the procurement or disposition of strategic and critical material and the maintenance of adequate reserves of such material, and to make recommendations as to policies in connection therewith;

(9) to assemble and review material and personnel requirements presented by the Joint Chiefs of Staff and those presented by the production, procurement, and distribution agencies assigned to meet military needs, and to make recommendations thereon to the Secretary of National Defense;

(10) to perform such other duties as the Secretary of National Defense may direct.

(d) When the Chairman of the Board first appointed has taken office, the Joint Army and Navy Munitions Board shall cease to exist and all its functions, records, and personnel shall be transferred to the Munitions Board.

(e) The Secretary of National Defense shall provide the Board with such personnel and facilities as the Secretary may determine to be required by the Board for the performance of its functions.

RESEARCH AND DEVELOPMENT ROARD

SEC. 114. (a) There is hereby established in the National Defense Establishment a Research and Development Board, hereinafter in this section referred to as the "Board." The Board shall be composed of a Chairman, who shall be the head thereof, and two representatives each from the Departments of the Army, Navy, and Air Force, to be designated by the Secretaries of their respective Departments. The Chairman shall be appointed from civilian life by the Secretary of National Defense and shall receive compensation at the rate of $14,000 a year or at the rate of $50 a day but not to exceed $14,000 in any one year. The purpose of the Board shall be to advise the Secretary of National Defense as to the status of scientific research relative to the national security, and to assist him in assuring adequate provision for research and development on scientific problems relating to the national security.

(b) It shall be the duty of the Board, under the direction of the Secretary of National Defense

(1) to prepare a complete and integrated program of research and development for military purposes;

(2) to advise with regard to trends in scientific research relating to national security and the measures necessary to assure continued and increasing progress;

(3) to recommend measures of coordination of research and development among the military departments, and allocation among them of responsibilities for specific programs of joint interest;

(4) to formulate policy for the National Defense Establishment in connection with research and development matters involving agencies outside the National Defense Establishment;

(5) to consider the interaction of research and development and strategy, and to advise the Joint Chiefs of Staff in connection therewith;

(6) to perform such other duties as the Secretary of National Defense may direct.

(c) When the Chairman of the Board first appointed has taken office, the Joint Research and Development Board shall cease to exist and all its records and personnel shall be transferred to the Research and Development Board.

(d) The Secretary of National Defense shall provide the Board with such personnel and facilities as the Secretary may determine to be required by the Board for the performance of its functions.

TITLE II-COORDINATION FOR NATIONAL SECURITY

NATIONAL SECURITY COUNCIL

SEC. 201. (a) There is hereby established a council to be known as the National Security Council (hereinafter in this section referred to as the "Council"). The function of the Council shall be to advise the President with respect to the integration of foreign and military policies and to enable the military services and other agencies of the Government to cooperate more effectively in matters involving national security. The Council shall be composed of the Secretary of State, the Secretary of National Defense, the Secretary of the Army, the Secretary of the Navy, the Secretary of the Air Force, the Chairman of the National Security Resources Board, and such other members as the President may designate from time to time.

(b) In addition to performing such other functions as the President may direct, for the purpose of more effectively coordinating the policies of the departments and agencies of the Government and their functions relating to the national security, it shall, subject to the direction of the President, be the duty of the Council

(1) to assess and appraise the objectives, commitments, and risks of the United States in relation to our actual and potential military power, in the interests of national security, for the purpose of making recommendations to the President in connection therewith; and

(2) to consider policies on matters of common interest to the Department of State, the National Defense Establishment, and the National Security Resources Board, and to make recommendations to the President in connection therewith.

(c) The Council shall have a staff to be headed by an executive secretary who shall be appointed by the President, and who shall receive compensation at the rate of $12,000 a year. The executive secretary, subject to the direction of the Council is authorized to appoint and fix the compensation of such personnel as may be necessary to perform such duties as may be prescribed by the Council in connection with the performance of its functions.

(d) The Council shall, from time to time, make such recommendations and such other reports to the President as it deems appropriate or as the President may require.

CENTRAL INTELLIGENCE AGENCY

SEC. 202. (a) There is hereby established under the National Security Council a Central Intelligence Agency with a Director of Central Intelligence, who shall be the head thereof, to be appointed by the President. The Director shall receive compensation at the rate of $14,000 a year.

(b) Any commissioned officer of the United States Army, the United States Navy, or the United States Air Force may be appointed to the office of Director; and his appointment to, acceptance of, and service in, such office shall in no way affect any status, office, rank, or grade he may occupy or hold in the United States Army, the United States Navy, or the United States Air Force, or any emolument, perquisite, right, privilege, or benefit incident to or arising out of any such status, office, rank, or grade. Any such commissioned officer on the active list shall, while serving in the office of Director, receive the military pay and allowances payable to a commissioned officer of his grade and length of service and shall be paid, from any funds available to defray the expenses of the Agency, annual compensation at a rate equal to the amount by which $14,000 exceeds the amount of his annual pay and allowances.

