I. CREATION OF THE AGENCY, 1940-1949

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CIA-RDP01-01773R000100010024-7
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61
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December 22, 2016
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March 20, 2012
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24
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Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 D ~~ y- p3 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 I Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I . CRE~-TSON OF''THL~ AO~ELIJCY , HRH 19 4 0 -19 4 9 From the moment of she CIA's founding, Congress played an important but not entirely clearcut (?) role in the affairs of the Agency. T~~ CIA existed sol~y by virtue of congres- sional action. At the same time, many of its most impo11rtant ~KJV~ ~ r features prredajjted the legislation which officially gave IrJ1 ~ Q.'~.I i T~' ?1. c.~ lair CIA its life, and its congressional sponsors in drawing up the National Security Act leaned heavily (?) on actions taken without congressional sanction by members of the executive branch. Thus, from the very beginning a rela- tionship of ambiguity was established between an intelli- gence organization dependent upon Capitol Hill for its charter, its personnel, its funding, indeed its continued existence, and a Congress reluctant or unable to exercise substantive ontrol over and dependent (rep) upon for services of the most fundamental nature. Of one thing everyone was certain: the ineffectual Central Intelligence Group (CIG) then attempting to meet 'the nation's iaica~t~ti~aaaa needs for central intelligence required sshsicaalcis$ massive surgery if it were to fulfill the responsibilities for which it was created. Established by presidential directive on 22 January 1946, CIG osten- correlation, sibly directed the seexista=tiea~ evaluation, and dissemi- nation of intelligence relating to ~e national security, as well as coordinating the activities of the various departmental intelligence organizations. But in fact, Declassified and Approved For Release 2012/03/20.: IA-RDP01-01773R000100010024- I - --- Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 CIG was dependent upon the pepartm~t~r~ of State, War, and Navy for its personnel, funds, and facilities, and this lack of independent authority s~i~aaa~i~~sa;ait~kit~i~esassai[f[u~[~tu~~ a undermined its legitimacy and hence ~~'~ ~ ~i~sisstaia effectiveness za among bureaucrats ski I1eL. ~w Truman's selection as Admiral Sidney Sowers, tfts ~ first struggled with theses deficiencies ~s:it erector of Central Intelligence,~ig throughout his ~ief tenure in ~txkSitfc office.. In his farewell report cQ~~-ae~r~#~r~ of June7,1946, he strongly ~@~~ recommended that CIG and .its parent (NIA)i body, the National Intelligence Authority obtain a legis- .. laftive charter and an independent budget as soon as .... possible. Sowers was not alone in recognizing these problems. In the House of Representatives the Military Affairs Committee spent much of 1946 # investigating the state of the nation's ~~~ sy s"~.m . 4 $aiswers. In die report issued upon the completions of t_,nv,,, ,"f.~p"a..._ its labors, ~. noted that intelligence was just as vital in peactime as in wartime] indeed, it was the s "first line of defense." The committee members found it difficult to iml1agine America's leadership taking "a single important step"jin international affairs without "knowledge and understandil/ng of the aims, capabilities, intentions, policies, and actions of other nations--in other words, . without intelligence." Calling for the creation of an effective intelligence service, the House report recom- w~?1 ~l (r mended legislative authorization for NIA ~ q N.~ ~~,a,.l. C. eW~t.,s ~ Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 i .._ . _ ~_. Declassified and Approved For Release 2012/03/20 CIA-RDP01 017738000100010024-7 receiving appropriations directly frown Congress But to the and having com_ plete control over its personnel ~_~-~ ;@. great dismay of CIG, the former G-2 officer who authored this report explicitly prohibited the DCI from engaging in collec- aDsrBabsfbi~bi?baba~~babibab tion ~alcas~x activities, a prohibition which would have made CIG utterly dependent upon the military intelligence *iu ..core. agencies, Soeurs left government service on 10 June 1946. ~ -:mere three days later, his successor, Lt. General Hoyt fie- aide Vandenberg, received the staggering news from Lawrence Houston that he had taken command of jeopardy an organization in dire a~-~== '_=__=_; of losing its Under. the terms of authority to expend funds. the Independent Offices Appropriation Act of 1945, Houston explained, CIG would be without~unvouchered funds from the departments 22 1947. ]oreover, after January^h~t it was questionable whether legally the departments could furnish personnel and supplies even from their vouchered funds. An upset Vandenberg directld draft Houston to prepare. appropriate legislation for submission A few weeks later, with to Congress. At his first official meeting of the NIA, A.,J1JOuuL t.~.. -c a 11a ~~yw...~... he -s~per,~~s?.. E ~~_ that CIG would shortly have icaxaeeitx~egiH~taic$Yexmade~eadsnaexn to approach Congress for a legal charter. Admiral William Leahy, the President's r ~l personal representative,P informed Vandenberg that Truman prefered that CIG ~aiic delay action until the following year. in response Houston in the meantime, to the Director's order to draw ~???m up appropriate legislation) had turned to work he and John Warner had done earlier that Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I-4 year in anticipation of precisely this type of situation. Within days a ~a~~ draft bill a~fs~C lay on Vandenberg's desk. Though destined to be temporarily shunted aside the initial during consideration of what came to be known as the National ~~ ultimately Lt provide Security Act of 1947, Houston's handiwork would^serve as for legislation, the nucleus of the egxs~~~cninlonxhgnicn>$erttixa~n~nte~t~Digenge i~ti~~thereby earning its principal author the title "legal architect" of the CIA. envisioned an intelligence organization Houston's draft .t,e~~e~ie~ee far more potent ~4han the anemic CIG. It began by observing that the ~a~-cie~aee~ed---t-lze. inadequacy- o.f a di~persed_. ~ysteier_.ef J.X~L.F' ~e sr, ~~~ Aat~ie~a~I~Yi~tae-~ ~ ige~aee. (ed i ~ o f the pas t generation h~ proved conclusively that "intelligence ga- thering and analysis must be centralized." Accordingly, a Central Intelligence Agency should be established, with a Director "who shall be the head thereof" (thereby reversing the current arrangement, where the President's 22 January directive had separated the duties of the Director from those of CIG). The Director should be appointed~rom civilian or military life by the President, with the advice and consent of the Senate, for a term "of not more than seven years." The Agency was to operate under the supervision and direction of the NIA and would coordinate the operations of the various departmental intelligence organizations and to centralize the analysis, evaluation, and dissemination of foreign intelligence.~In addition, / Wald ~~ ~A{.R ,sat l1ec.,,~:i, Houston assigned ~ the CIA, in phrases which s~baogi~ +~ .b~ the center of great controversy, the responsibility for Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 e Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I-5 for the benefit of the existing intelligence agencies, performingsuch "services of common concern" as the NIA might direct, and "such other functions and dutie~relating to intelligence affecting the national security" as the White House or the NIA might require. The Agency was to have no "police, subpoena or law enforcement powers or functions," while its Director was to be responsible "for fully protecting intelligence sources and methods." The individual departments were to retain their own intelli- operations, gence service., but were to make their intelligence and facilities freely available to the S~itxx9iaea~zx CIA. Other provisions gave the Agency necessary authority con- cerning procurement, finances, and similar administrative duties. Finally, in another important and subsequently controversial passage, the Agency was taxbax=aid[~zt empowered to expend monies "without regard to the provisions of law and regulations relating to the expenditure of Government funds." For "objects of a confi~ial nature," moreover, such expenditures were to be accounted for "solely on the certificate of the Director and every such certificate shall be deemed a sufficient voucher for the amount therein certified." Such an ambitious proposal was destined to draw oppo- sition, however. In a series of White House meetings between July 1946 and the following January, Houston's ~, program was gradually whittled down into a considerably more innocuous document. The draft bill sent Congress by m ~ R~,N A I the President on February 26, 1947 bore only tie wt~~ee~ resemblance to Houston's bold concept. It called for the Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I i Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I-6 creation under a National Security Council of a Central Intelligence Agency, headed by a Director to be appointed by the President. In the only section e~?-t taken from Houston's proposal, it provided that any commis- sioned officer appointed Director should not have his "status, office, rank,~ir grade" nor any "emolument, perqui- site, right, privilege, or benefit" he might be due affected n by his appointment. The salary for the Director was set at $1,4,000 per year. The NSC and CIA were to take over the functions, personnel, property, and records of the NIA Cr and CIS respectively. No mention was made of the duties or responsibilites of the new CIA or its Director, nor of the existing departmental intelligence services. The presidential draft was similarly silent concerning the ^methods by which the new agency was to be financed. The White House's reticence on these matters is perhaps FI v ~ ~ .~. best explained by its desire to-~--~t:p-~-as---~i~~e contro- R.i1~~N,.wua. R versy ~eea possible. The provisions creating the CIA ~e represented only a xe minor portion of a miuch more complex and contro- versial bill calling for the unification of the three armed services into a single Deparlt'~ment of Defense. Vigorou ^ opposed by many high-ranking officers, especially in the Navy, the proposal faced an uncertain future at the The Senate Committee on Naval Affairs hands of the legislators -~r-~e~+e had already buried a aa~tia 'similar plan the year before, ...i.n..- the---9~nate-?-Eoanerittee- .?n_..Ajavi4~?a~re~ and since then the Republicans had req~t.ured control in since 1932. both House of Congress for the first time inxfiifiiceanx~saznYn Public criticism of a vigorous central intelligence organi- ra~eg i-s t s- t ~s ~-daei~-~b~.- zation from G-2 and miliatyr officers with powerful allies i Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 .. Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I~T on the Hill complicated matters further. Administration ~-~ke~--merest-_ str~~ ate~ists this decided that political wisdom d ctated .~-~#y ~~ only the barest mention of the CIA. OoDOSitio~frr~i he s?~ w3 t~-p~~-a~~~~eess ~r "~~" militar als ...a~ exp~ains the White House refusal to accept Vandenberg's recommendation that the DCI be named a non-voting member of the NSC. consideration of As had been anticipated, congressional the President's bill ^centered upon the proposed merger of the armed forces, with the provisions establishing a Central Intelligence Agency =cee~._ieg drawing much less attention. In large measure this reflected the consensus than an agency like the CIA was essential to protect the nation's security. During ,~'-tt the ensuing hearings and debates, recollections of Pearl Harbor predominated, it being the aeaYeatieaa~t a ~ epted belief that a more effective process of collating and disseminating intelligence '-- ----~;^- might have Members of prevented that disaster. .The-= y the Senate Armed Services Committee concluded that Congress, in order to "meet the future with confidence," must establish a CIA collect and analyze "that mass of information without which the Government cannot either maintain peace or wage war successfully." Even critics of the CIA provisions of r,. ~ ~ ~+ the bill did not e~pwee the concept. "I am not opposed to a central intelligence agency," Representative Fl?Qa.. C Busbey, one of the Agency's harshest critics, enphasized. "You ren-ea-bex.. Pearl Harbor . They had intelligence, but it was not correlated and evaluated correctly." Indiana's ~o-^Q `~'~ Harness spoke for virtually all his colleagues Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 i ~ Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 r~s ~P . ,,, when he confessed to fears and doubts arkerr-bc first readl~-~ the CIA provisions of the bill. "Please bear in mind that this. is a bold departure from Amexican tradition," he told the House. "This country has never before officially re- sorted to the collection of secret and strategic information i)nJ/.. ti11me of peace as an announced and fixed policy. fir, [P'i~le..TluN) ~~)~. Cn..IVlrl; .~.~ ~1~.., Ii.llq.~;.. ., he added, '~-am~- , 7~1 such an Agency as we are now considering is essential to our national secu- rity."5 ~,,,~^' skeptics ~~ With little need to convince ~a~le~~a-ee~*eee of the necessity for creating CIA, congressional debate revolved instead around two broad questions: the relationship between the new Agency and the military establishment; and the specific functions assigned to and limitations placed on the CIA. Often the discussion was poorly focused or based upon misinformation; occasionally it-was Simply silly. But in the end, advocates of a strong centralized intelligence organization achieved by far the greater part of their desires, and the United States Congress begot a legislative charter -a--haw which remains, three and one-half decades later, document the bedrock cha~~er for the nations's intelligence community. The matter of Agency-military relations raised two corollary issues. One concerned the sex CIA's position in the government structure. Was it created to serve the should armed services and the Joint Chiefs of Staff, or Stan it be on equal terms with them? Should the DCI report to' the Secretary of Defense, and thus become part of the military establishment? Or should.s#ic~ld the State Department's Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 ~9 interest in intelligence be acknowledged by having the CIA report to the NSC? On purely theoretical grounds, it might be preferable for the CIA to report to one indivi- would only create, dual rather than to a group such as the NSC, which^REpre- --warned , sentative Walter Judd contemptuously~~~abeled a "hydra- headed agency."