Naval Operations and the Research and Development Board. The programs to be accomplished are of a highly classified nature which I shall be glad to discuss off the record if desired.

MAINTENANCE AND OPERATION OF SHORE FACILITIES

The total estimate under "Maintenance and operation of shore facilities" is $234,762,000. This estimate can be further broken down as follows:

(a) Maintenance and operation of shipyards, $94,365,000: This item is to provide for the support of 11 naval shipyards.

Senator O'MAHONEY. Are these 11 now in operation?

Admiral WALLIN. Yes, sir. The Long Beach Naval Shipyard was placed in operation February 1. It had been inactivated, and there is 1 in Hawaii and 10 in the States.

(b) Maintenance and operation of other shore stations, $44,273,000: One hundred and twenty-six miscellaneous shore facilities are partially or wholly maintained and operated by the Bureau of Ships. The estimate under this program is to provide for maintenance and operation of these shore stations.

(e) Advanced base material, $12,991,000: The estimate under this program is to provide for the procurement of advanced base material of a classified nature which will be necessary in the event of hostilities in order to set up advanced bases near theaters of operations and thus support the fleet in those areas.

(d) Maintenance and operation of laboratories, $32,900,000: The list of the naval shipyards, the naval stations and the laboratories appears in the justification sheets of the budget, Mr. Chairman.

LABORATORIES UNDER BUREAU OF SHIPS

The Bureau of Ships maintains and operates 12 laboratories such as the Engineering Experiment Station, at Annapolis, Md.; the Underwater Sound Laboratory, at New London, Conn.; and the Naval Electronics Laboratory, at San Diego, Calif. There is a turbine and gear laboratory at Philadelphia, et cetera.

(e) Inspection testing, $1,225,000: This program pays for the testing of materials and equipment for compliance with procurement specifications, for operational evaluation of material procurement associated with laboratory investigations and for type and brand approval of Bureau of Ships' procurements.

(f) Equipment for schools, general, $3,746,000: There are approximately 200 regular naval training activities to which this program renders support. Equipment under the cognizance of the Bureau of Ships such as boilers, turbines, pumps, generators, motors, internal combustion engines, et cetera, are provided, installed and maintained at these schools where they are used for training purposes in the instruction of new military personnel inducted into the Navy.

Senator O'MAHONEY. When you say "renders support," does that mean there is another source of support besides this appropriation? Admiral WALLIN. The schools come under the Bureau of Personnel. The matériel part of it under the cognizance of the Bureau of Ships is furnished by the Bureau of Ships.

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Senator O'MAHONEY. This is merely the matériel?

Admiral WALLIN. Yes.

(g) Equipment for schools, electronics, $15,903,000: If you would like Captain Beltz to say something about the work carried on, I think he would be glad to do so.

Senator O'MAHONEY. I think that is apparent.

Admiral WALLIN. This estimate is to provide for new electronic training aids and systems to be used in the instruction of naval personnel at regular training activities.

(h) Procurement of ships' designs for mobilization programs, $1,250,000: This program provides for the procurement of conversion designs of plans from the original builder of 15 types of passenger liners, merchant ships, and cargo vessels to permit their immediate conversion to naval auxiliaries in the event of hostilities.

Senator O'MAHONEY. That is harbor defense by ships. It does not mean ground installations; does it?

Admiral WALLIN. Yes, sir; it includes material for ground installations. The item just covered was conversion of merchant ships for mobilization requirements of the Navy.

(i) Harbor defense, general, $20,260,000: This program covers the cost of procurement, maintenance, and operation of continental harbor defense material other than electronics material. The program has been approved by the Chief of Naval Operations by correspondence of high security classification. It has to do with the defense of all of our harbors.

(j) Harbor defense, electronics, $7,849,000: This program provides for electronics procurement paralleling the general procurement mentioned under the foregoing program.

MAINTENANCE AND OPERATION OF NAVAL RESERVE VESSELS

This budget activity request for $26,783,000 provides for the maintenance and operating expenses of 104 ships which are assigned to the naval reserve training program. It also provides for Bureau of Ships equipment (general and electronics) required for the instruction of naval reservists at Naval Reserve training activities.

