CONTENTS NOMINATION OF DR. J. RONALD FOX, OF MASSACHUSETTS, TO BE AN ASSISTANT SECRETARY OF THE ARMY FOR INSTALLATIONS AND LOGISTICS NOMINATION OF SPENCER J. SCHEDLER, OF NEW YORK, TO BE AN ASSISTANT SECRETARY OF THE AIR FORCE FOR FINANCIAL MANAGEMENT NOMINATION OF HAAKON LINDJORD, OF WASHINGTON, TO BE AN ASSISTANT DIRECTOR OF THE OFFICE OF EMERGENCY PREPAREDNESS THURSDAY, JUNE 19, 1969 U.S. SENATE, COMMITTEE ON ARMED SERVICES, Washington, D.C. The committee met, pursuant to notice, at 10:05 a.m., in room 212, Old Senate Office Building, Senator John Stennis (chairman) presiding. Present: Senators Stennis, Jackson, Young of Ohio, Byrd, Jr., of Virginia, Thurmond, and Schweiker. Also present: T. Edward Braswell, Jr., chief of staff; Charles B. Kirbow, chief clerk, Labre Garcia, professional staff, and Herbert S. Atkinson, assistant chief clerk. Chairman STENNIS. The committee will please come to order. The committee will proceed now with the hearings on the nominations. We will have the hearings on these nominations, and then go into executive session for further consideration of the authorization bill. The first nomination for today is that of Dr. J. Ronald Fox to be Assistant Secretary of the Army for Installations and Logistics. Dr. Fox is a professor at the Graduate School of Business at Harvard University. In addition, he has served as a consultant to the Office of the Secretary of Defense, as well as to the Air Force and to the Navy in connection with certain special projects. The Chair observes that Dr. Fox has no conflict-of-interest problem, having indicated by letter to the committee that he will dispose of the one stock he owns doing business with the Department of Defense, if he is confirmed. Dr. Fox, we are glad to have you with us. We would like to have any statement now that you wish to make. (The nomination reference and biography of Dr. Fox follow, as well as a letter addressed to the chairman by Dr. Fox with reference to his financial holdings:) NOMINATION REFERENCE AND REPORT IN EXECUTIVE SESSION, Ordered, That the following nomination be referred to the Committee on Armed Services: J. Ronald Fox, of Massachusetts, to be an Assistant Secretary of the Army. DR. J. RONALD FOX Dr. J. Ronald Fox was born December 11, 1929 in Binghamton, New York. Later he moved to Syracuse where he attended LeMoyne College and received a Bachelor of Science degree in Physics (Cum Laude) in 1951. The following year he taught mathematics at LeMoyne College. From 1953-1957, Dr. Fox was a naval officer serving as a nuclear specialist in the Armed Forces Special Weapons Project. During this tour of active duty, he served on Joint Armed Forces inspection teams throughout the United States, Europe, and the Far East. Dr. Fox subsequently did graduate study at Harvard University where he received the degrees of Master of Business Administration, Master of Arts, and Ph.D. in Psychology. While attending Harvard, he formed the National Small Business Placement Organization to locate jobs for graduates in small businesses throughout the country. From 1960-1963, Dr. Fox was co-founder and general manager of Management Systems Corporation, a national consulting firm serving government and industry. In that capacity, Dr. Fox was the project manager for the design, pilot test, and implementation of the PERT COST system, initially applied to the POLARIS Program. The PERT COST system was later adopted by the Department of Defense and the National Aeronautics and Space Administration as a standard management control technique. In 1963, Dr. Fox was appointed Deputy to the Assistant Secretary of the Air Force (Financial Management). In that capacity he was responsible for the design and implementation of improved management information and control systems for the Air Force. In 1964, he was instrumental in the preparation of the initial drafts of the Cost and Schedule, Planning and Control Specification which was subsequently adopted as a part of the Department of Defense Selected Acquisition Information Management System (SAIMS). In 1965, the Secretary of the Air Force awarded Dr. Fox the Air Force Exceptional Civilian Service Award in recognition of his work to improve Air Force management systems and for his activities as chairman of the Air Force study which provided the basis for the fiscal Year 1966 increase in military pay. This study also established several new approaches for examining military pay and for identifying the need for changes in pay