to strengthen and lengthen the runways and build modern airfield facilities at our existing air stations. We also have had to build new stations in the continental United States to avoid overcrowding air space and to open new stations with modern facilities to fulfill commitments overseas. This modernization in facilities has been taking place gradually over the past several years. Although actual construction and modernization costs have been funded from the Navy's military construction appropriation, the cost of operating and maintaining these facilities after completion are financed from this aircraft and facilities budget activity.

We are taking all actions possible to economize in this area to keep the operation and maintenance cost of our Shore Establishment to an austere minimum. During the last 2 years, consistent with reductions in the number of operating aircraft and a lower pilot training rate requirement, we have been consolidating operations where feasible and closing as many stations as possible. The stations being closed are the smaller, obsolete stations, or stations which are operating at less than capacity and can be closed with the least adverse effect upon the readiness position of our combatant forces. During the current fiscal year 15 stations are being closed, 3 are being opened and adjustments are being made in the scope of operations at others to obtain the best possible balance in our supporting Shore Establishment. Most of the stations being closed are phasing out of operation during the last 6 months of this fiscal year and will be closed by June 30, at which time we will have 75 stations remaining in operation. In 1960 we are operating 76 stations, one more than the endyear 1959 total. This new station is required to support Marine Corps helicopter operations in a forward area overseas.

Although we have reduced the number of our stations in 1958 and 1959, the plant value of our Shore Establishment requiring operation and maintenance in 1960 will be approximately the same as in 1958 because of new airfield facilities becoming operational and the large housing projects being completed at our existing stations. We are requesting $278 million for the operation, maintenance, and the major repair and replacement of facilities for these 76 stations in 1960. This is approximately the same amount that was required in 1959. The savings which were generated by closing stations have been offset, first, by costs at other stations which are phasing up and secondly, by the cost of operating and maintaining the large number of housing units becoming available for occupancy by military personnel under the Capehart and Wherry housing programs.

SUPPORTING PROGRAMS

The remaining portion of the estimate for aircraft and facilities provides essentially for a group of nine budget projects all of which furnish vital support to the operating programs. Costs in these areas are estimated at about $97 million in 1960, approximately $1.4 million above 1959. Our 1960 estimate reflects the increasing complexity of the operating forces to be supported. In most cases, however, we

have been able to offset increased requirements with compensating reductions. Principal projects included in this area provide for the modernization and maintenance of aircraft launching and arresting equipment which enable the operation of high performance aircraft from the active carriers of the fleet, and for the general ground equipment required at aeronautical activities to support air operations. Other projects provide aerial cameras for aircraft and missile training operations, and aerological equipment and instruments to meet the Navy's needs for weather information.

SUMMARY

The $863 million requested for the aircraft and facilities budget activity will provide adequate but austere support for the aviation forces of the Navy. We are searching continually for better and more economical ways of doing things. To offset the effects of reduced numbers of operating aircraft, we have reorganized our carrier air groups to assure the maximum use of our most modern combat aircraft. Wherever it can be done without depriving the fleet of essential support, we are closing shore stations or reducing the scope of their operations.

The combat readiness and effectiveness of the fleet operating forces are dependent upon the funds budgeted in this activity. The amount requested is the minimum needed to sustain their operations in fiscal year 1960.

DATA ON AIRCRAFT MAINTENANCE AND OVERHAUL,

DEPARTMENT OF DEFENSE

Mr. MAHON. In behalf of the committee I wrote a letter to the Comptroller of the Department of Defense, Mr. McNeil, and when he was before us I believe I asked him some questions in regard to some operation and maintenance procedures.

A summary tabulation has been prepared for aircraft maintenance and overhaul for the entire Department of Defense.

Since we are here dealing with this problem in the detail of dollars and cents, without objection I would like to place this tabulation in the record at this point.

(The information referred to follows:)

The amounts indicated exclude centrally procured material funded in this appropria-
tion. In order to reconcile the budget presentations with this summary, it is necessary
to recognize the following:

DEFINITIONS AND COVERAGE OF DATA ON AIRCRAFT CONTRACT MAINTENANCE PROGRAMS

1. The term "aircraft maintenance" covers the aircraft (airframe, engines, and accessories) and related equipment overhaul, modification and modernization programs of each service.

2. The term "amounts" refers to obligations as incurred or planned for these activities.

3. Obligations as incurred or planned for depot level maintenance will be separated for "inhouse" and "contract" as indicated in format B. Base level obligations will be shown only in the "contract" column because of the impracticability of estimates of the value of base level maintenance as accomplished "inhouse."

4. Because of the difficulty in identifying and accurately distributing the value of centrally procured and nonstock funds materiel furnished to "inhouse" and "contract" agencies at all levels as "free" issue, the statements of obligations specified in format B will be exclusive of such considerations. However, appropriate explanatory notes should be used to indicate the magnitude of the value of such materiel if such estimates are available.

5. The time period to be covered is fiscal year 1958. Current experience starting on July 1, 1958, through the latest actual experience (indicated on format B as December 31, 1958), the balance of fiscal year 1959 and fiscal year 1960.

6. The term "programed in the budget justifications" is defined as the amounts indicated for these purposes in the budget justification material submitted in support of the President's budgets for fiscal years 1958 and 1959. Comparable "apportionment programs" may be separately shown, if desired. The term "estimated for 1960" is defined as the program submitted in support of the President's budget for fiscal year 1960.

7. The term "by appropriation program" is defined on format B as a separate identification of each appropriation on the program level which contains funds for the purposes set forth in paragraph 1 above.

8. The Army data should include those obligations for these purposes, including MAP, incurred by the Army "inhouse," by contract and as cross serviced by the Air Force.

9. The Navy data should include those obligations for these purposes, including MAP, incurred by the Navy "inhouse," by contract and as cross serviced by the Air Force, if applicable.

10. The Air Force data should include those obligations for these purposes, including MAP, incurred by the Air Force "inhouse" by contract and as cross serviced by Army or Navy, if applicable.

Army aircraft maintenance, continental United States (obligation basis)

Mr. MAHON. Have you had an opportunity to review this tabulation, Admiral Dixon?

Admiral DIXON. I do not think I am familiar with it, Mr. Chairman. Possibly I have seen it but I do not identify it at the moment. Mr. MAHON. Off the record.

(Discussion held off the record.)