the war; it would hasten an early conclusion. Assistance by us will not only contribute directly to the safety of the Western Hemisphere but will shorten the period of tremendous expenditures for defense. If the present conflict drags on through a period of years, you will certainly have a constantly mounting bill of expense.

STATEMENT RELATIVE TO AMOUNTS INVOLVED

As to the amounts involved, the feeling of the General Staff and my personal feelings, are these:

I have already explained to what extent we have trimmed down the estimates which came to us from abroad but there is this unescapable fact, that the present war is unpredictable in its developments. We are constantly surprised by new occurrences and new theaters and new effects, against which you have to build up the necessary precautions. I said before the House committee, I think, that we ought not to be on the short side.

You, Mr. Chairman, have remarked that I certainly did not want to appear here at a later date and say that I had asked for too little. I have described to you already the extent to which we have cut these requirements. I think if you question any of these gentlemen under oath you will find out that I have cut down practically every estimate that comes in from any section of the General Staff, our own as well as those from abroad.

I am continually cutting, and at the same time I feel that it is very perilous to let one's own individual unsupported judgment prompt a decision which, if wrong, will take a year and a half to correct.

That is the most serious aspect of this whole business. Years ago, for instance, we discussed at length the question of big bombers. The matter was complicated by the fact that appropriations only permitted a very few planes of any kind to be built, and if we bought a few big bombers, we ate up the entire appropriation. A great deal of debate and discussion at that time hinged on the question of what percentage of the total appropriation would be eaten up by a very expensive ship which takes a long time to build and which if it crashed in training, as some have recently crashed, would entail a proportionately great loss. However, when the issue came to me, with both the opponents and proponents equally violent, I felt that I could not allow my own personal opinion to dominate a large number of men of tried judgment, or to make an arbitrary decision which might leave us in a tragic situation later on.

PERCENTAGE OF FUNDS USED FOR DEFENSE ARTICLES OF BRITISH SPECIFICATIONS

Senator BROOKS. May I ask you some questions, General? The last time you testified in behalf of the original lease-lend appropriation, I think it was your judgment that we were producing only about 3 percent of the $7,000,000,000 for items of defense, of purely British specification. The others were American specifications and material?

General MARSHALL. I do not recall but I think that about 5 percent is correct.

Senator BROOKS. That is still true, is it, that we could at any time. utilize the products under production?

General MARSHALL. It remains about the same because of the spot purchases.

STATUS OF PILOT TRAINING PROGRAM

Senator BROOKS. Now, in the matter of planes, I remember that you asked for the appropriation for the training of the pilots and production of planes. I was very happy that you did it, and I so stated at the time.

It is the training of the pilots-is that satisfactory today?

General MARSHALL. Are you referring just to our pilots or the combined program?

Senator BROOKS. Our pilots.

General MARSHALL. Our pilot training is highly satisfactory. It will still be 3 or 4 months before there is sufficient production of airplanes to equip all units as fast as we want to. Production is coming in now at the rate of about a squadron of 25 airplanes every workday.

NUMBER OF PLANES PER SQUADRON

In other words, planes that we can utilize for the equipment of a squadron. This is a vast improvement.

Senator BROOKS. Twenty-five planes to a squadron?

General MARSHALL. Yes; we were struggling in the past for one or two planes, and now we are getting enough for a full outfit a day.

SIZE OF ARMORED DIVISIONS

Senator BROOKS. You told us about the armored divisions that you are developing. Are they about the same in number as the German divisions?

General MARSHALL. I think that they approximate the German division very closely.

Senator BROOKS. How many tanks to a division?

General MARSHALL. Something over 324-273 light and 108 medium.

NUMBER OF ARMORED DIVISIONS TO BE DEVELOPED

Senator BROOKS. You mean to develop about how many divisions at the present time?

General MARSHALL. We have six on the table now, to be developed by April.

General MOORE. We have 15 tank battalions in addition to that. Senator ADAMS. The subcommittee will now recess until 10:30 tomorrow morning.

Statement of Edward R. Stettinius, Jr., regarding provision in the lend-lease appropriations for new productive facilities

(See p. 15)

In the Defense Aid Supplemental Appropriation Act, 1941, there was appropriated in category 6 under the title "Facilities and Equipment,' a total of..

As of Sept. 30, 1941, by appropriate Presidential action this cate-
gory had been reduced to...

At that time there had been allocated out of these funds for new
productive facilities in the United States a total of
And there had been allocated for the purchase of machine tools for
export a total of..

Leaving available for allocation to further production facilities in
the United States...

The portion of the funds requested in the appropriation now before the committee which is programmed for new productive facilities in the United States is.

Making a total of lend-lease funds available from the $7,000,000,000 appropriation and requested in this appropriation for new productive facilities in the United States of..

$752, 000, 000

601, 600, 000

446, 623, 735

67, 600, 933

87, 375, 332

295, 865, 000

383, 240, 332

(Whereupon, at 5:05 p. m. the subcommittee recessed until 10:30 a. m., Wednesday, October 15, 1941.)

SECOND SUPPLEMENTAL NATIONAL DEFENSE APPROPRIA

TION BILL FOR 1942

WEDNESDAY, OCTOBER 15, 1941

UNITED STATES SENATE,

SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,

Washington, D. C.

The subcommittee reconvened at 10:30 a. m., Senator Alva B. Adams, chairman of the subcommittee, presiding. Present: Senators Adams, Glass, McKellar, Thomas of Oklahoma, and Nye.

OFFICE OF PRODUCTION MANAGEMENT

LEASE-LAND APPROPRIATION

STATEMENT OF WILLIAM S. KNUDSEN, DIRECTOR GENERAL, OFFICE OF PRODUCTION MANAGEMENT

Senator ADAMS. Mr. Knudsen, you know our problem.

Mr. KNUDSEN. Yes, sir.

Senator ADAMS. We would like to have such information as you can give us this morning, in your view of it.

Mr. KNUDSEN. Yes. We are talking about the second lend-lease appropriation?

Senator ADAMS. Yes, sir.

Mr. KNUDSEN. A sum of around 6 billion dollars.

Senator ADAMS. Yes, sir.

Mr. KNUDSEN. Of which I deal with about 4 billion, the rest being other items not directly concerned with manufacturing.

Senator ADAMS. We would like a word or two from your standpoint, going back to the 7 billion, that is, as far as you have progressed with that.

Mr. KNUDSEN. Yes, sir.

Senator ADAMS. And the way in which the 6 billion fits into that and its necessity, from your standpoint.

Mr. KNUDSEN. Yes.

Senator ADAMS. And the progress that is being made.

Mr. KNUDSEN. I thought I might show you where all the funds are to date (exhibiting chart). This is a rather simple chart which shows the entire amount. I have taken it in three curves, with all the funds we have had from the start, and set it up about like this, as you see. That includes everything up to date.

(The chart follows:)

FISCAL YEAR 1943

0