Senator YOUNG. Please furnish that for the committee. I would appreciate having a copy of the letter. Mr. MORRIS. I would be pleased to do that. (The following letter was subsequently received from Assistant Secretary of Defense Morris :) ASSISTANT SEcretary of Defense, Manpower, Hon. RICHARD B. RUSSELL, Chairman, Senate Armed Services Committee, Washington, D.C. Washington, D.C., August 3, 1966. || DEAR SENATOR RUSSELL: The information Senator Young requested during the hearing on HR 14875 held July 28, 1966, before the Committee on Armed Services, is set out below. As of June 30, 1966, the total number of enlisted members of the Army, Navy, Air Force and Marine Corps who had individual deposits of $10,000 or more under the present savings program was as follows: Army. Navy Air Force.. Marine Corps.. Total... 122 999 Some of these individuals were undoubtedly serving overseas. The loca tion of each person concerned is not readily available, however, and would require a case by case survey. We welcome the opportunity to provide this information for the consideration of the Committee. Sincerely, THOMAS D. MORRIS. Senator YOUNG. Now, if this legislative proposal goes through in the form that you are offering it here and advocating it here, in a war this takes away from Congress and gives to the President of the United States the de facto power to increase compensation of officers and men overseas; does it not? Mr. MORRIS. In a minor way, it does provide an additional fringe benefit which is an attractive interest rate to those serving overseas. Senator YOUNG. To even contemplate 7 percent or 10 percent of wanting the ceiling higher, you do not term that a minor thing, do you, Mr. Secretary? Mr. MORRIS. Sir, the average deposit in the program today is less than $200 per man. Senator YOUNG. That applies only to GI's. But here you propose to encourage thrift on the part of men, and you have spoken about the commanders, General Westmoreland and others, but this is really greatly beneficial to the officers. Mr. MORRIS. We hope that it will be, sir. Mr. MORRIS. We hope it will be, sir. Senator YOUNG. Frankly, I could not in good conscience support a proposal of this sort without putting a limit on it, and very definitely I would think that 6 percent would be a very good return on savings. Our Government is trying to keep that under control. Here you have got the-sky-is-the-limit proposal, with which I could not go along. Now, referring to the bill, on page 2 as it passed in the House. along the second or third line it says, "may deposit during that tour f duty not more than his unallocated current pay and allowances in mounts of $5.00 or more". Why should that not be amended to say, "deposit during that tour f duty," not "from his unallotted current pay and allowances", in the amount of $5.00 or more", that would make it clear cut, would . not? Mr. MORRIS. I believe, sir, the language you used is the language hat would have the same result. Senator YOUNG. It would have the same result, but when you read, deposit during that tour of duty not more than his unallotted current ay and allowances in amounts of $5.00 or more", if you change it it ould plainly state, "may deposit from his unallotted current pay nd allowances $5.00 or more". Is it not a fact, Mr. Secretary, that Congress has been liberal with fficers and men in the Armed Forces in the past 2 years in increasing Day and benefits? Mr. MORRIS. They have, indeed, sir. Senator YOUNG. Still under the guise of encouraging thrift of the GI's, you come in with a bill that will greatly benefit officers and benefit somewhat GI's, is that it? Mr. MORRIS. Also, our Government, sir, in terms of the balance-ofDayments problem. Senator YOUNG. Yes, But if our Government and this administraion really wants to accomplish a great deal to reduce our balance of payments, it would do well to follow what has been advocated by Senator Symington and others of us to cut down the 345,000 men in West Germany, along with 500,000 dependents, who are with a lot of our sergeants and enlisted men over there, in an area that a few years back, under President Truman's administration, was really a threatened area. It does not seem to be so threatened now, and some of the officers are living quite handsomely in quarters over there, higher officers, not the lieutenants, but higher officers. I take a dim view of your emphasis on the balance of payments, because I think that could be accomplished by our having the facility to fly combat-ready troops over there. I still have commonsense enough to feel that in a sudden emergency a sergeant living with his family and eight children in West Germany, is going to give first thought to looking after his wife and children, take care of them first, if some terrifying emergency develops. The balance-of-pavments argument leaves me