LABILITY OF INFORMATION FROM
RAL DEPARTMENTS AND AGENCIES

PART 17-Department of Defense, Eighth Section
(Navy refusals to Congress and GAO)

COMMITTEE ON GOVERNMENT OPERATIONS

WILLIAM L. DAWSON, Illinois, Chairman

CHRISTINE RAY DAVIS, Staff Director
ORVILLE S. POLAND, General Counsel

JAMES A. LANIGAN, Associate General Counsel
HELEN M. BOYER, Minority Professional Staff
J. P. CARLSON, Minority Counsel

SPECIAL SUBCOMMITTEE ON GOVERNMENT INFORMATION JOHN E. MOSS, California, Chairman

R.V.S. 12 Ag 89

Index.

Statement of—

CONTENTS

Page

4255

Bantz, Hon. Fred A., Assistant Secretary of the Navy (Material) - - - -

Bell, Hassell B., Assistant Director, Defense Accounting and Auditing

Division, General Accounting Office..

3945

4004

4019

Campbell, Hon. Joseph, Comptroller General of the United States 3982, 4070

Clexton, Vice Adm. Edward W., Chief of Naval Material, Department

of the Navy; accompanied by Capt. E. M. Fagan, Director, Procure-

ment Division, Office of Naval Material; F. Trowbridge Vom Baur,

General Counsel, Department of the Navy; and Albert H. Stein,

Deputy General Counsel, Department of the Navy.

Fagan, Čapt. E. M. (SC), U.S.N., Director, Procurement Division,

Office of Naval Material; accompanied by F. Trowbridge Vom

Baur, General Counsel, Department of the Navy; and Albert H.

Stein, Assistant General Counsel, Department of the Navy-

Gates, Hon. Thomas S., Jr., Secretary of the Navy.

Keller, Robert F., General Counsel, General Accounting Office...

Lankford, Hon. Richard E., a Representative in Congress from the

State of Maryland...

Powers, Lawrence J., Director, Defense Accounting and Auditing

Division, General Accounting Office..

Stroop, Rear Adm. Paul D., Chief, Bureau of Ordnance, Department

of the Navy

Vom Baur, F. Trowbridge, General Counsel, Department of the Navy;

accompanied by Albert H. Stein, Assistant General Counsel; and

George M. Coburn.

Correspondence between Comptroller General and House Government
Information Subcommittee and between Comptroller General and
Department of the Navy re Navy refusal of report on procurement
activities of Military Sea Transportation Service...--

Correspondence between Congressman Lankford and the Navy Depart-

ment and between Congressman Lankford and the House Government

Information Subcommittee re Navy refusal of Naval Gun Factory

report

Instructions from Chief of Bureau of Ordnance, Department of the Navy,
setting up the Naval Gun Factory Survey Board..
Quotation from letter of April 13, 1957, from Robert Dechert, General
Counsel, Department of Defense, to the House Government Information
Subcommittee, stating that no refusals will be made to Congress without
personal review of the Secretary of the department involved

Estimated cost of Naval Gun Factory survey and report.

Estimated cost of Military Sea Transportation Service report_.

Summary of refusals to General Accounting Office

Chronology GAO-Navy relations re access to records.

Correspondence from Assistant Secretary of the Navy (Material) estab-

lishing Procurement Review Group-

4057

4087

4192

3922

3998

3930

4122

3973

3925

3932

3947

3967

4062

3992

3998

4022

Letter of September 26, 1958 from Chief of Naval Material to Comptroller

of the Navy citing "constructive approach" of General Accounting

Office

4045

Quotation of then Congressman Richard M. Nixon attacking claim of exec-

utive privilege...

4066

Quotation of Hon. Sam Rayburn re discretionary powers of the President--

First request by GAO for Military Sea Transportation Service report,

July 24, 1958.

4069

4071

4148

Court interpretation of the "Executive Power" vested in the President___.

Citations of legislative history to show the intent of the Congress re the

Comptroller General when the Budget and Accounting Act of 1921 was

enacted..

