facility. When this is accomplished, annual savings in maintenance costs of $819,000 will be realized. Approximately 100 civilian positions will be released. This action will require about 2 years to accomplish.

DECLARE AS EXCESS GOVERNMENT-OWNED FACILITIES LOCATED ON THE PREMISES OF THE NEW YORK SHIPBUILDING CORP. (NAVY), CAMDEN, N.J.

The Navy has constructed building, shipways, and other improvements, and installed equipment on the property of the New York Shipbuilding Corp., beginning during World War II. The total acquisition cost now stands at $15.3 million. The property is now being maintained at no cost to the Government by the contractor in return for full use of the facilities.

Since the property is excess to Navy peacetime and mobilization requirements, it will be declared excess and turned over to General Services Administration for disposal. The contractor has indicated a possible interest in purchase.

POSSIBLE SALE OF GOVERNMENT-OWNED FACILITIES LOCATED AT BETHLEHEM STEEL CORP., HOBOKEN, N.J.

This is one of six plant locations of this contractor on which Government-owned facilities were constructed during World War II. Negotiations to sell are in process at two other locations (Staten Island and Baltimore).

In the case of Hoboken, the Navy invested $9.8 million in land, buildings, drydocks, and equipment to expand ship repair capacity. The facilities are being used by the contractor on a rental basis, with an option to purchase. Negotiations are proceeding with the contractor for possible sale to him of the facilities.

IN ACTIVATE AND DECLARE EXCESS RARITAN ARSENAL, METUCHIN, N.J.

The Army Ordnance supply and maintenance system in the North Central and Northeastern States contains 11 major facilities being utilized at less than 70 percent capacity. This is resulting in unnecessary costs estimated at $14.6 million per year. Surveys have been made to select those installations which can be efficiently phased out over the next 3 years by consolidating inventories and activities into fewer locations.

It has been found that the Raritan Aresenal is one of the two best suited to accomplish these objectives. (Rossford Ordnance Depot, Toledo, Ohio, is the other selected.) Raritan Arsenal lacks the prerequisite safety area for storage of ammunition and missiles and thus cannot fulfill multiple purpose Ordnance Corps storage and maintenance missions as is necessary for efficiency and

economy.

A 3-year plan of phaseout has been developed under which the Raritan Arsenal supply and maintenance responsibility will be distributed among the remaining deposits. In calendar year 1964, when the phaseout is completed, the arsenal, which had an acquisition cost of $36 million, will be turned over to General Services Administration for disposition. Areas found to be required for other Government or commercial users will be made available throughout the phaseout period. Annual operating savings of $9.6 million are anticipated. The Raritan Arsenal has 2,599 civilian positions, of which 1,400 will be a net savings after transfer of workload and payroll to other points. The reduction in employment at Raritan will be accomplished over a 3-year period by normal attrition, transfer of employees with the mission, retraining, and other assistance to relocate and reemploy the personnel affected. A special personnel office will be established for this purpose.

NEGOTIATE WITH THE CITY OF ALBUQUERQUE, N. MEX., TO RETURN TO THE CITY TULL USE OF RUNWAYS, TAXIWAYS, AND NORTHWEST PORTION OF KIRTLAND AIR FORCE BASE, N. MEX.

The Kirtland Air Force Base is also the municipal airport of Albuquerque. The facility was made available to the Air Force by the city on a quitclaim deed in 1950, for use by the special weapons center. The center now occupies the eastern part of the base and provides test and transportation support to the Sandia Corp. The arrangement with the city provides that commercial aviation is permitted a maximum of 100 flight operations per day. In return for full control of the field, the Air Force maintains and operates the two runways and

taxiways. Installations installed by the Air Force since 1950 have an acquisition cost of $48.6 million.

During the past 2 years the growth of civil aviation in the area has reached the point where the city needs unrestricted use of the runways as well as additional facilities for a large terminal, hangar, and associated activities.

Following the recent inactivation of the fighter-interceptor squadron at Kirtland, the Air National Guard unit has been relocated, thus freeing the entire northwest portion of the base. At the same time, the volume of Air Force flight operations have been substantially reduced.

As a result, continued control and operation of the field by Air Force is no longer necessary, and the requirements of the city to resume control of the runways and the northwest portion can be met without interference to the mission of the special weapons center.

It is thus proposed to enter into negotiations with the city to determine whether a mutually acceptable arrangement can be made under which to return full title to the city, plus full use of the runways, taxiways, and the northwest portion of the field. The Air Force would then become a tenant. Part of this negotiation will be concerned with any outstanding obligation of the Government to restore the runways to the condition that existed when the Air Force assumed control in 1959.