cold when we have the means to really cut down on our deficit and balance of payments. Chairman RUSSELL. Senator Byrd of West Virginia. Senator BYRD of West Virginia. Mr. Chairman, I have no questions. Chairman RUSSELL. Senator Inouye. Senator INOUYE. Thank you, Mr. Chairman. I wish to commend the Department of Defense for coming forward with this very imaginative program to take our currency out of foreign commerce. I say this because several months ago I had the orrortunity to visit Saigon and other parts of Vietnam, and in discussing the economy with some of the local merchants I gathered the inren that some of our friends in Saign were not unhappy with. The amount of available cash in the durersonnel the: A sult of that, pointing out that tlf a cup of Saigon tea had gone up to something like $1.65, this prevented some of our Vietnamese friends from buying Saigon tea. I suppose what is an attractive interest rate to be set would encourage some of our men to place available money on deposit instead of spending it on tea. Mr. MORRIS. That is correct. Senator INOUYE. Just as a matter of clarification now, you have considered between 6 and 10 percent; have you not? You have not set up a firm policy. Mr. MORRIS. That is correct, sir. Senator INOUYE. You do not intend to go beyond that? Senator INOUYE. Can you give us any idea as to what would be a reasonable amount that would be recommended by the Department? Mr. MORRIS. I would think, sir, that it will range between 7 and 10 percent as the final plan for consideration. Senator INOUYE. I appreciate this program very much. I would like to assure you that I will support this program. Thank you very much, Mr. Chairman. Chairman RUSSELL. Senator Byrd of Virginia. Senator BYRD of Virginia. Thank you, Mr. Chairman. Mr. Secretary, it seems to me this program has a great deal of merit and it could be helpful both to the men in the armed services and to our balance-of-payments problems. In regard to the interest rate, I notice in the letter to the Speaker of the House, signed by the Deputy Secretary, Mr. Vance, it said: "It is presently contemplated recommending an initial rate of 7 percent. Now, that letter was dated May 2. Mr. MORRIS. That is correct. Senator BYRD of Virginia. Has there been any change in thinking on that 7 percent rate in the 3 succeeding months? Mr. MORRIS. No, sir. We are still trying to design our final concept and regulations and to check out the current thinking of local commanders overseas. This is the reason we do not want to be precise this morning in naming a rate. Seven percent was the figure that we felt was indicated in May as being the approximate amount. Senator BYRD of Virginia. Has there been any particular reason to change that contemplated figure of 7 percent? Mr. MORRIS. No, sir; except to indicate that we still have this matter under study, and we feel it would be desirable to have flexibility rather than to commit right now to the precise figure. Senator BYRD of Virginia. Well, I favor your proposal and I think, as the Senator from Hawaii says, it is an imaginative one, but I do feel there should be a limit written in by the Congress as to the top amount of interest that can be paid. Thank you, Mr. Chairman. Chairman RUSSELL. If there are no further questions, we thank you, Mr. Secretary. Mr. MORRIS. Thank you, Mr. Chairman. (Subsequently in executive session, the committee voted to report H.R. 14875, with an amendment, as covered by S. Rept. 1422.) H.R. 3013 Chairman RUSSELL. The next bill is H.R. 3013, which would thorize furnishing of Gold Star lapel buttons to the next of kin persons killed in Vietnam or persons who are killed as the result cold war incidents. (The bill, H.R. 3013, above referred to, follows:) [H. R. 3013, 89th Cong., 2d sess.] ¡ACT To amend title 10, United States Code, to provide gold star lapel buttons for the next of kin of members of the armed forces who lost or lose their lives in war or as a result of cold war incidents Be it enacted by the Senate and House of Representatives of the United States of merica in Congress assembled, That chapter 57 of title 10, United States Code, amended (1) by adding the following new section at the end thereof: 1124. Gold star lapel button: eligibility and distribution "(a) A lapel button, to be known as the gold star lapel button, shall be designed, approved by the Secretary of Defense, to identify widows, parents, and next kin of members of the armed forces of the United States "(1) Who lost their lives during World War I, World War II, or during any subsequent period of armed hostilities in which the United States was engaged before July 1, 1958; or (2) who lost or lose their lives after June 30, 1958 "(i) while engaged in an action against an enemy of the United States; "(ii) while engaged in military operations involving conflict with an