(c) Effective when the Director first appointed under subsection (a) has taken office

(1) the functions of the National Intelligence Authority (11 Fed. Reg. 1337, 1339, February 5, 1946) are transferred to the National Security Council, and such Authority shall cease to exist.

(2) the functions of the Director of Central Intelligence, and the functions, personnel, property, and records of the Central Intelligence Group are transferred to the Director of Central Intelligence appointed under this Act and to the Central Intelligence Agency, respectively, and such Group shall cease to exist. Any unexpended balances of appropriations, allocations, or other funds available or authorized to be made available for such Group shall be available and shall be authorized to be made available in like manner for expenditure by the Agency.

NATIONAL SECURITY RESOURCES BOARD

SEC. 203. (a) There is hereby established a National Security Resources Board, hereinafter in this section referred to as the "Board", to be composed of the Chairman of the Board and such heads or representatives of the various executive departments and independent agencies as may from time to time be designated by the President to be members of the Board. The Chairman of the Board shall be appointed from civilian life by the President and shall receive compensation at the rate of $15,000 a year or at the rate of $50 a day but not to exceed $15,000 in any one year.

(b) The Chairman of the Board, subject to the direction of the President, is authorized to appoint and fix the compensation of such personnel as may be necessary to assist the Board in carrying out its functions.

(c) It shall be the function of the Board to advise the President concerning the coordination of military, industrial, and civilian mobilization, including

(1) policies concerning industrial and civlian mobilization in order to assure the most effective mobilization and maximum utilization of the Nation's manpower in the event of war;

(2) programs for the effective use in time of war of the Nation's natural and industrial resources for military and civilian needs, for the maintenance and stabilization of the civilian economy in time of war, and for the adjustment of such economy to war needs and conditons;

(3) policies for unifying, in time of war, the activities of Federal agencies and departments engaged in or concerned with production, procurement, distribution, or transportation of military or civilian supplies, materials, and products;

(4) the relationship between potential supplies of and potential requirements for manpower, resources, and productive facilities in time of war; (5) policies for establishing adequate reserves of strategic and critical material, and for the conservation of these reserves;

(6) the strategic relocation of industries, services, government, and economic activities, whose continuous operation is essential to the Nation's security.

(d) The Board shall perform such other functions, not inconsistent with law, concerning the coordination of military, industrial, and civilian mobilization as the President may direct.

(e) In performing its functions, the Board shall utilize to the maximum extent the facilities and resources of the departments and agencies of the Government. TITLE III-MISCELLANEOUS

SUCCESSION TO THE PRESIDENCY

SEC. 301. The first section of the Act entitled "An Act to provide for the performance of the duties of the Office of President in case of the removal, death, resignation, or inability both of the President and of the Vice President", approved January 19, 1886 (24 Stat. 1), is amended (1) by striking out "Secretary of War" and inserting in lieu thereof "Secretary of National Defense", and (2) by striking out "or if there be none, or in case of his removal, death, resignation, or inability, then the Secretary of the Navy".

COMPENSATION OF SECRETARIES

SEC. 302. (a) The Secretary of National Defense shall receive the compensation prescribed by law for heads of executive departments.

(b) The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force shall each receive the compensation prescribed for the Secretary of National Defense.

UNDER SECRETARIES AND ASSISTANT SECRETARIES

SEC. 303. The Under Secretaries and Assistant Secretaries of the Army, the Navy, and the Air Force shall each receive compensation at the rate of $12,000 a year and shall perform such duties as the Secretaries of their respective departments may prescribe.

ADVISORY COMMITTEES AND PERSONNEL

SEC. 304. (a) The Secretary of National Defense, the Chairman of the National Security Resources Board, and the Director of Central Intelligence are authorized to appoint such advisory committees and to employ consistent with other provisions of this Act, such part-time advisory personnel as they may deem necessary in carrying out their respective functions and the functions of agencies under their control. Persons holding other offices or positions under the United States for which they receive compensation while serving as members of such committees shall receive no additional compensation for such service. Other members of such committees and other part-time advisory personnel so employed may serve without compensation or may receive compensation at a rate not to exceed $50 for each day of service, as determined by the appointing authority.

(b) Service of an individual as a member of any such advisory committee, or in any other part-time capacity for a department or agency hereunder, shall not be considered as service bringing such individual within the provisions of section 109 or 113 of the Criminal Code (U. S. C., 1940 edition, title 18, secs. 198 and 203), or section 19 (c) of the Contract Settlement Act of 1944, unless the act of such individual, which by such section is made unlawful when performed by an individual referred to in such section, is with respect to any particular matter which 'directly involves a department or agency which such person is advising or in which such department or agency is directly interested.

STATUS OF TRANSFERRED CIVILIAN PERSONNEL

SEC. 305. All transfers of civilian personnel under this Act shall be without change in classification or compensation, but the head of any department or agency to which such a transfer is made is authorized to make such changes in the titles and designations and prescribe such changes in the duties of such personnel commensurate with their classification as he may deem necessary and appropriate.

