Finan, William F., Assistant Director, Management and Organization, Bureau of the Budget, accompanied by Fred E. Levi, Assistant Chief, Office of Management and Organization, Bureau of the Potter, Hon. Charles E., a United States Senator from the State of Gray, Gordon, Director, Office of Defense Mobilization. Hoegh, Leo A., Administrator, Federal Civil Defense Administration__ Halstead, Walter P., executive director, Minneapolis Civil Defense, and president, United States Civil Defense Council Ewing, Sherley, chairman, legislative committee, National Association Message from the President_ Halstead, Walter P., president, United States Civil Defense Council: Letter Olson, Maj. Gen. Ralph J., president, National Association of State and Senate Appropriations Committee: Office of Defense Mobilization.... 145 EXHIBITS III 25 DISAPPROVING REORGANIZATION PLAN NO. 1 OF 1958, PROVIDING NEW ARRANGEMENTS FOR THE CON- MONDAY, JUNE 9, 1958 UNITED STATES SENATE, SUBCOMMITTEE ON REORGANIZATION OF THE Washington, D. C. The subcommittee met, pursuant to call, at 10 a. m., in room 357, Senate Office Building, Senator Hubert H. Humphrey (chairman of the subcommittee) presiding. Present: Senators Humphrey, Thurmond, Smith of Maine, and Martin of Iowa. Also present: Walter L. Reynolds, chief clerk; Miles Scull, Jr., professional staff member; and Kathryn M. Keeney, clerical assistant. Senator HUMPHREY. This hearing is upon Senate Resolution 297, introduced by Senator Charles E. Potter, of Michigan, which would disapprove Reorganization Plan No. 1 of 1958. Plan No. 1 of 1958 was submitted to the Congress by the President on April 24, 1958, in accordance with the provisions of the Reorganization Act of 1949, as amended. The plan would merge the Federal Civil Defense Administration, which is now an independent agency, with the Office of Defense Mobilization in the Executive Office of the President, creating a new agency to be known as the Office of Defense and Civilian Mobilization. The plan vests statutory authority for both organizations directly in the President with power to redelegate this authority as he sees fit. This plan is based directly upon a survey of nonmilitary defense functions of the Federal Government made at the direction of the Bureau of the Budget by a private management consulting company, McKinsey & Co., Inc. The main concept of the McKinsey Co. report is that most Federal civil-defense programs should be conducted through presidential delegation of authority to existing Government agencies. The specific functions envisioned for the new agency in the Executive Office are limited to: (1) overall planning; (2) administration and coordination; and (3) public information, education, and training programs. It is the viewpoint of the Bureau of the Budget that this proposed rearrangement is necessary on two counts: (1) that the vital powers involved relating to survival in event of nuclear attack should be lodged in no officer of the Government short of the President himself, 1 and (2) that the greatest flexibility of delegation is imperative to meet adequately the rapid changes in the military sciences brought about by the development of nuclear weapons. Moreover, it is contended that the vesting of authority for nonmilitary defense directly in the President would greatly improve interagency cooperation on civil-defense matters-a recognized weakness of the present program. Senator Potter, author of the disapproving resolution, who was to be our first witness, is momentarily delayed. The first witness will be Mr. William F. Finan, Assistant Director for Management and Organization of the Bureau of the Budget. I will also make available for the record a copy of Senator Potter's resolution, Senate Resolution 297, the President's reorganization plan, the message accompanying it, as well as staff memorandum No. 85-2-17 SR, which presents the background of this proposal. (S. Res. 297 and accompanying documents follow:) [S. Res. 297, 85th Cong., 2d sess.} RESOLUTION Resolved, That the Senate does not favor the Reorganization Plan No. 1 of 1958 transmitted to the Congress on April 24, 1958. [H. Doc. No. 375, 85th Cong., 2d sess.] REORGANIZATION PLAN No. 1 of 1958 Message From the President of the United States Transmitting Reorganization Plan No. 1 of 1958, Providing New Arrangements for the Conduct of Federal Defense Mobilization and Civil Defense Functions To the Congress of the United States: I transmit herewith Reorganization Plan No. 1 of 1958, prepared in accordance with the Reorganization Act of 1949, as amended. The reorganization plan provides new arrangements for the conduct of Federal defense mobilization and civil defense functions. In formulating Reorganization Plan No. 1, I have had the benefit of several studies made by the executive branch as well as those conducted by the Congress. The reorganization plan will overcome the major difficulties revealed by those studies and mentioned in my 1959 budget message where I made the following statement: "The structure of Federal organization for the planning, coordination, and conduct of our nonmilitary defense programs has been reviewed, and I have concluded that the existing statutes assigning responsibilities for the central coordination and direction of these programs are out of date. The rapid technical advances of military science have led to a serious overlap among agencies carrying on these leadership and planning functions. Because the situation will continue to change and because these functions transcend the responsibility of any single department or