I think it has tremendous merit if it is properly handled. I would like that to be on the record. I am discussing the present reorganization plan that is before us for consideration. Mr. HOLIFIELD. I couldn't find it in my heart last year to go on the floor and oppose the amendments because they were so inconsequential in my opinion that they didn't deserve opposition, nor approbation either, as far as I was personally concerned. I did bring in the plan by saying possibly this might get through the same way. Mr. RIEHLMAN. I go back to this point. I am very strongly in favor of the legislation that was introduced by every member on this subcommittee. Some of the provisions, of course, are covered in this reorganization plan-one, the elimination of duplication of ODM and FCDA. I still feel very keenly about that type of legislation. I am looking forward to some dignity to this type of nonmilitary defense for our Nation, giving it some prestige in our Nation and in the minds of not alone the people but the legislators and Congress, because we haven't been too active in carrying out our responsibilities, even though maybe the administration hasn't. Our committee has seen the need, and we have brought it to the attention of Congress as well as the administration. Congress hasn't seen fit any more than the administration has to step out with its forward foot to bring into being something that is drastic and which I think we can rightly say drastic in this field of nonmilitary defense with the conditions in the world the way they are today. Certainly if we can't get the whole act that we are interested in, or bill that we have introduced, enacted into law, I am certainly willing to take a portion of it and see what effect it will have in the future. Mr. ROBACK. Mr. Chairman, can we understand that the guidelines for the new organization are in the basic McKinsey committee report? Is that basically the organization we can anticipate? Mr. FINAN. You can understand that the Budget Bureau will favorably commend that pattern of organization to the new Director. Mr. ROBACK. I would suggest, Mr. Chairman, if the committee pleases, that the report be printed in the record for the edification of the members, because it has only a limited distribution at the present time. Mr. RIEHLMAN. You mean both of these printed in the record? Mr. RIEHLMAN. I don't think it is too voluminous to have printed. We could have it as an appendix, or have it available for people to study. If counsel feels that it is of enough importance for people to study and it is going to be the pattern that will be suggested to follow, then I would have no objection to it being printed and made a part of the record. Mr. ROBACK. That is the testimony that that is the basic pattern— the rationale for this plan. Mr. HOLIFIELD. If there is no objection, I think we will have this printed as an appendix to the hearings. (The documents referred to appear in the appendix as exhibit A.) 25978-58-pt. 1——24 Mr. RIEHLMAN. Does that suit the counsel ? Mr. HOLIFIELD. If there are no further questions at this time, we will announce that Mr. Hoegh and Mr. Gray will be before the committee tomorrow morning at 10 o'clock. Of course we will reserve the right to ask the Budget Bureau to come back on any matters which may come up as a result of subsequent testimony. Mr. FINAN. We will be very happy to do that, Mr. Chairman. I would like to mention that if the committee is considering having Mr. Corson appear before it, he does have a trip to the west coast scheduled for sometime in the near future. I would like for you to be aware of his commitment in that respect in terms of his availability here. Mr. HOLIFIELD. We have got our line of witnesses set up. Mr. Lipscomb had suggested that the McKinsey report be looked at by the committee. We would require his testimony. Will Friday be all right? Mr. CORSON. Mr. Chairman, I regret that I am scheduled to leave here tomorrow evening and will be back the following week. Mr. HOLIFIELD. What time the following week? Mr. CORSON. Thursday of the following week. Mr. HOLIFIELD. Well, we will just have to leave indefinite your future appearance. Mr. CORSON. I hope I don't inconvenience you by doing that, but I was scheduled to be there today. Mr. HOLIFIELD. We couldn't hear you tomorrow, unless we had an afternoon meeting in addition to the morning meeting. What time do you leave tomorrow? Mr. CORSON. Late tomorrow evening, 10:30. (Discussion off the record.) Mr. HOLIFIELD. The meeting stands adjourned until 10 a. m. tomorrow morning. (Whereupon, at 12: 30 p. m., the subcommittee recessed, to reconvene Wednesday morning, 10 a. m., May 7, 1958.) CIVIL DEFENSE Part II-Reorganization Plan No. 1 of 1958 WEDNESDAY, MAY 7, 1958 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON GOVERNMENT OPERATIONS OF THE COMMITTEE ON MILITARY OPERATIONS, Washington, D. C. The subcommittee met in room 1501-B, New House Office Building, pursuant to adjournment, at 10 a. m., Hon. Chet Holifield (chairman of the subcommittee) presiding. Present: Representatives Holifield, Griffiths, Riehlman, Lipscomb, and Minshall. Also present: Representatives Hoffman and Johansen, of Michigan; Herbert Roback, staff administrator; Carey Brewer, senior defense specialist; and Robert McElroy, investigator. Mr. HOLIFIELD. The subcommitte will be in order. This morning we have before us as witnesses Gordon Gray, Director of the Office of Defense Mobilization; and the Federal Civil Defense Administrator, Gov. Leo Hoegh. I understand you gentlemen have prepared statements, and whichever one of you wishes to precede the other may do so. Mr. Gray? Mr. GRAY. We are at the pleasure of the chairman. Mr. HOLIFIELD. It is immaterial to me. Mr. Gray, why don't you proceed first. Apparently your organization is going to be the recipient of a great many other functions, including Federal civil defense. Before you start your testimony, we would like to acknowledge the presence here this morning of our colleague from Michigan, Congressman Johansen. Congressman Johansen comes from the Battle Creek area and is greatly interested, of course, in the eventual outcome of this legislation. I am sure, Congressman, you are welcome to sit in on the meeting today or any other time as far as that is concerned. We will extend to you the courtesy