Total stocks of Medical-Dental Materiel, Industrial Supplies,

Electronics and Air Materiel, Special Weapons and Chemical, and Weapons and Fire Control increased during the year, while stocks of Clothing, Subsistence, General Supplies, POL, Missile, Ground Forces, and Tank/

Auto materiel declined.

As of 30 June 1968, 71 percent of the stratified stocks were allocated to Approved Force Acquisitions, the same proportion as the previous year, while 8 percent were in retention strata, and 21 percent Potential DOD Excess. This latter is 2 percent more than last year.

4.

Navy Supply System Inventories (exclusive of Marine Corps) (Table 35) Supply system inventories of the Navy at 30 June 1968 were valued at $12.0 billion, an increase of $858 million during the year. This value, as in previous years, excludes the value of Shipboard Supplies shown in Table 31 since they are not considered part of the "managed" Supply System. The inventories shown include $10,944 million (91 percent) of appropriation-financed inventories, and $1,066 million (9 percent) of

stock-funded inventories.

The totals include a small amount of undelivered MAP stocks and a very large amount, $1.9 billion, of instratified stocks, largely designated as in transit stocks. While the in transit between storage locations has been distributed by materiel category this year, the in transit from procurement is not distributable and has been reported as a lump sum. Unstratified stocks increased $566 million in the year.

The remaining $10.1 billion is stratified according to the purpose for which retained. In support of Approved Forces, both acquisition and retention, are $6,836 million (68 percent of stratified stocks,