programs without undertaking any new construction or conversion projects. Although the demands of other programs are so urgent as to sharply restrict funds for new construction and conversion at this time, there are certain types definitely and urgently needed as reenforcements or prototypes for rounding out the operating forces and continuing the development of naval warfare. Authority to request committee approval of the construction of these new types will be requested in the near future, but the new program would not be initiated until fiscal year 1952. However, it is essential that an adequate shipbuilding program be resumed that year. PROCUREMENT OF AIRCRAFT The funds provided in the 1951 estimates will procure about 817 aircraft which number will replace attrition losses in 1951. The average annual new procurement to sustain through the coming years the 1951 operating aircraft level would be much larger. The delivery rate of new aircraft in fiscal year 1951 will be about 70 per month. The new procurement list for 1951 is made up principally of jet fighters since there is now a 40 percent deficiency in first line fighters for the combat forces of 1951. As the large numbers of World War II aircraft, which now constitute 80 percent of our aircraft inventory, pass out of service it will become necessary to increase our rate of aircraft procurement, to accept a reduced operating strength, or adopt a combination of these two courses. FLEET TRAINING The forces which this budget will provide in fiscal year 1951 will be deployed and assigned administratívely to the Atlantic and Pacific Fleets. The policy of training naval personnel by cruising on foreign stations will be continued. From those assigned to the Atlantic Fleet, one carrier, a division of cruisers, one or two squadrons of destroyers, submarines and appropriate auxiliary type ships will be deployed in the eastern Atlantic and Mediterranean on a rotational but continuing basis, as will one reenforced Infantry battalion of the Fleet Marine Force, Atlantic. From the Pacific Fleet, one carrier, cruisers, destroyers, submarines, and certain amphibious craft will be deployed in the western Pacific. From time to time the forces in the western Pacific will be augmented by various types. With few exceptions the units assigned to foreign stations will be rotated at 4 to 6 month intervals in order to avoid the expense and other complications of moving dependents overseas and there providing for them. The character of fleet training will be modified somewhat in 1951 to provide more thorough training of individual units, more opportunities for ship upkeep, and a decrease in the time spent on exercises of other kinds. MAINTENANCE OF SHIPS During the first half of the fiscal year 1950 maintenance work on hips of the active fleet was considerably curtailed. Subsequent reductions in funds has necessitated an even greater curtailment which 60777--50-pt. 4-2 will leave only a bare minimum for peacetime operations. The pr gram of quinquennial shipyard overhauls of vessels of the Reserv Fleet, which has been in effect since 1947, was suspended in Augu 1949 as an economy measure; and it is now policy that only the ship yard work associated with routine dockings be continued. It planned that such drydocking, which was suspended for the remainde of fiscal year 1950 in order to conserve funds, will be resumed in th fiscal year 1951. Although some 150 ships will have been adde to the Reserve Fleets in 1950, the men and money allocated to th maintenance of these fleets will be reduced under these estimates. MILITARY STRENGTH IN 1951 The planned strength of military personnel of the Navy and Marin Corps for fiscal year 1951, translated into total man-years, is 459,030 The various categories which comprise this total are: Navy officers_. Navy enlisted_ U. S. Naval Reserve officers on duty connection Reserve training. Total-- Man-year 43, 39 327, 10 1,38 12, 72 7,31 67, 12 459, 030 The reduction of 1,590 officers during the fiscal year 1951 will be accomplished through the medium of natural attrition, the reversion of temporary officers to their permanent warrant or enlisted status and the placing of Naval Reserve officers on inactive duty in the numbers required to remain within approved totals. The planned officer strength represents the absolute minimum number required to staff the Naval Establishment and at the same time meet the ever-increasing but essential tasks that are anticipated during the fiscal year. The five-semester college and general-line school programs must be continued in order to fulfill commitments to the officers who transferred to the Regular Navy at the end of World War II; this involves approximately 1,800 officers per year until at least 1953. There are increasing officer requirements for the planning agencies of the Navy Department, Joint Staffs, and the activities of the Office of the Secretary of Defense, the military-aid