The total cost for maintenance and operation of the 104 vessels used in the training program is $23,017,500. These costs are of the same general type as those incurred for maintenance and operation of vessels of the active fleet, for example: Repair of ships, $18,225,000; alterations and material improvement plan, $3,022,000; supplies and equipage, $1,664,000; and electronic equipment for ships, $196,500.

The remainder or $3,675,500 of the total amount requests for this activity is for equipment to be used ashore for the training of naval reservists.

INDUSTRIAL MOBILIZATION

The Bureau of Ships industrial mobilization program is estimated to cost $29,724,000. This program has been cleared by the Office of Naval Material in the Navy Department and the Munitions Board in the Department of Defense. It is broken down into four main categories: (a) Reserve plants, $10,521,000; (b) machine tools and industrial equipment, $11,853,000; (c) industry preparedness measures, $5,550,000; (d) planning within the Department of Defense, $1,800,000.

FUEL FOR SHIPS

The estimate for fiscal year 1952 for budget activity IX; fuel for ships, is $72,988,000. This budget activity provides founds for the procurement of fuel, water, and utility services for ships of the Navy. It is broken down into two subcategories: (a) Fuel, water, and utility services for ships, $71,988,000; (b) fuel, water and utility services for Naval Reserve vessels, $1,000,000.

Fuel consumption for all vessels is determined by the number of hours when each type of vessel will be under way, the number of hours at anchor or tied to a dock producing its own utility services, and the number of hours during which utilities will be procurred from shore facilities. The main determining factor is time under way. The cost of petroleum products is based upon current armed services petroleum agency contract prices.

DEPARTMENTAL ADMINISTRATION

The total estimate for departmental administration for fiscal year 1952 is $14,111,000. This total is further broken down into two subheads: (a) Salaries, departmental personnel, $12,230,000; (b) other departmental expenses, $1,881,000.

The salaries estimate under this budget activity is to provide for the manpower necessary at the Bureau of Ships headquarters in Washington under the "Ships and facilities" appropriation. The majority are technical people and should, therefore, be considered productive workers. They are responsible for the initiation coordination, supervision, and direction of the engineering and scientific features of the operations which fall under the "Ships and facilities" appropriation as a whole.

In addition to the salaries, the Bureau of Ships is also responsible for other departmental expenses to the extent of $1,881,000 to cover costs of supplies, materials, equipment and services, rental of office equipment, printing and reproduction, travel of civilian employees, and temporary additional duty travel of officer personnel assigned to the Bureau.

NEED FOR PERSONNEL REQUESTED

Senator O'MAHONEY. This will be one of the items to be discussed under civilian employment. The presentation you make here indicates your belief all of those for whom provision is made in the salary item are absolutely required?

Admiral WALLIN. Yes, sir. I would say further on that that this budget does not provide for any increase of personnel under this appropriation for fiscal 1952 over and beyond what our ceiling was at the end of fiscal 1951.

Senator O'MAHONEY. What steps do you take to screen the number of employees and keep it down to a minimum?

Admiral WALLIN. We have a continuing screening process in our Bureau. Actually, for the work load, we have had a continuous shortage of personnel to do the things as rapidly as they are required to be done, particularly in the category of design. To get the designs out for work of the current fleet and in some cases of the new program

of conversion the program has not been carried on rapidly partly because of the great shortage of engineering personnel in the country. There is a great shortage of qualified engineers generally and our work requires specialized engineers or the training of other engineers to become adept at our work.

We have had great difficulty in getting the number and quality of people that we require for the procurement program.

Senator O'MAHONEY. You may proceed.

Admiral WALLIN. That completes that particular appropriation. Now we come to the new construction and conversion appropriations, Mr. Chairman.

SHIPBUILDING OPERATIONS

INCREASE AND REPLACEMENT OF NAVAL VESSELS, CONSTRUCTION AND MACHINERY

There are three separate appropriations which provide for the needs of the Bureau of Ships for shipbuilding and conversion expenses.

