Senator MAGNUSON. And this is a fixed charge. There isnt's anything you can do about that? Mr. GLEASON. That is correct. Senator MAGNUSON. And the readjustment benefits are in the same category. Mr. GLEASON. Readjustment benefits will be down. Senator MAGNUSON. And then we have got the Philippine item, and then veterans' insurance. You are requesting $16 million, or it is $16 million less than in 1964. Mr. GLEASON. Yes, sir; $16 million less. Senator MAGNUSON. Is that due to the fund Mr. GLEASON. The decrease results principally from completion of indemnities installment payments to beneficiaries of the Korean conflict. Senator MAGNUSON. Now the service life fund is still in good shape, isn't it? sir. Mr. GLEASON. Yes, sir; very good. PAYMENT OF INSURANCE DIVIDENDS Senator MAGNUSON. Are we getting any dividends this year? Mr. GLEASON. We will be paying dividends again in January; yes, Senator MAGNUSON. Can you leave the dividends in and pile up more insurance? Mr. GLEASON. Yes, sir; you can. Senator MAGNUSON. You have got that option? Mr. GLEASON. Yes, sir. Senator ALLOTT. Your limit is $10,000? Mr. GLEASON. $10,000. Senator ALLOTT. You can't increase your insurance over that? Mr. GLEASON. Oh, no. Mr. DRIVER. You can let the dividend accumulate. Senator MAGNUSON. You can leave that in and it draws interest? Mr. DRIVER. Yes, sir. Senator MONRONEY. How much? Mr. DRIVER. Three percent. Senator MAGNUSON. And then later on if you want to you can pull out the dividends with interest? Mr. DRIVER. Right; or apply them against premiums. Many do that. Mr. BRICKFIELD. Premiums due or future premiums. Senator MAGNUSON. If you are like Allott and me, you are over the pail on that one. All right, I imagine the Administrator is in the same position. Mr. GLEASON. Yes, sir. LOAN GUARANTEE AND REVOLVING FUND Senator MAGNUSON. And then the loan guarantee and revolving fund; is that going to be in the supplemental? Mr. GLEASON. Yes, sir; we do want to stress the limitation that we would like to have. Senator MAGNUSON. All right; submit that and then your direct loans. Then I think you should be prepared to go into some detail in the GI housing program when you come back. Mr. GLEASON. We are, sir. (Discussion off the record.) LOAN PROGRAM IN ALASKA Senator MAGNUSON. One question for the record. Have you liberalized within your authority the problem of the GI loan in Alaska? Mr. GLEASON. Insofar as the earthquake is concerned? Senator MAGNUSON. Yes. Mr. GLEASON. Yes, sir. Senator MAGNUSON. Would you put that in the record? Senator MAGNUSON. What you have done. Mr. GLEASON. Yes, sir. Senator MAGNUSON. Because this is very important right now. Senator MAGNUSON. What you have done insofar as you have authority to do within your program in Alaska. SUMMARY OF VETERANS' ADMINISTRATION ACTION TO ASSIST ALASKAN VETERANS WHOSE VA-FINANCED HOMES WERE DAMAGED BY EARTHQUAKE OF MARCH 27, 1964 Immediately after the earthquake of March 27, 1964, newspaper and radio announcements were published or broadcast concerning financing available under the housing programs of the Veterans' Administration. The Veterans' Administration will make a direct loan of not to exceed $15,000 to enable an eligible veteran to buy or construct a home or to finance repairs to a property owned and occupied by the veteran as his home. Within the $15,000 ceiling the loan may be for 100 percent of the cost of the property or repairs. Also, the Veterans' Administration will guarantee up to 60 percent (but not to exceed $7,500) of a loan made by a private lender to an eligible veteran to purchase or construct a home or to finance repairs to the veteran's home. The guaranteed loan may be made for 100 percent of the cost of the property or the repairs if the lender is agreeable. Letters have been sent to approximately 400 homeowners in the earthquake areas whose properties are financed with VA direct loans (350), VA-guaranteed loans (31) and loans made by VA to purchasers of properties previously acquired by VA (19). These homeowners were asked to inform the Veterans' Administration of any earthquake damage to their properties. They were also requested to inform the Veterans' Administration if forbearance was necessary with respect to their monthly payments. The Veterans' Administration