FEDERAL DEPARTMENTS AND AGENCIES
PART 16-Department of Defense, Seventh Section

COMMITTEE ON GOVERNMENT OPERATIONS

WILLIAM L. DAWSON, Illinois, Chairman

CHRISTINE RAY DAVIS, Staff Director
ORVILLE S. POLAND, General Counsel
JAMES A. LANIGAN, Associate General Counsel
HELEN M. BOYER, Minority Professional Staff
J. P. CARLSON, Minority Counsel

SPECIAL SUBCOMMITTEE ON GOVERNMENT INFORMATION JOHN E. MOSS, California, Chairman

SAMUEL J. ARCHIBALD, Staff Administrator
JOHN J. MITCHELL, Chief Counsel
PAUL SOUTHWICK, Professional Staff Member

CONTENTS

Pago

Index

3917

Statement of-

Campbell, Hon. Joseph, Comptroller General of the United States__

Douglas, Hon. James H., Secretary of the Air Force...

3573

3673

Gallant, Brig. Gen. Edward, Director of Procurement Inspection,
USAF

3648

Golden, Max, Air Force General Counsel..

3690

Keller, Robert, General Accounting Office General Counsel

Moss, Chairman John E....

3585

3569

Powers, Lawrence, Director, Defense Accounting and Auditing Divi-

sion, General Accounting Office.

3591

Rogers, Lt. Gen. E. J., Inspector General, USAF.

3627

Wood, Maj. Gen. Jack, Deputy Inspector General for Inspections,

USAF

3648

Correspondence between Special Subcommittee on Government Informa-

tion and Comptroller General Joseph Campbell in regard to the Air Force

refusal of the Comptroller General's request for access to Survey of

Management of the Ballistic Missile Program.

Correspondence of November 12, 1958, between Congressman Clare E.

Hoffman and President Eisenhower in regard to the Air Force refusal__

EXHIBITS

SUMMARY AND "STATEMENT OF FACTS" FROM THE AIR FORCE SURVEY

OF MANAGEMENT OF THE BALLISTIC MISSILE PROGRAM

Exhibit I-A. Subcommittee request for copies of unclassified portions of

summary and "Statement of Facts" transmitted from the Air Force to the

Comptroller General...

Exhibit I-B. Summary of the survey of the Ballistic Missile Program
Exhibit I-C. "Statement of Facts" from the Ballistic Missile Management
Survey, and letter of October 30, 1958, from Secretary of the Air Force
James H. Douglas to Comptroller General Joseph Campbell. -

Exhibit I-D. Letter of November 7, 1958, from Comptroller General

Campbell to Secretary Douglas protesting inadequacy of the "State-

ment of Facts"-

3570

3706

3709

3710

3711

3732

BIOGRAPHIES

Exhibit II. Biographies of subcommittee witnesses.

3733

CORRESPONDENCE BETWEEN SUBCOMMITTEE AND AIR FORCE
Exhibit III-A. Letter of September 25, 1958, from Chairman Moss to Sec-
retary Douglas, and Air Force reply of October 27, 1958..

Exhibit III-B. Air Force answers to staff inquiries of October 10, 1958.

Exhibit III-C. Air Force answers to staff inquiries of October 21, 1958.

Exhibit III-D. Air Force answers to questions in letter of November 3,

1958, from Chairman Moss _ _

3738

3744

3746

3746

Exhibit III-E. Letter of October 20, 1958, from Chairman Moss to Sec-

retary Douglas setting the dates for hearings; Douglas reply of October

23; and letter of October 31 from Chairman Moss to Secretary Douglas. 3749

Exhibit III-F. Air Force reply to staff inquiry about Secretary Finletter's

memorandum of restrictions on March 27, 1952

3750

Exhibit III-G. Air Force reply to questions about cost of Inspector Gen-

eral's survey and cost of the ballistic missile program.

Exhibit III-H. Distribution of Inspector General's "Survey of Manage-

ment of the Ballistic Missile Program".

LEGAL AND LEGISLATIVE Background oF COMPTROLLER

GENERAL'S AUTHORITY

Exhibit IV-A. Memorandum on Right of the Comptroller General to ac-

cess to a report of the Inspector General of the Air Force entitled "Sur-

vey of Management of the Ballistic Missile Program," by Robert F.

Keller, General Counsel, General Accounting Office..

Exhibit IV-B. GAO brief of cases cited in 40th Opinions of the Attorney

General, page 45 (1941).

Exhibit IV-C. Memorandum prepared by the General Accounting Office

entitled "The Authority and Duty of the Comptroller General To Inquire

Into Efficiency and Economy in the Government Departments and

Establishments and a Report Thereon to the Congress and Its Com-

mittees".

