NATIONAL SECURITY ACT OF 1947

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-01053A000100060001-3
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 33
• Document Creation Date: December 9, 2016
• Document Release Date: January 15, 1999
• Sequence Number: 1
• Publication Date: August 10, 1949
• Content Type: REGULATION

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Slat Oongressl
lat Session J
COMMITTEE PRINT
NATIONAL SECURITY ACT OF 1947
(Public Law 258, 80th Congress, approved July 26, 1947)
WITH AMENDMENTS TO INCLUDE
THE NATIONAL SECURITY ACT
AMENDMENTS OF 1949
(Public Law.216, 81st Congress, approved Auguak 10, 1949)
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UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1949
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NATIONAL SECURITY ACT OF 1947
(Public Law 253, Eightieth Congress, July 26,1947)
(With amendments prior to September 1, 1949)
SHORT TITLE
That this Act may be cited as the "National Security Act of 1947."
TABLE OF CONTENTS
Page
Sec. 2. Declaration of Policy -----------------------------------------
1
TITLE I-COORDINATION FOR NATIONAL SECURITY
Sec. 101. National Security Council___________________________________
1
Sec. 102. Central Intelligence Agency__________________________________
2
Sec. 103. National Security Resources Board___________________________
5
TITLE II-THE DEPARTMENT OF DEFENSE
Sec. 201. Department of Defense______________________________________
6
Sec. 202. Secretary of Defense_________________________________________
6
Sec. 203. Deputy Secretary of Defense ; Assistant Secretaries of Defense ;
Military Assistants________________________________________
8
Sec. 204. Civilian Personnel___________________________________________
8
Sec. 205. Department of the Army______________________________________
8
See. 206. Department of the Navy_____________________________________
9
Sec. 207. Department of the Air Force_________________________________
10
Sec. 208. United States Air Force_____________________________________
11
Sec. 209. Effective date of transfers____________________________________
13
Sec. 210. Armed Forces Policy Council ------- -________________________
13
Sec. 211. Joint Chiefs of Staff________________________________________
14
Sec. 212. Joint Staff----------------------------------------- ----------
15
See.213. Munitions Board ---------------------- r_____________________
15
See. 214. Research and Development Board____________________________
17
TITLE III-MISCELLANEOUS
Sec. 301. Compensation of Secretaries and Deputy Secretary____________
18
Sec. 302. Under Secretaries and Assistant Secretaries _________________
18
Sec. 303. Advisory committees and personnel___________________________
18
Sec. 305. Saving provisions___________________________________________
19
Sec. 305. Saving provisions____________________________________________
19
Sec. 306. Transfer of funds___________________________________________
20
Sec. 307. Authorization for appropriations-----------------------------
21
See. 308. Definitions _____________________________________------_------
21
See.309. Separability -------------------------------------------------
21
See. 310. Effective date-----------------------------------------------
21
See. 311. Succession to the Presidency__________________________________
21
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TITLE IV-PROMOTION OF ECONOMY AND EFFICIENCY THROUGH E'BTABLISH-
MENT OF UNIFORM BUDGETARY AND FISCAL PROCEDURES AND ORGANIZATIONS
Page
Sec. 401. Comptroller of Department of Defense --------------------------
21
1
Sec. 402. Military Department Budget and Fiscal Organization-Depart-
mental Comptrollers ----------------------------------------
22
Sec. 403. Performance Budget_________________________________________
23
Sec. 404. Obligation of Appropriations-----------------------------------
23
Sec. 405. Working-Capital Funds ----------------------------------------
24
Sec. 406. Management Funds -------------------------------------------
25
Sec. 407. Adjustment of Accounts ---------------------------------------
27
Sec. 408. Availability of Reimbursements ----------------------------------
28
Sec. 409. Common Use of Disbursing Facilities__________________________
28
Sec. 410. Reports of Property ------------------------------------------
28
Sec. 411. Repealing and Saving Provisions ------------------------------
28
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SEC. 2. In enacting this legislation, it is the intent of
Congress to provide a comprehensive program for the
future security of the United States; to provide for the
establishment of integrated policies and procedures for
the departments, agencies, and functions of the Govern-
ment relating to the national security; to provide three
military departments, separately administered, for the
operation and administration of the Army, the Navy
(including naval aviation and the United States Marine
Corps), and the Air Force, with their assigned combat
and service components; to provide for their authorita-
tive coordination and unified direction under civilian
control of the Secretary of Defense but not to merge
them; to provide for the effective strategic direction of
the armed forces and for their operation under unified
control and for their integration into an efficient team
of land, naval, and air forces but not to establish a single
Chief of Staff over the armed forces nor an armed forces
general staff (but this is not to be interpreted as apply-
ing to the Joint Chiefs of Staff or Joint Staff).