~ William Donovan, the legendary head of the OSS, argued along these lines, for instance. Another possibility was for the DCI to report directly to the President, but the service intelligence officers, fearful of granting the CIA ready access to the White House, lobbied energetically against that proposal. The second issue touching on Agency-military relations produced the most heated moments~of the entire CIA debate. AS Vandenberg returned to active duty on May 1, 1947, and for k his replacement Truman tapped Admiral Roscoe Hillentoetter, Say?u:?... ~~? ~?~_I the third military man to in sixteen months. Many congressmen saw in this a dangerous pattern. Such frequent changes in the Agency's leadership could not as ambitious officers used the position of DCI as stepping help but undermine the oganization's effectiveness ~tl6X~~f stones in their careers. More- ~^ over, a civilian DCI would lessen the danger of excessive m ilitary influence over the ~~R Agency. The CIA, Senator v Edward Robertson warned, had "all the potentialities of an American Gestapo; and such an organization, controlled by a military man, would be in possession of untold power which we could not properly place in the hands of titer our military."7 There wer'continual references to J. Edgar Hoover, who had made a career of heading the FBI, and Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 calls that the DCI do the same. Accepting the position, OSS veteran Allen Dulles i~m~dx~x~m~ counseled should be akin to going into a monastery. /Many worried that the President's bill, by devoting so large a portion of its safeguards for brief spiace to rt~g_.that a military >ana DCI, implied that all future Directors were likely to be officers~from the armed services. On the other hand, requiring that the DCI come from civilian ranks might preclude the most qualified individuals from the position, especially during in the early years of the Agency's history, when there might not be a civilian sufficiently experienced in intelligence matters. Simply requiring a military officer to retire from active duty before accepting the post did not offer .i0/fA,~ luw Q. f -1'1,.x. r? 1 a way out of this impasse. ~nless he were also to-~~be assured a set term iaxeffisa as DCI, a prospect no one found particularly appealing few career military oi~ficers sacrifice their careers for a post from would be willing to risk premature dismissal due to electoral which they could be dismissed i at a moment's notice. politics. enumerate The failure of the President's bill to assign specific for duties or responsibilities to the CIA also provoked-ees~~er- -ahla congressional comment. The White House proposal stipulated only that the CIA and DCI should inherit the functions of their predecessors. These functions, however, could be ascertained only by referring to Truman's January 22, 1946 directive establishing CIG, and many legislators doubted the propriety of having to go to a presidential order to interpret a congressional action. "It seems to me there is a void in the bill that ought to be eliminated," Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 1 - -- --- Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 Senator Millard Tydings complained. The "real question," Representative ~=1q ~'._,~. .._. j, Brown added, came down to whether. Congress should "define the functions and the acti- vities in which [CIA] should engage, rather than depend upon a rather nebulous thing called an Executive Order, which is here today, but may be gone in three minutes, if the President decides to sign some other paper."8 Given later disputes, it is instructive to note that this debate revolved around whether Con s should expli- citly mention the duties CIA was to assume, not the nature of its the functions it was to be assigned. On this latter point, there was general consent. In spite of an unwilling- ness to referR to such activities in open sources, and over the protests of a vocal minority, most congressmen even agreed that the new agency should engage in overseas espionage as well as more open (rep) forms of collection. Similarly, widespread consensus existed that the Agency should be prohibited from any type of domestic operations, sentiment w,+ti Uh,~t, ~' !~- ,.~c.ur.r~. ,~t,. a daetre which exactly matched CIC~s desires. The Truman bill, in the intersts of brevity, had deleted all such prohibitions, fostering repeated charges that the CIA threatened to become another "gestapo." Congress needed to write "a lot of safeguards" into the bill, Representative Brown insisted, explaining that he wished to insure that the activities and functions of the CIA were "carefully confined to international matters and to military matters and national security." "We have enough people now running around the country looking into other people's business," he gratuitously added. (rep)9 Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20: CIA-RDP01-017738000100010024-7 I-12 The President's draft went first to the Senate, where the Armed Services Commit~ee held hearings for ten weeks and then reported out an amended version on 5 June 1947. ' The committee report accompanying the revised bill devoted only three terse paragraphs to the CIA, an explicit acknow- legdment that the-intelligence provisions were of relatively minor concern to most congressmen in comparison with other portions of the bill. Indeed, the Senate debate hardly touched on the CIA, with the one exception of Senator Robertson's demand that the DCI be a civilian. r ~ ~ -:; :~ /xaarrY iursouisc>,s iioa$o SEO. 103. (a) There is hereby established a National Security Resources Board (hereinafter in this section referred to as the "Board") to be composed of the Chairman of the Board and such heads or representatives of the various executive departments and independent agencies as may from time to time be designated by the President to,be members of the Board. The Chairman of the Board shall be appointed from civilian life by the President, by and with the advice and consent of the Senate, and shall receive compensation at the rate of $14,000 a dear. (b~ -The Chairman of the Board, subject to the direction of the President, is .authorized, subject to the civil-service laws and the Classification Act of 1923; as amended, to appoint and fix the com- pensation of such personnel as may be necessary to assist the Board m carrying out its functions. (c) It shall be the function of the Board to advise the President concerning the coordination of military, industrial, and civilian mobilization, including- (1) policies concerning industrial and civilian mobilization in order to assure the most effective mobilization and maximum utilization of the Nation's manpower in the event of war; (2) programs for the effective use in time of war of the Nation s natural and industrial resources for military and civilian needs, for the maintenance and stabilization of the civilian eeon- omy mtime of war, and for the adjustment of such economy to war needs and conditions; (3) policies for unifying, m time of warn the activities of Fed- eral agencies and departments engaged in or concerned with production, procurement, distribution, or transportation of mili- tar or civilian supplies, materials, and products; ~4} the relationship between potential supplies of, and poten- tial requirements for, manpower, resources, and productive facili- ties intime ofwar; (5) policies for establishing adequate reserves of strategic and critical material, and for the conservation of these reserves; (6) the strategic relocation of industries, services, government, and economic activities, the continuous operation of which is essential to the Nation's security. (d) In performing its functions, the Board shall utilize to the maximum extent the facilities and resources of the departments and agencies of the Government. Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ~+ ~ Declassified and Approved TT~'II-THE IfATIOI(AL 11[ILITAI3Y ESTABLISHI[ENT . ' >trrear~aaia~hr cr zsm xlzmx~. >rarresT irrer _ Sna 201. (a) There is bereby established the National Military. Establishment,.. and the Secretary of Defense shall be the head thereof. (b) The Nsti~al Military Establishment shall consist of the Department of the Army, tl-e Department of the Navy, and the Department of the Air Force, t with all other agencies created under title II of this Act... eeaarent or n>srExe>t SEC. 202. (a) There shall be a Secretary.of Defense, who shall be appointed from civilian life by the President, by and with the advice and consent of the Senate: Provided, That a person who hsa within ten years been on active duty as a commissioned officer in a regular component of the armed services shall not be eligible for a pointment as Secretary of Defense. The Secretary of Defense shall be the principal assistant to the President in all matters relat- in to the national security. Under the direction of the President an~ subject to the provisions of this Act he shall perform the followin duties: ~1~ Establish general policies and programs for the National M' itary Establishment and .for all of the departments and agencies therein; (2) Exercise neral direction, authority, and control over such departments and agencies; (3) Take appio~iriate steps to eliminate unnecessary duplica- tion or over appmg in the fields ' of procurement, supply, transportstion, storage, health, and research; ~4)' Supervise and coordinate the preparation of -the budget estiinatea of the deppaartments and agencies comprising the National Military- Eiitabliahment; formulate and determine the budget estimates for submittal to the Bureau of the Budget; and super- visethe budget programs of such departments and agencies under the a pplicab a ap~iropnation Act: ProvidedPThst nothing herein contained shall prevent the Secretary of the Army, the Secretary of the Navy, or the Secretary of the Air Force from presenting to the President or to the Director of the Budget, after first so informing the Secretary of Defense, any report or recommendation relating to his department which he may deem necessary: dad provided rther, That the Department of the Army, the Department of the Navy, and the Department of the Air Force shall be administered as individual executive departments by their respective -Secretaries and all poveers and duties relating to such departments.not specifically conferred upon the Secretary of Defense by this Act shall be retained by each of their respective Secretaries. (b).The Secretary of~Defense shall submit annual written reports to the President and the Congress covering eapenditnres, work, and accomplishments of the National Military Establishment, together with such recommendations as he shall deem appropriate. For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 (c) The Secretaryry of I)a~ alnll caw a uo1 ~t a~a~ i~ la ~L:-: for the National Military Establishment, of rnch daa~ r tl>s I'rri- dentshall approve, and lndiaal notice shall be taioe~ bat teat,' .' SEC. 203. Officers of the armed services may be detailed to duty as assistants and personal aides to the Secretary'of Defeoee, but he shall not establish a military staff. SEO. 204. (a~ The Secretary of Defense is aathorized to appoint from civilian life not to exceed three special assistants to advise and assist him in the performance of his duties. Each such special a~ist- ant shall receive compensation at the rate of $10,000 a year. (b) The Secretary of Defense is authorized, subject to the civil- servicelaws and the Classification Act of 1923, as amended, to appoint and fie the compensation of such other civilian personnel as may be necessary for the performance of the functions of the National Mili- tary Establishment other than those of the Departments of the Army, Navy, and Air Force. SEC. 205. (a) The Department of War shall hereafter be designated the Department of the Army, and the title of the Secretary of War shall'be changed to Secretary of the Army. Changes shall be made in the titles of other officers and activities of the Department of the Arm as the Secretary of the Army may determine. (b}y All laws, orders, regulations, and other actions relating to the Department of War or to any officer or activity whose title is changed under this section shall, insofar as they are not inconsistent with the provisions of this Act, be deemed to relate to the Department of the Army within the National Military Establishment or to such officer or activity designated by his or its new title. (c) ~l'he term "De artment of the Army" as used in this Act shall be construed to mean the Department of the Army at the seat of govern- ment and all field headquarters, forces, reserve components installa- tions, activities, and functions under the control or supervision of the Department of the Army. (d) The Secretary of the Army shall cause a seal of office to be made for the Department of the Army, of such design as the President may approve, and judicial notice shall be taken thereof. (e) In general the United States Army, within the Department of the Arny, shall include land combat said service forces and such avia- tion and water transport as may be organic therein. It shall be organized, trained, and equipped primarily for prompt and sustained combat incident to operations on land. It shall be i~wnsible for the preparation of land forces necessary for the elective prosecution o! war except as otherwise assigned and, in aocordanoe with integrated joint mobilization plans, for the expansion of peacetime components of the Army to meet the needs of war. Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 a r _ , ' Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 araa~ncurr or xaa xwr lea 906. (a) The tern "Department of the Nary" as used in this Ad shall be construed to mean the Department of the Navy at the seat of ~c-vernm~t; the headquarters, United States Marine Corps; the entub operating forces of the United States Navy, including naval aviation, and:::of the United States Marine Corps, including the reserve oomponente of `such forces; all field activities, headquarter forces, bases,. installations, activities, and functions under the control or supervision of the Department of the Navy; and the United States Coast Guard when operating as a part of the Navy pursuant to law. (b) In general the United States Navy, within the Department of the Navy, shall include naval combat and services forces and such aviation as may be organic therein. It shall be organized, trained, and equipped prmarily for prompt and sustained combat incident to operations at sea. It shall be responsible for the preparation of naval forces necessary for the effective prosecution of war except as other- wise assigned, and, in accordance with integrated joint mobilization plans, for the expansion of the peacetime components of the Navy to meet the needs of war. All naval aviation shall be integrated with the naval service as part thereof within the Department of the Navy. Naval aviation shall consist of combat and service and training forces, and shall include land-based naval aviation, air transport essential for naval operations all air weapons and air techniques involved in the operations ant activities of the United States Navy, and the entire remainder of the aeronautical organization of the Umted States Navy, together with the personnel necessary therefor. Tha Navl shall be generally responsible for naval recoanai?sance, antisnbmsrine warfare, and protection of shipping. The Navy shall develop aircraft, weapons, tactics, technique, organ- ization and equipment of naval combat and service elements; matters of joint concern as to these functions shall be coordinated between the Aimy, the Air Force, and the Navy (c) The United States Marine Corps, within the Department of the Navy, shall include land combat and service forces and such aviation as may be organic therein. The Marine Corps shall be organized, trained, and equipped to pmvide fleet marine forces of combined arms, together with supporting air components, for service with the fleet in the seizure or defense of advanced naval bases and for the conduct of such land operations as may be essential to the prosecution of a naval cam~iai~n. It shall be the duty of the Marine Corps to develop, in coordination with the Army and the Air Force, thoee.phaaes of amphibious oppeerations which pertain to the tactics, technique, and equipment employed by landing forces. In addition, the Marine Co shall provide detachments and organizations for eer~ioe on armed vessels of the Navy, shall provide security detach-~ meats for the protection of naval property at naval stations and bases, and shall perform such- other duties as the President may direct: Provided, That such additional duties shall not detract from or inter- fere with the operations for which the Marine Corps is primarily organized. The Marine Corps shall be responsible, in accordance with integrated joint mobilization plans, for the ezpansion of peace- timecomponents of the Marine Corps to meet the needs of war. nua~~r or ~s us ~ Su6.807. a() Within the National Itilitsry F~etablisi then b hereby estab ' sn executive department to be ]mown as tM De went of the Air Force, and s Secretary of the Air Force, who sb~ll be the head thereof. The Secretary of the Air Force shall be a pointed. from civilian life by the President, by and with the advice and consent of the Senate. ~ . - (b) Section 158 of the Revised Statutes is amended to include the ~ Department of the Air Force and the provisions of so much of title IV of the Revised Statutes as now or hereafter amended as is not incon- sistent with this Act shall be applicable to the Department of the Air Force. (c) The term "Department of the Air Force" as used in this Act shall bb construed to mean the Department of the Air Force st the seat of government and all field' headquarters, forces, reserve com- ponents, installations, activities, and functions under the control or supervision of the Department of the Air Force. (d) There shall be in the Department of the Air Force an Under Secretary of the Air Force and two Assistant Secretaries of the Air Force, who shall be appointed from civilian life by the President by and with the advice and consent of the Senate. (e) The several officers of the Department of the Air Force shall perform such functions as the Secretary of the Air Force may prescribe. (f) So mach of the functions of the Secretary of the Army and of the Department of the Army, including those of any officer of such Department, as are assigned to or under the control of the Commanding General, Army Air Forces, or as are deemed by the Secretary of Defense to be necessary or desirable for the operations of the Department of the Air Force or-the United States Air Force, shall be transferred to and vested in the Secretary of the Air Force and the Department of the Air Force :Provided, That the National Guard Bureau shall, in addition to the functions and duties ~ier- formed by itforthe lepartment ofthe Army, be charged with similar functions and duties for the Department of the Air Force, and shall be the channel of communication between the Department of the Air Force and the several States on all matters pertaining to the Air National Guard: dzid~pcerovided further, That, in order to permit sn orderly transfer, the retary of Defense may, during the transfer period hereinafter prescribed, direct that the Department of the Army shall continue for appropriate periods to exercise any of such func- tions, insofar as thel relate to the Department of the Air Force, or the United States Air Force or their property and pei~sontieL Such of the property, personnel, and records of the Department of the Army used in the ezercu;e of functions transferred under this subsection as the Secretary of Defense shall determine shall be transferred or assigned to the Department of the Air Force. (g) The Secretary of the Air Force shall cause a seal of office to be made for the Department of the Air Force, of such device as the President shall approves and judicial notice shall betaken thereof. Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 :~ -`oxrrd era~ranr roecs ra~r~ (a) ~11a United Staten Air Forte it hei~ eetablisbad of the Air Force. The Army AIr Fones, the' Air? Wiled States Army, and the General Headquarters Air. ~? Force (~i~r .Force, Combat Command), shall be transferred to the United Ststea Ais Force. F (b) There shall be a Chief of Staff,.United States Air Force, who shall be appointed by the President, by ~ and with the advice and consent of tha Senate, for a term of four years from among the officers of general rink who are assigned to or commissioned In the United States .Air Force. Under the direction of the Secretary of the Air f Force, the Chief of Staff, United States Air Force, shall exercise command over the United States Air Force and shall be charged with the duty of carrying into execution all. lawful orders and diI'bctions which ma be transmitted to him. The functions of the Commanding General, General Headquarters Air Force (Air Force Combat Com- mand), and of .the Chief of the Air Corps and of the Commanding General, Army Air Forces, shall be transferred to the Chief of Staf~ United States Air Force. When such transfer becomes effective, the offices of the Chief of the Air Corps, United States Army, and Assist- ants to the Chief of the Air Corps, United States Army, provided for by the Act of June 4,1920, as amended (41 Stat. 768), and Command- ingGeneral, Gen Headquarters Air Force, provided for by section 5 of the~Act of June 16, 1936 (49 Stat. 1525), shall cease to exist. While holding office as Chief of Staff, United States Air Force, the. incumbent shall hold a ode and receive .allowances equivalent to those rescribed by law for the Chief of Staff, United States Army. The ~ief of Stiff United States Army, the Chief of Naval Opera- . lions, and the Chie~ of Staff, United States Air Force, shall take rank amonngg themselves according to their relative dates of appointment as snch, and shall each lake rank above all other officers on the active list of the Army, Navy, and Air Force: Phrnrided That nothing in this Act shall have the effect of changing the relative rank of the present Chief of t~tait' United States Army, and the present Chief of Naval Operations. (?),All commissioned officers, warrant officers, and enlisted men _commissioned, hol ''n~ warrants or enl' m the Air Corps, Unite '~ Stag Army or the Armyy Ail' ~orces, sha be transferred in branch to the Uniterl States Air I~'orce. All other commissioned officers, war- rant officers, and enlisted men, who are commissioned, hold warrants, or are enlisted, in an component of the Army of the United States and who are under the authority or command of the Commanding General, ,Almy Air Forces, shall be continued under the authority or oonimand of the Chief of Staff, United States Air Force, and under the jndadiction of the Department of the Air Force. Personnel whose etas is affected by this subsection shall retain their existingcommis- sioas,warrants or enlisted status in existing components of the armed forces unless ot~erwi?e altered or terminated in accordance with exist- ,. ing law; and they shall not be deemed to have been appointed to a new or different office or grade, or to have vacated their permanent or temporary appointments in an existing component of the armed forces, solely by virtue of any change in status under this subsection, Irw. L.. f~tt . No ands change iIi status, ah~ alter or ~ejodiee the stator of any. individgat sa aeaigrled,. so as to deprive hIm of any right, bex6t; or pri to which he may be entitled under ezi~ing law. (d) acept as otherwise directed by the Secretary of the Air Force, all property, records, installations, agencies, activ~tl~, projects, and civilian personnel under the jurisdiction, control, authority, or com- mand of the Commanding General, Army Air Forces, shall be con- tinued to the same extent under the jurisdiction, control, authority, or command, respectively, of the Chief of Staff, United States Air Force, in the Department of the Air Force. (e) For a period of two years from the date of enactment of this Act, personnel (both military and civilian), property, records, installations, agencies, activities, and projects may be transferred between the Department of the Armp and the Department of the Air Force byy direction of the Secretary of Defense. (f) In eneral the United States Air Force shall include aviation forces both combat and service not.otherwise assigned. It shall be organized, trained and equipped primarily for prompt and sustained offensive and defensive air operations. The. Air Force shall be responsible for the preporation of the air forces nece~ary for the effective prosecution of war except as otherwise assigned and, in accordance with integrated joint mobilization plans, for the expansion of the peacetime components of the A!r Force to meet the needs of war. EFFECTIVE DATE OF TRAN$FER9 SEC. 209. Each transfer, assignment, or change in status under sec- tion 207 or section 208 shall take effect upon such date or dates as may be prescribed by the Secretary of Defense. SEC. 210. There shall be within the National Military Establish- ment aWar Council composed of the Secretary of Defense, as Chair- man, who shall have power of decision; the Secretary of the Army; the Secretary of the Navy; the Secretary of t}ie.Air Force; the Chief of Staff, United States Army; the Chief of Naval Operations; and the Chief of Staff, United States Air Force. The year Council shall advise the Secretary of Defense on matters of broad policy relating to the armed forces, and shall consider and report on such other matters as the Secretary of Defense may direct. JOINT CHIEFS OF aTAFF SEC. 211. (a) There is hereby established within the National Mili? iary Establishment the Joint Chiefs of Staff, which shall consist of the Chlef of Staff, United States Army; the Chief of Naval Operations; the Chief of Staff, United States Air Force; and the Chief of Stag to the Commander in Chief, if there be one. (b) Subject to the authority and direction of the President and the Secretary of Defense, it shall be the duty of the Joint Chiefs of Sts- . (1) to prepare strategic plans and to provide for the strategic direction of the military forces; (2) to prepare joint logistic plans and to assign to the military services logistic responsibilities in accordance with such plans; Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 _ __ uro ~..~r~ 12 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ~~ ~3} to eaptb~h onitied oonnmands in etratsgic areas when such ..: (4) to pre estimates of potential prodnction, procurement, ~ . nnlfied eosasoanda an in the intmeet of national security; aI-d pereonnel~for use in evaluation of the logistic feasibility of . (4) to tormnLta policies for joint training of the military strategic operations; forces; (5) to determine relative priorities of the various segments (5) to formulate policies for coordinating the education of ~ ofthemilitaryprocurementprograms; members of the military forces; (6) to supervise such subordinate agencies as are or may be (6) to review major matenal and personnel requirements of created to consider the subjects falling within the scope of the the military forces, in accordance with strategic and logistic plans; Board's responsibilities; and' ~ (7) to make recommendations to regroup, combine, or dissolve (7) to provide IInited States representation on the Military existing interservice agencies operating in the fields of procure- , Stag Committee of the IInited Nations in accordance with the j went, production, and distribution in such manner ss to promote rovisions of the Charter of the IInited Nations. efficiency and economy? (c~ The Joint Chiefs of Staff shall act as the principal military (S) to maintain liaison with other departments and agencies advisers to the President and the Secretary of Defense and shall per- for the proper correlation of military requirements with the form such other duties as the President and the Secretary of Defense civilian economy, particularly in regard to the procurement or may direct or as may be prescribed by law. I disposition of strategic and critical material and the maintenance i of adequate reserves of such material, and to make recommenda- JOINT BTArP' ~ tions as t0 policies in connection therewith; (9) to assemble and review material and personnel require- Six. 212. There shall be, under the Joint Chiefs of Staff, a Joint ments presented by the Joint Chiefs of~Staff and those presented Staff to consist of not to exceed one hundred officers and to be composed by the production, procurement, and distribution agencies of approximately equal numbers of officers from each of the three armed I assigned to meet military needs, and to make recommendations services. The Joint Staff, operating under a Director thereof thereon to the Secretary of Defense; and appointed by the Joint Chiefs of Staff, shall perform such duties as (10) to perform such other duties as the Secretary of Defense may be directed by the Joint Chiefs of Staff. The Director shall be ma direct. an officer junior in grade to all members of the Joint Chiefs of Staff. (d) ~en the Chairman of the Board first appointed has taken office, the Joint Army and Navy Munitions_ Board shall cease to _DInxlTTOxs Bolan exist and all its records and personnel shall be transferred to the Munitions Board. S>'c. 213. (a) There is hereby established in the National Military (e) The Secretary of Defense shall provide the Board with such Establishment a Munitions Board (hereinafter in this section referred ppersonnel and facilities as the Secretary may determine to be required to as the "Board") ? by the Board for the performance of its functions. (b) The Board shall be coinposed of a Chairman, who shall be the head thereof, and an IInder Secretary or Assistant Secretary from BE9EABCH nxn nEVEwri~IExT iiDAitD each of the three military departments, to be designated in each case by SEC. 214. (a} There is hereby established. in the National Military the Secretaries of their respective departments The Chairman shall Establishment a Research and Development Board (hereinafter in be appointed from civilian life by the President, by and with the advice this section referred to as the "Board"). The Board shall be com- and consent of the Senate, and shall receive compensation at the rate, ~ posed of a Chairman, who shall be the head thereof, and two repro- of $14,000 a year. , sentatives from each of the Departments of the Army, Navy, and (c) It shall be the duty'of the Board under the direction of the Air Force, to be designated by the Secretaries of their respective $ecreta~ry of~ Defense and in support of strategic and logistic plans Departments. The Chairman shall be appointed from civilian life prepared by the Joint Chiefs of Stag- by the President, by ahd with the adults and consent of the Senate . ((1) to coordinate the appropriate activities within the National and shall receive. compensation at the rate of $14,000 a year. The Diilitary Establishment with regard to industrial matters, includ- purpose of the Board shall be to advise the Secrete of Defense ing the procurement, Production, and distnbution plans of the as to the status of scientific research relative to the national security, departments ind agencies comprising the Establishment; and to assist him in assuring adequate provision for research and (2) to plan for the military aspects of indostrial mobilization; development on scientific problems relating to the national security. 