By this action, the city will obtain title to needed facilities and become eligible for FAA assistance in the expansion and improvement of the facilities. The Air Force will realize estimated annual savings in operating expense of $950,000 and 180 military personnel will be released for other duties; 120 civilian positions will also be reduced. The remaining Air Force complement at the base will consist of approximately 1,500 civilian and 2,500 military personnel.

DECLARE AS EXCESS AIR FORCE PLANT NO. 38, MODELTOWN, N.Y.

This facility was built for the Government during World War II for aircraft production. The original construction and additions are reported to cost approximately $3.8 million. It is presently being used by Bell Aircraft for missile engine research.

If Bell Aircraft is unsuccessful in securing additional defense programs, this property will be declared excess at the end of the present contracts. (Approximately 150 people are employed by Bell at this site with an annual payroll of approximately $1 million.) Action to be accomplished during next 3 years.

DECLARE AS EXCESS AIR FORCE PLANT NO. 68, MODELTOWN, N.Y.

This plant was built for the Air Force by Olin Mathieson Chemical Corp. in 1958 for the production of boron-based fuel at a cost of $14.5 million. Plans for operation of the plant were terminated in September 1959 and it has been in caretaker status since. There is no longer a requirement for this capacity. The Air Force has allocated some of the equipment to other contracts. The balance of the equipment is being offered to the Department of the Navy and the Department of the Army. It is planned to report any remaining equipment to GSA, along with the real property, for disposal in fiscal year 1962.

When the plant is disposed of, savings of approximately $250,000 annually in caretaker costs will be realized.

INACTIVATION AND DECLARATION AS EXCESS OF THE U.S. ARMY BUILDING AT 89 WHITEHALL STREET, NEW YORK, N.Y.

The U.S. Army Building at 39 Whitehall Street, in lower Manhattan, New York City, is an eight-story building, over 70 years old. Its acquistion cost was $459,000. It currently houses recruiting activities of the 1st U.S. Army and an Armed Forces Induction and Examining Station.

It has been found possible to relocate these essential activities to other Government-owned space in the New York City area after some appropriate modification of this space. Thereafter, the building will be declared excess to Department of Defense requirements and turned over to the General Services Administration for other use or disposal. It is planned to accomplish this move within the next 12 months. A reduction of three civilian spaces and an annual saving of approximately $80,000 will accrue. Proceeds from the sale of this property are estimated at $400,000.

PHASEOUT OF MEDICAL MAINTENANCE ACTIVITY LOCATED AT SCHENECTADY GENERAL DEPOT, SCHENECTADY, N.Y.

This activity is one of several devoted primarily to the maintenance and overhaul of medical and dental equipment for the Military Medical Supply Agency. With the completion of current repair and overhaul projects of that Agency at the Schenectady General Depot, the medical depot maintenance functions will be discontinued. This will occur during the next few months. There after the Army units now being supported by the Schenectady maintenance facility will be supported from another depot. It is estimated that a $30,000 reduction in annual operating costs will be achieved. Action to discontinue the facility will be completed in the near future. The seven civilian employees involved will be reassigned within the depot.

DECLARE AS EXCESS CINCINNATI ORDNANCE DISTRICT STORAGE FACILITY, KINGS MILLS,

OHIO

This facility, containing 120,000 square feet, was originally acquired in 1954 to manufacture machinegun components. Subsequently it has been used for the storage of Government-owned machine tools.

The Army now has seven machine tool storage facilities in which there is 1.4 million square feet of vacant storage space. To assist in reducing this vacant space, the Cincinnati storage facility has been selected for disposal, in view of its relatively high maintenance cost.

It is planned to relocate the stored equipment immediately. The plant, which had an acquisition cost of $1.9 million, will then be declared excess and turned over to General Services Administration for disposal. A reduction of $75,000 in annual operating costs will be achieved. Thirteen civilian positions will be released.

INACTIVATION AND DECLARE AS EXCESS ROSSFORD ORDNANCE DEPOT, TOLEDO, OHIO

The Army ordnance supply and maintenance system in the North Central and Northeastern States contains 11 major facilities being utilized at less than 70 percent of capacity. This is resulting in unnecessary costs estimated at $14.6 million per year. Surveys have been made to select those installations which can be efficiently phasedout over the next 3 years by consolidating inventories and activities into fewer locations.

