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PROPOSED INCREASE IN PROGRAM

(1) An increase of $43,400 for employment of 14 additional civilian personnel.The increases in the size of the Navy, including increase in personnel, more vessels and aircraft in operation, more vehicles in service, etc., will be reflected in bigger workloads in the Office of Judge Advocate General. Many more claims will result from these increases. The incidence of courts martial will increase as a result of larger naval forces and of the psychological stresses of conflict. New and perplexing problems will confront the tax attorneys as the volume of procurement business increases and tax programs are changed to meet the demands of a mobilized economy. Legislative and congressional liaison activities have already felt the impact of the changed international situation.

(2) An increase of $20,000 for payment of overtime to civilian personnel.—Overtime work has been performed in the Office of the Judge Advocate General on a compensatory basis heretofore. Such a basis is no longer feasible. Full staffs are necessary during the workweek, and week end and evening work will increase in all programs in the Office. Computed at approximately $2 per hour for each overtime worked (grade GS-4 average) the requested sum would provide for an average of approximately 10 days of overtime per civilian employee.

(3) An increase of $1,255 for additional temporary additional duty travel.-This sum is to provide for expected increases in transportation and per diem for both military and civilian officers of the Office-$800 is estimated for military and $455 for civilian personnel traveling in the settlement of admiralty claims.

(4) An increase of $4,600 for additional supplies and equipment. This item includes foreseeable expenditures for additional office equipment to be used by the additional personnel; and, of utmost importance, the replacement of nonsecure files storage by security storage cabinets for an ever-increasing volume of classified documents.

(5) An increase of $2,000 for office and equipment maintenance.-Under its expanded operations, the Office will require additional working space. Certain minimum structural changes in that space will be required for purposes of security and efficiency.

(6) An increase of $1,745 for increased printing needs.-This is an estimated reflection of the expansion of the operations of the Office, as indicated in the above areas.

Mr. MAHON. I note that you have about 21 pages of printed matter here which deals with justifications of nine items you have enumerated. Percentagewise your increase is not as great as some of the other

services.

Admiral WELLBORN. No, sir, it is not. I think that results very largely from the fact that we must maintain a certain amount of overhead, and as the Navy expands the overhead does not expand quite correspondingly, so our percentage figure comes out somewhat less than the general percentage.

Mr. MAHON. We thank you very much.

RESEARCH AND DEVELOPMENT AND INDUSTRIAL MOBILIZATION

Admiral HOPWOOD. As a matter of clean-up, early this morning a question was asked by one of the members that the Navy insert in the record the amounts recommended by the Secretary of Defense under the appropriation for research and development and Industrial mobilization broken down by the respective appropriation titles.

I have such tables here, and if you would desire at this time, we can place them in the record.

Mr. MAHON. Is that for the supplemental budget?

Admiral HopWOOD. Yes.

Mr. MAHON. They will be inserted in the record at this point. (The tabulations referred to are as follows:)

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LANGUAGE REQUESTED TO ALLOW ACCELERATION OF PRODUCTION

Admiral HopwOOD. There is one more important question. At the time that the supplemental appropriations were being requested and information submitted to the Secretary of Defense, the Navy submitted language changes in the appropriation act that would accomplish the same purposes which the Army utilizes in its appropriation act for expediting production.

During the last war our large material appropriations, and bureaus, had the authority to build facilities in connection with speed-up production in certain areas when such was required.

Because of the speed with which the supplemental appropriation was assembled and the justifications therefor, this item was left out of the bill. The Office of the Secretary of Defense has authorized us to bring it to the committee's attention. No money is requested at this time, but we have language changes which, if it were required to expedite production in any area, we would do so within the funds available. We do not foresee at the moment sufficient need on which we could base a sound budget; and, until such time as there is such a need, I would rather just have the language in the appropriation. If the situation should assume proportions which could not be absorbed within the appropriations, we could so inform the committee. In the Bureau of Aeronautics, as an example, they have a tremendous increase in the authorized procurement of jet planes. In the Bureau of Ordnance they are expediting their rocket and rocket-head production line.