8 to recommend assignment of procurement responsibilities (b) It shall be the duty of the Board, under the direction of the among the~several military services and to plan for standardize- Secretaryof Defense--- tion of specifications and for the greatest practicable allocation (1) to prepare a com~ilete and integrated program of research of purchase authority of technical equipment and common use and development for military purposes; items on the basis of single procurement; Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 _L? ,,, L'!'U - ~ _ 14 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-0177380001000100 24-7 to (2) to adviai with regard trends in acientiflc~ reebtrch relat. tna to national security and the meaairee neoeraary to a~ut~ con- tinued and ' Progress; ($} to recommend measures of coordination of i'~earch and devetolgnent among the military departments, and allocation among them of responsibilities for specific programs oP joint interest; (4) to formulate policy for the National Military Establish- ruent in connection with research and development matters in- volving agencies outside the National Military Establishment; (5) to consider the interaction of research and development andd strategy, and to advise the Joint Chiefs of Staff in connec- tion therewith; and (6) to perform such other duties as the Secretary of Defense ~v direct. {c) '(Vhen the Chairman of the Board first appointed has taken office, the Joint Research and Development Board shall cease to exist and all its records and personnel shall be transferred to the Research and Development Board. (d) The Secretary of Defense shall provide the Board with such ppeersonnel and facilities as the Secretary may determine to be required by the Board for the performance of its functions. TITLE III-MISCELLANEOUS ooarrExaeTTOx os sECaereaiEs Sm. 301. bed The Secretary of Defense shall receive the compensa- tion prescribed by law for heads of executive departments. (b) The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force shall each receive the compensation Pbed by law for heads of executive departments. vxDr~ snae>"rewES exD esersrexT sECa>.?rea~s SEa 302. The Under Secretaries and Assistant Secretaries of the Army, the Na ,and the Air Force shall each receive compensation at the rate of~10,000 a year and shall perform such duties as the Secretaries of their respective departments may prescribe. . ~~ CorrbirrrEEg AND PERFiONNEL $Ea 303? (a) The Secretary of Defense, the Chairman of the National Security Resources Board, and the Director of Central Intell~Ce are authorized to appoint such advisory committees and to emPio,, consistent with other provisions of this Act, such part- time advisory personnel as they may deem necessary in carrym out their respective functions and the .functions of agencies under gtheir control. Persons holding other'offices or positions under the United States for which they receive compensation while serving as members of such committees shall receive no additional compensation for such service, Other members of such committees and other part-time advisory personnel so employed may serve without compensation or mayy receive compensation at a rate not to exceed $35 for each day of serbice, as determined by the appointing authority. tr?.. r+rs~.t f~r-loi of ~an individual ae a member of and aat~ ?d tgenc~ hereunder, shall not be considered as service bringing rich individual within the provisions of section 109 or 113 of the Criminal Code (U. S. C., 1940 edition, title 18, secs. 198 tnd 203), or section 19 (e~ of the Contract Settlement Act of 1944, unless the act of such indindual, which by such section is made unlawful when performed by an individual referred to in such section, is with respect to any particular matter which directly involves a department or agency which such person is advising or in which such department or agency is directly interested. srexas or TaexarESaED civiisAx rassoxxEr. Sac. 304. All transfers of civilian personnel under this Act shall be without change in classification or compensation, but the head of any department or agency to which such a transfer is made is authorized to make such changes in the titles and designations and prescribe such changes in the duties of such personnel commensurate with their classi- fication as he may deem necessary and appropriate. sevrxa rROVrsioxs SEC. 305. (a) All laws, orders, regulations? and other actions appli- cable with respect to any function, activity, personnel, property, records, or other thing transferred under this Act, or with respect to any officer, department, or agency, from which such transfer is made, shall, except to the extent rescinded, modified, superseded, terminated, or made inapplicable by or under authority of law, have the same effect as if such transfer had not been made; but, after any such transfer, any such law, order regulation, or other action which vested functions in or otherwise related to any officer, department, or agency from which such transfer was made shall, insofar as applicable with respect to the function, activity, personnel, property, records or other thing transferred and to the extent not inconsistent with other provisions of this Act, be deemed to have vested such function in or relate to the officer, department, or agency to which the transfer was made. {b) No snit, action, or other proceeding lawfully commenced by or agains? the head of any department or agency or other officer of the United States, in his official capacity or m relation to the discharge of his official duties, shall abate by reason of the taking effect of any transfer or change in title under the provisions of this Act; and, in the case of any such transfer, such suit, action, or other proceeding may be maintamed by or against the successor of such head or other officer under the transfer, but only if the court shall allow the same to be maintained on motion or supplemental petition filed within twelve months after such transfer takes effect, showing a necessity for the survival of such suit, action, or other proceeding to obtain settle- ment of the questions involved. (c} Notwithstanding the provisions of the second paragraph of section 5 of title I of the First 1Far Powers Act, 1941, the existing organization of the Par Department under the provisions of Executive Order Numbered 9082 of February 28,1942, as modified by Executive Urder Numbered 9722 of May 13,1916, and the existing organization of the Department of the Navy under the provisions of Executive Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 '~ttw.r~.~y . 18 ~N~ed9Q35ofSe ~~ Declassified and Approved ' of .f ot~ioua to p 29,1945 including the ~~nment atgan~utional units within t~e War and Naq Depart- mer-ta, may, to the eitent deterfnined by the Secretary of Defense, ' oontinne in tome for two years following the date of enactment of this Act except to the extent modified by the provisions of this Act or under the authority of law. T$ANaFEn OP F[TNDa SEC. 306? All unexpended balances of appropriations, allocations; nonappropr7ated fends, or other funds available or hereafter made available for use by or on behalf of the Army Air Forces or officers thereof, shall be transferred to the Department of the Air Force for use in connection with the eaercrse of its functions. Such other unexpended balances of appropriations, alloca,tiona, nonappropriated funds, or other funds available or hereafter made available for use by the Department of tiVar or the Department of the Army in exercise of functions transferred to the Department of the Air Force under this Act, as the Secretary of Defense shall determine, shall be trans. ferred to the Department of the Air Force for use in connection with. the exercise of its functions. Unexpended balances transferred under this section may be used for the purposes for which the appropriations, allocations, or other funds were orrgrnally made available, or for new expenditures occasioned by the enactment of this Act. The transfers herein authorized may be made with or without warrant action as may be appropriate from time to time from any appropriation covered by this section to any other such appropriation or to such new accounts established on the books of the Treasury as may be determined to be necessary to eany into effect provisions of this Act. eoxxoarzsxrox Fos erraorarnlzoxa SEC. 807. There are hereb authorized to be appropriated such sums as may be necxssary an~appropr7ate to carry out the provisions sad purposes of this Act. _ SEC. 308. (a) As used in this Act, the tern "function" includes functions, powers, and duties. (b) As used. in this Act, the term "budget program" refers to recom- menddations es tothe apportionment, to the allocation and to the review of allotments of appropriated funds. sErexnsnrrt SEC. 309. If any provision of this Act or the application thereof to any person or circumstances is held invalid, the validity of the remainder of the Act and of the application of snch provision to other persons and circumstances shall not be affected thereby. EFFECTr{E DATE 2, 307, 308= 3~9a)and 310 shall take effect nnmed~at ly upon the enact' meet of this Act. (b) Except sa provided in subsection (a), the provisions of this Act shall, take effect'on whichever of the following days is the earlier; The"day after the day n n which the Secretary of Defense first appointed takes office, or the sixtieth day after the date of the enact- ment of thiaAct. svccESarox To xaE raEamExcr SEC. all. Paragraph (1~ of subsection (d) of section 1 of the Act entitled "An Act to provi a for the performance of the duties of the office of President in case of the removal, resignation, death, or in- ability both of the President and Vice President", approved July 18, 1947, is amended by striking out "Secretary of jVar" and inserting in lieu thereof "Secretary of Defense", and by striking out "Secretary of the Navy,". Approved July 26, 1947. Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 i Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 CONGRESSIONAL RECORD-HOUSE ~ JULY 19 ~a~. -- - ~yary Affairs.- . I went _ ..w,ranif.*.PP f,~Q r--.---- while we were fighting. I saw waste kin , g of the heartbrea __~ ...,?AVgasnce resulting ~ diuias ..... -._-- - tru>sDori orgaNastions. in man? in- stances paralleling each other, the Array ~r gyansport Command running aA over the world, and the Naval Air Transport 8erviee, as I said. in ma T A~nstpOrt Com- sllellng the Army ~ nnand. That is a senseless waste o1 equipment, manpower. and taxpayers' ~~ proposed unification will Put an end to such things as happened in the pacific, where the Army had control of one side of an island and the Navy the other side, and neither service could bor- ___ ,._ ?!P Pnninment and supplies of ? Mr. HARNESS of Indiana. I do not wo}11cL.1ead11Y_-a~.ede:.to .this]imi~~- think we ought to take the Army. the T~et me repeat, however, that this Nation I Navy, and the Air Forces bump their is without extended experience in this i heads together and say "You are going field; and that we actually have com- ! aratively few men qualified by expert- - to wear the same uniform whether you p like it or not " If we accomplish the im- ence to head this agency. 