It has been found that the Rossford Ordnance Depot is one of the two best suited to accomplish these objectives. (Raritan Arsenal, Metuchen, N.J., is the other selected). Rossford Depot lacks the prerequisite safety area for storage of ammunition and missiles, and thus cannot fulfill multiple-purpose Ordnance Corps storage and maintenance missions as is necessary for efficiency and economy.

A 3-year plan of phaseout has been developed under which the Rossford maintenance and supply responsibility will be distributed among the remaining depots. In calender year 1964, when the phaseout is completed, the depot, which had an acquisition cost of $18.1 million, will be turned over to the General Services Administration for disposition. Areas found to be required for other Government or commercial use will be made available throughout the phaseout period. Annual operating savings of $5 million are anticipated. The Rossford Depot now has approximately 1,660 civilian positions out of which a net reduction of 784 will be made after transfers of workload and payroll to other depots. The reduction in employment will be accomplished over a 3-year period by normal attrition, transfer of employees with the mission, retaining, and other assistance to relocate or reemploy personnel whose jobs are affected. A special personnel office will be established for this purpose. INACTIVATE AND DECLARE AS EXCESS THE RESERVE FLEET SITE AT TONGUE POINT, OREG. (COLUMBIA RIVER GROUP, PACIFIC RESERVE FLEET)

Continuing reappraisal of ships in the reserve fleets for naval potential results in a progressive decrease in the total number of reserve ships. Those found unfit for, or excess to, modern naval requirements are disposed of. Reserve fleet ships have been dispersed by types among 11 sites. The effect of disposal is to thin out all of the sites. In order to realize the maximum economies from disposal, it is necessary periodically to consolidate the remaining ships at fewer sites thereby reducing administrative, overhead and maintenance costs.

In fiscal year 1962 it becomes feasible to begin phaseout of the Columbia River Group, Pacific Reserve Fleet. Ships now at the Columbia River groups which have continuing potential will be reberthed in the Maritime Administration's National Defense Reserve Fleet and at other Pacific Reserve Fleet sites such as Bremerton and Mare Island. The Columbia River Group is chosen for disestablishment in preference to another Pacific Reserve Fleet site because the fewest number of ships will have to be reberthed.

By fiscal year 1963 this facility, which had an acquisition cost of $15.3 million will be inactivated and declared excess and available for disposition. By this action, it is estimated that annual savings for maintenance and operation of $1.9 million will be achieved, and 285 civilian positions and 654 military will be released. Special assistance in relocation and reemployment of civilian employees will be provided to minimize the impact of this inactivation. SALE OF BUILDINGS AND EQUIPMENT LOCATED ON THE PREMISES OF THE ERIE FORGE AND STEEL CORP. ERIE, PA.

The facilities were constructed on the contractor's property in World War II at a cost of $12.3 million to increase capacity to produce ship shaftings and heavy forgeries. The facilities were under lease to the Erie Forge & Steel Corp. which on March 14, 1961, exercised its option to purchase at the determined fair market value of $2,451,000. The sale contract provides for a 20-year national security clause.

INACTIVATE AND DECLARE EXCESS THE STORAGE ANNEX LOCATED IN THE VICINITY OF THE OLMSTED AIR FORCE BASE, MIDDLETOWN, PA.

The Middletown Storage Annex is a supply storage containing 279,000 net square feet which has supplemented the general supply storage capacity of the Air Materiel Area at Middletown. This annex was acquired in 1952 at an acquisition cost of $1.4 million to meet expanded stock levels resulting from the Korean buildup.

There is now excess storage capacity of 358,000 net square feet at Olmsted and all stocks at the annex can thus be consolidated at the Air Materiel Area. It is planned to clear the annex and declare it excess to General Services Administration for disposal during fiscal year 1962. By this action annual operating costs of $100,000 will be saved. Personnel now assigned will be transferred with the supply mission.

DECLARE AS EXCESS AIR FORCE PLANT NO. 32, AVCO, WILLIAMSPORT, PA.

This plant was built for the Government during World War II to test aircraft engines. It is a small facility containing approximately 22,000 square feet and costing approximately $280,000. It is currently being used by Lycoming Division of AVCO for engine testing and will continue for this purpose. This facility is commingled with the contractor's property and would have little value to another user.

The property is excess to the need for Government ownership, and may be reported to the General Services Administration during fiscal year 1962 to determine if a sale to the using contractor can be negotiated.

We do not anticipate the loss of any employment because of this disposal.