program, planning in connection with the North Atlantic Pact and certain classified operations. These requirements for officers are in no degree proportional to the normal officer-enlisted ratio existing in the fleet. No major administrative difficulties are anticipated in meeting the planned officer requirements. Appreciable difficulties are anticipated in meeting the actual needs of the service from the standpoint of the number of well-trained officers. ENLISTMENTS The fiscal year 1951 will be a difficult period relative to enlisted personnel. As a result of the expirations of enlistments of some 200,000 2-year enlistees in 1948, few of whom reenlisted, it was necessary to recruit an almost equal number of replacements. The 3-year enlistment terms of these men will expire in fiscal year 1951; and, al though the reenlistment rate has increased appreciably as a result of more stable operations, the lapse of certain GI benefits, and primarily because of the passage of the Career Compensation Act of 1949, the problem remains a sizable one. It is planned to obtain essential replacements in as nearly equal monthly increments of 5,000 to 7.000 as seasonal recruiting variations permit. Within the restrictions imposed by funds and personnel ceilings, all practicable steps are being taken to equalize the recruiting load between fiscal year 1950 and 1951. An authorized 3-month early discharge for the convenience of the Government of those men who do not reenlist, is expected to shift approximately 15,000 discharges from 1951 to 1950. A continuance of the recent rise in reenlistments will, of course, reduce the requirements for recruit replacements; it is, however, an indeterminate which is affected by many uncontrollable factors, not the least of which is the economic condition of the country as a whole. The planned reductions in Regular enlisted strength, from a beginning figure of 336,000 to an end figure of 317,000, will be accomplished by the normal expirations of enlistments without resorting to forced attrition. TRAINING OF ENLISTED PERSONNEL Appreciable progress has been made, primarily within the past year, in the training of enlisted personnel to fill the seriously depleted rate structure which followed demobilization. Continued emphasis on formalized training is necessary not only for the purpose of supplying the essential trained petty officers in the technical rates, but also the replacements resulting from expiration of enlistment losses. The 13-week period of recruit training will be continued. The five-semester college and general-line school programs for Reserve and temporary officers transferred to the Regular service is a continuing commitment. The level of postgraduate technical training is already at the minimum required for service needs. Fiscal year 1951 training programs will remain at current 1950 levels. No change in personnel training policy is anticipated. The Naval and Marine Corps Reserve are most important elements. of our potential combat strength. We rely heavily upon them to supply our early mobilization personnel needs. The total strength of the Naval Reserve, Organized and Volunteer, as of November 30, 1949, was 1,068,780. We plan an increase in the Organized Reserve to enable us to meet our early, high-priority mobilization requirements. The projected strength of the Organized Reserve for 1951 is 29,225 officers and 175,625 enlisted personnel, or an aggregate of 204,850, an increase of about 22,500 over the planned average strength of 182,306 for fiscal year 1950. Members of the Organized Reserve are required to attend regular weekly drills (48 yearly) and to participate in annual training duty, for which they receive pay. MARINE CORPS RESERVE The Marine Corps Reserve will consist of the Organized Reserve of 3.716 officers and 47,056 enlisted personnel, and a Volunteer Reserve of 24,500 officers and 75,000 enlisted personnel. TRAINING OF RESERVE PERSONNEL The Navy is fully cognizant of the important and vital role of its Naval and Marine Corps Reserve in national defense, and we plan to continue vigorously to train and maintain this essential part of the Naval Establishment. During fiscal year 1951, particular emphasis will be placed on completing the installation of electronic equipment in the 23 Reserve training facilities recently designated as major combat operation centers; on increasing the percentage of the Organized Reserve participating in annual 2 weeks' training duty; on continuing carrier qualification on the Naval Air reservists during the 2 weeks' annual training-duty periods to the extent to which the Naval Air Training Command and carriers in the active fleet can accommodate the program; and on the preparation of coures of study so that the interest, morale, and training of the reservists will be kept at a high level. I have modified the organization of my office to make the Assistant Chief of Naval Operations for Naval Reserve directly responsible