TITLE I-COORDINATION FOR NATIONAL
SECURITY
NATIONAL SECURITY COUNCIL*
As amended by
sec. 2 Public
Law H6, 81st
Cong., August
10, 1949.
SEC. 101. (a) There is hereby established a council to As amended by
be known as the National Security Council (hereinafter Law3Esu 81st
in this section referred to as the "Council"). Con August 10 The President of the United States shall preside over
meeting of the Council: Provided, That in his absence
he may designate a member of the Council to preside in
his place.
The function of the Council shall be to advise the
President with respect to the integration of domestic,
foreign, and military policies relating to the national
security so as to enable the military services and the other
departments and agencies of the Government to co-
operate more effectively in matters involving the national
security.
The Council shall, be composed of-
(1 the President;
(2 the Vice President;
(3 the Secretary of State;
4) the Secretary of Defense;
(5) the Chairman of the National Security Re-
sources Board; and
The National Security Council was formally located within the Executive Office of the
President by Reorganization Plan 4 of 1949, effective August 20, 1949.
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2r NATIONAL SECURITY ACT, 1947
(6) the Secretaries and Under Secretaries of
other executive departments and of the military de-
partments, the Chairman of the Munitions Board,
and the Chairman of the Research and Development
Board, when appointed by the President by and
with the advice and consent of the Senate, to serve
Act of July 26, at his pleasure.
1947. (b) In addition to performing such other functions
as the President may direct, for the purpose of more
effectively coordinating the policies and functions of the
departments and agencies of the Government relating
to the national security, it shall, subject to the direction
of the President, be the duty of the Council-
(1) to assess and appraise the objectives, com-
mitments, and risks ofthe United States in relation
to our actual and potential military power, in the
interest of national security, for the purpose of
making recommendations to the President in con-
nection therewith ; and
(2) To consider policies on matters of common in-
terest to the departments and agencies of the Gov-
ernment concerned with the national security, and
to make recommendations to the President in con-
nection therewith.
(c) The Council shall have a staff to be headed by a
civilian executive secretary who shall be appointed by
the President, and who shall receive compensation at the
rate of $10,000 a year. The executive secretary, subject
to the direction of the Council, is hereby authorized, sub-
ject to the civil-service laws and the Classification Act
of 1923, as amended, to appoint and fix the compensation
of such personnel as may be necessary 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
recommendations, and such other reports to the Presi-
dent as it deems appropriate or as the President may
require.
CENTRAL INTELLIGENCE AGENCY
Act of July 26, SEC. 102. (a) There is hereby established under the
1947. National Security Council a Central Intelligence Agency
with a Director of Central Intelligence, who shall be
the head thereof. The Director shall be appointed by
the President, by and with the advice and consent of the
Senate, from among the commissioned officers of the
armed services or from among individuals in civilian
life. The Director shall receive compensation at the rate
of $14,000 a year.
i Administration of the Central Intelligence Agency provided for by the act of June 20,
1949 (Public Law. 110, 81st Cong.).
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NATIONAL SECURITY ACT, 1947 3
(b) (1) If a commissioned officer of the armed services
is appointed as Director then-
%MW
(A) in the performance of his duties as Director,
he shall be subject to no supervision, control, restric-
tion, or prohibition (military or otherwise) other
than would be operative with respect to him if he
were a civilian in no way connected with the De-
partment of the Army, the Department of the Navy,
the Department of the Air Force, or the armed
services or any component thereof; and
(B) he shall not possess or exercise any super-
vision, control, powers, or functions (other than
such as he possesses, or is authorized or directed to
exercise, as Director) with respect to the armed
services or any component thereof, the Department
of the Army, the Department of the Navy, or the De-
partment of the Air Force, or any branch, bureau,
unit or division thereof, or with respect to any of the
personnel (military or civilian) of any of the fore-
going.
(2) Except as provided in paragraph (1), the appoint-
ment to the office of Director of a commissioned officer
of the armed services, and his 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 armed serv-
ices, or any emolument, perquisite, right, privilege, or
benefit incident to or arising out of any such status, office,
rank, or grade. Any such commissioned officer shall,
while serving in the office of Director, receive the military
pay and allowances (active or retired, as the case may
be) payable to a commissioned officer of his grade and
length of service and shall be paid, from any funds avail-
able to defray the expenses of the Agency, annual com-
pensation at a rate equal to the amount by which $14,000
exceeds the amount of his annual military pay and
allowances.