11~ost of these w qualified men have gained their ez- f e portant basic goals, the formal refine- ments you suggest may naturally follow. perience in the Army and Navy, and are Mr. MILLER of Nebraska. If we did still in service. Before. we deny ourselves that the bill would not be before us; the of the service such military men may be Army and Navy would object too strenu- pacify, let us betvery sure that the a are ous$r, - I d not c ~ y b e~ a n i v o Mr, HARNESS of Indiana. w+ serve to ience availa e per id a t think we would get anywhere. Mr. MILI+ER of Nebraska. But does equally well, or better. not Congress have control over these de- Again let me nay that I have no objec- fease powers? IInless this bill provides tion to a restriction in this measure.., so much militarism that. they are going ag n ywlI ~ !e ~iy want re~asonab eiasaur- to take over the. country. Mr. HARNESS of Indiana. Congress ance that such a restriction will not deny still has that control; and I believe it ablef man if this pia becomes perat~ . will preserve it. Mr. SZ'EP'AN. Mr. Chairman, wiTi the should tallay any ofbtheipt suapi ons or gentleman yield? Mr. HARNESS of Indiana. I yield. fears as to what might happen if this Mr, STEFAN. Where >s? the section prlehensions are twithout foundation s~. regarding procurement? - ~_ _.,. u. AriRAEY_ Mr. Chairman, will the . better relationship between tine n+u?? the Navy, and the Air Pbrces. It wiII gentleman from New York [Mr. Wens- end the unthinkable procurement meth- woirrs] sittin6 beside .you, can point it ods under which each service designs its out to you. ordnance and. ammunition so that it can be$Ome~ies~sesd by somermembierssot the rarel9. if ever, be used interchangeably Navy and the Marine Corps about this by the other. Mr. SHORT. Mr. Chairman, will the na~vall aiviationh Theicommittee spent a gentleman yield? ood deal of time in considering;the ob- yu?, HARNESS of Indiana. I yield. g Mr. SHORT. And we will not have ~e by tmemberseoftthe Navy i espeecigallytthe p! ljeyshlpP ngnthem t Chi sl instead of naval sir force. It wrote into this bill letting the Navy have them to fill their provisions which should allay any fears that the sea-air force will suffer if this needs. bill is enacted. Mr. HARNje'SS of Indiana. That is right. I understand there wen numer- :' (Now, s word about the Central Intel- ous instances in which one or the other Hgence.Agency. When such an organ- service transported supplies long dirt- ization was first Proposed I confess I had ances from rear areas when tfie other .some fear and doubt about it. Along service had ample reserves of the same .with other members of the committee, I oT equivalent supplies in the immediate this agency be carefully defined andtlimi area, or conveniently nearby. That sort ited please bear hat this is a of dangerous waste and delay need not bold deua lire from American tra ton. and will not happen with the coordina- ~ ~~- ..n?nr,?o hac never before vauc sl y tion proposed here. '~ resorted to the collection of secret an Mr. MILLER of Nebraska. Mr. Chair- ~ s a e c n o ton in time of peace as man, will the Bentleman yield? is yali~y. N,..., Mr. HARNESS of Indians. I yield. however, I am convinc sso~h a_n Mr. MILLER of Nebraska. I wonder P cv as we PAP ~m ~n.+eider~n~s - why we could not go further and put them e~ ssential to r national security.( . ell in the same uniform. have the same Then has been insistence t a the di-'. ranks, grades, and standards? Why rector of this agency be a civilian. I be-~ could we not standardize that Ph~e o! lieve we should eventually place such a Army life ~ weII.as their equipment? restriction upon _the authority we are Mr? HARNESS of Indiana. There are. ~ in to create here, although I say some who would like to do Wat but that fpran~kly that I am not convinced of the would be s mistake at the moment. wisdom of such s ,restriction at the Mr. MILLER of Nebraska. Why? outset. Mr. HARNESS of Indiana. Because prolo ed hearings and executive se~- that is an unnecessary departure from pg the traditions of our defense forces. As lions of the committee behind closed we Bet into this thing perhaps eventually doors lead me to wonder 1f we have any we will come to that but I think?the first single career civilian available for this > step must be toward basic efilciency and from theeserviceswfor itighIInderstand,? dination o . r economy through co Mr. MILLER of Nebraska. I agree please, that I want to protect this very ~ ~ that it is a step in the right direction, influential post against the undue mill- where has been much objection to tt~e but they are all engaged in the same tart' influence which might maIf we cain iromhand independentr fo theaepagLrda~ purpose. If standardization is going to agency an ~allfled cOiyi ianocar"f~e nian land and sea forces. Such obje~tiona help one phase of our defense why should flnd,? w4J1.4. it not help all phases? a~i1e and willlag to handle this post, I _ .spring, in my opinion, from the outmoded gentleman y,o,u Mr, HARNESS of Indiana. I yield to the gentleman from Illinois. Mr. BUSBEY. The Dreamt Director of the Central Intelligence Agency L Ad- miral gillenkcetter; ther~ormer head of the agency was C}enesal Vandenberg. have a wo derful recd dint heir field. But was there arty testimony anywhere as to their experience_ and qualification in intelligence work? ? Mr. HARNESS of Indlana.lI doubt if you could ptck out any individual, d ~ e - civilian or military, who has ma career of this work. There is no such available American, because we have never engaged. in this type of actlvit7 before. In 150 years the IInited 8tatea has said, "We are Boing to keep out of other people's business. We are not go- ing to engage in secret intelligence:' Therefore, we have no experience in it. we have no single career man who knows all of the problems. We are approach- ing this thing. more or less a8 an ezperi- went in the present insTtahe~time of the The CHAIRi\2AN. gentlemsri from Indians has expired. Mr. HOP'FMAN. Mr. Chairman, I yield the gentleman 2 additional minutes. Mr. BDSBEY. ~I want to make the' observation that we have had an inteili- Bence service in our War Department and also in .our Navy department for s great many years, Mr. HARNESS of ~diana. I Yes, both military and naval intelligence have served proficiently within their limited scope. / Mr. BUSBEY. ~ We have had secret in- telligence in the War Department that we have built up over the past 5 years also. ~ but ue I T a , r . Mr. HARNESS of Indian what is contemplated hers different 'b1` scope and character?/ ~~ Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 94? CnN~R.FCCTn1\re r. nz+nn~? T,,,,.~,-. than the Senate bill. I am sure it is xssi] some place in the hearings will dentate operations Qo1ng to mean for us? a more effective find testimon t ? y o the eIIect that it is telllgence. military establishment and. in the end, estimated something like =800,000,000 I am fearful that if we permit this Cen- that it will mean economy, will be required 1a appropriati8ns for Mr. HOFFMAN, Mr. Chairman tral Inte111gence Agenc t I this new ti . na o 0 out and y g onal security set-up. I am - yield 10 minutes to the gentleman from . sorry I do not have the page reference collect intelligence as well as evaluating Illinois [Mr. BvsatY]? before me. If I am in error I m~?l~ intelligence, ewe will run into such situa- --?e on~cu ~~ ~aao une OI Cne most important stepg that any Congress has undertaken. This bill provides for the most drastic departure in the history of our country from any previous posi- tion on national defense, I do not .think we should be under a wrong impression as to the purpose of this bill. Although 1t !s called the unifi- cation blll, it reminds me somewhat of the time in the Seventy-eighth Congress when we had before us the Smith-Con- aally so-caAed antistrike bill. Every- body thought that Just because !t was called an antistrite bill it was going to stop strikes. IL increased strikes over !00 percent. I think our msJority leader, the gentleman from Indiana [Mr. ~ Hnl.LSC$1 referred to it quite correctly the other day when he asked unanimous consent for this bill to come up today. On page 9225 of_the Coxeai~sroxeL Rac- oaa of July 16 the gentleman from Indiana [Mr. 8nta=ca] in response to a question from the gentleman from New York [Mr. Coral, as to the title of the bill replied: Thle ie the so~aUed untDcation or merger bill, ~, /This is neither a merger nor a unifi-' cation bill. We already have a War De- partment and a Navy Department and if the Congress passes this bill we will still have the War Department and the Navy Department. In addition, we will) have a new department known as the Department of the Air Force. How can there be a merger or unification of some- thing by adding one additional depart- ment? True, under the Research and Development Board and the Munitions Board it is hoped we will accomplish a little economy, but under this super- structure of the National Security Coup- cil and the newSecretary of Detense, as he is called in this bill, we are going- to add millions and millions of doIIa)rs of expense. / Mr. HARNESS of Indiana. Mr. Chair- man, will the gentleman yield? Mr, BUSBEY. Just briefly, Mr. HARNESS of Indiana. The gen- tleman made the statement that this is going to add millions and millions of dollars to the cost of the defense estab- lishment. I take issue with the gentle= .man on that and I would like to have him explain why he has arrived at such a COIICIuS10n. Mr. BIISB>i:Y. I will be hapDY to reply to the gentleman, igvea though I am a member of the committee I have not had a chance to read the hearings. I did not receive s copy of the hearings until late Yesterday afternoon. I think 1t is a shame that any bill should come to the floor of the House unless the Members have had as opportunity to read the hearings and the report. I am sure that the gentleman from Indiana [Mr. Has- ested is the Central Irate Agency slavlaiwith Oeneral Mihailovich's forces. feature of this bill. That i~.SeQoing to be They sent out reports, and because. the s verb, very important agency and I~ reports went into another branch known trust when certain amendments are of- as the OSS,.and the men.at the head of fared under the 5-minute rule the com- the OSS did not agree with the princi- mittee will consider them deliberately, Ales of Mihallovich but were favoring the Oa page 1T of the bill I.especially call principles of Tito, the Communis* dicta- your attention to this language in line 16: for oP Yugoslavia today, the reports of (e) To tee extent recommended by the Na= the War Department Intelligence were Clonal Security Council and approved by the disregarded entirelq, President, such fateIIigence operations of the The CHAIRMA?1. The time of the departments and other agencies of the Qov- gentleman from Illinois has expired, ernment as relate to the national security Mr. HOFFMAN. Mr. Chairman, 'I shall be open to the laspectiasi of the Director or Central inteulgen,x? yield the gentleman two additional min- The Federal Bureau of Investigation, utMr. BUSBEY. That Ss what you run the FBI. is certainly an agency of ou i r nto, gentlemen, where you have an Government which relates to our na- agency of intelligence-collecting intel- tlonal security. Inasmuch ss the Central Hgence and then evaluating its own con- Intelllgence Agency deals with intelli- elusions. Z might say I spent some time Bence outside the IInited States, I hope $l inteuigence myself, and can cite that particular section wiU be amended to numerous and specific instances. It is eliminate the possibility of its going into the same situation we have had with the the records and boots of the FBI be- national Labor Relations Board, where cause the FBI does not, go outside the 'they were prosecutor, Jury, and fudge. IInited States. It fs only concerned with I hope that we will consider very seri- internal intelligence and investigations in ously- amending that particular section the. IInited States. so that we will nog Another feature I have been concerned 1 this superlntelligenee ragency eCI o a o about is the authority given. the Central hope we will protect the status of the Intelligence Agency in thLs bill. In adds- ( FBI so that there will definitely be no lion to evaluating, correlating sad dis- authority far Central Intelligence to go seminating 1nte111gence, it 1s given au- into their records and books, thority to collect Intelligence. On May Mr. MARTIN of Iowa. Mr. Chairman, 21, 194?, there appeared an article in the will the gentleman yield? ]Yew York Times entitled "Army's World Mr. BUSHEY. .I yield to the gentle- IateIIigenca Rfag Reported halted By man from Iowa. New Agency." Mr. MARTIIJ of Iowa. I had some I have studied the directive of Fresi-' part in writing the report that the Ben= dent Truman of February 5, 1946, under tleman Just quoted from, and I would which the Central Intelligence Agency. like to ask the gentleman whether he was set up and is now Sunctlonina. and r feels that the provisions far C!nnrrnl r.._ agency to go out and collect inteUJgence. It. has not only dissolved the Secret In- telligence Department of our War De- partment which was built up over the past 5 years, but !t has assumed the authority to collect intelligence. IInder section 3 (a) of the Presidential Directive setting up the Central InteIIi- Bence AIIenoy, there appears the fol- lowing; House needs amendment to bringeittla line with that recommendation? Mr. $USBEY. I certainly do. I am not opposed to a central intelligence ,~ and evaluating intelligence from the ~~varaaiottu~s departments. You remember h~i~~n~~~ Pea~"~ ~ ey --- -..-.?.-..~...: cone= evaluated correctly . accomplish the correlation and evalua- co era oa w e g e that pro- ti on of inteuigence relating to the national vision when we consider the bill under eecurlty, and the appropriate dleeeminatloa the 5-minute rule. tvitbt~tlte C;overnnent of the resulting sirs- Mr. MANASCO. Mr. C:.airman, I te~ic sad natlonil poacy fateuigence. Ia so yield 10 minutes to the gentleman from doing, tall ass shall be made of the sta>t and Virginia [Mr. Hn1wT1. factlltfes of the lateulgence ageneia or your departmaay, (Mr. HARDY asked and was given per- t Year the Committee on Military mai won to revise and extend his re- Affairs went into the subJe~t of whether Mr. LATHAM. Mr. Chairman, I make the Central Intelligence Agency should the point of order that- a quorum is not collect intelligence, I will read you their present. concltuians from their report of Decem- The CHALttMAN. The' Chair will bar 17. 1996: count. [After counting.] Seventy-nine It L speclIIcally understood that the Di- Members are pllsent, not a quorum. rector of Central Inteulgence shall not un- The Clerk will call the roll. 9569 for the collection of la- ' - -~'~%~~- Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 VZ MILITARY AND VETERANS MAJOR ACTIONS, July-September 1947 assed House and Senate; approved, Cash redemption of terminal leave bonds - P x oved, Unification of the Armed Forces -passed Senate and House; app ' SH REDEMPTION OF TERMINAL LEAVE BONDS h CA the House in 1946, xt provided for cas When the Armed Forces Leave Act was passed by ear non-negotiable 1 leave for enlisted men as well as d lar rer sumtsei^ 5-y a the bill was a e rP e payment for termxna . to provide for payment of all sums under $50 in cash anreement, but various Senators and p would introduce cash-p~lYment bills in the next session (Vol. III, bonds. This provision was retained in the conference ag sentatives served notice that they was for tax reduction, HR pp. 514ff .) . ,, ~a ment bills were The first bill introduced in the House in the Eightieth Con~r.