to the Vice Chief of Naval Operations and to me and thereby keep me in the closest practicable touch with Naval Reserve matters. RESEARCH AND DEVELOPMENT Research and development are essential to progress. But it takes time—and time in required quantities will not be available once hostilities begin. We are now developing detection devices and weapons, with the vehicles to carry them, to defeat enemy submarines and mines; and advanced types of ships, aircraft, and guided missiles to protect fleet and convoy operations against determined air attacks. In our research and development programs, the greatest emphasis is being placed on antisubmarine warfare and air defense. All our research programs are being surveyed to eliminate projects which do not give promise of adequate contribution to future combat efficiency; the elimination of these projects will increase funds for those more important. As a result of the reassignment within the Department of Defense of responsibilities for certain functional tasks, the Navy in fiscal year 1951, as well as in the current fiscal year, is faced with certain additional expenditures. MILITARY SEA-TRANSPORT SERVICE On October 1, 1949, the Military Sea Transportation Service was established as an operating force under the Chief of Naval Operations. The water element of the Army Transport Service is being absorbed by the Navy, the entire process to be completed by June 1, 1950; the first increments to be taken over on March 1, 1950. By a directive from the Secretary of Defense, sea-transportation costs will be apportioned among the three using services and the Military Sea Transportation Service reimbursed accordingly. The additional military personnel required will for fiscal year 1950 and 1951 be provided by a transfer of spaces from the Department of the Army. The militarypersonnel strength of the Navy stated above does not include the added requirements for Military Sea Transportation Service. CONTROLLED MINING The Navy was directed to take over controlled mining from the Army by November 30, 1949. This generated a need for additional personnel and funds not now provided for. It is expected, however, that there will be some transfer of funds in fiscal year 1950 and 1951 from the Army appropriations to take care of a portion of this increased cost. ADMINISTRATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS The Navy is now charged with the administration of the Trust Territory of the Pacific Islands, which are under United Nations trusteeship to the United States. The broad objectives of the Trust Territory government are the establishment of adequate systems of public health and education, the training of the native peoples in local selfgovernment, and the development of the natural resources of the area to provide the basis for a sound and self-supporting economy. This responsibility is to be assumed by the Department of the Interior on July 1, 1951. However, an increase in financial support for the Trust Territory in fiscal year 1951 is necessary because of the exhaustion of accumulations of local funds to meet the fiscal year 1950 costs. Economic conditions in the Trust Territory are such that local revenues can be expected to afford only minor support of the cost of administration. There is also included for fiscal year 1951 a program to finance the conversion from military to civilian governmental organizations in the Trust Territory and American Samoa, preparatory to the transfer of these island governments to the Department of the Interior. The Navy has planned further reductions of considerable magnitude in the Pacific Ocean area in order to operate within the very critical maintenance funds in prospect for fiscal year 1951. This effort toward reducing expenses is being offset, to some degree, by the necessity for the Navy to assume the support of certain facilities and operations formerly provided by another service. A closely related matter is our planned withdrawal from the aviation installation at Midway, whose primary mission has been the support of civil air lines transiting the Pacific. The Navy can no longer finance the operation of this facility, which, it is felt, should properly become the responsibility of the Department of Commerce. EFFECT OF REDUCED BUDGET FOR 1951 The approved naval estimates for the fiscal year 1951 represent a $1,000,000,000 reduction from our fiscal year 1949 obligational authority. Obviously, a reduction of this magnitude cannot be made without a very definite impact on the over-all combat readiness of the naval service to meet D-day assignments and missions. Our operating forces have been reduced; this fact alone intensifies the necessity that they be maintained in the highest possible degree of readiness for the immediate execution of the tasks which devolve upon the Navy in peacetime and which we shall be called upon to discharge at the outset of war. To do so, it is necessary to eliminate many |