(c) Notwithstanding the provisions of section 6 of
the Act of August 24, 1912 (37 Stat. 655), or the provi-
sions of any other law, the Director of Central Intelli-
gence may, in his discretion, terminate the employment
of any officer or employee of the Agency whenever he
shall deem such termination necessary or advisable in the
interests of the United States, but such termination shall
not affect the right of such officer or employee to seek or
accept employment in any other department or agency
of the Government if declared eligible for such employ-
ment by the United States Civil Service Commission.
(d) For the purpose of coordinating the intelligence
activities of the several Government departments and
agencies in the interest of national security, it shall be the
duty of the Agency, under the direction of the National
Security Council-
(1) to advise the National ' Security Council in
matters concerning such intelligence activities of the
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4 NATIONAL SECURITY ACT,, 1947
Government departments and agencies as relate to
national security;
(2) to make recommendations to the National
Security Council for the coordination of such intel-
ligence activities of the departments and agencies of
the Government as relate to the national security;
(3) to correlate and evaluate intelligence relating
to the national security, and provide for the appra-
priate dissemination of such intelligence within the
Government using, where appropriate, existing agen-
cies and facilities: Provided, That the Agency shall
have no police, subpena, law-enforcement powers, or
internal-security functions: Provided further, That
the departments and other agencies of the Govern-
ment shall continue to collect, evaluate, correlate,
and disseminate departmental intelligence : And pro-
vided fwrther, That the Director of Central Intelli-
gence shall be responsible for protecting intelligence
sources and methods from unauthorized disclosure.;
(4) To perform, for the benefit of the existing in-
telligence agencies, such additional services of com-
mon concern as the National Security Council deter-
mines can be more efficiently accomplished centrally:;
(5) to perform such other functions and duties
related to intelligence affecting the national security
as the National Security Council may from time to
time direct.
(e) To the extent recommended by the National Secu-
rity Council and approved by the President, such intelli-
gence of the departments and agencies of the Govern.-
ment, except as hereinafter provided, relating to the
national security, shall be open to the inspection of the
Director of Central Intelligence, and such intelligence
as relates to the national security and is possessed by,
such departments and other agencies of the Government,
except as hereinafter provided, shall be made available
to the Director of Central Intelligence for correlation,
evaluation, and dissemination: Provided, however, That
upon the written request of the Director of Central Intel-
ligence, the Director of the Federal Bureau of Investiga-
tion shall make available to the Director of Central
Intelligence such information for correlation, evaluation,
and dissemination as may be essential to the national
security.
(f) Effective when the Director first appointed under
subsection (a) has taken office-
(1) the National. Intelligence Authority (11 Fed.,
Reg. 1337, 1339, February 5, 1946) shall cease to
exist; and
(2) The personnel, property, and records of the
Central Intelligence Group are transferred to the
Central Intelligence Agency, and such Group shall
cease to exist. Any unexpended balances of appro..
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priations, allocations, or other - funds available or
authorized to be made available for such Group shall
be available and shall be authorized to be made avail-
able in like manner for expenditure by the Agency.
NATIONAL SECURITY RESOURCES BOARD*
SEC. 103. (a) There is hereby established a National
Security Resources Board (hereinafter in this section re- 1947 of July 26,
ferred to as the "Board") to be composed of the Chair-
man of the Board and such heads or representatives of
the various executive departments and independent agen-
cies as may from time to time be designated by the Presi-
dent to be members of the Board. The Chairman of the
Board shall be appointed from civilian life by the Presi-
dent, by and with the advice and consent of the Senate,
and shall receive compensation at the rate of $14,000 a
year.
(b) The Chairman of the Board, subject to the direc-
tion of the President, is authorized, subject to the civil-
service laws and the Classification Act of 1923, as
amended, 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, indus-
trial, and civilian mobilization, including-
(1) policies concerning industrial and civilian
mobilization in order to assure the most effective
mobilization and maximum utilization of the Na-
tion'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 en-
gaged in or concerned with production, procure-
ment, 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 roductive facilities in time of war;
(5) policies for establishing adequate reserves of
strategic and critical material, and for the con-
servation of these reserves;
(6) the strategic relocation of industries, serv-
ices, government, and economic activities, the con-
tinuous operation of which is essential to the Nation's
security.
