Contracts already have been let for the aircraft included in the original 1951 program and the aircraft contractors are now expanding production in order to accelerate delivery schedules. We have not included funds for aircraft which cannot be delivered within the same period of time planned in the original 1951 estimate. In fact, accelerated schedules will provide more planes this year, and more planes next year, than were contemplated last spring. Substantially all of these new aircraft will reach fleet units in the year delivered and will immediately improve our combat potential. DEPARTMENTAL EMPLOYMENT Last February when you reviewed our programs you commended us for our low administrative cost. We were very pleased at your commendation because we had given considerable attention to holding our departmental overhead to an absolute minimum. The low levels at which we are operating, however, are not adequate to absorb the added workload and I now find it necessary to request a $1,708,000 increase for this purpose. A substantial part of the added workload will be accomplished on an overtime basis, but I have had to budget for an additional 300 personnel for my departmental staff. NAVAL AIR RESERVE All of the expansion programed is related entirely to Regular Navy and Marine Corps complements and does not change aggregate Naval and Marine Corps Reserve forces. During the next several months a number of squadrons in the Organized Reserve will be called to active duty but their positions in the Organized Reserve will be immediately filled from the Volunteer Reserve. The Naval Air Reserve program will thus continue at the same level originally planned, without expansion in numbers and without further modernization of aircraft. RESEARCH AND DEVELOPMENT AND INDUSTRIAL MOBILIZATION Our research and development and industrial mobilization programs have not been augmented under these estimates, but we already have requested a large number of our key developmental contractors to accelerate the programs in which they are engaged, and we are planning to add to our mobilization tooling for critical components. It is understood that funds for these vital programs will be requested separately by the Secretary of Defense. Accelerated delivery of aircraft and equipment prototypes is urgently needed to properly phase developmental effort with expanded aircraft procurement. The operational performance characteristics of the aircraft prototypes under development are far superior to those now in the fleet and are designed to correct performance deficiencies in current service models. A corresponding acceleration in component programs is required both to support the experimental prototypes and to increase the effectiveness of aircraft already in production. In concluding this summary statement, I should like to emphasize that the total of $795,347,000 in additional appropriations and in contract authorization represents, on a conservative basis, only known direct additional costs of supporting in fiscal year 1951 the expansion in flight operations and program strength contemplated under plans formulated by the Joint Chiefs of Staff. It provides for acceleration of aircraft procurement, for the reforming of a number of the combatant units that were disbanded last spring, and for essential augmentation of the supporting shore establishment. Other direct costs necessary for related research and development, industrial mobilization, and public works, have not been included in these estimates but are to be requested separately. Our detailed justification of these estimates is presented in confidential budget books, which the members of this subcommittee now have, and I shall be happy to discuss with you any aspects of our estimate which you may desire to consider at greater length. Mr. MAHON. Thank you, Admiral Pride, for your fine statement. SUMMARY JUSTIFICATION DATA We will insert your prepared justification in the record at this time. 1951 supplemental $790, 293, 000 +646, 269, 000 1. Piloted aircraft procurement: Senate bill, 1951. Proposed supplemental___ Revised requirement, 1950-- $732, 832, 000 603, 400, 000 1, 346, 242, 000 Proposed increase in program, $613,410,000 for replacement aircraft.-The increase requested under this activity covers the procurement of 1.067 first-line combat aircraft for the Regular Navy. Requirements for these aircraft result largely from the increase in operating aircraft authorized for Regular Navy and Marine Corps forces, but include also provision for replacing planes lost in combat: To provide first-line combat models for the increased combat forces being added to the fleet.. To replace additional first-line aircraft being lost through increased attrition incident to combat operations in Korea - 860 207 1,067 All of the aircraft planned for procurement from this supplemental authorization are first-line combat models for assignment to combat units of the fleet which otherwise would be compelled to operate second-line aircraft for an extended period of time. Because of the long lead time involved in aircraft procurement, contracts for replacement aircraft should be placed forthwith to prevent further serious impairment of combat readiness. Since the low level of aircraft procurement in recent years has been insufficient to meet the first-line requirement of the Regular Navy, it has not been possible to assign any first-line aircraft to the Naval Reserve because priorities followed in the assignment of aircraft necessarily are based on mobilization plans. The forces which will be committed to combat first must have first claim on what modern aircraft are available. The serious lack of sufficient first-line aircraft for combat units in the Regular Navy and Marine Corps therefore has precluded the assignment of first-line combat models to the Naval Air Reserve, whose squadrons are not the first to go into combat. The supplemental estimate herein presented falls short by 465 aircraft of meeting first-line requirements for the Regular Navy and Marine Corps and makes no provision for equipping squadrons in the Naval Air Reserve with first-line aircraft. The additional aircraft procurement being requested is based solely on program changes, and does not make up deficiencies discussed at the time the original 1951 appropriation estimate was presented. In all, a total of 1,765 additional aircraft would be required beyond the combined original and supplemental request of $1,346,242,000, in order to provide first-line aircraft for all Regular Navy and Marine Corps combat units plus those Naval Air Reserve squadrons scheduled for commitment to combat on M-day. 2. Ordnance for new aircraft: Senate bill, 1951 Proposed supplemental_ Revised requirement, 1951. $16, 111, 000 7, 000, 000 23, 111, 000 Proposed increase in program, $7,000,000 for ordnance equipment. The increase in estimate for this activity provides for the procurement of guns and fire-control equipment required for installation in the additional aircraft to be procured under the piloted aircraft procurement activity. Ordnance requirements are determined entirely by the particular models and numbers of aircraft procured under that activity. 