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(The bill referred to was as follows:)

[H. R. 5911, 79th Cong., 2d sess.]

AN ACT To establish an Office of Naval Research in the Department of the Navy; to plan, foster, and encourage scientific research in recognition of its paramount importance as related to the maintenance of future and naval power, and the preservation of national security; to provide within the Department of the Navy a single office, which, by contract and otherwise, shall be able to obtain, coordinate, and make available to all bureaus and activities of the Department of the Navy, world-wide scientific information and the neces sary services for conducting specialized and imaginative research; to establish a Naval Research Advisory Committee consisting of persons preeminent in the fields of scienc and research, to consult with and advise the Chief of Such Office in matters pertaining to research

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there is hereby created and established in the Office of the Secretary of the Navy an Office of Naval Research, which shall be charged with such duties relating to (1) the encouragement, promotion, planning, initiation, coordination, and control of all naval research; (2) the conduct of naval research in augmentation of and in conjuction with the research and development conducted by the respective bureaus and other agencies and offices of the Navy Department; and (3) the supervision, administration, and control of activities within or on behalf of the Department of the Navy relating to patents, inventions, trade-marks, copyrights, royalty payments, and matters connected therewith; as may be prescribed by the Secretary of the Navy. All of the duties of this Office shall be performed under the authority of the Secretary of the Navy and its orders shall be considered as emanating from him and shall have full force and effects as such.

SEC. 2. At the head of the Office of Naval Research there shall be a Chief of Naval Research, appointed by the President, by and with the advice and consent of the Senate, for a term of not to exceed three years, from among officers not below the grade of commander on the active list of the Navy. The Chief of Naval Research shall, in addition, report to the Chief of Naval Operations, and shall have the same rank and shall be entitled to the same pay, allowances, and privileges of retirement as are now or may hereafter be prescribed by or in pursuance of law for chiefs of bureaus in the Navy Department.

SEC. 3. An officer on the active list of the Navy may be detailed as Assistant Chief of Naval Research, and such officer shall receive the highest pay of his grade and in case of the death, resignation, absence, or sickness of the Chief of Naval Research, shall, until otherwise directed by the President as provided in Revised Statutes, section 179 (U. S. C., title 5, sec. 6), perform the duties of such chief until his successor is appointed or such absence or sickness shall cease. SEC. 4. The Secretary of the Navy is hereby authorized to establish a Naval Research Advisory Committee, which shall consist of not exceeding fifteen persons to be appointed by the Secretary from those persons in civilian life who are preeminent in the fields of science, research, and development work. One member of such committee will be from the field of medicine. The members of such committee shall serve for such term or terms as the Secretary may specify, and shall meet at such times as may be specified by the Secretary to consult with and advise the Chief of Naval Operations and the Chief of the Office of Naval Research. Each member of such committee shall be entitled to compensation in the amount of $50 for each day or part of a day he shall be in attendance at any regularly called meeting of the committee, together with reimbursement for all travel expenses incident to such attendance: Provided, That nothing contained in sections 41, 109, and 113 of the Criminal Code (U. S. C.. title 18, secs. 93, 198, and 203); in Revised Statutes, section 190 (U. S. C., title 5, sec. 99); in section 19 (e) of the Contract Settlement Act of 1944 (Public Law 395, Seventy-eighth Congress); or in any other provision of Federal law imposing restrictions, requirements, or penalties in relation to the employment of persons, the performance of services, or the payment or receipt of compensation in connection with any claim proceeding, or matter involving the United States, shall apply to such persons solely by reason of their appointment to and membereship on such committee.

SEC. 5. There is hereby authorized to be appropriated such amounts as may be necessary for the Office of Naval Research to carry out its functions as provided for herein, including such sums as may be required for administrative expenses, and the conduct of research and development work in Government facilities and under contracts with private individuals, corporations, and educational or scientific institutions. Sufficient information relative to estimates

of appropriations for research by the several bureaus and offices shall be furnished to the Chief of the Office of Naval Research to assist him in coordinating the Navy research program and the carrying out of such other duties as outlined in section 1.