Resources Board was formally located within the Executive
tional Securit
*Th
N
y
e
a
Office of the President by Reorganization Plan 4 of 1949, effective August 20, 1949.
95440-49-2
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(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. Alk
As amended by
sec. 4 Public
Law 116, 81st
Cong. August
10, 1>~49.
Added by sec.
4, Public Law
210, 81st
Con August
10, gg. 1649.
Act of July 20,
1947.
As amended, by
see. 5 Public
Law X116, 81st
Con August
10, gg. 1649.
TITLE II-THE DEPARTMENT OF DEFENSE
SEC. 201. (a) There is hereby established, as an Execu??
tive Department of the Government, the Department of
Defense, and the Secretary of Defense shall be the head.
thereof.
(b) There shall be within the Department of Defense
(1) the Department of the Army, the Department of the
Navy, and the Department of the Air Force, and each.
such department shall on and after the date of enact-
ment of the National Security Act Amendments of 1949
be military departments in lieu of their prior status as
Executive Departments, and (2) all other agencies cre-
ated under title II of this Act.
(c) Section 158 of the Revised Statutes, as amended,
is amended to read as follows :
SEC. 158. The provisions of this title shall apply to
the following Executive Departments:
First. The Department of State.
Second. The Department of Defense.
Third. The Department of the Treasury.
Fourth. The Department of Justice.
Fifth. The Post Office Department.
Sixth. The Department of the Interior.
Seventh. The Department of Agriculture.
Eighth. The Department of Commerce.
Ninth. The Department of Labor.
(d) Except to the extent inconsistent with the pro-
visions of this Act, the provisions of title IV of the
Revised Statutes as now or hereafter amended shall be
applicable to the Department of Defense.
THE SECRETARY OF DEFENSE
SEC. 202. (a) There shall be a Secretary of Defensc-,
who shall be appointed from civilian life by the Presi-
dent, by and with the advice and consent of the Senate.
Provided, That a person who his within ten years been
on active duty as a commissioned officer in a Regular
component of the armed services shall not be eligible for
appointment as Secretary of Defense.
(b) The Secretary of Defense shall be the principal
assistant to the President in all matters relating to the
Department of Defense. Under the direction of the
President, and subject. to the provisions of this Act, he
shall have direction, authority, and control over the
Department of Defense.
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NATIONAL SECURITY ACT, 1947
(c) (1) Notwithstanding any other provision of this Added be Law
Act, the combatant functions assigned to the military co g81A.ngust
services by sections 205 (e), 206 (b), 206 (c), and 208 (f) 10, 149.
hereof shall not be transferred, reassigned, abolished, or
consolidated.
(2) Military personnel. shall not be so detailed or
assigned as to impair such combatant functions.
(3) The Secretary of Defense shall not direct the use
an expenditure of funds of the Department of Defense
in such manner as to effect the results prohibited by
paragraphs (1) and (2) of this subsection.
(4) The Departments of the Army, Navy, and Air
Force shall be separately administered by their respec-
tive Secretaries under the direction, authority, and con-
trol of the Secretary of Defense.
(5) Subject to the provisions of paragraph (1) of
this subsection no function which has been or is here-
after authorized by law to be performed by the Depart-
ment of Defense shall be substantially transferred, re-
assigned, abolished or consolidated until after a report
in regard to all pertinent details shall have been made
by the Secretary of Defense to the Committees on Armed
Services of the Congress.
(6) No provision of this Act shall be so construed as
to prevent a Secretary of a military department or a
member of the Joint Chiefs of Staff from presenting to
the Congress, on his own initiative, after first so inform-
ing the Secretary of Defense, any recommendation re-
lating to the Department of Defense that he may deem
proper.
(d) The Secretary of Defense shall not less often than Sec. 202 (b)
semiannually submit written reports to the President 1947E Jeuly
and the Congress covering expenditures, work, and ac- ame $ Pu y lic
complishments of the Department of Defense, accom- Law X16, 81st
panied by (1) such recommendations as he shall deem Cong. August
appropriate; (2) separate reports from the military de-
partments covering their expenditures, work, and accom-
plishments; and (3) itemized statements showing the
savings of public funds and the eliminations of unneces-
sary duplications and overlappings that have been
accomplished pursuant to the provisions of this Act.
