MAINTENANCE AND OPERATION OF SUPPLY SYSTEM Mr. TABER. What is the $55,000,000? Admiral Fox. Maintenance and operation of the supply system. That is explained on page 1 of the justifications; $37,720,000 for work load and supply centers, depots, and facilities incident to expanded Navy operations; $8,959,000 for supply departments in shipyards; $1,331,000 for purchasing a function of procurement; $3,250,000 for contract stevedoring; $490,000 for fuel storage-funds for commercial fuel storage; $900,000 for the procurement of noncombat vehicles; $955,000 for the procurement of materials handling equipment; $1,200,000 for the procurement of pallets used in connection with storage; $1,100,000 for advance base components. That totals $55,000,000. TRANSPORTATION OF THINGS Mr. TABER. As to the $92,000,000, that is transportation? Mr. TABER. What does that cover? Admiral Fox. That is for the transportation of things, and is composed of $33,283,000 for the movement of materials via inland and overseas air transportation and $59,000,000 for ocean transportation. Mr. SHEPPARD. What you people have recently inherited? Admiral Fox. That is right. Mr. TABER. How do you arrive at the third sum, cost of transportation? Admiral Fox. That is from the average of our experience, sir. Mr. TABER. Have you had any experience as to transportation to Korea? Admiral Fox. You are talking about the MSTS operation? Mr. ENGEL. Transportation of things, $92,000,000, the inland transportation. Admiral Fox. Yes. That is our experience of the over-all transportation for an average haul of 750 miles. That is inland transportation. Mr. ENGEL. How about overseas air transportation? Admiral Fox. Overseas air transportation, that is our estimated amount, based upon the experience of what we will require. Mr. ENGEL. $2,000 a ton? Admiral Fox. Yes. That is for the Far East. Mr. ENGEL. How much of that do you transport by air? Admiral Fox. We are asking for $2,000,000, or 1,000 tons at $2,000, sir, a ton. Mr. ENGEL. What type do you take over by air? Admiral Fox. Anything urgent. It may be machinery parts. Mr. ENGEL. I have seen them transport a 5,000-pound printing press from Karachi, India, to Bombay. Admiral Fox. That is all controlled from our Bureau. We screen it there to make sure that it is properly justified. Mr. ENGEL. What is the average number of miles? 69887-50-pt. 2-14 Mr. ENGEL. What type of material will you transport-medical supplies, and so forth? Admiral Fox. It could be medical, a gear holding up the repair of a component. Mr. ENGEL. An engine? • Admiral Fox. It could be an engine if it were critical enough. Admiral Fox. Yes. M. SHEPPARD. I want to say that recently in a conference with some people interested in rather rapid movement of pipeline requirements, they paid you people quite a compliment. I think it is fitting and proper that when you respond in such fashion that should be recognized, and I extend my compliments to your division, accordingly. Thank you very much for your appearance. We appreciate the way you have handled your appropriation. SERVICE-WIDE OPERATIONS WITNESSES REAR ADM. C. WELLBORN, UNITED STATES NAVY, DEPUTY CHIEF OF NAVAL OPERATIONS FOR ADMINISTRATION JOHN DILLON, ADMINISTRATIVE ASSISTANT TO THE SECRETARY OF THE NAVY Mr. SHEPPARD. We will now take up the item of service-wide operations, Navy, concerning which we will hear Rear Admiral Wellborn and Mr. John Dillon from the Secretary of the Navy's Office. STATEMENT OF ADMIRAL WELLBORN You may proceed with your general statement, Admiral. Admiral WELLBORN. Gentlemen, the increase in funds requested under this appropriation for budget programs under the cognizance of the Office of the Chief of Naval Operations are the following: Budget activity 1, $3,288,000: These funds will provide for maintenance and operating costs of naval district headquarters, sea frontiers, and other miscellaneous commands. This increase is required principally for the west coast naval districts and the Pacific area commands which are most directly affected by the current far eastern operations. It will restore these activities to the approximate 1949 level of operation and will enable them to effectively carry out their functions related to current naval mobilization and operating plans. It will also provide for the necessary increased workload that is being experienced in coordinating the reactivation of fleet units and the recall and assignment of additional personnel. Budget activity 2, $13,527,000: These funds will provide for maintenance and operating costs of naval bases, naval stations, and naval operating bases. The primary mission of these bases and stations is to support, service, and maintain fleet components; they furnish operational and logistic services in direct support of the operating forces. These additional funds are most urgently required for the Pacific area overseas bases and stations and for those installations in west coast areas most directly affected by the current far eastern operations. More specifically, the most urgent requirements are for naval operating base, Marianas; naval stations, Subic Bay, Long Beach, San Diego, Treasure Island; naval base, Pearl Harbor; and naval operating bases, Adak and Kodiak. These funds will provide for emergency repair of deteriorated facilities and for operation and maintenance at the level necessary for increased support of the operating forces. The procurement of additional non-passenger-carrying vehicles is provided to meet the increased operational workload which will result from the expansion of the naval operating forces. Budget activity 3, $8,791,000: These funds will provide for the expansion of the Navy communication system and special communication supplementary activity to meet current communication demands and provide a build-up to increase operating capacity of the system. There is included provision for procurement of communications equipment, for additional leased and commercial facilities, for replacement of military personnel to permit reassignment to fleet and classified billets, and for other support to meet the greatly increased communication load. These funds will enable the Navy communication system to meet demands for more rapid and more secure communications and to handle the over-all system traffic load which has increased approximately 60 percent during the last month. Budget activity 5, $425,000: These funds are required to meet increasing demands for production and distribution of charts, publications and periodicals and are especially needed to supply force requirements due to