SEC. 6. Within the limits of available appropriations, the Secretary of the Navy, and, by direction of the Secretary, the Chief of the Office of Naval Research and the chiefs of all bureaus of the Navy Department (acting through and under the Chief of Naval Research), may enter into contracts, or amendments or modifications of contracts, for services and materials necessary for the making and securing of reports, tests, models, apparatus, and for the conducting of research, without performance or other bonds, and without regard to section 3709 of the Revised Statutes (U. S. C., title 41, sec. 5), section 3718 of the Revised Statutes (U. S. C., title 34, sec. 561), section 3719 of the Revised Statutes (U. S. C., title 34, sec. 562), section 3720 of the Revised Statutes (U. S. C.., title 34, sec. 563), section 3722 of the Revised Statutes (U. S. C., title 34, sec. 572), and may make advance, progress, and other payments with respect to such contracts without regard to the provisions of section 3648 of the Revised Statutes (U. S. C., title 31, sec. 529): Provided, That nothing herein shall be construed to authorize the use of the cost-plus-a-percentage-of-cost system of contracting.

Passed the House of Representatives May 20, 1946.
Attest:

SOUTH TRIMBLE, Clerk.

Secretary KENNEY. With the exception of the relatively unimportant proposed amendments that I will discuss later, the Navy Department enthusiastically supports H. R. 5911.

In view of the great importance to the Navy and to the Nation of the research activities covered by H. R. 5911, the Navy Department urges favorable and early action by your committee on the bill.

It would be presumptuous and a waste of time for me to attempt to convince the members of this committee of the importance of research and development activities in the field of national defense.

The tremendous effects of new weapons and devices in fighting the war against Germany and Japan are too fresh in all our minds to warrant discussion at this time.

Some attention may profitably be directed however, to the plans of the armed services for the continuance in the future of the scientific activities that result in the development of such weapons and devices of warfare, and therefore it may be helpful for me to review briefly the plans of the Navy Department in this respect.

You are familiar with the fact that each bureau conducts an active research and development program within its own specialized field of work.

Such an arrangement has proved to be an entirely satisfactory one because experience has proved that the bureau ultimately responsible for the production and procurement of Naval matériel should be responsible for a research and development program on the weapons, devices, supplies, or other articles within its jurisdiction.

In some cases, however, the research activities of the bureaus may overlap, and in some cases research work of importance to the Navy as a whole may not fall within the jurisdiction of any one bureau.

Also, it is important to have some ready means available to insure that information concerning the research activities of each bureau is gathered together in one central place and made available to the other bureaus, to the Chief of Naval Operations and his staff, and to other interested persons and organizations within the Naval Establishment. For those reasons the Secretary of the Navy issued a directive on May 19, 1945, a copy of which is submitted herewith for the record of these hearings.

I would like to have that put in the record, Mr. Chairman. The CHAIRMAN. Certainly, that may be put in the record. (The directive referred to is as follows:)

To: All Bureaus, Boards, and Offices of the Navy Department.
The Commandant, United States Marine Corps.
The Commandant, United States Coast Guard.
Subject: Office of Research and Inventions.

MAY 19, 1945.

1. There is hereby established, in the office of the Secretary of the Navy, the Office of Research and Inventions at the head of which shall be a Chief and an Assistant Chief, appointed by the Secretary of the Navy and designated, respectively, the Chief and the Assistant Chief of Research and Inventions. In addition to reporting directly to the Secretary of the Navy, the Chief of Research and Inventions shall also report to the Chief of Naval Operations. The orders of the Chief of Research and Inventions shall be considered as emanating from the Secretary of the Navy and shall have full force and effect as such.

2. The Chief of Research and Inventions shall:

(a) Coordinate, and from time to time disseminate to all bureaus full information with respect to all naval research, experimental, test, and developmental activities;

(b) Undertake upon his own initiative, or at the direction of the Commander in Chief, United States Fleet, or of the Chief of Naval Operations, or at the request of any bureau or office of the Navy Department, studies of specific instrumentalities and techniques for the purpose of outlining research, experimental, test, or developmental projects;

(c) Maintain a continuous survey of research, experimental, test, and developmental work conducted by other governmental agencies, corporations, educational and scientific institutions, and represent the Navy Department in dealings therewith in regard to such work;

(d) Supervise and administer all activities within or on behalf of the Navy Department relating to patents, inventions, trade marks, copyrights, royalty payments and similar matters, and correlate such activities with the research, experimental and developmental activities of the Navy;

(e) Advise the Secretary of the Navy on all matters covered hereby.

