of the Department of Defense total investment in military real property. The Air Force total increased slightly less than one percent during the year. Of the total net increase of $137 million, U.S. holdings increased $134 million, those in U. S. possessions increased $26 million while property controlled in foreign countries decreased $23 million.

Investment

in real properties of the Air Force outside of the United States on 30 June 1970 comprised 17.6 percent of all Air Force properties.

Air Force annual rentals paid for property used throughout the world on the basis of leases in effect on 30 June 1970 amounted to $16.2 million as compared with $14.5 million for the preceding year end. During the year rentals for properties in foreign countries increased $1.4 million compared to an increase of $0.3 million for the

United States.

Returns to the Air Force on the basis of leases in effect on 30 June 1970 for Air Force properties used by others amounted to $841 thousand. Land controlled by the Air Force throughout the world totaled 10.65 million acres on 30 June 1970, a decrease of 203 thousand acres.

Military real property controlled by the Air Force within the United States represented a cost to the Government of $13.7 billion (see Table 26). of the total world-wide Air Force investment, 82 percent represented installations within the United States, 3 percent in U. S. possessions and 15 percent in foreign countries.

of the Air Force total investment in the United States, 96 percent Industrial activities under Air Force control,

is at active installations.

all of which are contractor operated, constituted 4.7 percent of the total

Air Force property cost in the United States.

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DEPARTMENT OF THE AIR FORCE

Of the 16.5 million acres held as withdrawals from public domain by the Department of Defense within the United States, the Air Force controls nearly 42 percent. Much of this land is used for missile ranges and advanced fighter bomber training. of the 9.4 million acres held by Air Force in the United States on 30 June 1970, 1.4 million (15 percent) was owned and 6.9 million (74 percent) was public domain land (see Table 27).

The total cost of the 10 major categories ($9.8 billion) of real properties within the United States represented 72 percent of the Air Force total cost within the United States (See table 29 and Chart 5). Land operational facilities with $1.7 billion accounted for the largest segment of total Air Force investment within the United States. Three other categories costing more than one billion dollars each were airfield pavements, family housing, and maintenance facilities.

Air Force-controlled properties in foreign countries, on the basis of cost, amounted to $2.43 billion on 30 June 1970; the Air Force investment in possessions totaled $475 million. Land rights were exercised by the Air Force on 1.1 million acres in foreign countries as of 30 June 1970; about the same as last year.

Section B Military Construction in Progress

The cost of work in place, as reported by the military departments, on construction projects which has been started but not completed and transferred to the inventory, is shown by major geographical areas in Table 30. The cost reported represents the cost of labor and materials incorporated on the construction projects. The Federal Government has most of them are being built on

a property interest in these projects