The request for $45,000,000 under the appropriation "Increase and replacement of naval vessels, construction and machinery" is solely to liquidate outstanding obligations against this wartime appropriation. The principal expenses expected in fiscal year 1952 are those in connection with continuing the construction of the Northampton (CLC-1) and the Timmerman (DD-828) with advanced engineering installations, still under construction at the Bethlehem Steel Co. plant in Quincy, Mass., and the Bath Iron Works plant in Bath, Maine, respectively. In addition to the foregoing, there are expenditures which must be provided for on other vessels of the IRNV program which involve final settlements and payments for delayed charges. The total request under this appropriation is to take care of expenditures of this nature.

CONSTRUCTION OF SHIPS

The request for $77,353,000 under the postwar appropriation "Construction of ships, Navy" for fiscal year 1952 is primarily to provide for the additional cash to liquidate estimated fiscal year 1952 expenditures on the 1948, 1949, and 1950 shipbuilding programs which were initiated under a contract authority basis. Funds, therefore, have to be requested each fiscal year to cover the estimated expenditures in the fiscal year in question under the contract authority which was originally granted when the appropriations were approved. With the total of $77,353,000 there is included an amount of approximately $21,000,000 to provide for increased costs due to increases in design expenses, revised estimates on the LVT procurement program for the Marine Corps, and a modest extension of the LVT development program which is also related directly to Marine Corps requirements.

SHIPBUILDING AND CONVERSION

It is proposed in the fiscal year 1952 to establish a new appropriation to cover shipbuilding and conversion expenses. The appropriation request for fiscal year 1952, of approximately $1,343,000,000, is to provide for a new shipbuilding program, the details of which are classi

fied but which are available to the committee in supplemental tables which will be distributed when we are discussing the details of this appropriation.

In order that the new appropriation may encompass all of these vessels of Public Law 3 which are requested in fiscal year 1952, as well as those vessels under Public Law 3 which were covered by the fiscal year 1951 fourth supplemental request, a transfer of $137,000,000 from funds already appropriated in 1951 to this new appropriation is requested. The grand total thus made available. under "Ship-building and conversion, Navy" will be approximately $1,480,000,000 if the current appropriation request is approved.

In connection with this new appropriation, "Shipbuilding and conversion," the funds requested are for complete funding of the vessels which are covered in the 1952 budget rather than a year-by-year appropriation.

FUNDS FOR NEW VESSELS

Senator O'MAHONEY. Is this the item which contains the funds for the new vessels of which you spoke at the outset of your testimony? You told us at the beginning that 118 new vessels were to be added, of which a portion were from the moth ball fleet and a portion new vessels.

Admiral WALLIN. Yes, sir; the new vessels come from the shipbuilding appropriations.

Senator O'MAHONEY. This entire amount will be for that number of vessels, new vessels?

Or is this projected into the future?

Admiral WALLIN. This goes way into the future. On some of these vessels funded for here, the expenditures will not be completed until 1957.

Senator O'MAHONEY. So the item carried here of $1,343,297,000 is only a beginning on this program?

Admiral WALLIN. No, sir. The Bureau of the Budget has a set-up whereby new construction is funded completely initially and additional funds will not be appropriated unless the funds that are set up originally prove to be insufficient.

Senator O'MAHONEY. This is the new language that appears on page 353 of the bill which is before us. Do you have that, Admiral Clexton?

Admiral CLEXTON. Yes, sir.

Senator O'MAHONEY. For expenses necessary for the construction and acquisition or construction of vessels as authorized by the act of March 10, 1951, Public Law 3, or authorized by law, including plant equipment, appliances, and machine tools, and installations thereof, in public or private plants, and departmental salaries necessary for the purposes of this appropriation, $1,343,297,000 to remain available until expended, provided that the amount heretofore appropriated under the head "Construction of ships for the purposes of the act of March 10, 1951," is hereby transferred to and merged with this appropriation.

It reads:

Provided further, That the total obligations incurred in the foregoing purposes shall not exceed $1,480,297,000.