(Discussion off the record.)

There are no additional funds required. I can submit the language to the executive secretary of the committee for consideration when the committee marks up the bill.

Mr. MAHON. Is there anything further?

Admiral HopwOOD. I have nothing further at this time.

ESTIMATED MILITARY COSTS IN FUTURE YEARS

Mr. MAHON. I notice that Col. Robert Moore, from the Office of the Secretary of Defense, is present. He has worked with us for many years in a very helpful and effective way.

One question that I think should be developed and probably the question should be discussed when Mr. McNeil is here, the Assistant Secretary-is the question of how much this program will cost by years, if we continue it.

Admiral HopwOOD. If we level off at the rate of build-up, which is anticipated in the proposed bill?

Mr. MAHON. That is the point. In other words, it has been said probably the Defense Establishment would request of Congress for the fiscal year 1952 about $13,000,000,000. That figure is, of course, completely out of date at this time in view of the Korean situation.

Now, I think when this bill is carried to the floor it would be proper and sensible for any members to ask-Well, what will be our military spending if we clean up the Korean situation within 6 or 8 months, and if we continue in operation at approximately the establishment which is being brought into being by the regular and supplemental bills?

We have additional men; we have additional planes; we have additional ships. Now, if you project that throughout the future years, approximately how is it going to run, and do you have any figures on that at the present time?

Admiral HopwOOD. No, sir. We are working in that area with the Army and the Air Force, being coordinated with the Secretary of Defense. It is our estimate at this time that the level of operations on an annual basis, recognizing this is a build-up and not a continued operation for a year, will just about balance out our regular activation costs. In other words, in the operation of all the 282 ships that we are going to operate, the reactivation of those ships will just about balance out the operation in the next succeeding year, so that the level-off figure, everything considered, will be not far from the figure we have requested in this proposed bill; that is, the regular 1951 appropriation plus the supplemental request. A detailed study is going on, and I would not like to be held to that. An exception to that might be in the area of military personnel where the build-up is at a slower rate.

Mr. MAHON. That would mean then that maybe in 1952 or 1953 we would have a regular budget of about, for the Army, the Navy and the Air Force, $23,000,000,000.

Admiral HOPWOOD. That is entirely possible.

Mr. MAHON. Will you communicate the substance of this discussion to the Secretary of Defense, Colonel Moore?

Colonel MOORE. Yes.

Mr. MAHON. I would like to have any comments that you would like to make at this time with regard to the problem.

Colonel MOORE. In the preparation of many of the estimates prepared during the past few months, the ensuing fiscal-year cost was projected some 5 years. I think that I can get for the committee a

reasonable projection of the costs on the basis of what we are attempting to reach with the funds in this supplemental for, say, 3 or 4 years in the future.

Mr. MAHON. Another thing we will want is some discussion of the impact of this new program on the 1952 budget upon which you are now working.

Colonel MOORE. In that connection, the work on it has been slowed up temporarily until a new directive for the 1952 budget can be issued in the light of what has been done in the last month.

Mr. MAHON. As you know, when there is some talk that we are threatened with being pushed off the peninsula in Korea, the people are not thinking too much about money, but when the tide changes and the situation in Korea is stabilized, and there are no threatening gestures over a period of a few days, then there will be a lot of discussion as to how much we can afford to spend for military purposes. I think that we need to go into our program with our eyes open. I think that it will be to the advantage of the Defense Establishment and to the advantage of Congress and the American people for us to face up to the problem which is confronting us.

A lot of people, I think, would be satisfied to just take this 10.5 billion dollars and hurl it into the Korean conflict and then go along with a 13-billion-dollar program; and we have got to know for sure where we are going.

