were originally escort aircraft carriers. Some of them were converted from merchant tankers in 1942. Others were constructed on an emergency basis.

Now, Admiral, who is in charge of this?

Mr. KELLEHER. Admiral Knoll is here, sir.

The CHAIRMAN. Admiral, will you please take the witness stand? Admiral KNOLL. I am Denys W. Knoll, Director of Fleet Development and Maintenance Division.

The CHAIRMAN. Now the Navy desires as a result of this board to strike all these vessels from the register, to scrap them; is that correct? Admiral KNOLL. That is correct, sir.

The CHAIRMAN. How much does it cost to maintain these ships now annually?

Admiral KNOLL. It is difficult to break it down in detail, but for the 43 ships we made a computation. It amounts to about $2,795,000, which does not include the value of the real estate being used. The CHAIRMAN. All right.

Admiral KNOLL. The military personnel being used to take care of them.

The CHAIRMAN. Then the maintenance cost is around $2 million? Admiral KNOLL. That is correct, sir.

The CHAIRMAN. Annually.

Mr. VAN ZANDT. Of all the ships?

Admiral KNOLL. The 43 ships we are talking about, sir.

The CHAIRMAN. Now, how much salvage do you estimate you will get for these ships?

Admiral KNOLL. Our present estimate based on recent experience in disposing of smaller ships-the estimate is about $27 million on the present market, sir.

The CHAIRMAN. Then, it is costing about $2 million today and you will get about $26 million.

Admiral KNOLL. 26, 27 million dollars.

Mr. KELLEHER. 27 million.

The CHAIRMAN. $26 million.

Now I hate to see all these old ships struck from the list, but they have passed their day. I see nothing for you to do of course, there is nothing for the committee to do. You have the authority to do it yourself.

But there is some history tied up in all of these ships. If they are no longer needed in the Navy, why we have to be progressive and we have to let them go, I reckon.

Mr. KILDAY. That is the Macon?

The CHAIRMAN. No, that is Augusta, Ga. I recall it. [Laughter.] Now, that is for the record.

Now it is up to you. You don't have to get a clearance from the committee. The committee wants to keep posted with everything. So if there is no objection from the members of the committee, why we won't have anything further to say about it.

Mr. RIVERS. Mr. Chairman, may I ask a question?

The CHAIRMAN. Now wait one minute.

Mr. RIVERS. May I say something on that? I think the Navy is to be commended in the manner in which they have kept the chairman of this committee so closely advised.

The CHAIRMAN. Now, Mr. Rivers, as chairman of the subcommittee, have you anything to report?

Thank you, Admiral.

Mr. RIVERS. Yes, sir, we have two bills.

The CHAIRMAN. All right.

Mr. RIVERS. We considered three. One was tabled and a motion to reconsider was laid on the table.

The CHAIRMAN. We will be through now in a few minutes. We have to have this bill reported.

Mr. RIVERS. The other was favorably reported.

The first of these bills, Mr. Chairman, is H.R. 3368 to extend the special enlistment programs provided by section 262 of the Armed Forces Reserve Act of 1952, as amended.

The purpose of this proposed legislation is to extend until August 1, 1963, the special Reserve component enlistment program provided by section 262, Armed Forces Reserve Act of 1952, as added by section 2(1), Reserve Forces Act of 1955. It is this authority upon which the Department of Defense has established its 6 months' trainee program. Under present law the authority for this program, among other things, will expire on August 1, 1959. The Department of Defense has indicated that extension of this authority is considered essential to the maintenance of the strengths and mobilization readiness of the Reserve components.

As this committee well knows, in 1955 the Congress, in response to a Presidential request, amended the Armed Forces Reserve Act of 1952 to provide the President with the authority to establish Reserve component enlistment programs for young men between the ages of 17 and 1812 and for persons who have critical skills and are engaged

in civilian occupations in any critical defense-supporting activity or in any research activity affecting national defense.

The quantitative and qualitative achievements experienced by the Reserve components under these special enlistment programs are indicative of the significant progress made in the last 3 years. Since implementation on August 9, 1955, nearly 100,000 physically fit and qualified young men have taken opportunity of the advantages offered by these programs to fulfill their military obligations to this country. Qualitatively, the influx of these basically trained young men has contributed significantly to the present degree of readiness, training, stability, and efficiency of the Reserve components.

