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General RAWLINGS. Yes, sir. However, I believe, sir, that the order of magnitude of these figures is about right. It will not be far off.

Next we get into the actual appropriations we have in the first column.

(Discussion off the record.)

General RAWLINGS. Sir, I would like to report on one thing I neglected to mention.

USE OF MAINTENANCE AND OPERATION FUNDS, 1950, TO REACTIVATE

AIRCRAFT

In the last week of July, when the Korean situation was winding up, we were able to take $39,000,000 of maintenance and operation funds which were scheduled to be saved out of the fiscal 1950 appropriation and use that money to withdraw the F-51's, B-29's, and B-26's for initiating support for the Korean operation.

Off the record.
(Discussion off the record.)

General RAWLINGS. That would not have been possible without this performance-type budget. It is a very valuable device. In case of emergency you do have an opportunity to do things that are very helpful and essential.

CONSTRUCTION OF AIRCRAFT

The "Construction of aircraft” appropriation is broken down into its two segments. There is construction of aircraft, which we gave you on the other chart, the 1.550 billion dollars, in the 1951 basic budget. That is the way this committee forwarded this to the Senate.

Then we have the program which provides for the Korean situation, the replacement aircraft for Korea and for the build-up to the 58 groups, $2,672,600,000; or a total of $4,222,600,000.

MAJOR AND SPECIAL PROCUREMENT For the other major procurement, which includes primarily ammunition and electronics, what we have done in this program on ammunition is to increase our stock levels so that we would be in a position to pick up procurement in case of an emergency, and to have all of our ammunition and bomb stocks satisfactory. That makes $161,400,000 in 1951 in the regular appropriation and $104,700,000 in the supplemental.

Next is special procurement. I am sorry, but I have this reversed. The special procurement has the ammunition in it. I reversed my explanation.

There is $147,900,000 in the basic budget and $460,700,000 in the supplemental. This is the item where the ammunition and bomb stocks are increased.

ACQUISITION AND CONSTRUCTION OF REAL PROPERTY

Next is the "Acquisition and construction of real property." We had in the regular 1951 appropriation $139,800,000, and we have in this supplemental $169,700,000. This includes the $39,800,000 for com

pletion of the radar fence, and the balance of the items are related to minimum operational facilities, which means runway extensions, parking aprons, high-speed refueling, and communications for the strategic strike force and for the deployed fighter units on that air defense plan you saw on the previous chart.

MAINTENANCE AND OPERATION With regard to "Maintenance and operation," our basic budget was $1,041,000,000. The supplemental is $799,100,000. That provides for increased flying hours, the gasoline and oil, maintenance personnel, spare parts, and so forth.

MILITARY PERSONNEL

The next item is "Military personnel.” This is $1,254,400,000 in the basic estimate and $307,000,000 in the supplemental. This is to provide for the build-up of strength to this end figure.

Actually, the requirement we calculated on our military personnel is a little higher than this. The reason that we have this end strength is because the best guess of the reviewing authority was that this was as high as we could economically go in the fiscal year. We think we need an end strength about 20,000 higher. We are presenting a program to the Secretary of Defense to show him that we think we can make it. If so, it will take some more dollars.

RESEARCH AND DEVELOPMENT

Research and development remains at the same figure in the Air Force estimate, however, in the Secretary of Defense's over-all appropriation he has $120,000,000 which, as I understand it, they contemplate will be divided (based on the recommendations of the Research and Development Board) and then transferred to the responsible departments for administration.

Mr. Mahon. You will have to have some additional research ånd development money if you are going to expedite the program?

General Rawlings. Yes, sir. There will be $120,000,000 divided on the basis of the Research and Development Board's estimates.

SALARIES AND EXPENSES, ADMINISTRATION Salaries and expenses, administration, is $58,500,000, with $21,600,000 in the supplemental.

Mr. Mahon. How many additional civilian employees will you hire?

General RAWLINGs. On the civilian employees, I do not have that figure.

General Wood. Over-all, about 40,000 man-years. It is about 50,000 spaces.

CONTINGENCIES General RAWLINGS. In the contingency items there is no charge so far as the Air Force is concerned. There is a single item for the Secretary of Defense.

69887–50-pt. 2-17

CIVILIAN COMPONENTS

We have held the civilian components at the same level. We had considerable discussion on that point. Of course, with the withdrawing of some of the guard and reserve personnel, into the regular program, they would be supported out of our dollars. This will make it possible for us to carry on the original program.

That completes the summary of the dollar figures. We have the estimate justification sheets here, sir. We an go into any amount of detail which you would like.

Mr. MAHON. This morning I went through this book of estimates, and I find that you have a pretty adequate breakdown of the details.

General RAWLINGS. Yes, sir.

I would like the committee to know, sir, that we did not have the normal amount of time in preparing this estimate. I would be unfair if I would lead you to believe that they were as accurate as our estimates usually are. They are not. However, I think they are about right. We may have made mistakes, either up or down. I think the order of magnitude is about right. The Korean situation, as you know, is fluid. We based this on an estimate of the year's operation. It may be more or it may be less.

We plan on trying to watch our resources so that we make good use of them. If we need more we will aks for it. If we do not need as much as we have we will let you know.

COMMITTEE TO BE INFORMED OF DEVELOPMENTS

Mr. Mahon. Can we have assurance from you that as your information increases and your program takes firmer shape you will keep us posted as to the situation?

General RAWLINGS. Yes, sir.

Mr. MA'HON. And supply us at all times with any information you have which we might request with respect to this augmentation?

