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COMMITTEE ON APPROPRIATIONS

JOHN TABER, New York, Chairman
RICHARD B. WIGGLESWORTH, Massachusetts CLARENCE CANNON, Missouri
BEN F. JENSEN, Iowa

GEORGE H. MAHON, Texas
H. CARL ANDERSEN, Minnesota

HARRY R. SHEPPARD, California WALT HORAN, Washington

ALBERT THOMAS, Texas GORDON CANFIELD, New Jersey

MICHAEL J. KIRWAN, Ohio IVOR D. FENTON, Pennsylvania

W. F. NORRELL, Arkansas JOHN PHILLIPS, California

JAMIE L. WHITTEN, Mississippi ERRETT P. SCRIVNER, Kansas

GEORGE W. ANDREWS, Alabama FREDERIC R. COUDERT, JR., New York

JOHN J. ROONEY, New York CLIFF CLEVENGER, Ohio

J. VAUGHAN GARY, Virginia EARL WILSON, Indiana

JOHN E. FOGARTY, Rhode Island NORRIS COTTON, New Hampshire

ROBERT L. F. SIKES, Florida GLENN R. DAVIS, Wisconsin

ANTONIO M. FERNANDEZ, New Mexico BENJAMIN F. JAMES, Pennsylvania

PRINCE H. PRESTON, JR., Georgia GERALD R. FORD, JR., Michigan

OTTO E. PASSMAN, Louisiana FRED E. BUSBEY, Illinois

LOUIS C. RABAUT, Michigan EDWARD T. MILLER, Maryland

SIDNEY R. YATES, Illinois CHARLES W. VURSELL, Illinois

FRED MARSHALL, Minnesota T. MILLET HAND, New Jersey

JOHN J. RILEY, South Carolina HAROLD C. OSTERTAG, New York

ALFRED D. SIEMINSKI, New Jersey
OAKLEY HUNTER, California
FRANK T. BOW, Ohio
HAMER H. BUDGE, Idaho
CHARLES R. JONAS, North Carolina
OTTO KRUEGER, North Dakota
ROMAN L. HRUSKA, Nebraska
SAM COON, Oregon
MELVIN R. LAIRD, Wisconsin
ELFORD A. CEDERBERG, Michigan

GEORGE Y. HARVEY, Clerk
KENNETH SPRANKLE, Assistant Clerk

(II)

SECOND SUPPLEMENTAL APPROPRIATION BILL, 1934

SUBCOMMITTEE ON TREASURY-POST OFFICE APPROPRIATIONS

GORDON CANFIELD, New Jersey, Chairman EARL WILSON, Indiana

J. VAUGHAN GARY, Virginia BENJAMIN F. JAMES, Pennsylvania OTTO E. PASSMAN, Louisiana CHARLES W. VURSELL, Illinois ALFRED D, SIEMINSKI, New Jersey

THURSDAY, FEBRUARY 4, 1954,

TREASURY DEPARTMENT

UNITED STATES Coast GUARD

WITNESSES VICE ADM. MERLIN O'NEILL, COMMANDANT REAR ADM. A. C. RICHMOND, ASSISTANT COMMANDANT COMDR. P. E. TRIMBLE, CHIEF, BUDGET AND COST ANALYSIS

DIVISION GLEN GIBSON, ASSISTANT DIRECTOR OF BUDGET FOR NAVY CAPT. W. H. NEWTON, JR., UNITED STATES NAVY, ASSISTANT

GENERAL PLANNING OFFICER OF FLEET OPERATIONS DIVISION, NAVY MAJ. F. J. JAEGER, UNITED STATES AIR FORCE, LONG RANGE AIDS OFFICER, AIDS TO NAVIGATION SECTION, OFFICE OF DEPUTY CHIEF OF STAFF, AIR FORCE, FOR OPERATIONS

ACQUISITION, CONSTRUCTION, AND IMPROVEMENTS Mr. CANFIELD. The committee will now come to order for the purpose of hearing the testimony by representatives of the Coast Guard, the Navy, and the Air Force regarding a supplemental request. This supplemental request for appropriations was sent to the Congress by the President under date of January 25, 1954, and is described in House Document No. 304, 2d session, 83d Congress.

