mation necessary to develop and retain, so that the production plant, equipment, and manpower requirements are known and ready for utilization upon mobilization, thus reducing the "lead time" to full production. The requested funds would be utilized for exploratory studies and pilot production including development of necessary special production machinery and equipment for producing selected ordnance items at high-production rates. Included also would be exploratory studies covering newly developed methods of production presently used for the production of goods for the civilian economy, toward the utilization of these new methods for the production of ordnance equipment. Projects under consideration include joint Army Ordnance-Bureau of Ordnance studies on certain phases of ammunition component production, including a continuance of the joint ArmyNavy steel cartridge case production line, initiated in the 1950 O&OSN budget and now con inued as a request for funds for the current year's balance of the Bureau of Ordnance share. Studies for the uses of electronic and electrical gaging and measuring techniques in the production of ordnance are also included in this category III. A list of the projects to be included in this category III is presented in detail below:

Exploratory studies and pilot production, including necessary specialized production machinery and equipment:

VT fuze components (joint Army-Navy)

Cold extrusion of ammunition components__

Assembly of VT fuzes (improvement of present methods)

Production of 3'/50 and 3/70 projectiles by automatic production

line (continued from fiscal year 1950)

Balance of BuOrd share in joint Army-Navy steel cartridge case pro

duction line (continued from fiscal year 1950)..

Electronic and electrical measuring and gaging techniques.

Industrial preparedness studies for:

3'/70 rapid fire twin AA mount_

Gunar systems.

Total category III..

$75,000

75,000

36, 850

30, 000

1, 500, 000

65, 222

30, 000

25,000

1, 837, 072

World War II definitely demonstrated the necessity for ample production facilities, equipment, and knowledge of the problems of production peculiar to the munitions of war. Therefore higher authority provided for the retention of certain manufacturing plants built during the war, the retention, rehabilitation, preservation and maintenance of certain machine tools and production equipment, and for the preparation of industrial preparedness measures such as production engineering analyses, to enable the manufacturers, normally engaged in manufacture of goods for the peacetime economy, to convert to war production of unfamiliar items in the minimum of time. This Bureau is particularly in a peculiar position with respect to this retention, preservation and planning, as obviously there are no great number of manufacturers who produce naval ordnance in peacetime in the quantities required for wartime consumption. Ships and aircraft are always in commercial production, but torpedoes or antiaircraft guns and fire control are obviously not. Therefore, acting under the directives and guidance of the Munitions Board, in common with the other services, this Bureau has retained certain plants equipped particularly for the production of naval ordnance; retained, rehabilitated, preserved and maintained certain machine tools used in ordnance production; instituted industry preparedness measures

such as production engineering studies, development of production methods, etc., all to the end that a state of readiness is being maintained, and will continue to be maintained, so that the transition from the production of goods for peacetime use to the production of naval ordnance, will be speeded up and that ordnance items necessary for the support of the fleet and for use of other services will be produced quicker, cheaper, and in acceptable quality.

EXPLANATION OF CHANGE IN PROGRAM

The change in program results in a net increase of $499,080. as follows:

A. (1) An increase of $108,150 in the amount requested for the guarding and maintenance of plants of the departmental plant reserve, due to the necessity for accomplishing certain items of deferred maintenance that are urgently needed in order to protect the Government's investment in the plants in need of such maintenance work.

A. (2) An increase of $50,000 in the amount requested for the procurement, acquisition, preservation, and maintenance of machine. tools and plant equipment in the industrial equipment reserve and in certain inactivated shore establishment activities. This increase is due to the accent being placed on the completion of this preservation work at the earliest possible date, after which only maintenance will be required, resulting in smaller requests for funds in subsequent years. A. (3) An increase of $340,050 in the amount requested for industrial preparedness measures, due to the necessity for increasing the amount requested for the Bureau's share in the joint Army-Navy steel cartridge case project to $1,500,000, as a proportion equal to the Army's share of $1,500,000 for this fiscal year. The joint Army-Navy ordnance share for this project in fiscal year 1950 was $1,000,000 each. Reductions in other phases of industrial preparedness measures result in net increase of $340,050.

D. (1) An increase of $880 in the category temporary duty travel, due to increased travel costs.

CURRENT AND FUTURE PROGRAMS

The industrial mobilization planning programs are continuing and are in accordance with munitions board programs for each fiscal year.

As detailed in the previous paragraphs describing activity 7, it will be noted that industrial mobilization planning breaks down into four main categories, reserve plants, machine tools and production equipment, industrial preparedness measures, and planning within the National Military Establishment. Although expenditures for fiscal year 1949, allocations for fiscal year 1950, and budget requests are tabulated in a previous paragraph, a résumé of work under way and plans for fiscal year 1951 is given below.