TRANSFER OF AIR FORCE RESERVE UNIT FROM DALLAS NAVAL AIR STATION TO CARSWELL AIR FORCE BASE AT FORT WORTH, TEX.

The current Air Force Reserve unit was located as a tenant at the Naval Air Station, Dallas, in 1949 since no other Air Force facility in the area was available at that time. The present Reserve mission is the 69th Troop Carrier Squadron, and a small navigation training squadron. The support facilities available to the Reserve unit at Dallas are inadequate and $3.5 million in new construction would be required to provide needed hangar, ramp, maintenance, and other facilities.

It has been determined that the accommodations and support facilities available at Carswell Air Force Base, Fort Worth, are adequate to accept this mission except for two buildings costing $600,000 which are budgeted in the fiscal year 1962 military construction program. This relocation will avoid $2.9 million in construction costs, and effect a reduction in annual operating and maintenance cost of $1.6 million. Forty-one military personnel will be

released for other assignment. One hundred and seventeen civilian positions will be eliminated. Civilian personnel affected will be given special assistance in relocating or securing other employment. This action will be accomplished in fiscal year 1963.

INACTIVATE AND DECLARE AS EXCESS LAUGHLIN AIR FORCE BASE, DEL RIO, TEX.

Laughlin Air Force Base is currently the home of the 4080th Strategic Reconnaissance Wing. This base, which was a World War II facility, was reactivated to accommodate a flying training mission in 1952. In 1957, the base was transferred to the Strategic Air Command, and served as the location for a special reconnaissance wing with a highly classified mission. Laughlin was selected because it best met the peculiar security and operational requirements of the SAC mission.

In early 1960, the SAC unit underwent a reorganization which reduced substantially the size and scope of the activity. In essence, a three squadron wing comprised of 75 aircraft was reduced to 1 squadron comprised of 25 aircraft, a considerable number of which are normally away from Laughlin at any one time.

The stringent security requirements which were overriding in 1957 have now decreased, and the aircraft operating difficulties have been overcome. This negates the reliance upon an installation in an isolated location, and permits the relocation of the SAC mission at another SAC base where facilities are becoming available as a result of the dispersal of the bomber force.

It has now been determined that this reduced mission can be relocated and effectively accommodated at another Air Force installation where facilities are available. This relocation can be accomplished at a net annual savings of $3.2 million in operating and maintenance expenses, and will release approximately 962 military personnel for assignment to other priority, higher priority missions.

Relocation will occur during fiscal year 1962, allowing time to properly plan for the reduction of about 258 civilian positions which will be eliminated by the transfer.

INACTIVE AND PLACE IN STANDBY STATUS SOUTH FIELD OF NAVAL AIR STATION, KINGSVILLE, TEX.

The primary mission of the air stations at Kingsville and Chase, Tex., is advanced training of jet units. Basic training is to be consolidated at the new specially designed naval air station at Meridian, Miss., on which construction is now nearing completion. As a temporary measure, basic training was conducted for a period of time at Memphis, which proved unsatisfactory; during the past year it has been located at South Kingsville. Upon completion of Meridian, it is not desirable to leave this mission at South Kingsville since it is inefficient to mix advanced and basic training at the same installation, and since modernization and improvement, costing about $2.2 million would be needed were the south field to be continued for jet operations.

It is thus planned to shift the basic training to the Naval Air Station, Meridfan, by September 30, 1961, and inactivate the south field. This will effect estimated annual savings in operating expense of $144,000 and eliminate 31 civilian positions. The 623 military personnel at South Kingsville will move to Meridian. There will be no change in the advanced training mission at North Kingsville which employs 2,433 military and civilian personnel. CONSOLIDATE AT ORANGE, TEX., ATLANTIC RESERVE FLEET SHIPS WITH LONG-TERM POTENTIAL BUT LOW MOBILIZATION PRIORITY

The naval reserve fleets are now located at 11 sites. Continuing reappraisal of ships in reserve fleets results in a progressive decrease in the total number of ships and the need for consolidating the remaining ships at fewer sites in order to reduce overhead and maintenance costs.

In fiscal year 1962 it becomes feasible to eliminate three of the reserve fleet sites and to rebalance the composition at the remaining eight sites (the sites to be disestablished are Boston, Green Cove Springs, Fla., and Columbia River, Oreg.).

With the disestablishment of Green Cove Springs, Fla., it has been determined that the most economic utilization of the Orange, Tex., site will be to pack