Joseph M. Dodge, Director of the Bureau of the Budget, presents the item “Acquisition, construction, and improvements,” this item affecting the Treasury Department as follows:

Acquisition, construction, and improvements, Coast Guard, $8,620,500, to be derived by transfer from appropriations available to the Department of Defense. The funds are required for the completion of a chain of three loran stations in the Arctic. While the Coast Guard has the legal authority to construct these stations, it does not have available the necessary funds. Because these stations have been determined to represent an urgent military requirement, the Department of Defense has agreed to transfer the funds for their completion if authorized to do so by the Congress.

I recommend that the foregoing proposed supplemental appropriation and draft of a proposed provision be transmitted to the Congress.

Admiral Richmond, are you prepared to make a statement for the Coast Guard at this time?

(1)

COMPLETION OF A CHAIN OF THREE LORAN STATIONS IN THE ARCTIC

Admiral RICHMOND. I do not have a prepared statement, Mr. Chairman. I believe that the committee is thoroughly familiar with this particular chain. Since part of the matter is classified, I may have to go off the record as we discuss this. However, this particular loran chain is part of the overall plan for loran coverage prepared by the Joint Chiefs of Staff. This particular item appeared first before this committee in fiscal 1953 hearings when the Coast Guard requested and obtained $1,484,675 for preliminary preparation and the purchase of some long-lead items to put this chain in. It was explained at that time that in the following year the Coast Guard would return for the balance of the funds needed to complete this project.

LIMITATION OF CONSTRUCTION PERIOD

Since the stations are all located in the Far North, the construction period is limited to the summer months and it was necessary to proceed in that manner. An item of $8,797,000 was originally included in the so-called Truman budget; later taken out on the basis that since this chain was essentially a military requirement and had little or no civil use, it was properly a charge against the Defense Department:

What we are now saying is borne out by the hearings of last year before this committee. It is all contained in the record. During the last year the question of financing this project so that it could be completed by the fall of 1954 has been a matter of considerable discussion between the Defense Department and the Treasury Department. It has been agreed that it is properly a Defense Department charge, but it now appears that the Defense Department lacks the necessary authority to make available funds to complete this project. This supplemental request has been put in to give the Defense Department that authority.

There is only one other thing I would like to point out to the committee and that is to emphasize that this project, if it is to be completed this summer, requires immediate action because of the necessity of the contracting with the builders who are under contract to the Army engineers in the northern area and loading the necessary supplies in time that they can be lifted north to complete the project.

Actually at one of these sites there is only about 2 months' available time when the work can be done, and obviously the material would have to be lifted several months before that.

Mr. CANFIELD. In other words, Admiral, it is the feeling now of the Defense authorities that this job can be done during the calendar year?

Admiral RICHMOND. Correct.

Mr. CANFIELD. And your request is for authorizing language in a supplemental appropriation bill. It is not a request for funds because the Defense Establishment has the funds in their budget?

Admiral RICHMOND. That is correct.
Mr. CANFIELD. And time is of the essence?
Admiral RICHMOND. Definitely.

JUSTIFICATION OF THE ESTÍMATES Mr. CANFIELD. Without objection, pages 6 through 9 of the justifications will be inserted in the record at this point.

(The material is as follows:) For an additional amount for “Acquisition, construction, and improvements," $8,620,500, to be derived by transfer from such appropriations available to the Department of Defense as may be designated by the Secretary of Defense, and to remain available until expended.

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Obligations incurred.

10, 348, 234

18,968, 734

8, 620, 500

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Schedule of supplemental appropriations and revised estimates 1. Present appropriation or estimate

$2,500,000 2. Additional amounts available--

3, 820, 589 3. Total amount available.

6, 320, 589 4. Apportionments: 1st quarter.

4, 606, 030 2d quarter.

638, 749 3d quarter.

510, 452 4th quarter.

135, 358 Budgetary reserves.

430, 000 5. Total apportionments and reserves.

6, 320, 589 6. Obligations: 1st quarter (actual)

2, 734, 545 2d quarter (estimated)

2, 510, 234 3d quarter (estimated)

9, 130, 952 4th quarter (estimated).

135, 358 7. Total actual and estimated obligations.

14, 511, 089 8. Less total amount available..

5, 890, 589 9. (Estimated supplemental) to be transferred from Department of Defense..

8, 620, 500

10. Estimated supplemental included in latest budget----11. Date needed:

For obligation, Mar. 1, 1954.

For expenditure, Mar. 1, 1954. 12. Estimated expenditures from supplemental (revised):

In current fiscal year.
In next fiscal year.
After next fiscal year.

5, 747, 000
2, 873, 500

8, 620, 500

Total..
13. Actual obligations last 3 months:

August..
September
October.

185, 380 2, 321, 523

264, 581

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