(1) Reserve plants: These plants of the departmental plant reserve are guarded and maintained to the end that they will be available to this Bureau for the production of ordnance, upon mobilization or the declaration of an emergency. This involves regular inspection and recommendations for maintenance operations to be carried out, to the end that the Government's investment will be protected and that the plants will be in such physical condition to carry out the production of such ordnance equipment as is presently scheduled for these plants. This obligation has been carried out in past years and future programs embody the continuance of such guarding and maintenance

measures.

(2) Machine tools and plant equipment: Currently, and in past years, the machine tools and plant equipment comprising the industrial equipment reserve, have been disassembled, rehabilitated, and repaired if needed, preserved by methods adopted as joint services standards by the Munitions Board, placed in dehumidified storage areas, and then maintained in this preserved condition. It is planned to continue this work in fiscal year 1951, but it is also anticipated that the disassembly, rehabilitation, and repair, together with preservation will be practically completed in this fiscal year 1951 and that maintenance of the preserved condition only will be required. There is also currently in force, and planned for continuance in fiscal year 1951 and later, a modernization program, which will provide for the rebuilding and modernization of certain strategic machine tools, in accordance with procedures established by their original builders. In addition, a few new machine tools may be purchased for the industrial equipment reserve, in order to bring the reserve up to a state of readiness to cope with new machining and production techniques upon mobilization. Final inspection gages, used by naval inspectors in the final acceptance or rejection of ordnance items, are kept in a state of readiness for distribution and use in the event of mobilization. It is planned to continue the above-described operations in fiscal year 1951 and in succeeding years.

(3) Industrial preparedness measures: This category covers the preparation, obtaining and analysis of production planning and production engineering studies, plant lay-outs, manufacturing process analyses and other planning steps necessary as preparation for meeting mobilization production requirements for ordnance items and equipment. As an example, a number of such industrial preparedness studies covering mines were instituted in fiscal year 1949 and also for ASW weapons. The work was continued in fiscal year 1950 and studies are under way on new AA mounts, rocket launchers, depth charge projectors, new torpedoes and other ASW ordnance items. Chief among other projects under way in fiscal year 1950 are the initial engineering phases of the JAN steel cartridge case project,

$65,000 for

Vi roig stem to explain

Yes; this beams in men 1-7 the justifications.

No work contemclared inder this activity in 1951 were under the following appropriation:

SCOPE AND SIGNIFICANCE OF WORK

wavy provides funds, (1) for the supply, installation and naucedance of ordnance material required for the training of Nuvo (serve ashore, and technical material for maintenance and una ce installed in Naval Reserve training vessels: (2) on of ammunition, provided from regular Navy be used for the training of Naval Reserve perCégre gunnery; (3) for steno graphic assistance to & Now Reserve in each naval district for the Ordnance There are 111 vessels assigned to the Naval colinin, nagma, 97 Naval Reserve training centers which Monament mstalled and are considered complete; 34 Kosove training centers will have their ordnance

installations completed by the end of fiscal year 1951, leaving 16 planned installations uncompleted.

An adequately trained Naval Reserve is essential in event of war. The ordnance equipment and material provided under this program will enable Naval Reserve personnel to qualify adequately in the operation of ordnance similar to that provided on board ship. Ordnance comparable to that installed in the active and reserve fleets, must be provided for the present training of the Naval Reserve, otherwise their usefulness on mobilization will be impaired. Also, this equipment must be kept in good operating condition in order to provide optimum training. Stenographic aid, to the directors of the Naval Reserve in the naval districts, is necessary in order that they can properly administer the training program for officers who are especially qualified in the technical phases of ordnance. These officers will be required for the early expansion of the Naval Ordnance establishment upon mobilization. There is no other ready source of technically qualified personnel available to administer ordnance activities.

EXPLANATION OF CHANGE IN PROGRAM

The change in program results in a net decrease of $550,000, as follows:

(1) A decrease of $40,000 in funds for procurement of radars. Decreased funds requested reflect a lower unit cost due to a change in the type of radar planned for procurement in 1951.

(2) A decrease of $45,000 in funds for procurement of spare parts. This decrease reflects a planned reduction in operating and maintenance level in the Naval Establishment in 1951. Funds requested provide spare parts for maintenance of ordnance installed in the 111 ships assigned to the Naval Reserve training program. The capital value of ordnance equipment installed in these ships amounts to $22,070,000. The funds requested herein for spare parts, $40,000, is less than 0.02 percent of the value of the equipment to be maintained. (3) An increase of $70,000 in funds for installation and major maintenance at NRTC's. Funds requested provide for maintenance and for installation of ordnance equipment at Naval Reserve training centers. The increase in funds requested reflects a planned increase in the number of ordnance installations planned for accomplishment at these activities in 1951 toward completion of the planned program.