Secretary LAIRD. The law provides for a 2-year term, depending on when the Chairman takes office, and it provides for two, 2-year terms, except during periods of war declared by the Congress. It can be extended during periods of war declared by the Congress for longer than the two, 2-year terms. The term starts from the date of the appointment, confirmation and swearing in of the Chairman. Senator DOMINICK. I have certainly no objection to General Wheeler. I think he is a very fine person, a very fine military officer, and someone in whom I have complete confidence. I do share some of the concern expressed by Senator Symington, and I said so to him before. Chairman STENNIS. Senator McIntyre? Senator MCINTYRE. Mr. Secretary, how old is General Wheeler? Secretary LAIRD. I can give you the date of General Wheeler's birth. He was born on the 13th day of January, 1908. He is 61 years old. Senator MCINTYRE. I just raise the question, it is probably presumptuous and there have probably been inquiries about the General's health. For 4 years now he has been in my opinion in the middle, between those of his under officers I suspect who wanted more vigorous action in Vietnam and between the civilians and the President who are always trying to make sure that we do not get involved in World War III. I think I heard some time ago that he was hospitalized for some time, so I just raise the question I hope that you are satisfied with his health. This man is a fine officer. He has always impressed members of this committee with his testimony before it, and I suppose in the final analysis it is his own determination whether he is willing to accept this additional trust, but when I think of the attentions and the strains on some of these leaders of ours, and I am sure you are beginning to feel some of them yourself, I just raise this question about this gentleman's health and I hope that everything is OK on that for the next year. You will have no difficulty from this Senator. I will be happy to support General Wheeler, but I did feel that I wanted to mention that because from my own personal observations it seems to me that he has at times suffered quite a bit. Secretary LAIRD. Senator McIntyre, I am concerned about the same problem. I felt that it was important and that I might be asked this question. General Wheeler went through a very thorough physical examination at Walter Reed. As a result of that examination, it was a recommendation of the doctors that he was physically fit and able to carry out the duties of Chairman of the Joint Chiefs for another year. He was given a clean bill of health. Senator MCINTYRE. Good. Thank you very much, Mr. Secretary. Thank you, Mr. Chairman. Chairman STENNIS. Senator Murphy. Senator MURPHY. I was interested in the remarks of my esteemed colleague, Senator Symington, and I would like to say that I would hope that in going through the services and obtaining top rank that the matter of the national security and the overall approach to the problems of the military would not create undue frictions because of the uniform that he happens to wear. I think that the services are so well integrated now, much more than they were in the past, and hope they will be even more, that I would not be concerned about that matter of health. I might tell my colleague that years ago I was referred to as a terminal cancer case who would never come back to Washington, and I am glad to say that I am older than General Wheeler and Í am in better shape now than I was 15 years ago, so I am not concerned on that. My main concern is General Wheeler's record and I looked that up, and I find that to my humble satisfaction it is an excellent record. I most heartily endorse this appointment and join my colleagues in such support. Chairman STENNIS. Thank you, Senator. Senator Goldwater. Senator GOLDWATER. Mr. Chairman, I certainly will support General Wheeler. I think he is one of the outstanding military leaders that we have had. However, I would like to join with Senator Symington in expressing the hope that when this particular term expires that the other services be given some consideration. I had visited with President Nixon about this, not that I was suggesting an Air Force officer, but suggesting that the Navy and the Air Force have leaders that are certainly qualified, and I would hope that when this term expires, Mr. Secretary, that you will look at the color of the other uniforms. Senator MURPHY. Will the Senator yield? Senator MURPHY. Would you mind including the marines? Secretary LAIRD. I want to assure Senator Goldwater that every consideration will be given to his suggestion. I well understand his interest and his concern, and this suggestion will certainly be considered. Senator GOLDWATER. Thank you. Thank you, Mr. Chairman. Chairman STENNIS. Are there any other questions from any member? Mr. Secretary, I join in asking you to consider all available material, regardless of service, all the services, but I think the choice has to be made on the man for this particular spot. This is not exactly a service office as I see it. I think it is an office beyond that. It goes to the Secretary and the President. I do not have anyone in mind. Of course, I am familiar as are others with the problems that come up. I think that is what you are doing here, that you are looking at the