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ing portion of this fiscal year and that one-third to one-half of the activations will be accomplished in private repair shipyards. The actual scheduling of yessels into naval shipyards and private plants for activation is being accomplished at the present time. Minor changes in such_schedules will not, it is believed, materially affect the estimated cost since the Bureau has assumed that the total cost of activation, including indirect costs, will be approximately the same whether the work is accomplished in a private plant or in a naval shipyard.

(2) Advanced base material. --A minor increase of $250,000 is required to fill deficiencies in a special type of advanced base unit. 7. Maintenance and operation of Naval Reserve vessels: Senate bill, 1951.

$8, 119, 500 Proposed supplemental Revised requirement, 1951.

8, 118, 500 No increase is required for this budget activity. 8. Industrial mobilization: Senate bill, 1951.

$5, 366, 200 Proposed supplemental

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Revised requirement, 1951.No increase is required for this budget activity. 9. Fuel for ships:

Senate bill, 1951.-
Proposed supplemental.

$33, 722, 500
19, 549, OCO

Revised requirement, 1951.-.

53, 271, 500

PROPOSED INCREASES IN PROGRAM

(1) An increase of $19,373,000 for additional petroleum products for active fleet vessels.-This estimate provides funds for petroleum products consumed by vessels of the active fleet. The supplemental requirements are to provide for increased fuel consumption due to the activation of vessels as directed by the Chief of Naval Operations and the increased steaming of vessels for operations in the Far East. Additional petroleum requirements by type of products are as follows:

Cost per

Type

Number of

barrels

Total

barrel

Navy special..
Diesel oil..

$1.54
2. 72

10, 548, 701

1, 150, 000 11, 698, 701

$16, 245, 000

3, 128, 000

Total

19, 373, 000

(2) An increase of $176,000 for providing utility services due to the activation of additional vessels.-This estimate provides funds for utilities for vessels of the active fleet when in port and charged as a separate item. The increase in the number of vessels assigned to the active fleet results in increased requirements amounting to $176,000. 10. Departmental administration: Senate bill, 1951.

$7, 801, 724 Proposed supplemental.

1, 055, 000 Revised requirement, 1951.

8,856, 724

PROPOSED INCREASES IN PROGRAM

(1) An increase of $900,000 is required to provide for 600 new positions (187.5 man-years of employment) in the Bureau of Ships to handle the increased workload due to the Korean situation.

(2) An increase of $155,000 is requested for overtime pay.

Mr. MAHON. This is just a projection of your regular program, is it not?

ACTIVATION OF VESSELS IN MOTH BALLS

Admiral CLARK. Yes. This is to cover the cost, the first cost of activating about 280 vessels the Chief of Naval Operations has requested be activated from the reserve fleet; for the additional cost of operating those ships that are to be activated, plus the increased cost of the activated fleet which participates in Korea.

Mr. MAHON. Is it not true that perhaps the greatest reserve weapon we have is this large reserve fleet which we are now able to call upon in an emergency?

Admiral CLARK. They are the only ships we can get quickly. Mr. MAHON. And after these ships are taken out of moth balls we still will have many others?

Admiral CLARK. That is correct.

Mr. Mahon. And of different types, if we have to make use of them?

Admiral CLARK. Yes.
Mr. Mahon. None of them are of the latest or most modern design?

Admiral CLARK. No. We have learned a lot of things since they were built, and we could build a better ship now; but with the new equipment, for which funds are here requested, which will be put on these ships, they will be improved.

ELECTRONICS

Mr. Mahon. This electronics item is quite an increase over the original budget, of course.

Admiral CLARK. Yes. Even so, that is only a portion of what would be necessary. It was cut back to the figure that is recommended here because it appeared impossible to procure, in the time available, the items which were deemed necessary so this was cut back to about one-third of what we would have asked for had we felt it was possible to get the total quantity delivered in time. (Off-record discussion.)

CONSTRUCTION OF SHIPS, NAVY Admiral CLARK. Under “Construction of ships, Navy,” authorization is requested for Bureau of Ships' funds in the amount of $160,000,000 to cover the total estimated cost of a new program of shipbuilding and the expenses incident to advancing the conversion of the U. S. S. Essex. The new program, totaling $156,000,000, is tabulated in the ship table submitted under the heading of appropriation “Construction of ships, Navy.

The estimated expenditures during fiscal year 1951 for this work are $61,000,000.

SUMMARY JUSTIFICATION DATA Mr. MAHON. We will insert the prepared justification at this point.

69887–50-pt. 2-12

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(1) An increase of $156,000,000 for 1951 supplemental shipbuilding program.An increase of $156,000,000 is requested to cover additional obligating authority required for the shipbuilding program listed on the following table. The estimated expenditures on this program in fiscal year 1951 are $57,000,000.

Estimates of costs and expenditures 1951 supplemental program

Estimated expenditures

Ship

Type work

Estimated

cost

1951

Subsequent

to 1951

15 MSB mine-sweeping boats.

New construction... 10 AM (165-foot) motor mine sweepers

do 70 LVT (A) landing vehicles, tracked, do.

armored. 43 LVT (3) landing vehicles, tracked, do.

personnel. 1 ss submarine (250-ton).

do. i LSM landing ship, medium (cable Conversion.

layer). 4 DER escort vessels, radar picket.

do 1 CV aircraft carrier (Esser class).

do. 19 SS submarines (install snorkel).

do 1 DE escort vessel (ASW).

do. 1 AKS general store-issue ship.

do. 1 AOR fleet tanker (replenishment).

