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He is speaking of the 367 units.

4. Charts showing decline of personnel at Fort Bragg and Pope Air Base. 5. Maps were presented showing location of 541 vacant homes for rent and adequate for occupancy. Many of the 541 were new and with 3 bedrooms.

The evidence was conclusive that the housing conditions in the Fayetteville area had greatly changed from the time of the survey in January 1958 until the conference was held on May 12, 1958. Mr. Bryant indicated that if he had known of these changed conditions, his position might have been different with respect to his recommendations for the 367 additional units at Fort Bragg.

Mr. Vinson, I am advised that you received a telegram on or about June 5, 1958, from the Fayetteville Chamber of Commerce which stated its official position as being definitely opposed to additional Capehart housing units at Fort Bragg and Pope Air Force Base at the present time. As indicated, this is a reversal of the position of the chamber of commerce, who enthusiastically supported the proposal for the 1,500 units which your committee approved in May 1956.

I respectfully urge you and the members of your committee to disallow this request until such time as the Department of Defense can make a new survey of the housing needs in the Fort Bragg-Fayetteville area on the basis of the present conditions.

Thanking you for your consideration of this matter, which is so important to the total economy of the Fayetteville, N. C., area, I am,

Most sincerely,

ALTON LENNON.

The CHAIRMAN. Now, let me get this straight. This is a part of the 1,500 units.

Mr. RIVERS. No, sir.

(Further chorus of "No.")

The CHAIRMAN. Of the 2,000.

Mr. KELLEHER. I am not certain that the facts set out in the letter

are correct. Two thousand units are approved, not 1,500.

The CHAIRMAN. That is right, we had a hearing on it.

Mr. KELLEHER. Of which 1,500 have been or are being built.

The CHAIRMAN. That is right.

Mr. KELLEHER. That would leave 500, of which 367 are included in the bill.

The CHAIRMAN. That is right.

Mr. KELLEHER. That is my firm understanding of the facts.

Mr. DURHAM. There is one thing to think about, Mr. Kelleher. There are 700 and some under construction and occupied at the present time, which would be available for occupancy.

The CHAIRMAN. Well, we had the chamber of commerce from Fayetteville, and the chamber of commerce from Fort Benning here. Mr. GAVIN. Last year.

The CHAIRMAN. We had a long hearing, and we approved a policy of 2,000 for Fayetteville.

I understood from the letter this is a part of the 2,000; is that correct?

Mr. KELLEHER. Yes, sir.

Mr. RIVERS. Mr. Chairman

Mr. DURHAM. Mr. Chairman, I think you have to think about this. There have been some changes in personnel there since a year ago. It is quite different.

The CHAIRMAN. Well, with the

Mr. RIVERS. Mr. Chairman

Mr. DURHAM. I don't know-is Mr. Bryant here?

Is there anybody here representing the Department?

The CHAIRMAN. I offer this suggestion, members of the committee, here is my idea. Let the bill be reintroduced and printed with all these various amendments, and we will take up with Mr. Bryant this particular item. But let the item go in the bill, and if the committee decides tomorrow, when we have the printed bill, to delete it, why, then we can delete it at that time.

Mr. DURHAM. Well, listening to Mr. Lennon's letter, I assume that he had had a conference with Mr. Bryant.

The CHAIRMAN. Yes; he did.

Mr. DURHAM. Who said that had he had the evidence he was given, he probably would not have made the recommendation.

Mr. RIVERS. I saw Mr. Lennon Saturday, and he said he had a conference with Mr. Bryant.

The CHAIRMAN. That is right.

Mr. RIVERS. He said he already sent the thing forward, but had he had the information at that time that Mr. Lennon brought to his attention, he would not have approved that.

The CHAIRMAN. We will clear that up.

Mr. BRAY. Mr. Chairman. I would like to bring out one point here for your recollection. I remember very well when the chamber of commerce appeared here. I never saw a more friendly group, cooperative group, in the military. And I recall that the secretary of the chamber of commerce was retired Lt. Gen. John R. Hodge. Mr. RIVERS. That is right.

Mr. BRAY. I believe when the chamber of commerce shows the friendliness and the cooperative spirit there and later they see they are wrong-I frankly think you should give a very close consideration to it. But nothing is going to be worse than to have unused and unoccupied units.