NEED FOR ECONOMICAL DISBURSEMENT OF FUNDS

And here is another thing: I hope that the Military Establishment will take due notice of the fact that the desire of the Congress to respond immediately to the need for additional funds is not to be interpreted to mean that funds should be used without regard to any sense of economy. I would like you as the budget officer of your Department, Admiral Hopwood, and those in the other departments to see to it that no rash and intemperate use is made of the funds provided by the Congress. In the long run it will hurt us and will militate against our defense program.

Admiral HopwOOD. You are entirely right, Mr. Chairman. And in the Department of the Navy, as well as in the other departments, this estimate was built up on three scheduled, well-considered increments. Speaking for the Department of the Navy, during the year, since the spring of 1949, in the cut-back program of the Navy we reduced by 88,000 the number of civilians from our shore establishments. The estimate before you reinstates approximately 75,000; so we are still under the size of the establishments that we had a year ago in many ways.

Mr. MAHON. Yes, but, even so, it would be bad if we should read in the press or learn otherwise that at a particular installation men were called back by reason of the emergency although there were no tools to work with and they were just twiddling their thumbs while waiting for a fully integrated program, if you get what I mean?

Admiral HopwOOD. That certainly is true, Mr. Chairman. Speaking for the Navy, we are attempting to stage our operations to bring the labor force in consonance with the materials as they become available.

Mr. MAHON. Thank you very much, Admiral Hopwood, for the assistance you have given the committee. We will take up the budget for the Air Force tomorrow.

FRIDAY, JULY 28, 1951.

DEPARTMENT OF THE AIR FORCE

WITNESSES

LT. GEN. E. W. RAWLINGS, DEPUTY CHIEF OF STAFF, COMPTROLLER

MAJ. GEN. W. E. TODD, ASSISTANT FOR PROGRAMMING

MAJ. GEN. T. H. LANDON, DIRECTOR OF PLANS

MAJ. GEN. K. P. MCNAUGHTON, DIRECTOR OF TRAINING

BRIG. GEN. H. A. SHEPPARD, DIRECTOR OF PROCUREMENT AND ENGINEERING

BRIG. GEN. JACK W. WOOD, DIRECTOR OF BUDGET

COL. DAVID A. BURCHINAL, CHIEF, PROGRESS ANALYSIS DIVISION COL. C. PRATT BROWN, OFFICE OF ASSISTANT FOR PROGRAMMING

SUPPLEMENTAL ESTIMATE

Mr. MAHON. We have with us this morning representatives of the Air Force in connection with the supplemental estimate in House Document 657. We will insert the appropriate portions of that document in the record.

DEPARTMENT OF THE AIR FORCE

"Construction of aircraft and related procurement", $2,777,300,000, to remain available until expended: Provided, That the aircraft procurement program established under this head in the Defense Appropriation Act, 1951, is increased by $2,777,300,000;

"Special procurement", $460,700,000;

"Acquisition and construction of real property", $169,700,000, to remain available until expended;

“Maintenance and operations", $799,100,000;

"Military personnel requirements", $307,000,000;

"Salaries and expenses, administration", $21,600,000.

Mr. MAHON. Proceed, General Rawlings.

General RAWLINGS. We have prepared for you this morning the presentation which was given to the House Armed Services Committee yesterday, and what we have done is to take the very complete presentation as given to them, plus some additional information on the appropriation phase for this committee.

Mr. MAHON. Did you give them the complete presentation moneywise?

General RAWLINGS. We gave them summary charts but not a complete presentation. The way we had arranged it is to try to build up the framework so you can understand the program.

We have the major staff officers responsible for the particular areas, and we have the charts which each one can brief you on. Also we are prepared to answer any further questions, either by those who are here or people who will be made available for more detailed information if you like it.

Mr. MAHON. Do you have a prepared general statement?

General RAWLINGS. Yes, sir.

Mr. MAHON. Before you go into your prepared statement I think some of the questions which we should explore at this hearing are those dealing with the direction of the Air Force, and by that I mean

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