Comment: Provision is made in this appropriation for the maintenance and operation of activities performing service-wide supply and finance functions. This would include the maintenance and operation of the supply system in the Navy, exclusive of supply activities which do not have a service-wide significance; maintenance and operation of finance activities; material-control offices; intra-Navy transportation of things; cataloging; research and development; industrial mobilization; other costs related to operation of the supply and finance system; and departmental administration. This appropriation covers warehousing and stevedoring in connection with the supply system, as well as the contract costs of operating the tanker program. In connection with the transportation of things, I should like to call the committee's attention to the significance of the term "intraNavy." The use of this term excludes the cost of transporting items of procurement to their first destination within the Navy, which cost is provided for under the procurement appropriations on the theory that it is properly a part of the cost of such procurement. In the case of "Navy stock fund" and "Clothing and small stores fund" material, however, all transportation is budgeted for here, that is, both intra-Navy transportation and the transportation from the point of manufacture to the point of first destination within the Navy. Specific provision is also made for transportation of things under "Marine Corps troops and facilities." The enumeration of supply and finance activities covered by this appropriation is descriptive, not restrictive. SERVICE-WIDE OPERATIONS Admiral HopwOOD. Next is "Service-wide operations," which language reads: For expenses necessary for maintenance and operation of the Naval Observatory (1); the Hydrographic Office (2); service-wide communications (3); naval records centers (4); naval district headquarters (except training and public works offices), river commands, sea frontiers, and other service-wide operations and functions not otherwise provided for (5); procurement of supplies, services, and equipment for activities financed hereunder (6); Latin-American cooperation (7); not to exceed $26,090,000 for emergencies and extraordinary expenses, as authorized by section 6 of the act of August 2, 1946 (5 U. S. C. 419c), to be expended on the approval and authority of the Secretary, and his determination shall be final and conclusive upon the accounting officers of the Government (8); for examination of estimates for appropriations and of naval activities in the field for any branch of the naval service (9); and departmental salaries (10); $101,759,000. This language is derived from- (1) From "Naval Observatory": For expenses necessary for the operation and maintenance of the Naval Observatory and its observation stations, including pay of employees. (2) From "Hydrographic Office": For expenses necessary for the maintenance and operation of the Hydrographic Office and of the branch hydrographic offices, including pay of employees; hydrographic surveys; and purchase of nautical and aeronautical charts and publications. (3) From "Maintenance, Bureau of Ships": * maintenance and operation of the naval communications service, including telephone, telegraph, and teletype rentals and tolls for the Department of the Navy and the Naval Establishment; maintenance and equipment of buildings, grounds, and appurtenances of the naval communications service at the seat of government and elsewhere. (4) This item was not specifically mentioned in the 1950 act, but it was budgeted for under various heads thereof. It was included here for descriptive purposes, and confers ho new substantive authority. (5) From "Maintenance, Bureau of Yards and Docks": For the pay of employees in the field service, materials, supplies, and facilities necessary for the operation and general maintenance of activities and properties under the cognizance of the Bureau of Yards and Docks. * * * From "General expenses, Navy": For necessary expenses of the Bureau of Naval Personnel not otherwise provided for, including pay of employees in the field service. From "Naval Reserve": * For all expenses not otherwise provided for authorized by the Naval Reserve Act of 1938, as amended (34 U. S. C. 842), and the Naval Aviation Cadet Act of 1942 as amended (34 U. S. C. 850a), in connection with organizing, administering, recruiting, instructing, training, and drilling the Naval Reserve. * * (6) From "Maintenance, Bureau of Yards and Docks": For the pay of employees in the field service, materials. supplies, and facilities necessary for the operation and general maintenance of activities and properties under the cognizance of the Bureau of Yards and Docks. From "Maintenance, Bureau of Ships": * * * * equipage, appliances, supplies, materials, and services at home and abroad, under the cognizance of the Bureau of Ships. * * * (7) From "Miscellaneous expenses": * * * expenses authorized by section 38 of the act of August 2, 1946 (5 U. S. C. 421f), for Latin-American cooperation. * (8) From "Contingencies of the Navy": For all emergencies and extraordinary expenses authorized by section 6 of the act of August 2, 1946 (5 U. S. C. 419c) to be expended upon the approval and authority of the Secretary