3. The Naval Research Laboratory and the Special Devices Division of the Bureau of Aeronautics are hereby transferred to the Office of Research and Inventions.

4. To assist the Chief of Research and Inventions in the performance of his duties hereunder, all addresses shall submit to him such information relating to their research, experimental, test or developmental projects and programs as he may request.

5. The Chief of Research and Inventions may establish such offices in the bureaus, shore establishments, shore areas and laboratories, or elsewhere, as he shall deem necessary to carry out the provisions of paragraph 2 (d) hereof and he shall assign to them such duties and functions as he may deem to be desirable in the interest of efficient administration. Naval activities not provided with representatives of the Office of Research and Inventions shall refer all questions as to the matters covered by paragraph 2 (d) hereof directly to said Office unless otherwise directed by the Chief of Research and Inventions.

6. The Chief of Research and Inventions is hereby authorized to execute, on behalf of the United States, contracts which shall have been prepared and approved in compliance with existing directives and which relate to facilities, equipment, supplies or matters hereby transferred to the cognizance of the Office of Research and Inventions.

7. The authority hereby delegated to the Chief of Research and Inventions may be further delegated by him to the extent that he shall deem necessary or desirable.

8. The Chief of Research and Inventions shall forthwith set up the Office of Research and Inventions, selecting such personnel presently assigned to the Office of Patents and Inventions and to the Coordinator of Research and Development, respectively, and appointing such other assistants as he may deem necessary for the performance of the duties and functions of the Office of Research and Inventions.

9. The Chief of Research and Inventions shall appoint qualified persons to serve as Patent Counsel and to furnish all necessary legal advice and services

in regard to matters which relate solely to patents, inventions, trade-marks, copyrights, royalty payments and similar matters. The general counsel for the Department of the Navy shall provide the Chief of Research and Inventions with all legal advice and services that may be necessary in regard to other matters.

10. Until separate funds shall be otherwise provided for the Office of Research and Inventions, allocations for such purpose shall be made to the naval procurement fund from the appropriations of the Navy Department which are available for research, experimental or developmental work in such amounts as shall be directed by the Secretary of the Navy. Payments from the said allocations may be made without regard to the nature of any research, experiment, test, or development with respect to which the payment is made. The Chief of Research and Inventions shall account to the Secretary of the Navy for the use made of any appropriations so allocated and appropriate adjustments in the allocations from the various appropriations may be made.

11. The Office of Patents and Inventions established by directive of the Secretary of the Navy dated October 19, 1944 (NPD 13,801-806), is hereby abolished. General Orders Nos. 150 and 159 have been canceled. All other prior orders and directives so far as they are inconsistent herewith are amended accordingly.

FORRESTAL.

THE SECRETARY OF THE NAVY,
Washington, 19, May 1945.

To: Rear Admiral Harold G. Bowen, United States Navy. 1. You are hereby appointed Chief of the Office of Research and Inventions. JAMES FORRESTAL

19 MAY 1945.

GENERAL ORDER No. 219

1. General Orders Nos. 150 and 159 are hereby canceled.

JAMES FORRESTAL.

Secretary KENNEY. Delegating-establishing within his office an Office of Research and Inventions, and Admiral Bowen, who is on my right here, is its head, and delegating to its head, the Chief of Research and Inventions, broad duties relating to the coordination of naval research activities, as well as certain administrative duties with respect to the handling of patents and inventions.

The establishment of such a central research unit and other organizational problems of the Navy Department were discussed somewhat later with the President, and on September 29, 1945, the President issued Executive Order 9635 under the authority of the First War Powers Act in order to eliminate any possible doubts concerning the authority of the Secretary of the Navy to make effective certain organizational changes.

With your permission, Mr. Chairman, I would like to file for the record a copy of that executive order of the President.

The CHAIRMAN. That may be done.

What was the date of that?