SAVING PROVISIONS

SEC. 306. (a) All laws, orders, regulations, and other actions applicable with respect to any function, activity, personnel, property, records, or other thing transferred under this Act, or with respect to any officer, department, or agency, from which such transfer is made, shall, except to the extent rescinded, modified, superseded, terminated, or made inapplicable by or under authority of law, have the same effect as if such transfer had not been made; but, after any such transfer, any such law, order, regulation, or other action which vested functions in or otherwise related to any officer, department, or agency from which such transfer was made, shall, insofar as applicable with respect to the function, activity, personnel, property, records, or other thing transferred and to the extent not inconsistent with other provisions of this Act, be deemed to have vested such function in or relate to the officer, department, or agency to which the transfer was made. (b) No suit, action, or other proceeding lawfully commenced by or against the head of any department or agency or other officer of the United States, in his official capacity or in relation to the discharge of his official duties, shall abate by reason of the taking effect of any transfer or change in title under the provisions of this Act; and, in the case of any such transfer, such suit, action, or other proceeding may be maintained by or again the successor of such head or other officer under the transfer, but only if the court shall allow the same to be maintained on motion or supplemental petition filed within twelve months after such transfer takes effect, showing a necessity for the survival of such suit, action, or other proceeding to obtain settlement of the questions involved.

(c) Notwithstanding the provisions of the second paragraph of section 5 of title I of the First War Powers Act, 1941, the existing organization of the War Department under the provisions of Executive Order Numbered 9082 of February 28, 1942, as modified by Executive Order Numbered 9722 of May 13, 1946, and the existing organization of the Department of the Navy under the provisions of Executive Order Numbered 9635 of September 29, 1945, including the assignment of functions to organizational units within the War and Navy Departments, may, to the extent determined by the Secretary of National Defense, continue in force except to the extent modified by the provisions of this Act or under the authority of law.

TRANSFER OF FUNDS

SEC. 307. All unexpended balances of appropriations, allocations, nonappropriated funds, or other funds available or hereafter made available for use by or on behalf of the Army Air Forces or officers thereof, shall be transferred to the Department of the Air Force for use in connection with the exercise of its functions. Such other unexpended balances of appropriations, allocations, nonappropriated funds, or other funds available or hereafter made available for use by the Department of War or the Department of the Army in exercise of functions transferred to the Department of the Air Force under this Act, as the Secretary of National Defense shall determine, shall be transferred to the Department of the Air Force for use in connection with the exercise of its functions. Unexpended balances transferred under this section may be used for the purposes for which the appropriations, allocations, or other funds were originally made available, or for new expenditures occasioned by the enactment of this Act. The transfers

herein authorized may be made with or without warrant action as may be appropriate from time to time from any appropriation covered by this section to any other such appropriation or to such new accounts established on the books of the Treasury as may be determined to be necessary to carry into effect the provisions of this Act.

AUTHORIZATION FOR APPROPRIATIONS

SEC. 308. There are hereby authorized to be appropriated such sums as may be necessary and appropriate to carry out the provisions and purposes of this Act.

DEFINITION

SEC. 309. As used in this Act, the term "function" includes functions, powers, and duties.

SEPARABILITY

SEC. 310. If any provision of this Act or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the Act and of the application of such provision to other persons and circumstances shall not be affected thereby.

The CHAIRMAN. We are glad to have with us this morning Secretary James V. Forrestal. If you are ready to start, the committee will be glad to hear you.

STATEMENT OF HON. JAMES V. FORRESTAL, SECRETARY OF THE NAVY

Secretary FORRESTAL. Mr. Chairman and members of the Armed Services Committee, the statement that I have to make is a relatively brief one and does not go into any great detail on the bill, such as Judge Patterson's statement does. I had not consulted him in the preparation of this statement, but it so happens that my statement and his fit in a fairly good pattern, and I think we will save some of your time if I do not go into specific detail.

What I say in this statement on the bill to unify and integrate the departments that deal with our national security is based on two main premises:

First, there is a need, apparent during and since the war, for the planned integration of all of the elements, energies, and forces in our Nation which have to be drawn upon to wage successful war. In these categories come not merely the Army and Navy and the State Department, but industry, and by "industry" I mean industrial management, which I regard as one of the keystones which produce success in war-labor, transportation, civilian economy, and not least important, a study of 2 raw materials and stock piling of those basic materials which in wartime have to be imported in greatly increased quantities.

Second, nothing in any plan for the unification or consolidation of the purely military elements of our national security system should destroy the morale and autonomy of the Navy and its components, including particularly the Fleet Marine Forces and naval aviation. The identity of the naval service, with all of the considerations of morale and corps spirit involved, must be preserved.

The character of modern war is global and the Navy's point of view is essential in the conduct of a global war. I believe that had the status of the Navy in the war recently ended not been that of an equal partner, it is probable that the Pacific war would have continued long beyond August 14, 1945.