and his determination shall be final and conclusive upon the accounting officers of the Government. (9) From "Contingencies of the Navy": * * * * and for examination of estimates for appropriations and of naval activities in the field for any branch of the naval service. (10) From "Salaries, Office of the Secretary": For personal services at the seat of government for the Office of the Secretary of the Navy. From "Salaries, Office of Chief of Naval Operations": For personal services at the seat of government for the Office of Chief of Naval Operations. From "Salaries, Office of Chief of Naval Communications": For personal services at the seat of government for the Office of Chief of Naval Communications. From "Salaries, Office of JAG": For personal services at the seat of government for the Office of Judge Advocate General. Comment: This appropriation covers generally the costs of maintaining and operating the various headquarters, naval bases, and command facilities which are service-wide in scope. The specific items which are provided for here include the maintenance and operation of naval district headquarters, river commands, sea frontiers, and miscellaneous command headquarters; the maintenance and operation of naval bases, naval stations, and naval operating bases; the maintenance and operation of service-wide communications; the naval records centers; the Hydrographic Office and Naval Observatory; Latin-American cooperation; all items which are presently budgeted for under "Contingencies of the Navy;" and departmental administration. The maintenance and operation of service-wide communications comprehends all types of communications activities, excluding only local or intraactivity communications, such as station telephone plants and station toll charges. Telephone charges (excepting tolls) for bureaus and offices in Washington, including Marine Corps headquarters, will be budgeted for hereunder. ISLAND GOVERNMENTS Admiral HopWOOD. The next appropriation item is "Island governments," which language reads: For expenses incident to the administration of island governments, including liberated and occupied areas and the Trust Territory of the Pacific Islands, (1) $1,785,000. (1) There has been no change in the appropriation language under this head. OPERATION AND CONSERVATION OF NAVAL PETROLEUM RESERVES Admiral HopwOOD. Next is "Operation and conservation of naval petroleum reserves." This language reads: For expenses necessary for exploration, prospecting, conservation, development, use, and operation of the naval petroleum reserves, as authorized by law, (1) $4,000,000. (1) From "Operation and conservation of naval petroleum reserves": "To enable the Secretary to carry out the provisions contained in the act approved June 4, 1920, as amended (34 U. S. C. 524), requiring him to explore, prospect, conserve, develop, use, and operate the naval petroleum reserves. * Comment: The language of this appropriation has been clarified and simplified, but there is no substantive change from the provision under this head in the 1950 act. The language will cover expenses of the inspector of the naval petroleum reserves in California, those of the inspector of the naval petroleum and oil-shale reserves in Colorado, Wyoming, and Utah; the employment of expert consultants; exploration and development of Naval Petroleum Reserve No. 1; operation of Naval Petroleum Reserve No. 1; exploration of Naval Petroleum Reserve No. 3; engineering report on the water rights in the oil-shale reserves, and core holes in the naval oil-shale reserve No. 1, Colorado (advance to Bureau of Mines, Department of the Interior). EXPLORATION OF NAVAL PETROLEUM RESERVE No. 4, ALASKA Admiral HoPWOOD. The last item is "Exploration of Naval Petroleum Reserve No. 4, Alaska," the language for which reads: For expenses necessary for exploration and prospecting in Naval Petroleum Reserve No. 4 (1), $11,000,000: Provided, That the unexpended balances of the appropriations made available under this head by the "Department of the Navy Appropriation Act, 1949" and the "Second Supplemental Appropriation Act, 1950" shall be consolidated herewith to be disbursed and accounted for as one fund which shall remain available until June 30, 1952. (1) From Naval Petroleum Reserve No. 4, Alaska, 1949: For continuing exploration and prospecting in Naval Petroleum Reserve No. 4, as authorized in the Act approved June 4, 1920, as amended (34 U. S. C. 524) Comment: There has been a slight change in the language of this appropriation to conform to the basic authorization contained in 34 United States Code 524, but no substantive change has been effected. The items budgeted for here include the exploration and prospecting in the Naval Petroleum Reserve No. 4, Alaska, as well as expenses of the airlift and airway facilities which are incurred in rendering logistic support to this operation. Admiral HOPWOOD. That completes the Navy hearings, Mr. Chairman, except for the Navy's part in the general provisions. You Mr. MAHON. I do want to take this time to thank you, Admiral Hopwood, for your most valuable assistance to the committee. have been most helpful. I sometimes marvel at your ability to grasp the over-all problems of the Navy. Admiral HopwOOD. Thank you, Mr. Chairman, and gentlemen. |