The CHAIRMAN. Mr. Braswell, has Mr. Beal met the requirement of the committee with reference to the so-called conflict of interest matters? Mr. BRASWELL. Mr. Chairman, with one exception, which Mr. Beal is prepared to address himself to on the "A" trust, I think he has fully met the requirements. The CHAIRMAN. There is a relatively small trust involved here. You do not have to go into that in open hearing. We are still in an open hearing. Mr. BEAL. I have no objection, Mr. Chairman. The CHAIRMAN. If you will just cover this point now that our Chief of Staff has referred to, Mr. Beal. Mr. BEAL. I take it, Senator, you are referring to trust A, of which I am the sole income beneficiary, and of which my children are the vested remaindermen. I have no control over the investments of that trust, nor, of course, am I a trustee. My mother and the Chase National Bank of New York are co-trustees of it. Therefore, there is really nothing I can do to influence the investments made in that trust. The CHAIRMAN. Presently the income from it comes to you, is that right? Mr. BEAL. That is right. The CHAIRMAN. We will go into that in executive session. I want to give you a chance to say anything you wish to about it. You heard my questions here, Mr. Beal, with reference to why did you come here. Why did you agree to this? What's you purpose in it? Mr. BEAL. I am interested in being of service to the country and would like to see if I can make a contribution to the better running of the Defense Department, having been asked to do so. I consider it a privilege to come in under the circumstances. The CHAIRMAN. You expect to serve at the pleasure of the President? Mr. BEAL. I do, sir. The CHAIRMAN. As long as he wishes for you to serve, is that right? Mr. BEAL. Yes; sir. The CHAIRMAN. Senator Smith, do you have any questions? Senator SMITH. I have no questions, Mr. Chairman. The CHAIRMAN. Senator Young? Senator YOUNG. Mr. Chairman, I have no questions. The CHAIRMAN. Senator Murphy? Senator MURPHY. Mr. Chairman, yes. Mr. Beal, your particular field of operations as Under Secretary of the Army will be specifically financial matters, is that the proper assumption? Mr. BEAL. As I understand it, Senator Murphy, they are somewhat broader than that. In other words, in one sense, the Under Secretary could be considered the alter ego of the Secretary, as far as the duties go. This, of course, would be dependent upon what the Secretary wishes and what he delegates to the Under Secretary. But I think it is considerably broader than simply financial matters. Senator MURPHY. I asked that just to develop-maybe you would like to develop your background qualifications for becoming the alter ego of the Secretary. Mr. BEAL. I spent approximately 10 years in the practice of law and a little bit longer than that running a bank. The bank has many aspects other than financial. In other words, it is not unlike any management problems that the chief executive of a business corporation faces. So I suppose what I bring to the post that you are considering me for is some legal background and some management background, both of which would enable me to have somewhat broader responsibilities than strictly financial. Senator MURPHY. In other words, you might say that your practical business approach for this tremendous operation has seemed to his liking? Mr. BEAL. I hope I do well. Senator MURPHY. I have no further questions, Mr. Chairman. The CHAIRMAN. Senator Goldwater? Senator GOLDWATER. I have no questions. The CHAIRMAN. Senator Schweiker? Senator SCHWEIKER. I have no questions, Mr. Chairman. The CHAIRMAN. Mr. Chief of Staff, do you have any further questions? Mr. BRASWELL. No, Mr. Chairman. The CHAIRMAN. All right, thank you, Mr. Beal. We will consider this matter in executive session. You understand what I said about calling you back from time to time and you will agree to that? Mr. BEAL. I do, sir. The CHAIRMAN. We have next Mr. John L. McLucas to be Under Secretary of the Air Force. NOMINATION OF JOHN L. McLUCAS TO BE UNDER SECRE- (The nomination reference and biographical data of Mr. McLucas, as well as a letter addressed to the chairman of the committee by Mr. McLucas regarding his financial holdings, follow:) NOMINATION REFERENCE AND REPORT IN EXECUTIVE SESSION, Ordered, That the following nomination be referred to the Committee on Armed Services: John L. McLucas, of Massachusetts, to be Under Secretary of the Air Force. JOHN LUTHER MCLUCAS John Luther McLucas was born in Fayetteville, North Carolina, on August 22, 1920. He received a Bachelor of Science degree from Davidson College in 1941, a Master of Science degree from Tulane University in 1943, and a Ph.D. in Physics from Penn State University in 1950. During World War II (from 