..do. 1 AF store ship (reefer).

do 20 lighters (500-ton)

New construction. 10 lighters (200-ton) 2 SSR submarines, radar picket.

Conversion
Total.

$15,000,000 $7,000,000
45,000,000 8,500,000
10, 500,000 5, 500,000
4,300,000 2,000,000
3,000,000 500,000

600,000 300,000
14,000,000 10,000,000
31,000,000 6,000,000
8, 500,000 4,000,000
2,100,000 1, 200,000
1,500,000 1,000,000
2,000,000 1,000,000
3,500,000 2,500,000
1,300,000 1,000,000
700, 000

500,000 13,000,000 6,000,000

$8,000,000 36, 500,000 5,000,000 2,300,000 2,500,000

300,000 4,000,000 25, 000, 000 4,500,000

900,000

500,000 1,000,000 1,000,000

300,000

200,000 7,000,000 99,000,000

156,000,000 57,000,000

1949 program:

Senate bill, 1951.
Proposed supplemental.

Revised requirement, 1951..

0 $4, 000, 000

4, 000, 000

PROPOSED INCREASES IN PROGRAM

(1) An increase of $4,000,000 for advancing the completion of the "Essex.—An increase of $4,000,000 is required to advance the completion date of the Essex (CV-9) by 4 months. The funds requested will provide obligational authority and cash for overtime, additional indirect costs and other expenses incident to speeding up the completion of the Essex conversion,

NEW CONSTRUCTION

Mr. Maron. Under Construction of Ships, what vessels are involved?

Admiral CLARK. 139 new boats and craft, primarily. There is no large ship involved in the construction here. There are 10 minesweepers, wooden minesweepers, 165 feet long; 15 minesweeping boats, which are much smaller; and there are some LVT's for the Marines, 70 LVT's armored, and 43 LVT's personnel.

Mr. MAHON. Are those actually new?

Admiral CLARK. Yes, sir; those are new amphibious ships, new construction.

CONVERSIONS

Mr. MAHON. Some of the ships in this list are conversions; are they not?

Admiral Clark. Yes, sir. We have 31 conversions, about 93,000 tons total. There is an LSM conversion to a cable layer, and 4 'DE escort radar picket conversions, 19 submarines having snorkels put aboard, and there is a carrier conversion. There is a store ship and a fleet tanker and a general store ship. In addition to those, there are 30 new lighters which are needed to handle supplies.

Mr. MAHON. Will you use these funds to expedite the construction of ships now under construction, such as certain submarines which are now under construction at various yards.

(Discussion off the record.)

REACTIVATION PROGRAM

Mr. Mahon. I think we all agree that the reactivation program which is being presented is not an excessive program under all the facts and circumstances. Maybe it does not go far enough. I think nobody knows for sure.

Admiral CLARK. Off the record.
(Discussion off the record.)
Mr. MAHON. Any questions?
Mr. SHEPPARD. I have one question, Mr. Chairman.

SHORE FACILITIES

With reference to item 6, the maintenance and operation of shore facilities, is it contemplated you are going to open any new facilities under this presentation, or to reactivate any?

Admiral CLARK. Not at the present time, Mr. Sheppard. This item that you read there is really the indirect charges for direct labor. It takes care of the leave and the supervision and the planning and the estimating that goes into that work that goes on every ship. It is not

any increase in the cost of the maintenance of the shore facility as such. At least, a very small part of it is.

Mr. SHEPPARD. In other words, there is no reactivation?
Admiral CLARK. Not contemplated at the moment, sir.
Mr. SHEPPARD. Thank you. That is all.

ORDNANCE AND FACILITIES

WITNESSES

REAR ADM. A. G. NOBLE, CHIEF OF THE BUREAU OF ORDNANCE

Mr. Mahon. The next item we have for consideration is "Ordnance and facilities.

Admiral HOPWOOD. We have Rear Admiral Noble, the Chief of the Bureau of Ordnance, present to testify.

Mr. MAHON. "Give us a statement about your ordnance program, Admiral Noble.

GENERAL STATEMENT Admiral NOBLE. Mr. Chairman and gentlemen, the additional responsibilities of the Bureau of Ordnance under the revised military programs made necessary by recent developments in the Far East will be carried out under one annual appropriation, "Ordnance and facilities," and one continuing appropriation "Ordnance for new construction."

ORDNANCE AND FACILITIES, NAVY The estimates set forth in this supplement to the appropriation "Ordnance and facilities" give major emphasis to procurement (72.3 percent) and maintenance (18.8 percent) or ordnance and ammunition. These percentages, compared with the requirements for similar items in the original 1951 budget (31.1 percent for procurement and 15 percent for maintenance of ordnance and ammunition), reflect the essential difference in purpose for which additional funds will be required in this first phase of an expanded naval ordnance responsibility.

The requirements for funds requested in this supplemental estimate are generated by the commitment of forces in the Far East and the planned

augmentation of the operating forces during the current fiscal

These requirements are by no means those of full mobilization. They are derived from considered estimates of procurement necessary to provide adequate logistic support to the augmented operating forces, to replace critical items expended in combat and training, to provide a portion of the requirement for improved weapons and ammunition for increased combat effectiveness in the active fleet, and to provide for a level of operation in the Ordnance shore establishment, adequate to support the augmented operating force and to meet urgent operational requirements.

Although large quantities of World War II ammunition and weapons are on hand, certain types are in critical supply. This is particularly true with items developed and accepted for operational use. since the end of hostilities. The critically short supply of improved rockets is an example of this type of requirement for which the procurement and production program in this estimate is necessary. Procurement of sufficient quantities of such types to fill operational and pipeline

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