The CHAIRMAN. Let the item go in the bill, but we will have to have a hearing when we take up the bill again. Because we must read the bill again before we can reach a decision on it.

So, Mr. Kelleher, you reintroduce the bill with all the amendments. Members of the committee, when we get the bill in, why, then we will have a hearing on this item.

Any other items, Mr. Attorney?

Have you anything you want to say?

Mr. FORE. Sir, may I seek the committee's assistance in one matter? The CHAIRMAN. All right.

Mr. FORE. We are having difficulty-we are doing our best, but we have difficulty and most of us have difficulty in predicting ahead a full year the precise line item requirements which we need in this age of new missile development.

The CHAIRMAN. That is right.

Mr. FORE. Now, sir, it is for that reason that we have asked that sections 102, 202, and 302, sir, be included in this bill.

The CHAIRMAN. That is the $25 million?

Mr. FORE. That is right, sir.

The CHAIRMAN. Now here is the trouble about that. A great many of those items that were testified to here the other day that will be used out of this $25 million have already been submitted to the Department and been submitted to the Budget and some of them have been turned down. Now, that is the way you are doing it. You are working both sides of the street. You get that approved that you

can get by the Budget and the Department, and that becomes line items. Then you ask for certain other items and they are disapproved. Then you ask for blanket authority, of $25 million, and a portion of that $25 million is going to be used to do some of those very things that have positively been denied when you made your original request. Now, there is the trouble about it. That is what the admiral testified there the other day.

Mr. KELLEHER. The same people, Mr. Chairman, will have to approve a project under the $25 million authority as would approve or disapprove a project in the first instance.

The CHAIRMAN. I understand that; but for the time being, they would not get certain things.

Now, I don't think that is the way to legislate. But we will bear that in mind when we take up the bill again. But I do think you are just coming in the back door where you can't get in the front door.

Mr. FORE. Sir, it is as Mr. Kelleher stated. Everything that the departments would get under these three sections must be subject to the approval of the Secretary of Defense, and the Bureau of the Budget.

The CHAIRMAN. Of course, that is right.

And the Comptroller.

But you have already made a request for a great many of them that you are going to spend the $25 million for, and they have been denied, and now you say, "Give us flexibility and we will try to sell it again."

Mr. FORE. Sir, I am afraid there is a misunderstanding on it.
Mr. GAVIN. Talk a little louder, will you please?

Mr. FORE. I am afraid there is a misunderstanding there, sir. Nothing would ever be approved under the provisions of these sections which this committee had ever turned down.

The CHAIRMAN. Oh, I understand that. We haven't turned it down. But the Department has turned it down. The Department turned them down and the Budget turned some of them down.

Mr. HUDDLESTON. That was Admiral Ailes' testimony.

The CHAIRMAN. That is exactly what the admiral said; yes. I said, "Did you submit these things to the Department and to the Budget?" He said, "Yes." I asked him how he was going to spend his $25 mil lion. And some of the things he is going to spend it on have been denied him right now.

Mr. FORE. He is in error, sir.

The CHAIRMAN. Well, all right, that is what the record shows. Isn't that what the record shows?

Mr. HUDDLESTON. That is what the record shows.
The CHAIRMAN. Isn't that what the record shows?
Mr. KELLEHER. I think not, sir.

The CHAIRMAN. What does the record show?

Mr. KELLEHER. I don't recall the admiral testifying that any of the items which might be built under this authority being turned down. The CHAIRMAN. Isn't that what he said?

Mr. HUDDLESTON. Admiral Ailes made that statement in response to questioning by the chairman.

The CHAIRMAN. We will clear that up. If we are wrong about it, we will put them in.

Mr. RIVERS. We can change faster than you can.
General RENTZ. Mr. Chairman, may I say one word on that?
The CHAIRMAN. Yes, sir.

Last year you had $50 million; didn't you?

General RENTZ. No, sir, in 1957 we had $50 million.

The CHAIRMAN. That is right.

General RENTZ. This $25 million for emergency authorization: we sincerely hope we do not have to use a penny of that authorization. It is just there in case we have a breakthrough in weapons, a speedup in production, a requirement to locate a security service facility in a country we have never been in before or an unforeseen requirement of extreme importance.

The CHAIRMAN. Well, this money couldn't be used to speed up production. This is for construction.