1943 to 1946), Dr. McLucas served with the U.S. Navy as an Operations Officer in the radar field. Upon completion of his doctorate work at Penn State, Dr. McLucas assumed the office of Vice President, Technical Director of Haller, Raymond and Brown, Inc. in State College, Pennsylvania. He became President of HRB-Singer, Inc. in 1957, a post which he held until 1962, when he came into government as the Deputy Director of Defense Research and Engineering for Tactical Warfare Programs in the Department of Defense. In 1964, Dr. McLucas was named the Assistant Secretary General of NATO for Scientific Affairs. Upon completion of this assignment in 1966, he became President and Chief Executive of the Mitre Corporation in Bedford, Massachusetts, a post which he still holds. Dr. McLucas has received the DOD Distinguished Service Award, is a fellow of the Institute of Electrical and Electronics Engineers and is a member of the Operations Research Society, the American Institute of Aeronautics and Astronautics, the American Physics Society, the Defense Science Board, the USAF Scientific Advisory Board, and the DIA Scientific Advisory Committee. Dr. McLucas married the former Patricia Knapp on July 27, 1946, and they have four children: Pamela, Susan, John C., and Roderick K. Hon. JOHN C. STENNIS, Chairman, Committee on Armed Services, U.S. Senate. FEBRUARY 24, 1969. DEAR MR. CHAIRMAN: In relation to my pending nomination to be Under Secretary of the Air Force, this letter sets forth my financial situation. I am presently serving as the President and Chief Executive Officer of the Mitre Corporation, Bedford, Massachusetts. It is my intention to resign from this position and sever all ties with that corporation. I shall have a vested interest in the Teachers Insurance and Annuity Association-College Retirement Equity Fund retirement program, which is a nationwide program for college and university faculty and administrative officers. I own certain securities as set forth in the attachment to this letter. I plan to sell the securities I own in companies which have contracts with the Department of Defense as reflected in the statistical lists. I am advised that those securities which must be so disposed of are as indicated in the attachment. I am a member of the board of directors of the von Karman Institute, an educational institution located in Brussels, Belgium, and president of the Olympic Real Estate Company, an almost inactive residential real estate development company in State College, Pennsylvania. With the Committee's approval, I intend to retain these positions. I am also an officer or member of the board of several civic organizations, from all of which I intend to resign. I trust the arrangements outlined above will be acceptable to the Committee. Respectfully yours, JOHN L. McLUCAS. I also have an understanding which will permit me to receive shares of stock of two new corporations, when issued, in satisfaction of indebtedness to me. One corporation is LOCUS, Inc.; the other corporation has not yet been formed. I shall, of course, dispose of such shares if the corporation concerned shall have contracts with the Department of Defense as reflected in the statistical lists. The CHAIRMAN. Mr. McLucas, you are now president and chief executive officer of the Mitre Corp. Where is that principal place of business? STATEMENT OF JOHN L. McLUCAS, NOMINEE TO BE UNDER SECRETARY OF THE AIR FORCE Mr. McLUCAS. The principal office, Mr. Chairman, is in Bedford, Mass. We have a secondary office or an office of lesser size in the Washington area. The CHAIRMAN. You have been the executive officer of that corporation. You have heard my questions here about why would you launch into this position, a highly important one, Under Secretary of the Air Force. What's your motive in doing this? Mr. McLUCAS. It is partly in response to the people who thought I should accept the assignment. Mr. Laird, Mr. Packard, and Dr. Seamans are persuasive men. I feel they felt my background was appropriate, and I believe if you have a chance to be of service and there are other people who have already accepted the challenge, I think you ought to do it and you might as well do it. The CHAIRMAN. Mr. Chief of Staff, do you have a satisfactory showing here about the conflict-of-interest matters? Mr. BRASWELL. Yes, sir. The letter submitted by the nominee indicates there are no problems. The CHAIRMAN. Senator Smith, do you have any questions? The CHAIRMAN. Senator Murphy? Senator MURPHY. I would merely like to remark that reading Dr. McLucas' background here, I can understand why the Secretary and the President would be very anxious to have you join them. I congratulate them on their good judgment and congratulate you on the capabilities as