General RAWLINGS. Yes, sir. We will keep you advised of our progress on this program,

NEED FOR ECONOMICAL EXPENDITURE OF FUNDS

Mr. Mahon. Can we have the complete assurance of you, General Rawlings, as Comptroller of the Air Forces, that none of this money is going to be spent in a profligate and wasteful manner?

General RAWLINGS. Sir, I would like to tell you a little bit of what we are trying to do in that regard.

Obviously, I cannot guarantee no waste. I will do my very best to prevent it, however.

The attitude of the staff has been completely on the side of trying to make the best use of our resources; so we are all trying. I am sure that we will make some mistakes. However, I have my auditor, the Auditor General, instructed to keep a very close tab of contracts so that we can immediately find areas where a contractual relationship does not look good. The matériel people are doing the same on the procurement side.

I have in progress what we call progress analysis, and Colonel Burchinal, who is here with us today, is in charge. It is a program review, where we will watch the progress of these programs.

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Mr. Mahon. Good. You may amplify that statement for the record, if you would like.

Mr. MAHON. When you are dealing in the procurement of aircraft and electronics you are dealing in high-priced material?

General RAWLINGS. Yes, sir.

Mr. Mahon. You are dealing with manufacturers who want to show the highest possible dividends to their stockholders and themselves.

General RAWLINGS. Yes, sir. These contracts, as you know, are subject to renegotiation. Nevertheless, we will do our best to write sound contracts.

Mr. MAHON. I understand that the contracts are subject to renegotiation, but we would like to have assurance that everyone having to do with this thing will bend every legal and moral effort to getting the job done in such a way that we will not have to apologize for it later.

General RAWLINGS. Yes, sir. We are well aware of the impact that this has on our resources. We are going to do our very best.

Mr. MAHON. There is another thing which I would like to bring out.

With the North Koreans breathing down our necks on the southern tip of South Korea it is relatively easy to get money for the Defense Establishment and for the Air Force. When things look rosier, and we hope they will, it is a more difficult job. It seems to me that the whole Defense Establishment ought to take note of this, that the manner in which the emergency funds provided under this program are expended will have a lot

of weight with Congress and the American people in the planning of future programs.

Mr. Cannon. In other words, you are on record?

General RAWLINGS. Yes, sir. We are well aware of that. I can give you my assurance, and I know the Chief and the Secretary feel the same way, that we will do our very best.

I am sure that we will find situations where we have not done as we should, but we will deal with those when they occur.

Mr. MAHON. I believe Mr. Norrell has a question.

ABILITY TO REACH PROGRAM GOALS

Mr. NORRELL. Considering these categories together and on a unit or percentage basis, how much of it do you have now in operation? What is your best guess on a percentage basis?

General RAWLINGS. I am sorry. ì did not quite understand the question, Mr. Norrell.

Mr. NORRELL. Considering the categories together and on a percentage basis, those which you have outlined here, how much of the program now would you say was activated and in operation?

General RAWLINGS. Sir, today we have the 48-group program. It is all activated. Today we have about 416,000 officers and men, whereas the ending strength will be 548,000.

Mr. NORRELL. I do not want to go over that again, but how much will you have to accelerate your program in order to meet the 1951 goal? Could you answer that on a percentage basis?

Mr. MAHON. May I interject this thought: I believe Mr. Norrell has in mind the fact that in the regular budget you requested a certain

amount of funds and in this budget you are requesting a certain amount of funds. Some of these funds will be diverted to Korea.

General RAWLINGS. I will say that the total program is about double the level we had in 1950. Is that about it?

Mr. NORRELL. I think so. The fact is then, you are reasonably certain you can reach these goals if you have the money?

General RAWLINGS. Yes, sir. We feel that we can reach them.

As I explained, on this personnel item, for example, we think we can do a little better that this, and we need to do a little bit better. Others, in reviewing it, have not held to that view. We think we can, and are trying to support that position.

In the case of aircraft procurement, we have made a thorough analysis, as Mr. McCone and General Shepard have shown you. They have actually talked with the presidents of aircraft companies, and they all feel that they can make the program,

We know there are going to be some material difficulties. Of course, a lot of that will depend on what happens on priorities, but there will be problems of material.

The Munitions Board, as I understand it, is working on a priority proposition that should solve that problem.

In terms of labor, the manufacturers all felt that the labor was available for this program and that there would be no problem there.

Is that about it, sir?
Mr. NORRELL. Yes, sir.

General RAWLINGS, General McNaughton feels, on the training, that we can accomplish the program,

Our operational people feel that we can accomplish the flying-hour program,

We may be wrong, but we believe we can. We are working to that end.

Mr. NORRELL. That is all.
Mr. MAHON. Are there any questions?
(Discussion off the record.)

Mr. Mahon. General Rawlings, I have some questions here which I would like to propound in connection with the projected program. In fact, I have three questions. I believe I will recite all of them. They are not directly related to each other, but I believe I will recite all of them and ask you to give me some responses as to your views.

EXPANSION OF AIR FORCE

The first question is: Can the Air Force expand faster than the rate indicated in the proposed increase? How much faster? What would a faster expansion mean in terms of impact on our industry?

General RAWLINGS. Obviously, in an all-out effort with full controls and unlimited dollars a faster program build-up could be accomplished. We are sure that the program we have presented to you today can be accomplished and, in fact, improved upon in certain instances. For example:

The amount of $307,000,000 for military personnel is conservative and possibly inadequate to support the Air Force personnel build-up in fiscal year 1951 as recommended by the Joint Chiefs of Staff and approved by the Secretary of Defense. The sum was arrived at

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