3. Guided missile and target drone: Senate bill, 1951. Revised requirement, 1951. No increase is requested under this budget activity. 4. Technical equipment for service training: Senate bill, 1951. Proposed supplemental__ Revised requirement, 1951---- $13, 000, 000 0 13, 000, 000 $1,700, 000 1, 500, 000 3, 200, 000 Proposed increase in program, $1,500,000 for technical training equipment.—The increase in estimate for this activity provides for the procurement of service models of aviation technical equipment for issue to various aviation technical service schools and commands for training purposes. The influx of additional personnel and the major reassignments necessary in a program as far reaching as that contemplated in this estimate requires added emphasis on technical skills. While it normally is possible to meet a large percentate of the requirement for technically trained personnel by on-the-job training, greater emphasis must now be placed on specialized classroom instruction so as to achieve quickly the requisite degree of technical proficiency necessary under rapid mobilization conditions. 5. Aircraft modernization: Senate bill, 1951__ Revised requirement__ $26, 650, 000 24, 359, 000 51, 009, 000 Proposed increase in program, $24,359,000 for electronic equipment. Increased numbers of operating aircraft, combat attrition and increased aircraft pools combine, under the augmented 1951 program, to require the issue of 1,752 more aircraft than was provided for in the original 1951 estimate. Of the 1,752 additional aircraft to be issued, 1,384 will be issued from storage while 434 will be delivered from accelerated overhaul schedules. All of the aircraft to be issued from storage and 97 of the overhauled aircraft will require extensive modification through the installation of radar, radio, countermeasures, recognition, and similar electronic equipment. In addition, the original estimate for 1951 was prepared on a "calculated risk" basis and did not provide for equipping all of the aircraft in the original program. Developments in world affairs since the original estimate was prepared make necessary the outfitting of all combat aircraft in service. Accordingly, $24,359,000 additional is requested under this activity for procurement of electronic equipment required for the following modification program: Requirements under this program were determined by breaking down by types the 1,864 aircraft to be equipped, listing the specific equipments needed to modernize each type, and pricing each equipment. Because of the long lead time involved in the production of many of these equipments, it will be necessary in many instances to divert equipment destined for new production aircraft to the modernization program. It is necessary, therefore, that contracts for replacement equipment be placed immediately so that aircraft production schedules will not be disrupted. DEFICIENCY IN NUMBER OF NAVAL AIRCRAFT Admiral CASSADY. We are, under the supplemental bill, increasing our operating aircraft by slightly more than 1,000 over that original program under the 1951 bill. However, it is significant that this leaves us still about 450 planes below the 1950 approved program, and some 3,400 operating aircraft below the program which we had in 1949. The original appropriation provides us $750,000,000 for the procurement of new aircraft, and the supplemental gives an additional $620,000,000 for the procurement of 1,067 planes. However, this total of planes will still leave the Navy with a deficiency of 1,765 first-line modern aircraft. If we have this 1,765 aircraft, we would then be able to complete the modernization of the prescribed, approved, regular Navy units, and would also be able to partially modernize our organized Naval Reserve. We would be able to modernize that part of the Organized Reserve which under the approved mobilization plan would immediately be mobilized and called to active duty. Mr. MAHON. Secretary Matthews and Admiral Sherman and perhaps others have mentioned to us that there was a deficiency in naval aviation in the supplemental in the budget. Admiral CASSADY. Yes, sir. Mr. MAHON. I had understood that probably the Secretary of Defense and the Budget would clear an additional request for consideration in connection with the pending measure. What do you know about that? Admiral CASSADY. We have submitted a letter to the Secretary of Defense signed by Mr. Matthews, in which we request authorization to procure about 1,300 additional aircraft at a cost of $950,000,000. That request was delivered to the Secretary of Defense this morning. I do not know the status since that time, sir. Mr. MAHON. That is about an additional $1,000,000,000 in new obligation? Admiral CASSADY. Yes, sir. (Discussion off the record.) Mr. MAHON. Just in a nutshell, you want appropriations for how many additional planes? Admiral CASSADY. About 1,300 additional aircraft at a cost of approximately $950,000,000. Mr. SIKES. Over and above this? Admiral CASSADY. Over and above the $620,000,000 in the present supplemental bill. Mr. MAHON. Yes. There is $620,000,000 in the present supplemental bill? Admiral CASSADY. That is correct; yes, sir. ADDITIONAL FUNDS REQUIRED FOR PUBLIC WORKS Mr. MAHON. What other expenses incident to this program will be necessary in naval aviation? Admiral CASSADY. Admiral Pride has a breakdown of it. There is just one other point I would like to mention here. I also understand that the Navy has submitted to the Secretary of Defense an emergency public-works bill, in which is contained several items which are necessary for naval aviation in order for us to operate our new jet aircraft. Mr. MAHON. Where would these public works be? Admiral CASSADY. At the various air stations. Some in Japan and Okinawa and the Philippines, and back in Guam, on the west coast, and also on the east coast. Mr. MAHON. Of the United States? Admiral CASSADY. Yes, sir, of the United States. Mr. MAHON. Would the money be required principally for overseas, or within this country? Admiral CASSADY. As I remember it, it is slightly more in the continental United States. Is that not right, Admiral Hopwood? Admiral PRIDE. It is mostly in the United States. Admiral CASSADY. Mostly in the United States. Mr. MAHON. We can go into that later, if we have a budget estimate on it. Admiral CASSADY. Yes, sir. (Discussion off the record.) TYPES AND PRICES OF AIRCRAFT TO BE PROCURED Mr. MAHON. I would like for you to tell the committee what kinds of planes and, generally speaking, the prices and character involved in the planes in this supplemental bill. Admiral CASSADY. In the $620,000,000 we expect to buy 1,067 aircraft. Mr. MAHON. Do not put anything on the record that should not be on the record. (Discussion off the record.) Mr. MAHON. Most of these planes would be for use on carriers? |