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commissioned officers in the National Naval Volunteers. The enclosed draft would permit of the counting of such service.

The proposed legislation, if enacted, would affect three chief warrant officers formerly in the National Naval Volunteers. With the passage of this proposed bill, these officers would be given slight increases in pay based on longevity, about a year earlier than they would originally have received such increases, but due to their eligibility for retirement a year earlier the Government, in such event, would save the difference between active duty and retired pay which would amount to more than the present increases.

The Navy Department recommends the enactment of the proposed legislation.

The proposed legislation is in accord with the program of the President.

Sincerely yours,

CLAUDE A. SWANSON.

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TO AMEND THE PART OF THE ACT ENTITLED "AN ACT MAKING APPROPRIATIONS FOR THE NAVAL SERVICE FOR THE FISCAL YEAR ENDING JUNE 30, 1921, AND FOR OTHER PURPOSES", APPROVED JUNE 4, 1920, RELATING TO THE CONSERVATION, CARE, CUSTODY, PROTECTION, AND OPERATION OF THE NAVAL PETROLEUM AND OIL-SHALE RESERVES (H. R. 3603). MR. VINSON OF GEORGIA

NAVY DEPARTMENT, Washington, January 19, 1937.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES,

Washington, D. C.

My DEAR MR. SPEAKER: There is transmitted herewith a draft of a proposed bill "To amend the part of the act entitled 'An act making appropriations for the naval service for the fiscal year ending June 30. 1921, and for other purposes', approved June 4, 1920, relating to the conservation, care, custody, protection, and operation of the naval petroleum and oil-shale reserves.'

The purposes of the proposed legislation are to provide for the conservation in the ground of oil and gas; to consolidate and protect the oil lands owned by the Government, especially naval petroleum reserve no. 1: to extend the provisions of law covering the naval petroleum reserve to the oil-shale and other naval fuel reserves where applicable; and to provide that no leases within the reserves shall be granted to foreigners unless reciprocal privileges are granted by their government to our citizens.

The proposed bill also provides additional safeguards for the naval petroleum reserves; consolidates in one bill, by reenactment, existing authority of the Secretary of the Navy in respect to these reserves, thereby clarifying his powers in their administration; permits termination of existing private leases within the reserves by voiding present options of renewal, thus conserving the oil; enlarges the powers of the Secretary of the Navy in the interest of more efficient administration of the reserves; provides for utilization of moneys derived from royalties and otherwise to buy in private holdings within the reserves, permitting continuous clearing of private interests from the reserves; provides for more advantageous leasing where new leasing may be desirable.

The cost of the proposed legislation cannot be estimated at the present time. The Secretary of the Navy would be authorized to quire land and leases by exchange or purchase and until each case has been negotiated it cannot be determined which means of acquisiten would be employed. Exchange would involve no cost to the Government. If resort to purchase be had in some cases, the cost to the Government would, of course, depend upon the number of such cases and the value of the holdings involved.

This proposed legislation is considered to be of primary importance in connection with the conservation of the naval oil reserves and future naval fuel supplies. Attention is invited to the fact that the proposed bill does not appropriate any money, but is an authorization for appropriations should they become necessary.

The Navy Department recommends that the proposed legislation be enacted.

The proposed legislation is in accord with the program of the President.

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TO AMEND THE ACT ENTITLED "AN ACT MAKING APPROPRIATIONS FOR THE NAVAL SERVICE FOR THE FISCAL YEAR ENDING JUNE 30, 1903, AND FOR OTHER PURPOSES", APPROVED JULY 1. 1902 (H. R. 3605). MR. VINSON OF GEORGIA

NAVY DEPARTMENT, Washington, January 19, 1937.

The SPEAKER OF THE HOUSE OF REPRESENTATIVES,

Washington, D. C.

MY DEAR MR. SPEAKER: There is transmitted herewith a draft of proposed bill to amend the act entitled "An act making approations for the naval service for the fiscal year ending June 30, 1903, and for other purposes", approved July 1, 1902.

The act approved July 1, 1902 (32 Stat. 663), provides in effect that pensation for civilian employees of the Navy Department apprinted for duty in the Philippines, Hawaii, Samoa, Guam, and Puerto Rico may be computed from the date of sailing from the Lited States until the date of return thereto by the most direct le and with due expedition. The purpose of this provision was to State the appointment of competent employees by recognizing at the travel to and from these stations was a part of the duty to hich they had been appointed. The act has served a useful purpose this regard, but with the establishment and development of the tations in Cuba and the Canal Zone, and the offices of naval attachés abroad, it has created an arbitrary distinction in favor of the emCovees appointed for duty in the Philippines, Hawaii, Samoa, Guam, Puerto Rico over those appointed for duty elsewhere beyond the tinental limits of the United States. The purpose of the proposed lation is to remove this unsound distinction and to establish a form rule of treatment for all civilian employees of the Navy Department appointed for duty beyond the continental limits of the Taited States.

The estimated cost of the proposed legislation is $700 per year.
The Navy Department recommends that the proposed legislation

enacted.

The proposed legislation is in accord with the program of the

dent.

Sincerely yours,

CLAUDE A. SWANSON.

$1216-37-No. 8

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