~?c"~, Rep- o other cash-1 ` y and 3 were for cash redemption of terminal leave bonds Abuul in the House. The Armed Services CommittcE~ rewrote and reported Hs}4o~ ~'eq est; h would allow l~~c~lders of the bonds to redeem them introduced Niich.), w'h Blackne (R resentative William W 91 47. would permit payme~t ~~ nix itlr~1948~ms xn ca for cash after September 1, in for terminal leap e to . t l and extend the time for apply g how- ere was no real debate in either House, since no cme of>hosed the billo There were, It was estimated tl~ax_ Th eskers in both House and Senate who dxilontendcd~in rltearlingmeasuro a bo h hou, es ever, many sp as the Treasury 1 792,000,000.. Tribute was paid xn that it would not be inflationary, author of the 146 act and spearhead of the fight o about 8.5 million veDtwei h~s~1e_ R bO~ d ~~ F1 e j at $ , to Representative _~_ get action by the House committee on the many 1947 bil s Zhe Senate voted for 7 on a roll call, 388 to U (see p? 474)' The House passed the bill July 85 to 0 on July 19 (see p. 473). the bill, ~ ,ossible, the i reasuxy announced that more Ten days after cash redemption of bonds became 1 800,000,000 bonds outstanding had been cashed, than one-third of the $ , THE ARMED FORCES UNIFICATION OF which has been under study since 1944, was authorized by ress a plan for uni- Unification of the armed forces, le Department of Com- the Eightieth Congress in July 1947. In 1945 President Truman sent to ong Navy, and Air Force as coordinate sections of a si the Senate Military Af- fication of the Army, and this planhe following y of a bill reported favorably Y and Navy. It mon Defense, ear. The Navy reiterated its objections to concentration fairs Committee in April t an Air Force coordinate with Army ` 5 and naval aviation might be jeopardized, The Military of power in a single department and to having was also fearful that the Marine Corp: mittee revised the bill to meet some of these objections, but the Naval Affairs om- Affairs Com Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 mittee, like some of the admirals, still opposed the plan and refused to report the bill (Vol. II, pp, 715-18). In February 1947 the President sent to the Speaker of the House and the President pro tempore of the Senate the draft of a bill worked out during the winter by high-ranking Army and Navy officers. This bill was introduced in the House by Chairman Clare E. Hoffman (R Mich.) of the Committee on Expenditures in the Executive Dai~i?ni neof the Arm d s lr a esf Committeeh to House, and in the Senate by Chan Gurney (R S.D.), which the bill was referred after the claims of the Senate Expenditures Committee had been over- ruled (Vol. III, p. 53)< At hearings before the two committees during the spring, the draft bill was supported by Secretary of the Navy James Forrestal and Secretary of War Robert F. Patterson, The Comman- dant of the Marine Corps, General A. A. Vandegrift, asked that the functions and status of the Corpsbe specified in the bill but said that he consid osia n tohspec>fic provisions of the bhll wasr scan Legion also supported the unification plan. Opp voiced by certain officers, Senator Gurney summed up the testimony by saying that all civilian officials and officers in uniform who had broad res oo itionlihe said c meifrom persons who had tary services were for unification, None of the opp duties outside their own branch or specialtyo PROVISIONS OF THE BILL The unification bill as rewritten by the committee declared it to be the intent of Congress to set up three military departments -- Army, Navy (including Marine Corps and Naval Aviation), and Air Force -- and to provide?for their "authoritative coordination and unified direction under civilian control but not to merge them." The three departments, each headed by a Secretary without Cabinet status, would be joined in a National Security Organization, with a civilian Secre- tary of National Security to establish general policy and programs, exercise general direction, authority and control over the three departments, and formulate budget estimates Other parts of the National Security Organization would be: 1. Joint Chiefs of Staff (chiefs of staff from the three departments) to prepare strategic and logistic plans, formulate training policies,. establish unified commands when desirable, and serve as chief military advisers to the Fresident and the Secretary of National Security Under them would be a Joint Staff of 100 officers from the three departments. 2. Munitions Board under a civilian chairman, with an Under or Assistant Secretary from each of the three departments, to coordinate military activities in industrial matters, such as procurement, production, distribution, and mobilization of industry in wartime, The board was charged with planning standardized specifications of common-use items and allocating purchase authority on the basis of single procurement. 3. Research and Development Board, made up of a civilian head and two representatives from each service, to prepare integrated plans for military research and development, allocate specific projects among the three services, and advise on coordinating Government military re- search with the work of outside agencies. 4. War Council, made up of the Secretaries of National Security, the Army, Navy, and Air Force and the three chiefs of staff, to give advice on broad policy to the Secretary of National Security, who would have the power of decision. Outside the military organization but closely connected wilt) it would be: 1. National Security Council, headed by the President and consisting of the Secretaries of State, National Security, Army, Navy, and Air Force, the chairman of the National Security Re- sources Board, and others whom the President might appoint. Their function would be to plan the coordination of the military, foreign, and domestic policies of the United States, Working under the National Security Council would be a Central Intelligence Agency Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 2~ National Security Resources Board, made up of a civilian chairman and such heads of Government departments or agencies as the President might appoint. The Board would plan for relating military and foreign policy to the general economy, and advise the President on the rela- tionship between potential supplies of and requirements for manpower, resources, and productive facilities, It would also prepare plans for establishing reserves of strategic and critical materials and programs for wartime use of the Nation's resources for military and civilian needs, ATTACK ON THE BILL The unification bill, S 758, was reported by the Armed Services Committee on June 5, but not until July 7 did Chairman Gurney succeed in getting it to the floor, Gurney described its pur- pose as "to put into effect by legislation a security organization which is adequate, effective, and modern -- and yet economical." The proposed plan was, he said, unification of the armed forces but not a merger. At several points in the debate proponents urged the need for coordination of the services to prevent another Pearl Harbor, and also thc: possibility of considerable savings through unified budgetary and procurement practices. Most of the speeches in the two-day debate were made by members of the Armed Services Committee, where there had been sharp conflict over the billy Senators Henry Cabot Lodge, Jr. (R Mass.), Leverett Saltonstall (R Mass,), Raymond E. Baldwin (R Conn.) Wane Morse (R. Ore.), Millard E. Tydings (D Md.), Burnet R. Maybank (D S.C~), and Lister Hill (D Ala.) favored the bill. The opposition was led by high-ranking Republican Edward V. Robertson (R Wyo.), who said that the bill would concentrate too much power in the hands of one man, the Secretary of National Security; that it would accomplish no more coordination than was already in effect; and that, far from saving money, it would cost the country more. r"" Robertson, who had earlier introduced a bill for coordination rather than unification, had drawn up a series of amendments to the committee bill,. His major proposal, designed to place the Secretary of National Security over both the military departments and the policy groups like the National Security Council and the National Security Resources Board, was defeated by voice vote, as were two amendments of narrower scope. Robertson then did not introduce his other amendments. The one roll call vote was on an amendment offered by Senator Jose al h R. McCarthy (R Wis.), a former member of the Marine Corps. McCarthy proposed to stipulate in the bill that the exist- ing status of the Marine corps and of Naval Aviation should not be diminished or altered, and that their present functions and missions should not be transferred to other services. The amend- ment was vigorously opposed by Senator Lodge, who maintained that the present provisions satis- fied General Vandegrift and that it was poor policy to legislate tactics into statute law. Other members of the committee said that Vandegrift had been present at executive sessions when this section of the bill was written. McCarthy modified leis amendment to omit reference to missions, but pressed for ayea-and-nay vote. The amendment was defeated on a roll call, 52 to 19 (see p. 473), with the majority of both parties voting against it. The only amendment to be adopted was one by Senator Robert A. Taft (R. Ohio), which limited the sphere of the National Security Council more strictly to matters affecting national security. Otherwise the bill was passed as reported Passage came on July 9 by voice vote. PROPOSED AMENDMENTS Amendments proposed in the Senate and their disposition July 9 were: Offered by Proposal and disposition Edward V. Robertson Place Secretary of National Security over the "National Military Estab- (R. Wyo.) lishment," National Security Council, and National Security Resources Board. Defeated by voice vote. Robert A. Taft Limit National Security Council functions to matters relating to national (R Ohio) security Passed by voice vote Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Offered by Edward V. Robertson (R Wyo.) Edward V. Robertson (R Wyo.) Joseph R. McCarthy (R Wis.) Proposal and disposition Director of Joint Staff to be chosen in rotation from the three services; service as Director not to exceed four years; service as Director and member not to exceed ?eight years. Defeated by voice vote. National Security Resources Board to be advised of military material and manpower requirements in order to integrate them in over-all plans for industrial mobilization. Defeated by voice vote. (As modified at suggestion of Chapman Itevercomb, R W.Va,) Existing status of Marine Corps and Naval Aviation not to be altered or dimin- ished; their existing functions not to be transferred to other services. Defeated by roll call vote, 52 to 19 (see p. 473). The House on July 19 considered HR 4214, the committee version of the President's draft bill as introduced by Representative Hoffman. The report was the result of a battle in the Com- mittee on Expenditures in the Executive Department. Hearings which had been held at intervals since April were brought to an end by committee vote July 1, over Hoffman's protest that some 25 witnesses from the Navy and Marine Corps still wished to be heard. Hoffman, in a separate 'statement of views, said that he would not oppose the bill because it seemed inevitable. However, he could not approve the committee version because it seemed tr, him to delegate powers over military policy which the Constitution gives to the Congress, because it would not result in econ- omy, and because it would make possible a military dictatorship. Furthermore, he said, it was an Army bill and the Navy had been "prevented by Executive hate from freely expressing their objections." The House bill differed from that of the Senate chiefly in these particulars; 1. It called the three military departments and thc~ joint b~,ards the "National Military Establishment," to be headed by a "Secretary of Defense." Thc~ Secretary was given an additional function of eliminating unnecessary duplication and overlapping in the three military departments, and he was to have less power over budget making. New procedures for submission of budget estimates by the President were also specified. 2. The functions of the Army, Navy, Marine Corps, Air Force, and Central Intelligence Agency were spelled out, where the Senate had felt best not to ``legislate tactics." 3. There were some differences in salaries specified for heads of various departments and boards; the chief one being that the Secretaries of Army, Navy, and 'Air Force would receive $14,500 rather than the $15,000 received by heads of deiartments with Cabinet status. The bill drew strong bipartisan support, including that of three high-ranking members of the Expenditures Committee -- Representatives James W. Wadsworth (R N.Y.), John W. McCormack (D Mass.), and Carter Manasco (D Ala.) -- and Chairman Walter U. Andrews I2 N,Y.) of the Armed Services Committee. Opposition was headed by Representative W. Sterling Cole (R. N.Y.) of the Armed Services Committee, ranking Republican on the old Naval Affairs Committee, who felt that the bill did not sufficiently protect the Navy. :1 similar point of view was expressed by Represen- tative Harry R. Sheppard (D Calif.), former chairman of the Navy Appropriations subcommittee, and Chairman Edith Nourse Rimers (R Mass,.) of the Veterans Affairs Committee. Chairman John Taber (R N.Y.) of the Appropriations Committee opposed the budgetary provisions. Cole introduced a number of amendments to protect the status of the Navy and to restrict the power of the Secretary of Defense, several of which were passed in modified form (see p. 461). Representatives Walter H. Judd (R Minn.) and Clarence ~ Brown (lt Uhio) were successful in their efforts to require that the head of the Central Intelligence Agency he a civilian and to protect the opera ions of the Federal Bureau of Intelligence and the Atomic Energy Commission from inspection Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 by the CIA head, Among amendments rejected were: a proposal to study setting up permanent civilian war agencies under the National Security Resources Board; and the requirement that the National Security Council's reports to the President be matte available to the Speaker of the House and the President of the Senate, HR 4214 was passed July 19 by voice vote> stituting the provisions of its own measure, The House then passed the Senate bill after sub- Amendments offered from the floor and their disposition July 19 were as follows, Offered by Walter H, Judd (R Minn,) Clarence J, Brown (R Ohio) Walter H, Judd (R Minn,) John Taber lR N,Y,) W. Sterling Cole (R N,Y,) W, Sterling Cole (R N,Y,) W. Sterling Cole (R N,Y.) W. Sterling Cole (R N.Y,) W, Sterling Cole (R N,Y,) W, Sterling Cole (R N,Y,) W. Sterling Cole (R N,Y.) W. Sterling Cole (R N,Y,) George MacKinnon (R Minn,) Proposal and disposition Central. Intelligence Agency director, if a regular officer, must resign his commission or retire before becoming director. F-assed by voice vote as modified by Brown substitute., (Substitute for Judd amendment) CIA director to be appointed from civilian life by President and confirmed by Senate. Passed by voice vote, CIA director not to have power to inspect secret operations of the FBI and Atomic Energy Commission Passed by voice voted Strike out section on presentation of budget estimates, Passed by voice vote, Substitute "naval aviation" for "naval air force." Passed by voice vote> Secretary of Defense to have "general authority for the integration, co- ordination, and supervision" of Army, Navy, and Air Force, rather than to "exercise general direction, authority, and control" over them, De- feated on division, 19Q-3G. Secretary of Defense to exercise "general direction and general authority ;t~oririation feI appropriatioloos. BQc. 309. Definition. _ Sec. 310. Separability. TITLE I-THE NATIONAL DEFENSE ESTABLISHMENT ' ~ ` 'ESTABLISHMENT OF THE NATIONAL 'DEFENSE ESTABLISHMENT SECTION 101. (a) There is hereby established the National Defense Establishment, and a Secretary of National Defense,. who shall be the.head thereof.. _ ' (b) The National Defense Establishment shaII consist of the De- partment of the Army, the.Departlrlentof the Navy, and the Depart- ' went of the Air Force, :together with all, other agencies created wlthin the National De#ense E~tablishment.- Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ,,,zi,,rn~ SEC. ] 0`L. (a) The Secretary of 1VTational Defense shall be appointed from civilian life by the President, by and with the advice and consent of the Senate. Under the direction of the President he shall establish policies and programs for the National Defense Establishment, and for the. departments and agencies therein; he shall exercise direction, authority, and control over such departments and agencies; he shall supervise and coordinate the preparation of budget estimates by the departments and agencies of the National Defense Establishment, which shall be submitted to him at such time and in such manner as he may direct; he shall formulate and finally determine the budget estimates of the National Defense Establishment for submittal to the Bureau of the Budget; and he shall supervise and control the budget program of the National Defense Establishment under tike applicable appropriation Acts: Provided, That the Department of the Army, the Department of the Navy, and the Department of the Air Force, under the direction of the Secretary of National Defense, shall be adminis- tered as individual units by their respective Secretaries: And Provided further, That nothing herein contained shall prevent the Secretaly of any such department from presenting to the President, after first so informing the Secretary of National Defense, any report or recom- mendation,relating to.his department which lIe may deem necessary. (b) The Secretary of I~Te,tiona.l Defense shall submit annual written reports to the President and the Congress covering expenditures, work, and accomplishments of the National Defense Establishment, together with such recommendations as he shall deem appropriate. (c) The Secretary of National Defense shall cause a seal of office to be made for the. National Defense Establishment, of such design as the President shall approve, and judicial notice shall be taken thereof. MILITARY ASSISTANTS TO THE SECRETARY SEC. 103. Officers of the Army, Navy, and Air Force maybe de- tailed to duty as assistants and personal sites to the Secretary of National Defense, but he shall not establish a military staff. CIVILLAN PERSONNEL SEC. 104. (a) The Secretary of National Defense is authorized to appoint from civilian life not to exceed four special assistants to advise . and assist him in the performance of his duties.. Each such special assistant shall receive compensation at the rate of $12,000 a year. (b) The Secretary of National Defense is authorized, subject to the civil-service laws and the Classification Act of 1923, as amended to appoint and fix the compensa.6ion of. such other civilian personnel as may be necessary for the performance of the functions of the National Defense Establishment. ., . SEC. 105. (a) The Depa>Ftment of War shall hereafter be .known ae the Depertn~ent of the Army,-and the title of the Secretrty of War shall be changed to Secretary of'the Army. Chines shall be made~in the titles of otheit officers ~ and activities of the; Department of ~ the` , Army s,8 the Secretary, of the Arnny -may deCeranime. ?,` Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ~ ._~~ _z NATIOI~~ Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ~, A~ ~"..#~!7 ~,- ` (b) "All laws, 'orders;-regulations,- and other actions relating to the_ =' _bepartment of Par or to any officer or activity whose title is changed -` udder this sectioir shall, insofar as they are sot inconsistent with the provisions of this Act, be deemed to relate to .the Department of the Army .within the National Defense Establishment or to such officer or activity designated by his or its new title. (c) The term "Department of the Army" as used in this Act shall be construed to .mean the Department of the Army at the seat of Government and all field headquarters, forces, reserve components, installations, activities; and functions under the control or super- . vision of the Department of the Army. - _(d) The Secretary of the Army shall cause a seal of office to be made for the Department of the Army, of such design as the President may approve, and judicial notice shall be taken thereof. Sec. 106. (a) The term "Department of the Navy" as used in this Act shaII be construed to mean the Department of the Navy at the seat of Government; the Headquarters; United States ~Tarine Corps; the entire operating forces of the United'States Navy (including naval aviation) and of the United States Marine Corps, including the Reserve components of such forces; all field activities of the Department of the Navy; and the United States Coast Guard when operating as a part of the Navy pursuant to law. SEC: 107. (a) Within the National Defense Establishment there is hereby established an executive department to be known as the Depart- ment of the Air Force, 8nd a Secretary of the Air Force, who shall be the head thereof. The Secretary of the Air Force shall be appointed from civilian life by the President, by and with the advice and consent of the~Senate. ' (b) Section 158 of the? Revised Statutes is amended to include the Department of the Air Force and the provisions of so much of title IV of the Revised Statutes as now or hereafter amended as is not in- consistent with this Act, shall be applicable to the Department of the Air Force. (c) The term `_`Department of the Air Force" as used in this Act shall be construed to mean the Department of the Air Force at the seat of Government and all field headquarters, forces, Reserve com- ponents, installations, activities; and functions under the control or supervision of the Department of the Air Force. (d) There shall be in the Department of the Air Force an Under Secretary of the Air Force and two Assistant Secretaries of the Air Force, who shall be appointed from civilian life by the President by and with the advice and consent of the Senate. (e) The several officers of the Department of the Air Force shall perform such functions as the Secretary of the Air Force may prescribe. (f} So much of the fimctions of the Secretary of the Army and of the Department of the Army, including those of any officer of suc}i De- partment, as are assigned to or under the control of the Commanding General, Army Air Forces, or as are deemed by the Secretary of National Defense to'be necessary or desirable for the operations of , the Department of the Air Force or the IIni~ed. Btate~,Air Force, shall ,,, - - be transferred. to and vested in the Secretarryy of the??Aii? Force and the Department of the Air Force:-P.ro?eded, That in order to ermit an orderly transfer, the Secretary of National Defense may direct that -the Depai tment of the Army shall continue for appropriate periods to exercise any of such functions, insofar as they relate to the Depart- . mentof the Air Force, or the United States Air Force or their property and personnel. Such of the property, personnel, and records of the Department of the Army used in the exercise of functions transferred under this subsection as the Secretary of National Defense shall de- termine, shall be transferred or assigned to the Department of the Air Force. (g) The Secretary of the Air Force shall tense a seal of office to be made for the Department of the Air Force, of such device as the President shall approve, and judicial notice shall be taken thereof. . SEC. ~ 108. (a) The United States Air Force 1s hereby established under the Department of the Air Force. The Army Air Forces, the Air Corps, United States Armv, and the General Headquarters Air Force (Air Force Combat Command), shall be transferred to the United States Air Force. ' (b) There. shall be a Chief of Staff, United Staten Air Force, who shall be appointed by the President, by and with the advice and con- sent of the Senate, for a term of four years from among the officers of general rank who are.assigned to or commissioned in the United States Air Force. Under the direction of the secretary of the -Air Force, the Chief of Staff, United States Air Force, shall exercise command over the United States Air -Force and. shall be charged with the duty of carryuig into execution all lawful orders and directions which may be transmitted to him. TI}e functions of the .Commanding General, General Headquarters Air Force (Air Force Combat Command), and of the Chief of the Air Corps and of the Commanding. General, Army Air Forces, shall be transferred to the Chief of Staff, United States Air Force. When such transfer becomes effective,. the offices of the Chief of the Air Corps, United States Army, .and Assistants to the Chief of the Air Corps, United States Armp, provided for by the Act of June 4, 1920, as amended (41 Stat. 768), and Commanding General, General Headquarters Air Force, provided for by section 5 of the Act of June 16, 1936 (49 Stat. 1525), shall cease to exist. `Vhile holding office as Chief of Staff, United States Air Force, the incum- bent shall hold a grade and receive allowances equivalent to .those prescribed by law for the Chief of Staff, United Stags Army,. The Chief of Staff, United States Army, the Chief of Naval Operations, and the Chief of Staff, United States Air Force, shall take rank between themselves according to their relative dates of appointment as such, and shall each take rank above all other officers on the active list of the Army, 1Vavy, and Air Force: Provided, That nothing in this Act shall have the effect of changing the relative rank of the present Chief of Staff, United States Army, and the Chief of Naval Operation:, (c) All commissioned officers, warrant officers, and enlisted men, commissioned, holding warrants, or enlisted in the Air Corps, United States Army, or the Army Aii? Forces, shall he transferred in branch to the United States Air Force. All ocher commissioned officers, Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ' ,? ~~: _ ~ _-,__~ Declassified and Approved For Release 2012/03/20 CIA-RDP01-017738000100010024-7 xrrY ACT of ia47 7 ~~ wairant officers, and enlisted men, who are commissioned, hold war- rants, or are enlisted in any component of the Army of the United States and who are under the authority or command of the Commalid- ing General, Army Air Forces, shall be continued under the authority or command of the Chief of Staff, United States Air Force, and under the jirisdiction of the Department of the Air Force. Personnel whose status is affected by this subsection shall retain their existing commissions, warrants, or enlisted status ui existing components of the armed forces unless otherwise altered or terminated in accordance with the existing law; and they shall not be deemed to have been appointed to a new or different office or grade, or to have vacated their peg manent or temporary appointments m an existing component of the armed forces, solely by virtue of any change in status under this subsection. No such change in status shall alter or prejudice the status of any individual so assigned, so as to deprive him of any right, benefit, or privilege to which he may be enti~led ender existing law. (d) Except as otherwise directed by the secretary of the Air Force, all property, records, installations, agencies, activities, projects, and civilian personnel under the jurisdiction, control, authority, or com- mand of the Commanding General, Army Air Forces, shall be con- tinued to the same extent under the jurisdiction, control, authority, or command, respectively, of the Chief of Staff, United States fir Force, in the Department of the Air Force. ' (e) For a period of two years from the date of enactment of this Act, personnel- (both military and civilian), property, records, in- stallations, agencies, activities, and projects. may be transferred be- tween the Department of the Army and the Department of the Air Force by direction of the Secretary of ~'ational Defense. EFFECTIVE DATE OF TRANSFER.5 SEC._109. Each transfer, assignment, or change in status under sec- tion 107 or section 108 shall take effect upon such date or dates as may be prescribed by the Secretary of National Defense. SEC..110. There shall be within the National Defense Establish- ment ewer Council composed of the Secretary of National Defense, as Chairman, who shall have power of decision; the Secretary of the Army; the Secretary of the Navy; the Secretary of the Air Force; the Chief of Staff, United States Almy; the Chief of Naval Operations; and the Chief of Staff, United States Air Force. The war Council shall advise the Secretary of National Defense on matters of broad policy. relating to the armed forces, and shall consider and report on . such other matters as the Secretary of National Defense may direct. JOINT CHIEFS OF STAFF ' SEC. 111. (a) There is hereby established within the National De- fense Establishment the Joint Chiefs of Staff, which shall consist of the Chief of Staff, United States Army; the Chief of Naval Operations; the Chief of Staff, United States Air Force; and the Chief of Staff to the Commander in Chief, if there be one. '~(b) .Subject to the authority and direction of the President and the j Secretary of National Defense, it shall be the duty of the Joint Chiefs . of Staff- (1) To prepare strategic plans and to provide for the strategic direction of the militate forces; (2) To prepare joint logistic plans and to assign to the military services logistic responsibilities maccordance with such plans; (3) To establish unified commands in strategic areas when such unified commands are in the interest of national security; (4) To formulate policies for joint training of the mlhtary forces; (5) To review