EXHIBITS

SUBCOMMITTEE CORRESPONDENCE WITH NAVY

Exhibit I-A. Subcommittee letter of March 24, 1959, inquiring about the

Navy's refusal of Congressman Lankford's request for a copy of the

report of the Naval Gun Factory survey_

4185

4197

Exhibit I-B. Subcommittee letter of March 24, 1959, inquiring about the

Navy's refusal of the Comptroller General's request for access to the

report on a survey of procurement operations of Military Sea Trans-

portation Service...

Exhibit I-C. Navy reply of April 15, 1959, to both subcommittee inquiries

PREVIOUS GENERAL ACCOUNTING OFFICE ACCESS AND ACCOUNTING
OFFICE COMPLAINT TO DEPARTMENT OF DEFENSE

Exhibit II-A. Letter of February 16, 1959, from Comptroller General

Joseph Campbell listing Navy inspection reports to which GAO previ-

ously had access-

Exhibit II-B. Letter of January 22, 1959, from Comptroller General

Campbell to Secretary of Defense McElroy and acknowledgment of

February 3, 1959, from Defense Department General Counsel Robert

Dechert...

NAVY REGULATIONS INVOLVING INFORMATION FOR CONGRESS AND

GENERAL ACCOUNTING OFFICE

Exhibit III-A. SecNav Instruction 5511.1 of April 27, 1953, entitled

"Dissemination of Classified Security Information to Representatives of

the General Accounting Office".

Exhibit III-B. Sec Nav Instruction 5730.6 of March 11, 1954, entitled

"Relations With the General Accounting Office".

Exhibit III-C. NavCompt Notice 5730 of April 10, 1956, entitled "Com-

prehensive Audits by the General Accounting Office".

Exhibit III-D. Letter of May 10, 1956, from Assistant Secretary of Navy

(Material) to various bureaus and commands containing "Guidelines

on the GAO Comprehensive Audit of Navy Operations".

Exhibit III-E. Memorandum of December 21, 1955, from Navy Deputy

General Counsel Stein, entitled "Recommended Procedures in Connec-

tion with Congressional Inquiries in the Field of Business and Commercial

Transactions"

Page

4197

4198

4203

4204

4204

4206

4211

4214

4216

4219

Exhibit III-F. Sec Nav Instruction 7510.3 of July 23, 1958, entitled "Gen-

eral Accounting Office Comprehensive Audits".

Exhibit III-G. Department of Defense Directive 7650.1 of July 9, 1958,

entitled "General Accounting Office Comprehensive Audits".

4219

Exhibit III-H. Sec Nav Instruction 5730.8 of April 6, 1957, entitled "Pro-

vision of Information to the Congress".

4221

Exhibit III-I. Department of Defense Directive 5400.4 of March 22, 1957,

entitled "Provision of Information to the Congress"-

4221

Exhibit III-J. Subcommittee staff inquiry of March 12, 1959, about Navy

regulations pertaining to information to Congress and the GAO, and

Navy reply of March 30, 1959.

4224

AUTHORITY OF ASSISTANT SECRETARIES OF THE NAVY

Exhibit IV. Sec Nav Instruction 5430.7A of October 23, 1954, entitled

"Assignment of Duties and Responsibilities to the Under Secretary of the

Navy, the Assistant Secretaries of the Navy, and the Administrative

Assistant to the Secretary of the Navy".

LEGAL MATERIAL

Exhibit V-A. Letter of April 15, 1959 to the subcommittee_from

Comptroller General Campbell including a legal analysis of the Fogler

letter (exhibit III-D) and the Stein memorandum (exhibit III-E). _.

Exhibit V-B. "The Myth of Executive Privilege," by Harold L. Cross,

Congressional Record, August 20, 1958-

Exhibit V-C. Quotation from “Federal Administrative Law: A Treatise on

the Legal Principles Governing the Validity of Action of Federal Admin-

istrative Agencies, and of State Agencies on Federal Questions," by

F. Trowbridge vom Baur...

4225

4228

4231

4236

Exhibit V-D. Statutes, regulations and directives setting forth the duties

and functions of the Naval Inspector General.

4236

Exhibit V-E. Explanation of review of procurement operations entitled

"Who Are We?".

4243

Exhibit V-F. Statute, instruction, directive, etc., setting forth the duties

and functions of the Comptroller of the Navy-

4244