Exhibit IV-D. Memorandum of Law: Right of Access by the Comptroller

General (an agent of the Congress) to an Air Force Inspector General's

Report entitled "Survey of Management of the Ballistic Missile Pro-

gram," prepared by John J. Mitchell, chief counsel, Special Subcom-
mittee on Government Information___

1925 ATTORNEY GENERAL OPINION RE GAO

Exhibit IV-E. Letter of January 2, 1925, from Secretary of War to

Attorney General re availability of information to the Comptroller

General, and opinion of Attorney General, March 21, 1925_.

1954 AIR FORCE REFUSAL TO THE GAO

Exhibit V. Correspondence concerning the 1954 Air Force refusal of a

General Accounting Office request for access to a report by the Air

Force Inspector General involving price redetermination contracting

matters at the Air Materiel Command, Dayton, Ohio..

GAO-DEFENSE DISCUSSIONS

Exhibit VI-A. Department of Defense Directive 7650.1 of July 9, 1958

entitled "General Accounting Office Comprehensive Audits".

Exhibit VI-B. Chronology of correspondence and discussions regarding

access by GAO to Internal Review Reports and Classified Security

Information...

Exhibit VI-C. Letter of October 10, 1957 from Department of Defense

to General Accounting Office transmitting a proposed directive on GAO

Comprehensive Audits; and reply of GAO dated October 11, 1957, in-

cluding suggested changes in Defense Department draft.

Exhibit VI-D. Letter of October 14, 1957 from Chairman_Moss to Comp-

troller General Campbell about restrictions contained in Defense Depart-

ment Directive 5200.1 of July 8, 1957 (access to classified information);

Comptroller General's reply of November 20, 1957 revealing that GAO

had not approved of the restrictions; and Comptroller General's letter of

November 20, 1957 to the Secretary of Defense protesting the restric-

tions in the July directive ....

Exhibit VI-E. GAO memorandum of December 16, 1957 concerning dis-

cussion with Defense Department about restrictions on access to classi-

fied information and about the status of the proposed directive on com-

prehensive audits; letter of December 30, 1957 from Department of De-

fense to Comptroller General in reply to Comptroller General's letter of

November 20, 1957; letter of March 3, 1958 from Comptroller General

to Secretary of Defense requesting action to remove restrictions_ ---

Exhibit VI-F. Proposed Defense Department directive (comprehensive

audits) and proposed amendments to Directive 5200.1 (classified infor-

mation), March 1958; Comptroller General's letter of March 21, 1958,

accepting the proposed changes in 5200.1...

Exhibit VI-G. Letter of March 28, 1958, from Chairman F. Edward

Hébert of the Subcommittee for Special Investigations, House Armed

Services Committee, to the Comptroller General scheduling hearings for

April 1, 1958; letter of March 31, 1958, from Chairman Moss to Comp-

troller General questioning provisions of the proposed Defense Depart-

ment directive on comprehensive GAO audits; reply of April 18 from

Comptroller General to Chairman Moss_ _ _

Page

3753

3757

3761

3764

3791

3797

3799

3801

3803

3807

3811

3813

3819

3824

Exhibit VI-H. GAO memorandum of June 18, 1958 about June 5 discus-

sion with Department of Defense at which the Department brought up

changes in the proposed directive relating to GAO access to Inspector

General reports; additional GAO memorandums of June 18 covering Page

further discussions with the Department of Defense..-

Exhibit VI-I. Letter of June 26, 1958, from Comptroller General Campbell

to the Secretary of Defense protesting changes in the proposed directive

on comprehensive audits..

Exhibit VI-J. Letter of November 20, 1958, from Comptroller General

Campbell to Chairman Moss stating that so far the military depart-

ments had not refused access to internal audit reports and related papers.

AIR FORCE REGULATIONS

Exhibit VII-A. Air Force regulations_pertaining to the availability of

information and the functions of the Inspector General___.

GAO-ARMY DISCUSSIONS

Exhibit VIII-A. GAO Access to Inspection Reports of the Department of

the Army Inspector General _ _

Exhibit VIII-B. 1957 Army "guidelines" for GAO access to Army infor-

mation___

3826

3827

3828

3885

3891

COMPTROLLER GENERAL'S REQUESTS FOR BALLISTIC MISSILE SURVEY

Exhibit IX. Letters of June 13 and July 16, 1958, from Comptroller Gen-

eral Joseph Campbell to Secretary of the Air Force James H. Douglas.- 3893

BUDGETING AND ACCOUNTING ACTS OF 1921 AND 1950

Exhibit X-A. Budget and Accounting Act of 1921.

3893

Exhibit X-B. Budget and Accounting Procedures Act of 1950-

3899

EISENHOWER LETTER OF 1954 AND ATTORNEY GENERAL'S MEMORANDUM

Exhibit XI-A. President Eisenhower's letter of May 17, 1954, to the

Secretary of Defense in the Army-McCarthy matter..

3909

Exhibit XI-B. Memorandum of Attorney General accompanying Presi-

dent's letter of May 17, 1954_.

3910