major material and personnel requirements of ` the ilitary forces, in accordance with strategic and logistic plans; ' (6) To provide United States representation on the 1~Zilitary Staff Committee of the United Nations, in accordance with the ~' provisions of the Charter of the United Nations. (c) The Joint Chiefs of Staff shall act as the principal military ad- visers to the President and the Secretary of National Defense, and shall perform such other duties as they may direct or may be prescribed b3 law. JOINT STAFF SEC. 112. There shall be, under the Joint Chiefs of Staff, a Joint~~ Staff to consist of not to exceed one hundred officers and to be composed , of approximately equal numbers of officers of the United States Army;. the United States Navy, and the United States Air Force. The Joint Staff, operating under a Director thereof appointed by the Joint' Chiefs of Staff, shall perform such duties as may be directed by the Joint Chiefs of Staff. The.Director shall be an officer junior in grade to all members of the Joint Chiefs of Stag. adIINITION3 BOARD SEC. 113. (a) There is hereby established in the National DefensE Establishment a 14unitions Board, hereinafter in this section referred to as the "Board." (b) The Board shall be composed of a Chairman, who shall be thc~ head thereof, and an Under Secretary or Assistant Secretary from each of the three military departments, to be designated in each easel by the Secretaries of their respective departments. The Chairmar. shall be appointed from civilian life by the Secretary of Nations: Defense and shall receive compensation at the rate of $14,000 a yeaij or at the rate of $50 a day but not to exceed $14,000 in any one year.a (c) It shall be the duty of the Board under the direction of thcl Secretary of National Defense and in support of strategic and logisticl plans prepared by the Joint Chiefs of Staff- ' (1) to coordinate the appropriate activities within the Na, tionu~ D~:;ense Establishment with reward to industrialmatter~~ including the procurement, production, and distribution plane of the Establishment; (2) to plan for the military aspects of industrial mobilization (3) to recommend assignment of procurement responsibilitie { among the several military services and to plan for standardize tion of specifications and for the greatest practicable allocatio: i Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 _ _. _ ~ _ - .~ ... __ `. 1. _ .' < ' ~:- ' L.~w : 71TwTin1~T.*~. Q.~..,,o.:..i- .rr A4? ~1 O _ ,.. ~ _ _ .. `4 T2aTtAi RW.r common use... , `: ~ ~ `, - , ~ ~ (2) . To advise with t~chnical equipment guti rchaee autliority gf pf ~p . . . u , ;fiwma on the basis of awale Drocurement t - _ . _ ~ - =~.~ , ? ~ ~ ing to national security ?~ -~ =` (~) to prepare estimates of ~oteatist production, procurement: _ tlnuea aria rncreasuig p (5) to determine relative priorities df -the venous segments among tnem or respo of the military procurement programs; _ interest; (6) to supervise such subordinate agencies as are or may be created to consider the subjects falling within the scope of the 'Board's responsibilities; - (7) to make recommendations to regroup, combing, or dissolve existing interservice agencies operating m the fields of procure- ment, production, and distribution in such manner as to promote efficiency and economy; ` (8) to maintain liaison with other agencies for the proper correlation of~ military requirements with the civilian economy, particularly in regard to the procurement or disposition of strategic and critical material and the maintenance of adequate reserves of such material, -and to make recommendations as to policies in connection therewith; (9) to assemble and review materiEal and personnel require- ments presented by the Joint Chiefs of Staff and those presented by the production, procurement, and distribution agencies assigned to meet military needs, and to make recommendations thereon to the Secretary of National Defense; (10) to perform such other duties as the Secretary of National Defense may direct. (d) When the Chairman of the Board fiat appointed has taken office,, the Joint Army and Navy Munitions Board shall cease to exist- and all its functions, records, and personnel shall be transterred to the Munitions Board. (e) The Secretary of National Defense shall provide the Board with such personae and facilities as the Secretary may determine to be required by the Board for the_ performance of its functions. RE9EARCII AND DEVELOPMENT BOARD SEC. 114. (a) There is hereby established in the National Defense Establishment a Research and Development Board, hereinafter in this section referred to as the "Board". The Board shall be composed of a Chairman, who shall be the head thereof, and two representatives each from the Departments of the Army, Navy, and Air Force, to he designated by the Secretaries of their respective departments. The Chairman shall. be. appointed from civilian life by the Secretary- of National Defense and shall receive compensation at tho rate of $14,000 a year or at the rate of $50 a day but not to exceed $14,000 in any one year. 'rhe purpose of the Board .shall be to advise the Secretary of National Defense as to the status of scientific research relative to t11e national security, and to assist him in assuring adequate provision for research and development on scientific problems relating to fire national security. (b) It shall be the duty of the Board, under the direction of the Secretary of National Defense- . (1) To prepare a complete and integrated program of research and development for military purposes; of coordination of research and ary departments, and allocation es for specific programs of joint (4) To formulate policy for the National Defense Establishment in connection with research and development matters involving agencies outside the National Defense Establishment; (5) To consider the interaction of research and development and strategy, and to adti-ise the Joint" Chiefs of Staff in connection therewith; "(6) To perform such other duties as the Secretary of National Defense may direct. (c) When the Chairman of the Board first appointed has taken office, the Joint Research and Development Board shall cease to exist and all its records and personnel shall be transferred to the Research and Development Board. (d) The Secretary of National Defense shall provide the Board with such personnel and facilities as the Secretary may determine to be required by the Board for the performance of its functions. TITLE II-COORDINATIOIr' FOR NATIONAL SECURITY NATIONAL SECURITY COUNCIL _ SECTION 201. (a) There is hereby established a council to be known as the Na,aional Security Council (hereinafter in this section referred to as the-"Council"). ? unction of he Council shall be to '~e the President with respect to t_e Hite rtary olicies ZT coo tivel - vrng na one securt The Council shall be composed of the Secretary o a e, t e cretary of National Defense, the Secretary of the Army, the Secretary of the Navy, the Secretary of the Arr Force, the Chairman of the National Security Resources Board, and such other members as the President may designate from time to time. (b) dditio erfor h other functions as the Pr sident irect or the purpose of more e ec ive y coor orating policies o t e departments and agencies of the Government and their functions relating to the national security, it shall, R?bie ?~ ?he direction o th t of the Council- (1 To assess and appraise the o~ectives, commitments, and risks of the United States in relation to our actual and potential military power, in the interests of national security, for the pur- pose- of making recommendations to the President in connection therewith; and - =: (2) To consider policies on matters of common interest~ao the Department of State, the National Defense Establishment, and the National Security .Resources $oard, and to make rec- ommendations to the President in connection therewith. (c) The Council shall have a staff to be headed by an executive secretary, who shall be appointed by the President and ?who shall receive compensation at the rate of $12,000 a year. The executive ds in se~entific~research relat- .assures necessary .to assure, con- Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 _ Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 .?~eeeiretary, -subject' to the direction of the Council, is authorized to ` "sppoint Fund fix the compensation of such personnel as may be neces- ssry to perform such duties as may be prescribed by the Council in connection with the performance of its functions. (d) The Council shall, from time to time, make such recommenda- tions and such other reports to the President as it deems appropriate or as the President may require. SEC. 202. (a) There is hereby established under the National Se- curity Council a Central Intelligence Agency, with a Director of Central Intelligence, who shall be the head thereof, to be appointed by the President. The Director shall receive compensation at the rate of $14,OQ0 a year. (b) Any commissioned officer of the United States Army, the United States Navy, or the United States Air Force mazy be appomted to the office of Director; and his appointment to, acceptance of, and service in, such office shall in no way affect any status, office, rank, or grade he may occupy or hold .in the United States Army, the United States Navy, or the United States Air Force, or any emolument, perquisite, ri ht, privilege, or benefit incident to or arising out of any such status, of~ce, rank, or grade. Any such commissioned officer on the active list shall, while serving.in the office of Director, receive the military pay and allowances payable to a commissioned officer of his grade and length of -service and shall be paid, from any funds available to defray the.expenses of the Agency, annual compensation at a rate equal to the amount by which $14,000 exceeds the amount of his annual military pay and allowances. (c) Effective when the Director first appointed under subsection (a) has taken office - (1) The functions of the National Intelligence Authority _ (11 Fed Reg. 1337, 1339, February 5, 1946) are transferred to the National Security Council, and such Authority shall cease to exist. (2) The functions of the Director of Central intelligence and the functions, personnel, property, and records of the Central Intelligence Group are transferred to the Director of Central Intelligence appointed under this Act and to the' Central In- telligence Agency, respectively, and such Group shall cease to exist. Any unexpended balances of appropriations, allocations, or other funds available or authorized to be matte available for such Group shall be available and shall be authorized to be made available in like manner for expenditure. by the Agency. . SEC. 203. (a) There is hereby established a National Security Re- sources Board, hereinafter in this section referred to as the "Board", to be composed of the C'hairn~an cf the Boa;?d an.l such heads or representatives of the various executive departments and independent agencies as may from time to time be designated by the President to be members of the Board. The Chairman of the Board shall be appointed from civilian life by the President and shall receive com- pensation at the rate of $15,000 a year or at the rate of $50 a dzly but not to exceed $15,000 in any one year. (b) The Chairman of the Board, sub'ect to the direction of the President, is suthorized~ to appoint and fix the compensation of such personnel as may be necessary to assist the Board in carrying out its functions. (c} It shall be the function of the Board to advise the President concerning the coordination of military, industrial, and civilian mobilization, including- (1) Policies concerning industrial and civilian mobilization in order to assure the most effective mobilization and maximum utilization of the Nation's manpower in the event of war; (2) Programs for the effective use in time of war of the Nation's natural and industrial resources for military and civilian needs, for the maintenance and stabilization of the civilian economy in time of war, and for the adjustment of such economy to war needs and conditions; (3} Policies for unifying, in time of war, the activities of Federal agencies and departments engaged in or concerned with production, procurement, distribution, or transportation of military or civilian supplies, materials, and products; (4) The relationship between potential supplies of and potential requirements for manpower, resources, and productive facilities in time of war; (5) Policies for establishing adequate reserves of strategic .and critical material, and for the conservation of these reserves; (6) The strategic relocation of industries, services, government, and economic activities, whose continuous operation is essential to the Nation's security. (d) The Board shall perform such other functions, not inconsistent with law, concerning the coordination of military, industrial, and civilian mobilization as the President may direct. (e) In performing its functions, the Board shall utilize to the maximum extent the facilities and resources of the departments and agencies of the Government. . SECTiox 301. The first section of the Act entitled "An Act to provide for the performance of the duties of the Office of President in case of the removal, death, resignation, or inability both of the President and of the Vice-President", approved January 19, 1886 (24 Stat. 1), is amended (1) by striking out "Secretary of y~'ar" and inserting in lieu thereof "Secretary of National Defense", and (2) by striking ou't "or if there be none, or in case of his removal, death, resignation, or inability, then the Secretary of the Navy." SEC. 302. (a) The Secretary of National Defense shall receive the compensation prescribed by law for heads of executive departments. (b) The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force shall each receive the compensation prescribed for the Secretary of National Defense. Declassified and Approved For Release 2012/03/20 :CIA-RDP01-017738000100010024-7 ------- --------- -- -- ~..- - .-. '~~':~---. .~. i' .. ... v:~.,a..,.t.:'~'asi..#urrv ~(`m nTi.`ln'aT. i.viil.v asiw~nn~iaiti!a-~wii~ ?acin~n~wi?e. RT-(!RF.TARiF.C _. -? - reBD@(6t tO the fuIICt1O11, aCtlvlt4, personnel; prUpOrty, TeCOrdB, or other Army, tha~Navy, and the Air Force shall each receive compensation ~;-, relate-to the officer, department, or agency to -which the transfer was at the rate of $12,000 a year, and shall perform such dutie$ as the -- .made. Secretaries'of their respective departments may prescribe. (b) No suit, action, or -other proceeding lawfuIly commenced by __ ., ~ - ~- -~-----~ -- ----___ ~_ ,..~..._ ,.c~,...,. ,.r aC' 303 The Under Secretaries and Assistant Secretaries of the `_ ~~