man and the problem. Is there anything else you wish to say, Mr. Secretary? Secretary LAIRD. Thank you very much. Chairman STENNIS. We are delighted to have you here, sir, as we always are. As I said, you do not have to leave, but that concludes your testimony. Secretary LAIRD. Thank you very much. Chairman STENNIS. We will be glad to have you back at any time. We will continue now in open session. (Discussion off the record.) (Subsequently, in executive session, the committee voted to favorably report S.J. Res. 104, without amendment, as covered by S. Rept. 162.) NOMINATION OF PHILIP N. WHITTAKER, OF MARYLAND, NOMINEE TO BE ASSISTANT SECRETARY OF THE AIR FORCE Chairman STENNIS. Members of the committee, we have the next item for consideration, the nomination by the President of Mr. Philip N. Whittaker of the State of Maryland to be an Assistant Secretary of the Air Force. Although his duties are not specified by law, he will be Assistant Secretary for Installations and Logistics. (The nomination reference and biographical sketch of Mr. Whittaker, as well as a letter from Mr. Whittaker to Chairman Stennis regarding his financial standing, follow:) NOMINATION REFERENCE AND REPORT IN EXECUTIVE SESSION, April 10, 1969. Ordered, That the following nomination be referred to the Committee on Armed Services: Philip N. Whittaker, of Maryland, to be an Assistant Secretary of the Air Force. PHILIP N. WHITTAKER Mr. Whittaker was born on November 7, 1918 in Chestnut Hill, Pennsylvania. He received his Bachelor of Arts degree with majors in English and Business from the University of Pennsylvania in 1940. He entered the United States Navy as an Ensign in 1941 and was honorably discharged in 1946 in the grade of Lieutenant Commander. He performed World War II overseas duty in New Zealand. From 1946 to August 1968, Mr. Whittaker was employed by International Business Machines Corporation, rising from student salesman to Vice President of IBM's Federal Systems Division at Gaithersburg, Maryland. During his 22 years with IBM he had extensive marketing, contract relations, and management experience. He also, as a member of IBM, participated in the activities of a number of industry associations, such as, the National Security Industrial Association; Aerospace Industries Association of America, Inc.; and the Electronics Industry Association. He is a former member of the Policy Committee of the Council of Defense and Space Industries Association; and has served on several working groups of the Department of Defense's Industry Advisory Council. These activities were terminated when he joined NASA. In August 1968, Mr. Whittaker was appointed to his present position as Assistant Administrator for Industry Affairs, NASA, Washington, D.C. In this capacity, he has been responsible for NASA-Industry Relations, directing NASA's Procurement, Labor Relations, Reliability, Quality Assurance, and Cost Reduction Programs. His NASA responsibilities have also involved supervising the Invention and Contributions Board. He is currently a member of the Board of Advisers of the National Contract Management Association. Mr. Whittaker married the former Elizabeth Stevenson in 1948. They have four children, Elizabeth, Stephen, Philip, and Nancy. The family presently resides in Potomac, Maryland. Mr. Whittaker has been nominated to replace Mr. Robert H. Charles as Assistant Secretary of the Air Force for Installations and Logistics. Hon. JOHN STENNIS, Chairman, Committee on Armed Services, U.S. Senate. APRIL 28, 1969. DEAR MR. CHAIRMAN: In accordance with my understanding of the procedures relating to the Committee's consideration of my nomination to be an Assistant Secretary of the Air Force, I should like to advise you of my financial situation. I am presently serving as Assistant Administrator for Industry Affairs of the National Aeronautics and Space Administration. Upon assuming this position in August 1968, I severed by relationship with my former employer, International Business Machines, Inc. I retain a vested interest in the retirement plan of IBM which is administered by Bankers' Trust Company of New York and four other banks as independent trustees. The only securities that I own are set forth in Attachment One. The Office of the General Counsel of the Department of Defense has advised me that certain of these securities are in companies which have contracts with the Department of Defense as reflected in the statistical lists of the Department of Defense. Attachment One identifies which securities owned by me fall in this category. If confirmed, it is my intention to dispose of all such securities of Defense contractors. I have contingent interests in two irrevocable family trusts (established under the wills of my grandparents in 1891 and 1910), which will vest in me only upon my mother's death if I survive her (and, in the case of one of the trusts, if my mother does not name another under her general power of appointment). I do not now have and never have had the right to any income from these trusts. I have never taken any part in the management and have no power or control over any aspects of these trusts. I do not have and never have had any knowledge about their investment portfolios. I propose to give clear instructions to the sole trustee of both trusts, the Fidelity Bank of Philadelphia, Pennsylvania, that