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A5
1958d
серуз

COMMITTEE ON APPROPRIATIONS

CLARENCE CANNON, Missouri, Chairman

SUPPLEMENTAL DEFENSE APPROPRIATIONS FOR 1958

WEDNESDAY, JANUARY 8, 1958.

WITNESSES

HON. NEIL MCELROY, SECRETARY OF DEFENSE

W. J. MCNEIL, ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER)

MAJ. GEN. ROBERT S. MOORE, SPECIAL ASSISTANT TO THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER)

MAX LEHRER, DIRECTOR, ECONOMIC AND FISCAL ANALYSIS DIVISION, OFFICE OF THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER)

M. H. LANMAN, ASSISTANT GENERAL COUNSEL (FISCAL MATTERS) MAJ. GEN. FRANK A. BOGART, DIRECTOR OF BUDGET, AIR FORCE, DCS/ COMPTROLLER

REAR ADM. G. F. BEARDSLEY, ASSISTANT COMPTROLLER, NAVY, DIRECTOR OF BUDGET AND REPORTS

Mr. MAHON. Will the committee please come to order.

Secretary McElroy, we are pleased to have you here this morning with Secretary McNeil and some of your staff people. The record will show those who are present.

We are no doubt facing a very strenuous and difficult year.

I want to assure you, Mr. McElroy, as the new Secretary of Defense, that in your appearance before us you will find yourself among friends who are seeking to work with you in the best interests of our country. Most of us were here in November when you appeared in connection with a study we were making of our ballistic missile program and the satellite program.

I want to say that I was very much impressed with your appearance; with your attitude and your spirit of cooperation.

I think I can say for all the members of the committee that we are very much interested in your work and we are pulling for you and wishing you every success in a task which at times seems almost impossible of fulfillment. It is good we have people of your stature who are devoting themselves to the public interest.

Now, of course, the overall budget-which I assume from the press will be in the area of $40 billion or $41 billion for the Department of Defense for the fiscal year 1959-will soon be before us. I believe that the President will send it down on the 13th. We will not undertake to prejudge that budget. We will want, in an unhurried way, to go over that budget with you and Mr. McNeil and Mr. Quarles; the Secretaries of the Army, the Navy and the Air Force; the Joint Chiefs, and others, at a later date.

We had a preliminary meeting of this committee yesterday and we agreed we would postpone the larger exploration of our defense posture

(1)

until we took up the big budget. To do so now on this $1.2 billion would put us out of focus, as you can well see.

We would like for you to stay with us here today, or as much of the day as may be required, and then we will explore more fully the details with representatives of the Navy and the Air Force who will be before us. I note that the budget officers of those two services are here. I am glad they are here so that they can get the feeling of our committee and understand just what our requirements may be.

SUPPLEMENTAL ESTIMATE (H. DOC. 298)

We will insert at this point the supplemental estimate of $1,370 million, contained in House Document No. 298. (The document referred to follows:)

[H. Doc. No. 298, 85th Cong., 2d sess.]

COMMUNICATION FROM THE PRESIDENT OF THE UNITED STATES TRANSMITTING PROPOSED ADDITIONAL AUTHORITY FOR THE FISCAL YEAR 1958, FOR THE DEPARTMENT OF DEFENSE, IN THE AMOUNT OF $1,370,000,000

THE WHITE HOUSE, Washington, January 7, 1958.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES. SIR: I have the honor to transmit herewith for the consideration of the Congress proposed additional authority for the fiscal year 1958, for the Department of Defense, in the amount of $1,370,000,000. This additional authority consists of $1,260,000,000 in new appropriations and transfer authority in the amount of $110,000,000.

The details of these proposed appropriations, the necessity therefor, and the reasons for their submission at this time are set forth in the attached letter from the Director of the Bureau of the Budget, with whose comments and observations thereon I concur.

Respectfully yours,

DWIGHT D. EISENHOWER.

EXECUTIVE OFFICE OF THE PRESIDENT,

BUREAU OF THE BUDGET, Washington, D. C., January 7, 1958.

The PRESIDENT,

The White House.

SIR: I have the honor to submit herewith for your consideration proposed additional authority for the fiscal year 1958, for the Department of Defense, in the amount of $1,370,000,000. This additional authority consists of $1,260,000,000 in new appropriations and transfer authority in the amount of $110,000,000 for new purposes, as follows:

"DEPARTMENT OF DEFENSE

"OFFICE OF THE SECRETARY OF DEFENSE

"EMERGENCY FUND

"For an additional amount for 'Emergency fund', $100,000,000, to be derived by transfer from such appropriations available to the Department of Defense for obligation during the current fiscal year as the Secretary of Defense may designate.

"ADVANCED RESEARCH PROJECTS AGENCY

"SALARIES AND EXPENSES

"For expenses necessary for the Advanced Research Projects Agency, including acquisition and construction of such research, development, and test facilities, and equipment, as may be authorized by the Secretary of Defense, to remain available

until expended, $10,000,000, to be derived by transfer from such appropriations available to the Department of Defense for the current fiscal year as may be designated by the Secretary of Defense: Provided, That such amounts as may be determined by the Secretary of Defense to have been made available for related programs in other appropriations available to the Department of Defense during the current fiscal year may be transferred to and merged with this appropriation to be available for the same purposes and time period: Provided further, That such amounts as may be determined by the Secretary of Defense may be transferred from this appropriation to any appropriation for military functions under the Department of Defense to be merged with and to be available for the same purposes and for the same time period as the appropriation to which transferred.

