program has progressed from component testing to complete system testing at the White Sands Missile Range, leading toward demonstration of the system's full capabilities at Kwajalein later this year. [Discussion off the record.] Tests will continue in 1963.

Current and future ZEUS firings will be discussed in some detail by General Trudeau, who will also provide details concerning other important research and development programs.

Army research efforts both basic and applied-will be further broadened and diversified in fiscal year 1963. Our national security depends as never before upon the imagination and boldness with which we apply new scientific discoveries to military uses. In our quest for the scientific knowledge prerequisite to superior weaponry and equipment, we are continuing vigorously to encourage the participation of all segments of the scientific community-educational, industrial, and governmental-not only in the United States, but in many other nations of the free world.

In summary, fiscal year 1962 has been and will continue to be a year of significant change and great activity in the Army. This is a period during which the potential of our Army is being applied, and its versatility demonstrated, as never before, short of actual combat. It is a period also of severe test for the entire Army-especially for the soldiers and their families who, in the long run, shoulder the greatest

burdens.

The test has been and is being met in magnificent fashion by both Active and Reserve components. Many sacrifices have been made by many people in the meeting of this test. Not the least of these sacrifices have been family separations-in many cases for extended and indeterminate periods. As you know, dependent travel to Europe except to Berlin has been suspended. We are meeting this situation, but it has developed an air of uncertainty for the families involved. Ultimately, if the situation continues, it will have an adverse effect on the attraction and retention of the high-caliber personnel the Army requires.

The remainder of fiscal year 1962 and fiscal year 1963 will involve reorganization and consolidation to develop a new permanent Active Army structure embodying capabilities in excess of any we have maintained during times of relative peace in the past, and a new Reserve component structure more responsive to the requirements of today's strategic environment. The two together will give us additional, usable, flexible military strength to support expanding U.S. foreign policy.

There will be further increased emphasis on cold war capabilities and on nonnuclear capabilities, without sacrifice of our ability to fight effectively in limited or general nuclear war.

In my view, the programs which I have outlined represent the best possible balance in utilization of the resources made available to the Army in the President's budget. Full execution of these programs will give us an adequate capability to perform the many and varied tasks for which the Army is responsible, provided there is a reasonable relaxation of present tensions.

We must recognize, however, that Communist tactics can-and often do shift rapidly. Tensions could increase, even multiply.

Under such conditions, greater resources may well be required in fiscal year 1963.

In any case, even if tensions should increase, or overt aggression occur in any form, anywhere in the world, I can assure you that we are developing a stronger, more effective Army.

All elements of this Army-deployed forces, Active Strategic Reserves, and Reserve components can be depended upon to carry out their assigned missions with the same effectiveness and devotion that has characterized our Army throughout our Nation's history.

Thank you very much, Mr. Chairman and members of the committee.

Now, your splendid analysis of the Army raises a great, great many questions. I am glad we have the other members of the staff here to give more detailed information.

This last statement you made:

In any case, even if tension should increase or overt aggression occur at any point anywhere in the world, I can assure you we are developing a stronger, more efficient Army.

And at the same time you are reducing it by some 112,000 men.

Now, you say--I will read it again. A good statement:

In any case, even if tension should increase or overt aggression occur in any form anywhere in the world, I can assure you that we are developing a stronger, more efficient Army.

And at the same time you are reducing it down to what it is today, to 960,000 men. I am just a little bit disturbed, in that contradictory position.

General DECKER. Mr. Chairman, my remark was intended to indicate that within the resources made available to the Army we are doing our best to develop a more effective fighting force.

The CHAIRMAN. Now, that calls to my mind that the Secretary, and rightly so, sought to impress the committee for the first time that money was not the guideline in writing the requirements of the national defense. He pointed it out very forcefully, that this program in its entirety for the three services, was based upon the military picture instead of the dollars and cents.

So that is a little bit different, when you say you only have the strength which some budget or somebody has indicated in dollars and cents you can have.