opposing foreign force; or (iii) while serving with friendly foreign forces engaged in an armed conflict in which the United States is not a belligerent party against an opposing armed force. "(b) Under regulations to be prescribed by the Secretary of Defense, the Secrery concerned, upon application to him, shall furnish one gold star lapel button ithout cost to the widow and to each parent and next of kin of a member who st or loses his or her life under any circumstances prescribed in subsection (a). "(e) Not more than one gold star lapel button may be furnished to any one dividual except that, when a gold star lapel button furnished under this section is been lost, destroyed, or rendered unfit for use without fault or neglect on the art of the person to whom it was furnished, the button may be replaced upon plication and payment of an amount sufficient to cover the cost of manufacture d distribution. "(d) In this section "(1) 'widow' includes widower; "(2) 'parents' includes mother, father, stepmother, stepfather, mother through adoption, father through adoption, and foster parents who stood in loco parentis; “(3) next of kin' includes only children, brothers, sisters, half brothers, and half sisters; "(4) 'children' include stepchildren and children through adoption; "(5) World War I' includes the period from April 6, 1917, to March 3, 1921; and "(6) 'World War II' includes the period from September 8, 1939, to July 25, 1947, at 12 o'clock noon."; and (2) By adding the following new item at the end of the analysis: 124. Gold star lapel button: eligibility and distribution." SEC. 2. The Act of August 1, 1947 (61 Stat. 710), as amended (36 U.S.C. 2a-182d), is repealed. Passed the House of Representatives July 18, 1966. Attest: RALPH R. ROBERTS, Clerk. Chairman RUSSELL. The witness on this bill is Comdr. H. L Jenkins, Director, Office of Personal Affairs Division, Bureau of Naval Personnel. You may proceed, Commander. STATEMENT OF COMDR. H. L. JENKINS, U.S. NAVY, DIRECTOR, PERSONAL AFFAIRS DIVISION Commander JENKINS. Thank you, Mr. Chairman. I am privileged to be given the opportunity to appear before this committee in behalf of the Department of Defense in support of H.R 3013 to amend title 10 of the United States Code to incorporate the provisions of the act of August 1, 1947, as amended-36 U.S.C. 182a182d-and to broaden those provisions by authorizing gold star lape buttons for the next of kin of members of the Armed Forces who, after June 30, 1958, died or die as a result of cold war incidents. The act of August 1, 1947, as amended, authorizes gold star lapel buttons for widows, parents, and next of kin to members of the Armed Forces of the United States who lost or lose their lives during World War I, World War II, or in any subsequent war or period of armed hostilities in which the United States may be engaged. This bill, H.R. 3013, would expand the provisions of the 1947 act to include the next of kin of Armed Forces personnel who died or die after July 1, 1958, as a result of cold war incidents. This is accomplished by eliminating the requirement of current law that deaths occur during a "period of armed hostilities" and substituting the language that was adopted in Public Law 88-77 to describe the cold war situations that would warrant the award of our highest military decorations. Under this bill, then, the award of the Gold Star lapel button may be made to the next of kin of members who, after June 30, 1958, are killed, or die of wounds or injuries received (a) while engaged in an action against an enemy of the United States; (b) while engaged in military operations involving conflict with an opposing foreign force; or (3) while serving with friendly foreign forces engaged in an armed conflict in which the United States is not a belligerent party against an opposing armed force. These eligibility criteria are also consistent with Executive Orders 11016 and 11046 which provide for awarding of the Purple Heart and the Combat Bronze Star Medals. The retroactive date of July 1, 1958, was adopted because it was the official date for the beginning of the Vietnam operation and the initial date for awarding the Armed Forces Expeditionary Medal established by Executive Order 10977. I do not believe there is any question about the purpose or worthiness of this bill. It is an attempt to recognize in a small measure the members of our Armed Forces who have made the supreme sacrifice during active "cold war" conflict and will permit the next of kin t wear the Gold Star lapel button. It would appear that casualties resulting from hostile acts during "cold war" incidents and conditi ns are entitled to the same recognition as those which occur during wartime. It follows that the next of kin of personnel who are kille! in these incidents or die of wounds or injuries received as a resul |