of the Army Establishment and the expense of the research and development program. As I have already stated, the Army, during this period, lived for the most part on material which was carried over from World War II. The value, at acquisition cost, of the military supplies and equipment on hand on VJ-day has been estimated at approximately $31,500,000,000. This amount has been reduced since that date and prior to the Korean operations by some $14 billion in disposal actions (as of June 30, 1950) as follows: [In millions of dollars] Declared surplus to disposal agencies (zone of interior and overseas) - Transfers (including Red Cross, UNRRA, Navy, etc.). Total $9, 817 759 827 588 4 2, 051 14, 046 Since the beginning of the Korean operations, supplies and equipment in the posession of the Department of the Army have been reduced further by some $414 million in these same categories. Included are transfer to military defenseassistance program of items excess to the Army the acquisition cost of which is estimated at $114 million, and transfer of items costing $80 million to United Nations countries other than the United States operating in Korea. Also, supplies and equipment costing about $2.2 billion have been consumed in combat operations. The supplies and equipment on hand today, the original cost of which is roughly $15 billion, are in the hands of Army troops, in supply pipelines, or in unbalanced depot stocks. HOUSE ACTION ON 1952 ESTIMATES Recommendations were made by the Appropriations Committee of the House of Representatives on the Department of Defense appropriation bill, 1952, in Report No. 790, dated August 6, 1951. This report was adopted by the House of Representatives on Thursday, August 9. With respect to the Department of the Army portion of the bill as passed, the $20,113,524,200 approved is a reduction of $685,321,500 from the total contained in the President's budget. After analysis of the effect on proposed Army programs of the reductions made, the Army requests restoration of $169,788,830. Details of the restorations requested are being furnished to you in a separate document. In general, the restorations requested provide for $37,038,830 for civilian personnel restorations and $132, 750,000 for restorations in other objects of expenditure. The most significant item is a restoration of $60 million requested in the "Clothing and equipage" subappropriation of the "Quartermaster Service, Army" appropriation. The restoration is requested on the basis of the necessity to replace clothing withdrawn from troops in the zone of the interior and elsewhere in order to supply personnel in Korea. As a result of this emergency action, there are many troops in the field who are now without their full allowances of clothing. The restoration is necessary to restore clothing allowances to peacetime levels. This concludes my closing statement, Mr. Chairman. I should like at this time, on behalf of all the Army representatives who have appeared here to explain the requirements for fiscal year 1952 to thank you and the members of the committee for the consideration you have given our requests and for your patience and understanding. The Army for which the Congress made provision in fiscal year 1951 is an organization of which all Americans can be proud. We have made tremendous progress from the situation and state of readiness which pertained at the beginning of the fiscal year. We feel that, with your support, we shall be able to continue this progress in fiscal year 1952. Thank you. ARMY CARGO AND ASSAULT HELICOPTERS Senator O'MAHONEY. I will ask that there be inserted in the record at this point a statement with reference to helicopters included in the Army and the Air Force 1952 budgets. (The statement referred to is as follows:) Army-cargo and air-assault helicopters (H-21) included in Army and Air Force 1952 budgets Army aircraft does not include auto pilot or electronics equipment which is a part of the Air Force price. Army communications equipment is budgeted by Signal Corps and not included. Army spares are computed at 40 percent of flyaway plus engineering changes. Cargo-transport helicopters (H-19) included in Army and Navy fiscal year 1952 Current estimates based on prices being negotiated with the contractor indicate fly-away price for the Army and Navy aircraft to be approximately the same. Current Navy estimate is $143,510 and Army estimated $136,700. The price including spares for Navy aircraft is estimated at $255,915 compared with the Army estimate of $206,000. This difference can be explained by the spare parts procurement policy of the two departments. Navy procures 55 percent airframe spares; 65 percent engine spares, plus additional life-of-craft engine spare parts; nd 70 percent spares for other parts. In contrast the Army's policy is to buy 0 percent spares. Senator O'MAHONEY. This will conclude the presentation on behalf f the Department of the Army. The Department has supplied information in regard to civilian mployees paid from Army appropriated funds, and the proportion f civilian to military employees. The information will be inserted a the record at this point. (The information referred to is as follows:) |