of questioning the witnesses if you wish. We will certainly explore any area that you are interested in as a Member of Congress. STATEMENT OF HON. AUGUST E. JOHANSEN, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF MICHIGAN Mr. JOHANSEN. Mr. Chairman, I very much appreciate the courtesy of the chairman and the members of the subcommittee. It so happens that I have another subcommittee meeting this morning that I must be at. I did want to avail myself of the opportunity of indicating my great interest in this legislation. Iwant the record to show that we are very proud in Battle Creek to have the Federal Civil Defense Administration headquarters. We are very proud of the people who are associated with it and the way in which they have identified themeslves with the community. Naturally we have a great interest in the preservation of that facility in Battle Creek. We have had informal assurances from the Director of the Bureau of the Budget, from Governor Hoegh, and from others that there is no intention of making any appreciable transfer of personnel from Battle Creek or basic functions. I am unfortunately not going to be able to stay to avail myself of the courteous offer you have made. I would be glad to have any assurances that may be given on that score, and any information that may be spelled out. I would like to take this further liberty of saying that we have in the audience here the mayor of Battle Creek, Mayor Russell V. Worgess, former Mayor William V. Bailey, and Horace F. Conklin. If you three gentlemen will just stand to be identified. Mr. Conklin is the president of the Security National Bank. I think, Mr. Chairman, you met some or all of these gentlemen when you and Mr. Riehlman were in Battle Creek for a hearing. They are here simply to manifest their interest in Federal civil defense and in its continued operation in Battle Creek. Mr. HOLIFIELD. We appreciate the attendance of your fellow townsmen and we make welcome to you the facilities of the committee and any questions that we can ask on your behalf or for completion of your own information, we will be glad to do so. You are welcome to stay as long as you like. Mr. JOHANSEN. I appreciate it, Mr. Chairman, and I will ask to be excused. Mr. HOLIFIELD. During the question period we will try to bring out some of the thoughts that you have given us and ask for testimony on those matters. Mr. LIPSCOMB. Isn't this some sort of a special week in Michigan? Mr. JOHANSEN. This is indeed Michigan Week. We are here in the interests of Michigan and in the interest of this program both, and we think that the two are identical. Mr. LIPSCOMB. I just thought you might like to say something about that. Mr. JOHANSEN. I appreciate that. And the gentleman knows we have sent out samples of our ready-to-eat cereals. Mr. HOLIFIELD. Mr. Johansen, we are glad that you came this morning and we want you to know, of course, that we have a member of the subcommittee who is from Michigan. I assure you that she will be watching out for Michigan's interests. Mr. JOHANSEN. May I say to the chairman that this committee is very fortunate to have the member from Michigan on it that it does have. Mr. HOLIFIELD. Thank you very much. Mr. Gray, you may proceed with your statement. STATEMENT OF GORDON GRAY, DIRECTOR, OFFICE OF DEFENSE MOBILIZATION Mr. GRAY. Mr. Chairman and members of the committee, I welcome the opportunity to discuss with you the President's Reorganization Plan No. 1 of 1958. I would like, Mr. Chairman, if I may for a moment to digress from my prepared statement, to make an observation about your opening remarks. I am not sure whether they were on the record or not but, in the interests of absolute precision, I think the record should show that under the President's reorganization plan, both ODM and FCDA would be abolished and a new agency created, rather than a transfer of functions from one to the other of the existing agencies. Mr. HOLIFIELD. I see. There will be a melding of the functions into the new organization? Mr. GRAY. That's right. Mr. HOLIFIELD. That is correct, I believe. Mr. GRAY. As most of the members of this committee know, the responsibility of the Director of the Office of Defense Mobilization to the President is largely one of coordinating mobilization readiness activities. Reorganization Plan No. 3 of 1953 transferred to the new ODM all of the mobilization planning functions of the National Security Resources Board authorized by the National Security Act of 1947; the stockpiling functions formerly exercised by the Munitions Board of the Department of Defense; and the responsibilities assigned to the former ODM, including those carried out by the Defense Production Administration under the Defense Production Act of 1950, as amended. Under these acts, or by authority of Executive order of the President assigning to me certain functions placed in him by statute, I am responsible for advising the President concerning the coordination of military and civilian mobilization; for coordinating, on behalf of the President, all mobilization activities of the executive branch; for developing and issuing policies and programs for defense mobilization; and for resolving interagency issues which would otherwise require the attention of the President. In addition, the President by Executive Order 10638 delegated to the Director of ODM the authority to direct the release of materials from the strategic and critical materials stockpile in the event of enemy attack on the United States. Also, by Executive Order 10705, the President vested in the Director, Office of Defense Mobilization, responsibility for the control of United States telecommunications in time of war. Because the wartime powers involved in stockpile materials and telecommunications are granted to the President by existing statutes, it was possible for him to centralize responsibility for the exercise of those powers. You know, of course, that in addition, the Director of ODM has certain responsibilities under the Trade Agreements Extension Act, Internal Revenue Code, and the Agricultural Trade Development and Assistance Act. Mr. Finan spoke to you yesterday regarding the general plan for creating the Office of Defense and Civilian Mobilization. I want to point out to you briefly this morning the sort of problems which have |