During hearings on the proposed legislation, witnesses unequivocally supported extension of the existing law and a continuation of the 6 months' training program.

The Department of Defense has advised that the Bureau of the Budget has approved this legislative proposal and its enactment will result in no increase in the budgetary requirements of the Department of Defense.

Mr. Chairman, I therefore move for favorable consideration of H.R. 3368.

This is sometimes known as the Six Months' Training Act, and it runs concurrently with the extension of the Draft Act.

The CHAIRMAN. Except 1 month longer.

Mr. RIVERS. One month longer.

The CHAIRMAN. Applies to the boys who enlist between 171⁄2 and 18 years of age.

Mr. RIVERS. Yes, sir.

The CHAIRMAN. Without objection, the bill will be favorably reported. And Mr. Rivers will make the request for a rule on H.R. 3368.

Now what is your next bill?

Mr. RIVERS. H.R. 3365, to authorize the crediting of certain service for purpose of retired pay for non-Regular service, and for other purposes.

of

This proposed legislation has three major objectives: (1) it would authorize for purposes of retirement under title III of Public Law 810, 80th Congress, certain Reserve service which is presently not recognized for Reserve retirement purposes; (2) it would recognize certain service to be counted as commissioned service for purposes voluntary retirement from active duty; and (3) it would validate certain appointments made in the Army of the United States without component which were continued in effect without legal authority until April 1, 1953.

This bill is almost identical in substance to one which was reported by this committee during the last session of the 84th Congress as H.R. 2035. H.R. 2035 passed the House on July 16, 1956, but no further action was taken by the other body.

Specifically, this legislation will permit service, which heretofore through inadvertence had not been recognized under the provisions of law relating to title III retirement, for aviation cadets in the Navy between the period 1935 to 1942; for nurses and personenl serving in the Department of the Army as dietitians, physical therapists, or occupational therapists prior to 1947; and for National Guard per

sonnel who are denied credit for service of up to approximately 16 months because of an administrative delay in obtaining Federal recognition.

This legislation would also authorize Reserve nurses in the Armed Forces the right to consider for voluntary retirement from active duty the service performed by them in the Armed Forces before they were provided commissioned status under the provisions of the ArmyNavy Nurses Act of 1947. It should be pointed out that this service is presently allowed for nurses in the Regular Establishment.

Finally, the proposal would validate the appointment of officers appointed in the Army of the United States without component (officers appointed without specifically designating them as members of the U.S. Army Reserve or National Guard) under the joint resolution of September 22, 1941, but whose appointments lapsed as a consequence of the repeal of this authority on July 1, 1948. The Comptroller General has ruled that although the Army presumed the appointments of such officers to have remained in effect from 1948 to 1953 such appointments were, in fact, null and void.

The result of this decision is that the service performed by such individuals, whether in an active or inactive status during the period 1948 to 1953, cannot be recognized for any purpose. This proposal would correct this inequity.

The Department of Defense has advised that the increased costs for fiscal year 1960 will approximate $567,000. This cost will remain approximately the same for the following 5 years.

The Department of Defense has advised that the Bureau of the Budget has approved this legislative proposal and its enactment will result in no increase in the budgetary requirements of the Department. of Defense.

Mr. Chairman, I would like to emphasize once again that this bill is for practical purposes the same as H.R. 2035 of the 84th Congress which was approved by the committee and passed the House. I therefore urge your favorable action once again so as to eliminate existing inequities in the law affecting Reserve and National Guard personnel. The subcommittee also adopted four technical amendments to the bill. These amendments made no change in the scope of the original draft proposal as recommended by the Department of Defense but were in the nature of clarifying amendments.

Mr. Chairman, Subcommittee No. 3 by unanimous vote directed that H.R. 3365, as amended, be reported. I therefore move for favorable consideration of H.R. 3365, as amended.

The CHAIRMAN. Now I examined this bill most carefully. It relates to aviation cadets, nurses, dietitians, and therapists. It merely permits these people in these categories to claim certain time, presently creditable for other purposes, to also consider such service in connection with title III while they are in the 20-year Reserve retirement. Without objection, the bill H.R. 3365 will be favorably reported. Mr. Rivers will make application for a rule.

Mr. RIVERS. Mr. Chairman, we have

The CHAIRMAN. What is your next bill?
Mr. RIVERS. Wait now.

Mr. SMART. Four technical amendments.

Mr. RIVERS. We have four technical amendments.