NATIONAL DEFENSE ESTABLISHMENT-UNIFICATION OF THE ARMED FORCES THURSDAY, APRIL 3, 1947 UNITED STATES SENATE, Washington, D. C. The committee convened at 10:30 a. m., pursuant to adjournment, in room 212, Senate Office Building, Senator Chan Gurney (chairman) presiding. Present: Senators Gurney (chairman), Robertson of Wyoming, Saltonstall, Russell, Byrd, Hill, and Maybank. The CHAIRMAN. The committee will come to order. Yesterday Admiral Sherman did not quite complete his testimony, although he did finish his prepared formal statement. This morning he has some information for us, which can be covered quite quickly, I believe. We will hear now from Admiral Sherman. STATEMENT OF VICE ADM. FORREST SHERMAN, UNITED STATES NAVY, NAVY DEPARTMENT, WASHINGTON, D. C.-Resumed Admiral SHERMAN. Mr. Chairman, one of the questions that has been asked me most frequently inside the Navy and by a number of people outside the Navy, concerning this proposed legislation, is the functioning of the set-up in regard to the preparation of the military budget. I feel that that is so important that I would like to give the committee the concept as I have it, and as I derived it from the conferences which led to the drafting of the provisions with respect to the budget. This diagram, of which I think copies have been distributed, attempts to show in graphic form the processes as they might well ensue under this bill. The terms of the legislation are not definitive; many of the details might be worked out differently. So this can be described as one probable method under the terms of the bill. The CHAIRMAN. You mean by that, Admiral, that we should in the bill outline how the flow of authority on this budget problem would proceed? Admiral SHERMAN. No, sir; I do not. I submit this only to amplify the concepts that are written into the bill in various places, and to bring them together in one place with reference to that one particular problem, which is very important. The CHAIRMAN. I believe at this point in the record the graph referred to should be printed. 60266-47-pt. 1—15 221 (The graph referred to is inserted facing this page.) Admiral SHERMAN. Starting with the diagram of the National Security Council, which considers foreign policy, military policy, and the resources of the Nation, information would in that agency become available to the Secretary of National Defense and the Secretaries of the three military departments; which would in turn permit them to go ahead with the preparation of the three military budgets, based upon the realities of the current national situation as it affects the national security. The Secretary of National Defense would be assisted by the Joint Chiefs of Staff in translating the problem into requirements for forces. As a result of their consideration of the strategic consideration and their consideration of the over-all forces that would be required by the United States, and with such help as he chose to have from the War Council, which consists of the three Secretaries of the military departments and the three Chiefs of Staff, there would then be a basis from which the three separate departments could translate the requirements for forces into their requirements in terms of material, in terms of personnel, and in terms of money to support the over-all concept which has been arrived at under the supervision of the Secretary of National Defense. From that would flow the initial budget estimates of the three military departments. After those three separate budget estimates are arrived at, they would then in turn be submitted to be reviewed, together, under the supervision of the Secretary of National Defense. One of the essential points in the legislation that is proposed is that they would be considered together. I might point out now that one of the obstacles that we have had to a sound preparation of military budgets in the past is that they have not been coordinated at the same time. Over a period of years the Navy appropriations bill has cleared the Bureau of the Budget before the Army estimates were submitted. Senator BYRD. What part of the bill provides that they should be considered together? Admiral SHERMAN. Section 102, sir, which provides that the Secretary of National Defense shall supervise and coordinate the preparation of budget estimates by the departments and agencies of the National Defense Establishment, which shall be submitted to him at such time and in such manner as he may direct; he shall formulate and finally determine the budget estimates of the National Defense Establishment for submittal to the Bureau of the Budget * Senator BYRD. And he has exclusive power to reduce or add to, as he pleases, these estimates that are presented to him by the three divisions; is that right? Admiral SHERMAN. Yes, sir. Senator BYRD. And he has the exclusive, the absolute, power to do that if he chooses to do it? Admiral SHERMAN. Yes, sir. Senator BYRD. He could cut one and put on to another? Admiral SHERMAN. Yes, sir. Senator BYRD. From there it goes to the Budget Bureau, and from there it goes to the President. Assuming that a Secretary of the Navy, for example, was dissatisfied with his allotment, could he come before Congress without being requested to come? |