agency, I have concluded that they should be vested in no one short of the President. I will make recommendations to the Congress on this subject.” The principal effects of the reorganization plan are First, it transfers to the President the functions vested by law in the Federal Civil Defense Administration and those so vested in the Office of Defense Mobilization. The result is to establish a single pattern with respect to the vesting of defense mobilization and civil defense functions. At the present time disparity exists in that civil defense functions are vested in the President only to a limited degree while a major part of the functions administered by the Office of Defense Mobilization are vested by law in the President and delegated by him to that Office. Under the plan, the broad program responsibilities for coordinating and conducting the interrelated defense mobilization and civil defense functions will be vested in the President for appropriate delegation as the rapidly changing character of the nonmilitary preparedness program warrants. Second, the reorganization plan consolidates the Office of Defense Mobilization and the Federal Civil Defense Administration to form a new Office of Defense and Civilian Mobilization in the Executive Office of the President. I have concluded that, in many instances, the interests and activities of the Office of Defense Mobilization and the Federal Civil Defense Administration overlap to such a degree that it is not possible to work out a satisfactory division of those activities and interests between the two agencies. I have also concluded that a single civilian mobilization agency of appropriate stature and authority is needed and that such an agency will ensue from the consolidation and from the granting of suitable authority to that agency for directing and coordinating the preparedness activities of the Federal departments and agencies and for providing unified guidance and assistance to the State and local governments Third, the reorganization plan transfers the membership of the Director of the Office of Defense Mobilization on the National Security Council to the Director of the Office of Defense and Civilian Mobilization and also transfers the Civil Defense Advisory Council to the Office of Defense and Civilian Mobilization. Initially, the Office of Defense and Civilian Mobilization will perform the civil defense and defense mobilization functions now performed by the Office of Defense Mobilization and the Federal Civil Defense Administration. One of its first tasks will be to advise me with respect to the actions to be taken to clarify and expand the roles of the Federal departments and agencies in carrying out nonmilitary defense preparedness functions. After such actions are taken, the direction and coordination of the civil defense and defense mobilization activities assigned to the departments and agencies will comprise a principal remaining responsibility of the Office of Defense and Civilian Mobilization. After investigation, I have found and hereby declare that each reorganization included in Reorganization Plan No. 1 of 1958 is necessary to accomplish one or more of the purposes set forth in section 2 (a) of the Reorganization Act of 1949, as amended." I have also found and hereby declare that it is necessary to include in the accompanying reorganization plan, by reason of reorganizations made thereby, provisions for the appointment and compensation of new officers specified in sections 2 and 3 of the plan. The rates of compensation fixed for these officers are, respectively, those which I have found to prevail in respect of comparable officers in the executive branch of the Government. The taking effect of the reorganizations included in Reorganization Plan No. 1 of 1958 will immediately reduce the number of Federal agencies by one and, by providing sounder organizational arrangements for the administration of the affected functions, should promote the increased economy and effectiveness of the Federal expenditures concerned. It is, however, impracticable to itemize at this time the reduction of expenditures which it is probable will be brought about by such taking effect. I urge that the Congress allow the reorganization plan to become effective. DWIGHT D. EISENHOWER. THE WHITE HOUSE, April 24, 1958. REORGANIZATION PLAN No. 1 of 1958 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, April 24, 1958, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949, as amended CIVILIAN MOBILIZATION SECTION 1. Transfer of functions to the President.-(a) There are hereby transferred to the President of the United States all functions vested by law (including reorganization plan) in the following: The Office of Defense Mobilization, the Director of the Office of Defense Mobilization, the Federal Civil Defense Administration, and the Federal Civil Defense Administrator. (b) The President may from time to time delegate any of the functions transferred to him by subsection (a) of this section to any officer, agency, or employee of the executive branch of the Government, and may authorize such officer, agency, or employee to redelegate any of such functions delegated to him. SEC. 2. Office of Defense and Civilian Mobilization.—(a) Subject to the provisions of this reorganization plan, the Office of Defense Mobilization and the Federal Civil Defense Administration are hereby consolidated to form a new agency in the Executive Office of the President which shall be known as the Office of Defense and Civilian Mobilization, hereinafter referred to as the "Office". |