allocated to Approved Forces (Acquisition and Retention), 9 percent to Economic, Contingency, and Allied Force Retention, and 19 percent to

Potential DOD Excess.

4. Navy Supply System Inventories (exclusive of Marine Corps) (Table 35)

The Navy supply system inventories totaled $10.9 billion at the end of fiscal year 1966, an increase of only $7 million from 30 June 1965. These figures exclude, as noted in Table 35, the $494 million of Shipboard Supplies that are included in Table 31, since these are not considered part of the "managed" supply system. The inventories, totaling $10,855 million, are divided into $915 million, or 8 percent of the total, in stock fund inventories, and $9,940 million, or 92 percent, in appropriation-financed inventories. The latter actually decreased by about $32 million during the year, whereas stock fund inventories increased $39 million. In this report, as in the previous year's, the consumable ordnance materiel which is periodically being re-worked and rotated between shipboard storage and tidewater maintenance facilities is included as in-store. It is under management control though not financial inventory control reporting.

Among the appropriation-financed in-store inventories, the larger decreases were in the weapons, major ship equipment, aircraft engines, construction equipment and electronics cognizance classes.

Increases were registered in the secondary and consumable classes of ammunition, weapons and ships' parts, and aeronautical material. This year, Missiles and Missile Material, and Mines and Related Equipment are reported separately from the Ammunition category. Emphasis on Polaris systems increased the Special Weapons Material classes, both

1/ Excludes excess stocks for which disposal action has been authorized or initiated.

These are included in Table 45.

2/ Unstratified stocks shown for each category represent, with the exception of $21,375 thousand of miscellaneous stocks, inventory in transit between storage locations.

principal and secondary, by about $75 million. During the year, Approved Force stocks (Acquisition and Retention) were increased $130 million, but Economic, Contingency, and Allied Force Retention stocks together were about the same, while Potential Excess stocks were increased by $242 million. General Force stocks, amounting to $321 million were eliminated, and unstratified stocks were reduced by $73 million.

Of the total stratified stocks at the end of fiscal year 1966, 71 percent were classified as Approved Force (Acquisition and Retention), 22 percent as Economic, Contingency, and Allied Force Retention, and Total transferable/dispos

7 percent as Potential DOD Excess stocks. able stocks are 36 percent of stratified inventories. Stocks earmarked for MAP delivery by Navy still represent a small proportion of total stocks held, as compared with Army which has substantial inventory of this sort, although this year their value is about ten times that held Unstratified stocks, chiefly in transit, decreased about 6

last year.

percent during the year.

Navy Stock Fund Inventories (exclusive of Marine Corps) (Table 36) Included in the total of $10,855 million of Navy supply system inventories are $915 million financed through the Navy Stock Fund. This represents an increase of about $40 million (4 percent) from the previous year, as most categories showed gains in in-store inventories. Exceptions occurred in the Ships', Submarine and Base Repair Parts, Ordnance Repair Parts, and Electronic Repair Parts categories, where relatively small decreases took place.

On 30 June 1966, the stratified stock fund inventories were

Excludes excess stocks for which disposal has been authorized or initiated.

These are included in Table 45.