General RENTZ. Yes, sir.

Where you have a speedup in production you have to get the operational facilities in place sooner than you had anticipated, sir.

The CHAIRMAN. And the other two departments didn't have anything last year.

Mr. KELLEHER. That is correct.

General RENTZ. That is right, sir.

The CHAIRMAN. The year before you had $50 million?

General RENTZ. That is correct, sir.

The CHAIRMAN. Now, how did you spend your $50 million? For some things that the Department denied you when you presented the

bill.

General RENTZ. Never, sir. We spent that for emergency authorization to get projects into being at the time we required them, such as a movement of the headquarters of the FEAF headquarters from Tokyo to Hawaii.

We got our headquarters out of Tokyo 1 year earlier because we had this authorization.

We modified the alert hanger at Thule when we redeployed a different type of aircraft there.

The CHAIRMAN. Did you request this kind of language last year?
General RENTZ. No, sir.

Mr. FORE. No, sir.

General RENTZ. Just in 1957.

The CHAIRMAN. Just in 1957.

That was when it first started.

General RENTZ. That is correct, sir.

The CHAIRMAN. Never before in these public works bill-until 1957. And we denied it to the Army and the Navy.

Mr. KELLEHER. They each had $5 million as I recall at that time.

The CHAIRMAN. $5 million.

Mr. FORE. Not for the same purpose, sir.

Mr. KELLEHER. Not for the same purpose, but without line items.
The CHAIRMAN. You had $50 million.

Mr. RIVERS. Would each of the other services be in the same position?

General RENTZ. I couldn't speak in detail for them, but I think they certainly need this. We have these security service posts come up continually, Mr. Chairman. In 30 days' time we are supposed to ini

20066-58-No. 86-46

tiate the construction of the facilities in being, to put listening posts in any friendly country in the world.

The CHAIRMAN. Now, here is the picture as I see it. There is $75 million. There will be $105 million of authorization granted without any line item at all. Because we are giving $50 million to the Secretary. Then would be $75 million to the three Departments. That is what would happen.

Mr. FORE. Sir, the language on this is very restrictive. The $50 million that is given to the Secretary could not be used for the Departments, and similarly those for the Departments are for themselves alone, and only for specific unforeseen breakthrough items. This is a very limited category. And this committee is informed by a report of every item that

The CHAIRMAN. That is in reference to the Secretary.

General RENTZ. No, sir.

Mr. FORE. And to the three Departments.

You see this committee has been informed of every line item that the Air Force has bought under its $50 million for the last 2 years. The CHAIRMAN. We have reports every time, on that $50 million? General RENTZ. Yes, sir.

Mr. KELLEHER. And I think there are only about $4 million left of the $50 million.

General RENTZ. That is correct.

Mr. BRAY. Why doesn't the Secretary use that money on behalf of a project that was necessary to be later turned over to the Air Force! Mr. FORE. Because, sir, the language of the $50 million for OSD is for support of space projects. It is for ARPA.

Mr. BRAY. $50 million. As I recall the wording of it, it could be used for a necessary project, a defense project, which could be later taken care of, I mean could be taken care of in an emergency.

Mr. FORE. Mr. Congressman, the specific wording is for advanced reserve projects. It is not intended to be used for anything else. Mr. BRAY. Advanced research projects.

The CHAIRMAN. General, we will read the language. Let's see. We must do what is the proper thing.

Even if we do not reduce this bill, we have to do what is right and proper. I would rather make it on the side of Defense than the other

way.

Mr. RIVERS. That is right, Mr. Chairman.

The CHAIRMAN. Now, read the language, Mr. Kelleher. It is the same in all three services.

Mr. KELLEHER. Yes, sir.

The CHAIRMAN. Read it.

Mr. KELLEHER. The one I am reading is on page 23, line 17.

SEC. 203. The Secretary of the Navy—

in this case

may establish or develop naval installations and facilities by proceeding with construction made necessary by changes in Navy missions, new weapons developments, new and unforeseen research and development requirements, or im proved production schedules, if the Secretary of Defense determines that deferral of such construction for inclusion in the next military construction authorization act would be inconsistent with interests of national security, and in connection therewith to acquire, construct, convert, rehabilitate, or install permanent or temporary public works, including land acquisition, site prepara

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