"DEPARTMENT OF THE NAVY

"SHIPBUILDING AND CONVERSION

"For an additional amount for 'Shipbuilding and conversion', $296,000,000, to remain available until expended.

"PROCUREMENT OF ORDNANCE AND AMMUNITION

"For an additional amount for 'Procurement of ordnance and ammunition', $31,800,000, to remain available until expended.

"RESEARCH AND DEVELOPMENT

"For an additional amount for 'Research and development', $22,200,000, to remain available until expended.

"DEPARTMENT OF THE AIR FORCE

"PROCUREMENT OTHER THAN AIRCRAFT

"For an additional amount for 'Procurement other than aircraft', $360,000,000, to remain available until expended.

"RESEARCH AND DEVELOPMENT

"For an additional amount for 'Research and development', $30,000,000, to remain available until expended.

"MILITARY CONSTRUCTION, AIR FORCE

"For an additional amount for 'Military construction, Air Force', including such construction as may be authorized by law during the second session of the Eightyfifth Congress, $520,000,000, to remain available until expended.

"GENERAL PROVISIONS

"SEC. In order to more effectively administer the programs relating to advance research activities, the Secretary of Defense may authorize within the Office of the Secretary of Defense the creation of fifteen positions in the professional and scientific service in accordance with the provisions of Public Law 313, Eightieth Congress, as amended, and to place ten positions tn grades 16, 17, or 18 of the General Schedule, in accordance with the procedures prescribed in the Classification Act of 1949, as amended. These positions shall be in addition to those now authorized by law.

"SEC. Hereafter, any appropriation available to the agencies concerned for the pay and allowances of members of the uniformed services may be utilized for the payment of claims as authorized by Public Law 85–255, approved September 2,1957.”

The foregoing proposed supplemental appropriations are necessary to accelerate and expand programs for the construction of dispersal and alert facilities for the Strategic Air Command, for the development and procurement of long-range ballistic missiles, including construction of ballistic-missile sites and ballisticmissile submarines, for the establishment of a ballistic-missile-detection system, and for extension of the semiautomatic ground environment system for air defense. Funds are also requested for the new Advanced Research Projects Agency, to be responsible under the Secretary of Defense for the research and development phases of advanced science programs, including satellites and other outerspace projects, the development of an anti-ballistic-missile missile system, and such other special projects as may be designated by the Secretary of Defense.

Establishment of the Advanced Research Projects Agency will require authorization of an additional 15 professional and scientific positions and 10 other positions in grades 16, 17, or 18 of the General Schedule over and above those now authorized by law. Provision is also made for the payment of claims authorized by Public Law 85-255, approved September 2, 1957.

The $1,370,000,000 herein requested, consisting of $1,260,000,000 in new appropriations and transfer authority in the amount of $110,000,000, is the same as the amount proposed for later transmission included in the 1959 budget for the Department of Defense, plus $100,000,000.

I recommend that the foregoing proposed supplemental appropriations be transmitted to the Congress.

Respectfully yours,

PERCIVAL BRundage, Director of the Bureau of the Budget.

Mr. MAHON. Now, how would you like to proceed, Mr. Secretary? Secretary MCELROY. I have a statement, Mr. Chairman, which I might read. It is very brief. Then, if you would like to proceed through questioning-which I presume you will-I suggest that that might be the best way to develop this.

Mr. MAHON. Mr. McNeil, do you have a statement?

Mr. MCNEIL. No; I do not. I have no separate statement unless a statement might be necessary on 2 or 3 of the items in the supplemental. I may add something to the explanation of the general provisions, or an explanation of 1 or 2 of the other items.

Mr. MAHON. I wish to say in our discussion yesterday in the subcommittee there seemed to be a general feeling that insofar as the programs outlined here are concerned the program which you are submitting is not overly ambitious; it is just a piecemeal supplemental proposition. We understand that.

I think after we understand the program we will be inclined to approve, without a doubt, the program, but I do not want to prejudge the matter. I am not now speaking of the funds requested.

NEED FOR SUPPLEMENTAL FUNDS AT THIS TIME

There is a question here as to whether or not the money is actually needed at this time. In other words, the Department of Defense for the current fiscal year of 1958 has available to it in the neighborhood of $70 billion for expenditure, over half of which will be available for obligations. Of course, we realize that much of that money was provided in previous years and is for long lead-time items. In view of what has happened since the adjournment of the 1st session of the 85th Congress, I am informed that some very significant changes have been made in defense planning. I am of the opinion that probably you would not have to have this $1.2 billion if we gave you authority to reprogram the money which you already have available to you.

Now, I assume if we did that it would be necessary for you to request more money, Mr. McNeil, in the fiscal year 1959 budget.

Mr. MCNEIL. That is correct. In addition, the authority granted in the past and made available in 1958 is just adequate to cover the programs that are going to be started this year to June 30, with a few exceptions.

Mr. WIGGLESWORTH. I did not quite understand what you said. Mr. MCNEIL. Essentially all of the funds appropriated in prior years, which were carried over as unobligated on July 1, 1957, together with the new funds provided for 1958, have been programed for pro