I am to continue to have no knowledge of the content or management of these trusts as long as I am serving in the Department of Defense. I am presently a trustee of the Philadelphia Divinity School and the Merrill A. Stevens Education Fund. I intend to resign both these trusteeships. With the Committee's approval, I plan to remain as a member of the board of advisors of the National Contract Management Association, a nonprofit association of individuals dealing in the field of government contracting and subcontracting, and of the advisory board of the 1970 Annual Symposium on Reliability, sponsored jointly by several professional associations. I trust the arrangements outlined above will be acceptable to the Committee. Respectfully yours, PHILIP N. WHITTAKER. ATTACHMENT ONE Securities Holdings of Philip N. Whittaker. A. Securities to be disposed of: American Broadcasting Cos. Inc. The American Tobacco Co. Gulf & Western Industries Inc. $1. Common Gulf & Western Industries Inc. Series B $3.50 Cum. Conv. Pfd. IBM Corp. (including shares owned jointly) B. Securities that may be retained: Allied Stores Corp. Chairman STENNIS. Members of the committee, Mr. Whittaker's nomination has been here for a few weeks. The only reason for the delay has been his very earnest work in working out the situation about the so-called conflict of interest matter, in which he showed the very finest possible spirit. Mr. Whittaker appears to be well qualified for this appointment, having been with the IBM Corp. from 1946 to August of 1968, his last position being that of vice president of IBM Federal systems division. Since last year, he has served in his present position at NASA as Assistant Administrator for Industry Affairs. The Chair would observe that Mr. Whittaker has submitted to the committee a letter indicating that he will dispose of all securities having contracts with the Department of Defense under the $10,000 formula. The Chair would also observe that Mr. Whittaker has advised the committee that he has contingents in two family trusts, from which he receives no income. These trusts were establish ed before he was born, one in 1891 and the other in 1910. He will receive a vested interest if he survives his mother in the case of one trust, and in the case of the other will receive a vested interest in the event he survives his mother and she does not exercise a power of appoint ment. Mr. Whittaker has advised that he has no knowledge of the holdings in these trusts, which are administered by a Philadelphia bank. Under the committee precedents, these trusts do not pose a conflict of interest problem. I make this statement in order to have the record full on this matter. Of course I am sure every one present understands these are partly personal matters about Mr. Whittaker, but they are not mentioned in a personal sense. Mr. Whittaker, you have heard my statement. I have conferred with you more than once, as did Mr. Braswell, and we are very much pleased with your attitude about things. Now, if you would like to be heard, we will hear you now, sir. STATEMENT OF PHILIP N. WHITTAKER, OF MARYLAND, NOMINEE TO BE ASSISTANT SECRETARY OF AIR FORCE Mr. WHITTAKER. Thank you, Mr. Chairman. I have no prepared statement but I might make an observation or two if I may, sir. I think the question might legitimately be asked as to why I am interested in this job of Assistant Secretary of the Air Force, and I would like to say that I have been associated with Government people over the past 10 or 15 years, and have been repeatedly impressed by the dedication and the competence of a wide spectrum of people that I have had the pleasure of meeting across the Government, and particularly in the Department of Defense. So when the call came from a man that I admire, Dr. Bob Seamans, the Secretary of the Air Force, I was of the opinion that it was not only my duty but also my privilege to accept the call. So here I am. Chairman STENNIS. I commend you for that statement. I know too that you are serving at some financial sacrifice here. Do you have in mind serving as long as it is the pleasure of the President for you to serve? Mr. WHITTAKER. Yes, sir. I will be here for the duration, at the pleasure of the President. Chairman STENNIS. Well, you are accustomed to them, but there are plenty of headaches over there in the Pentagon. I know you are prepared for that. Mr. WHITTAKER. Yes, sir. Chairman STENNIS. Senator Smith, may I call on you, please. Chairman STENNIS. Senator Symington? Senator SYMINGTON. Thank you, Mr. Chairman. Mr. Whittaker, based on your record, it will be a privilege to vote for you. I would ask you this question. Increasingly, we are having the problem of large companies quoting figures which later turn out to be well below cost. This has disturbed me for some time. Based on your knowledge in NASA and your previous work with Government agencies and with private industry, do you happen to know whether they get the same comparable profit on additional returns if their costs considerably exceed the original quotation, this exclusive of changes that can be assigned to the Government, or through inflation? I think you know what I am talking about. What is the penalty, if any, for subsequent higher cost, because otherwise it is obvious that the quotation, although ostensibly compet |