the far eastern situation. These include approach, bombardment and air-support charts for amphibious operations, charts for undersea warfare and escort and convoy operations and for reactivated naval vessels. These funds will also provide for increased emphasis on the air objective folder program which was reduced to remain within the 1951 ceiling budget. It will also provide for the replacement of chart paper consumed in production for the current increased naval activity. This replacement is necessary to prevent depletion of stocks so that a beginning inventory is available in case of full mobilization. Budget activity 9, $426,000: These funds are required to provide additional personnel, overtime pay and related operating costs for the Office of the Chief of Naval Operations. The workload of this Office is expanding daily as the Navy proceeds with its partial mobilization schedule to meet the current far eastern situation and to improve its operational readiness. The Office of the Chief of Naval Operations is the aviation, military personnel, and logistic planning organization for the Navy as well as the office exercising full command of all the naval operating forces. The call to duty of additional military personnel, the reactivation of aircraft and fleet units and the control and movement of these units and vessels and the many facets of logistic support required for the operating forces all have a direct impact on this Office which directs all naval planning and operations. Increases in mail and communications, directives, performance and battle records and reports, personnel, fleet and aircraft statistics and all logistic planning functions required that the expansion of this Office be provided. STATEMENT OF MR. DILLON Mr. SHEPPARD. Mr. Dillon, you may proceed with your general statement. Mr. DILLON. Mr. Chairman and gentlemen, organizationally, the management responsibility for the activities financed by this appropriation is distributed among the offices of the Secretary, the Chief of Naval Operations, and the Judge Advocate General. I am representing the Secretary's office and his staff offices, and the Office of the Judge Advocate General for budget activities 4, 8, 9a, and 9c. In this supplemental appropriation are estimates for the naval records centers and for that portion of departmental administration pertaining to the Executive Office of the Secretary and the Office of the Judge Advocate General. The supplemental estimates for these total $2,194,000. Of this total, $60,000 is requested for the naval records management centers to facilitate (1) the return of service records and health records to the Bureau of Naval Personnel and Bureau of Medicine and Surgery of men returning to active duty, (2) refitting reserve fleet vessels being reactivated with their essential files and records, and (3) expansion of the microfilm program to meet certain enhanced requirements for security of records. Constituting the largest portion of this total, $2,134,000 represents additional requirements for departmental salaries, civilian and military travel, printing, supplies, equipment and similar administrative housekeeping expenses for the Executive Office of the Secretary and the Judge Advocate General. The organizational units supported by these funds are staff offices which perform for the Secretary coordination, policy, legal and management functions and provide the administrative services for the Department proper. These functions range widely from policy and coordination of procurement, material, fiscal, and personnel matters to such services as adjudication of claims, review of courts martial, mail, office supplies and telephone services. The Korean incident has brought immediate demands for more material and personnel, and in turn has accelerated the work of these offices in the personnel and material procurement, contracting, production, and inspection fields. As other examples of the added costs generated by the current situation, the over-all departmental telephone traffic load has increased 100 percent during the last month. The volume of mail has increased approximately 15 percent during the same period. Additional office supplies and equipment are required to perform the work of the Department and additional guard service must be provided to meet minimum requirements of departmental security. The increase in the size and activity of the Navy brings an increased workload to the Judge Advocate General in additional claims, and higher incidence of courts martial. These and similar administrative expenses for the Department constitute this request for supplemental funds, and are directly related to the increase in operational activity. With your concurrence, Admiral Wellborn will discuss those programs which are the responsibility of the Office of the Chief of Naval Operations, budget activities 1, 2, 3, 5, 6, 7, and 9b. SUMMARY JUSTIFICATION DATA Mr. SHEPPARD. We will insert the prepared justification in the record at this point. 1. Naval district headquarters, river commands, sea frontiers and miscellaneous commands and headquarters: Senate bill, 1951.. Proposed supplemental Revised requirement, 1951... $12, 477, 248 3, 288, 000 PROPOSED INCREASES IN PROGRAM 15, 765, 248 (1) An increase of $3,288,000 for increased level of operations.-Provides for increased level of support at district headquarters, Pacific area commands and miscellaneous commands and headquarters necessitated by the operations in the Far East and the implementation of Navy Department and Secretary of Defense plans and directives. The proposed supplemental includes increased civilian employment and additional funds for fire and security protection, maintenance and operation of buildings and structures; military temporary additional duty and civilian travel, transportation, automotive pools, administrative and clerical requirements, overtime of civilian forces and supplies and equipment. These funds will be required principally for the west coast naval districts and the Pacific area commands which are most directly affected by the current far eastern operations. The naval districts having the most urgent need for funds are the fifth, eleventh, twelfth, thirteenth, fourteenth, fifteenth and seventeenth. The Pacific area commands include CinCPac, ComWesSeaFron, ComServPac, ComNavFE, Com Marianas, ComNavPhil and other miscellaneous fleet commands. 2. Naval bases, naval stations, and naval operating bases: Senate bill, 1951__ Proposed supplemental___. Revised requirement, 1951_-_ $27, 636, 737 13, 527, 000 41, 163, 737 |