reflected here. I am very pleased that you have seen fit to accept the challenge that they have offered you. Mr. McLUCAS. Thank you, Senator. The CHAIRMAN. Senator Goldwater? Senator SCHWEIKER. No questions. The CHAIRMAN. Anything else you wish to say, Mr. McLucas? The CHAIRMAN. All right. Mr. McLUCAS. I think the job Dr. Seamans has taken on is one of the most challenging management assignments that a man can take on. When he asked me to take this on as his Under Secretary, it seemed to me that it really is a challenge. I think that the problems facing the Air Force just from a management standpoint, with a budget of the size that they have, the number of people involved, national security issues, et cetera, that it really is going to be quite an experience and I am looking forward to it with pleasure. The CHAIRMAN. That is a very fine attitude. I think there are ways to save money in the military services. I think the military officers have many outstanding qualities and virtues, but they do not particularly excel at saving money, in my humble opinion. I hope you supply the vigor and the business experience and have some influence in that very field. Do you expect to? Mr. McLUCAS. I do, Mr. Chairman. The CHAIRMAN. I mean by saving money, getting the real worth of a dollar when you spend it. Mr. McLUCAS. I was going to say with my Scottish background, I am very conscious of spending money when I do not have to. The CHAIRMAN. That is one thing I was thinking about. Thank you very much, sir. You may be excused if you wish. We will now hear from Mr. Hansen, members of the committee. NOMINATION OF GRANT HANSEN, TO BE ASSISTANT SECRETARY OF THE AIR FORCE (RESEARCH AND DEVELOPMENT) (The nomination reference and biographical data of Mr. Hansen, as well as a letter addressed to the chairman of the committee by Mr. Hansen regarding his financial holdings, follow:) NOMINATION REFERENCE AND REPORT IN EXECUTIVE SESSION, Ordered, That the following nomination be referred to the Committee on Armed Services: Grant Hansen, of California, to be an Assistant Secretary of the Air Force. BIOGRAPHY OF GRANT L. HANSEN Grant L. Hansen was born on November 5, 1921, at Bancroft, Idaho. He attended public schools in California and following five years (1940-1945) in the U.S. Navy as an electronics technician and engineer during World War II, he attended Illinois Institute of Technology, and was graduated with a Bachelor of Science degree in electrical engineering. He has also completed advanced studies in engineering and management at UCLA and the California Institute of Technology. From 1948 until he joined the Convair division of General Dynamics in 1960, Mr. Hansen held engineering and management positions with the Douglas Aircraft Company. During his last two years there, he was assistant chief design engineer for all missile and space systems. Beginning in early 1948, he was test conductor for the Nike program at the White Sands Proving Grounds and launched several of the earliest Nike research and development vehicles. He was also responsible for design of Nike launch control and test equipment. He later assumed responsibility for all electrical and electronic engineering for the Nike Ajax, Nike Hercules, Honest John, Sparrow, MB-1, Thor, Thor-Delta, Nike Zeus, and Skybolt missile and space systems. He also was technical manager of Sparrow flight testing at the Naval Air Missile Test Center, Pt. Mugu, California. He joined the Convair Division of General Dynamics in 1960 as Chief Engineer for Design and was appointed Vice President and Program Director for CENTAUR in February 1962. On December 1, 1965, he became Vice President of the Convair Division. In this capacity, he is responsible for the launch vehicle programs. These include the CENTAUR upper-stage vehicle program, the Atlas space booster program, and the program for research use of Atlas ballistic weapon system vehicles and advanced launch vehicle programs. During his career, Mr. Hansen has participated extensively in research and development flight test programs at Holloman Air Force Base, Vandenberg Air Force Base, and Cape Kennedy. In 1966, he was awarded the National Aeronautics and Space Administration Public Service Award for leadership and exceptional contributions to the management of the Convair effort in developing and operating the CENTAUR vehicle systems. In 1967, he was honored with a special "recognition award" from the Illinois Institute of Technology Alumni Association for "leadership and exceptional scientific and technological accomplishment" in connection with NASA's Surveryor I mission. He is an associate fellow of the American Institute of Aeronautics and Astronautics, a member of the Tau Beta Pi and Eta Kappa Nu honorary engineering |