scales. In 1965, Dr. Fox was a National Director of the Armed Forces Management Association-an organization devoted to the development of improved management techniques throughout the Department of Defense and its contractors. Since 1965. Dr. Fox has been a member of the Faculty at the Harvard University Graduate School of Business Administration, where he teaches courses in government-industry relations and the management of large research and development programs. During this time, he has also served as a consultant to the Office of the Secretary of Defense and to various industrial firms. Dr. Fox is married to the former Miss Dorris Ann Campbell of Roanoke, Virginia. Hon. JOHN STENNIS, Chairman, Senate Armed Services Committee, JUNE 3, 1969. DEAR MR. CHAIRMAN: In connection with your Committee's consideration of the President's nomination of me as Assistant Secretary of the Army (Installations and Logistics), and after consultation with Defense and Army counsel, I advise the Committee with respect to my financial interests. At the present time I own stock in several companies. However, only one of these companies is listed on the Defense Master List of companies doing business with the Department of Defense. With respect to that company-Magnasync Moviola-I will, if confirmed, dispose of my holdings within ninety days after confirmation. Furthermore, I will assure that the funds derived from this disposition and any other funds available to me during my Department of Defense service will not be invested in any company (other than a regulated public utility) listed on the Defense Master List current at the time of investment. My other assets consist of cash, tangible personal property, and real estate. In addition, I expect to derive income in the future from publications of which I am the author, all of which were written prior to my nomination by the President. I trust that the arrangements outlined above will prove satisfactory to the Committee. Sincerely, J. RONALD FOX. STATEMENT OF DR. J. RONALD FOX, NOMINEE TO BE AN ASSISTANT SECRETARY OF THE ARMY FOR INSTALLATIONS AND LOGISTICS Dr. Fox. Mr. Chairman, I have no prepared statement. I am very pleased to be here and I am honored for the opportunity to serve my country in this capacity. I would be pleased to answer any questions you may wish to ask. Chairman STENNIS. We have already looked you over closer than you might think, and the impression is good so far. I want to ask you this though. How long do you expect to serve? Do you come here for a short period or do you come here to serve as long as it is the pleasure of the President? Dr. Fox. Mr. Chairman, I come to serve at the pleasure of the President. Chairman STENNIS. Just what prompts you to accept this position? I would like to know what is in a man's mind and in his heart. Just tell us what prompts you to come here and take this position. Dr. Fox. The problems that currently face the Department of Defense, and in particular in the installations and logistics area, are problems that I have been studying and working on for a period of 10 years, and I have been impressed by the dedication of the individuals who have asked me to come to Washington. I have been impressed by their dedication to try to bring about improvements in this area. I would like to try to help them do just that, and I believe that it is an opportunity to work with the Army in carrying out the functions of installations and logistics, and to try to bring about some improvements in the way these activities are managed in the Army. Chairman STENNIS. I hope that I retained at least a little of the modesty that my mother taught me. Nevertheless, I want to mention the fact that I was the author of the first amendment that created an office in the Pentagon for Installations, and it grew from that little amendment. Now the Secretary of Defense has an Assistant Secretary for Installations and Logistics, as do each of the services. We found that we had no one in all the organization over there expressly charged with the responsibility of looking after the installations, the legislation, and so forth. Naturally we thought it was an important matter or we would not have started out a special office for it. Senator Jackson, do you have any questions? You are familiar with this. You have handled the military construction bill. Senator JACKSON. That is right. Mr. Chairman, I am impressed with Dr. Fox's record. It is a very fine one. I just want to ask you what |