has received replies from 270 of these inquiries. Those properties reported as having been damaged have been inspected by construction analysts sent to Alaska from the west coast offices of the Veterans' Administration. These inspections indicate that 15 properties financed with VA loans have suffered major damages totaling $41,712 and 112 properties have sustained minor damages totaling $17,628. A loan specialist from the Seattle regional office of the Veterans' Administration is now in Alaska to provide on-thespot service to veterans interested in loan advances to repair their homes and to arrange forbearance where requested. This representative is also contacting those homeowners who failed to reply to the Veterans' Administration's earlier inquiry requesting information as to the condition of their property. Thus far, only 30 forbearance requests have been received, all of which have been granted. The Seattle regional office manager has been authorized to make loan advances up to $2.000 without the prior approval of the VA central office for repairs to properties damaged by the earthquake. If a veteran's home financed with a VA direct loan has been totally destroyed, and the veteran gets a loan from the Small Business Administration to build or purchase another home, VA will release the veteran from personal liability on his VA direct loan upon payment of $1,000. The Small Business Administration will advance the $1,000 and include it in the loan it makes to the veteran to purchase or construct a home to replace the one he lost in the earthquake. COMMITTEE RECESS Senator MAGNUSON. All right. We will recess until Monday when we will hear from Civil Defense. On Tuesday we have the space agency, and on the 13th we have the FAA. We may have to postpone those two items for various reasons but we will meet on Monday at 8:30 when we will hear from Civil Defense. Then it is understood that if and when the House passes the bill, then we will come back and discuss more specific items. Mr. GLEASON. You don't want us back here then on Monday? Senator MAGNUSON. No, you don't need to come back on Monday. And then when the House passes the bill, and Congressman Thomas thinks he will get it done this month. I think you can anticipate near the end of the month, we hope no later than the first week in June, we can start to button this thing up. Mr. GLEASON. Thank you, sir. Senator MAGNUSON. The committee is in recess. (Whereupon, at 10:10 a.m., Friday, May 8, 1964, the committee. recessed, to reconvene on Monday, May 11, 1964, at 8:30 a.m.) 31-706-64-pt. 1-44 INDEPENDENT OFFICES APPROPRIATIONS FOR 1965 MONDAY, MAY 11, 1964 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met, pursuant to recess, at 8:45 a.m., in room S-128, U.S. Capitol Building, Hon. Warren G. Magnuson, chairman, presiding. Present: Senators Magnuson, Allott, Young of North Dakota. DEPARTMENT OF DEFENSE OFFICE OF CIVIL DEFENSE STATEMENT OF HON. CYRUS R. VANCE, DEPUTY SECRETARY OF DEFENSE; ACCOMPANIED BY STEPHEN AILES, SECRETARY OF THE ARMY; WILLIAM P. DURKEE, DIRECTOR OF CIVIL DEFENSE; ROBERT E. YOUNG, EXECUTIVE ASSISTANT TO THE DIRECTOR OF CIVIL DEFENSE; HUBERT A. SCHON, ACTING DEPUTY DIRECTOR OF CIVIL DEFENSE; MRS. JANE F. HANNA, DEPUTY DIRECTOR OF CIVIL DEFENSE; JOHN W. McCONNELL, ASSISTANT DIRECTOR FOR PLANS AND OPERATIONS; TROY V. MCKINNEY, COMPTROLLER; ROBERT E. HOLT, ASSISTANT DIRECTOR FOR MANAGEMENT; WALMER E. STROPE, ASSISTANT DIRECTOR FOR RESEARCH; EDWARD S. JOHNSON, DEPUTY COMPTROLLER; FREDERIC E. STEVENSON, DIRECTOR, PROGRAMS DIVISION; AND CHARLES M. MANNING, GENERAL COUNSEL ESTIMATES, 1965 AND APPROPRIATION, 1964 Senator MAGNUSON. All right. The committee will come to order. We have today the Office of Civil Defense, Department of the Army. We have the Deputy Secretary of Defense here today, Mr. Vance, and several of his associates in the Department of the Army. For the purpose of the record, on operation and maintenance last year there was appropriated $70,319,000. The budget this year-the budget estimates which were sent up by the administration were $92,400,000, or a plus of $22,081,000. For research, shelter survey, and marking, the amount last year was $41,250,000, but there is no budget estimate on that item this year; is |