Secretary KENNEY. The date of that order is September 29, 1945. (The Executive order referred to was as follows:)

EXECUTIVE ORDER 9635

ORGANIZATION OF THE NAVY DEPARTMENT AND THE NAVAL ESTABLISHMENT

By virtue of the authority vested in me by title I of the First War Powers Act (55 Stat. 838; 50 U. S. Code 601, Supp. IV), and other applicable statutes, as Commander in Chief of the Army and Navy, and as President of the United States, it is hereby ordered as follows:

1. In order to provide for the more effective integration of its activities, the Navy Department shall hereafter be organized to take cognizance of the major groupings of: military matters; general and administrative matters; business and related industrial matters. The structure of the organization to accomplish this purpose shall be such as the Secretary of the Navy may deem appropriate and necessary, with due regard for the necessity for delegation and decentralization.

2. The Secretary of the Navy shall prescribe such duties for the Under Secretary of the Navy and the Assistant Secretaries of the Navy, and may transfer to, from, and among the offices and bureaus of the Navy Department such of their functions and duties, as may be appropriate and necessary to effectuate the provisions of this order.

3. As used in this order, the term "naval establishment" means naval sea, air and ground forces-vessels of war, aircraft, auxiliary craft and auxiliary activities, and the personnel who man them-and the naval agencies necessary to support and maintain the naval forces and to administer the Navy as a whole; the term "Navy Department" means the executive part of the naval establishment at the seat of the Government.

The Marine Corps is an integral part of the naval establishment. In time of war or when the President shall so direct, the Coast Guard is a part of the naval establishment.

4. The Chief of Naval Operations:

(a) Shall be the principal naval adviser to the President and to the Secretary of the Navy on the conduct of war, and principal naval adviser and military executive to the Secretary of the Navy on the conduct of the activities of the naval establishment.

(b) Shall have command of the operating forces comprising the several fleets, seagoing forces, sea frontier forces, district and other forces, and the related shore establishments of the Navy, and shall be responsible to the Secretary of the Navy for their use in war and for plans and preparations for their readiness for war.

(c) Shall be charged, under the direction of the Secretary of the Navy, with the preparation, readiness and logistic support of the operating forces, comprising the several fleets, sea-going forces, sea frontier forces, district and other forces, and related shore establishments of the Navy, and with the coordination and direction of effort to this end of the bureaus and offices of the Navy Department.

5. The staff of the Chief of Naval Operations shall be coposed of such numbers of Vice Chiefs of Naval Operations, Deputy Chiefs of Naval Operations, Assistant Chiefs of Naval Operations, a Naval Inspector General and other officers as may be considered by the Secretary of the Navy to be appropriate and necessary for the performance of the duties herein prescribed for the Chief of Naval Operations.

6. There shall be in the Navy Department—

(a) An office charged with coordination and correlation of the activities of bureaus and offices, as the Secretary of the Navy may direct, to effectuate common polices of procurement, contracting and production of material throughout the Naval establishment.

(b) An office charged, as the Secretary of the Navy may direct, with the coordination of naval research, experimental, test and development activities and with such other related duties as may be appropriate.

7. The bureaus and offices of the Navy Department, in addition to the Chiefs of such bureaus and offices, shall be staffed by such officers, including a Deputy and one or more Assistant Chiefs, as may be determined to be appropriate and necessary by the Secretary of the Navy.

8. During the temporary absence of the Secretary of the Navy, the Under Secretary of the Navy, the Assistant Secretary of the Navy, the Assistant Secretary of the Navy for Air, and the Chief of Naval Operations, in that order, shall be next in succession to act as the Secretary of the Navy. In the absence of the Chief of Naval Operations, the Vice and Deputy Chiefs of Naval Operations shall be next in succession in accordance with relative rank.

9. Nothing in this order is inteded to modify the statutory authority, duties or resposibilities of the Secretary of the Navy, nor shall it be construed. 10. Executive Orders 8984 of December 18, 1941, and 9096 of March 12, 1942 (as amended by Executive Order 9528 of March 2, 1945), are hereby revoked. HARRY S. TRUMAN.

THE WHITE HOUSE, September 29, 1945.

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