(e) The Secretary of Defense shall cause a seal of acSee. t o 02
July ( 26,
office to be made for the Department of Defense, of such 1947, as
amended by
design as the President shall approve, and judicial notice Law5~L 6u ic
shall be taken thereof. Cong., August
(f) The Secretary of Defense may, without being re- 10
Added by , 1949.
sec.
lieved of his responsibility therefor, and unless pro- 5, public Law
hibited by some specific provision of this Act or other cong8lAugust
specific provision of law, perform any function vested in 10, 1949.
him through or with the aid of such officials or organiza-
tional entities of the Department of Defense as he may
designate.
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Sec. 1, Public
Law 36, 81st
Cong. as
amended by
sec. 6, Public
Law 216, 81st
Con'
10 .,49A.ugust
Se, 19e footnote 2.
Added by see.
6, Public Law
216, 81st
Cong., August
10, 1949.
Sec. 203, act of
July 26, 1947,
as amended by
sec. 0 Public
Law 116, 81st
Cong August
10, 1649.
As amended by
sec. 6 Public
Law X16, 81st
Cong., August
10, 1949.
DEPUTY SECRETARY OF DEFENSE; ASSISTANT SECRETARIES OF
DEFENSE; MILITARY ASSISTANTS
SEC. 203. (a) There shall be a Deputy 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 has within ten
years been on active duty as a commissioned officer in
a Regular component of the armed services shall not be
eligible for appointment as Deputy Secretary of Defense.
The Deputy Secretary shall perform such duties and
exercise such powers as the Secretary of Defense may
prescribe and shall take precedence in the Department of
Defense next after the Secretary of Defense. The
Deputy Secretary shall act for, and exercise the powers
of, the Secretary of Defense during his absence or dis-
ability.
(b) There shall be three Assistant Secretaries of De.-
fense, who shall be appointed from civilian life by the
President, by and with the advice and consent of the
Senate. The Assistant Secretaries shall perform such
duties and exercise such powers as the Secretary of De-
fense may prescribe and shall take precedence in the
Department of Defense after the Secretary of Defense.,
the Deputy Secretary of Defense, the Secretary of the
Army, the Secretary of the Navy, and the Secretary of
the Air Force.
(c) Officers of the armed services may be detailed to
duty as assistants and personal aides to the Secretary of
Defense, but he shall not establish a military staff other
than that provided for by section 211 (a) of this Act.
SEC. 204. The Secretary of Defense is authorized, sub-
ject to the civil-service laws and the Classification Act of
1923, as amended, to appoint and fix the compensation
of such civilian personnel as may be necessary for the
performance of the functions of the Department of De-
fense other than those of the Departments of the Army,
Navy, and Air Force.
Act 847 of July 26, 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
Army as the Secretary of the Army may determine.
As I sec. 12 (amen a), ded by (b) All laws, orders, regulations, and other actions
se
Public Law relating to the Department of War or to any officer or
'Title changed from Under Secretary of Defense established by the act of April 2, 1949.
Public Law 36, 81st Cong.
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NATIONAL SECURITY ACT, 1947
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
+t.r Army within the Department of Defense 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 head-
quarters, forces, reserve components, installations, activ-
ities, 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 Army, shall include land combat and
service forces and such aviation and water transport as
may be organic therein. It shall be organized, trained,
and equipped primarily for prompt and sustained com-
bat incident to operations on land. It shall be respon-
sible for the preparation of land forces necessary for the
effective prosecution of war except as otherwise assigned
and, in accordance with integrated joint mobilization
plans, for the expansion of peacetime components of the
Army to meet the needs of war.
SEC. 206. (a) The term "Department of the Navy"
as used in this Act shall be construed to mean the De-
partment of the Navy at the seat of government; the
headquarters, United States Marine Corps; the entire
operating forces of the United States Navy, including
V naval aviation, and of the United.States Marine Corps,
including the reserve components of such forces; all
field activities, headquarters, 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 pur-
suant to law.
(b) In general the United States Navy, within the De-
partment of the Navy, shall include naval combat and
services forces and such aviation as may be organic there-
in. It shall be organized, trained, and equipped pri-
marily for prompt and sustained combat incident to
operations at sea. It shall be responsible for the pre-
paration of naval forces necessary for the effective pros-
ecution of war except as otherwise 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
216, 81st
Cong., August
10, 1949.
Act of July 26,
1947.
Act of July 26,
1947.
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UU Navy. NATIONAL Naval aviation shall consist of combat and serv-
ice and training forces, and shall include land-based.
naval aviation, air transport essential for naval opera-
ns all -Jr wen ons and air techniques involved in the m
ti m
o
, p
operations and activities of the United States Navy,
and the entire remainder of the aeronautical organiza-
tion of the United States Navy, together with the person-
nel necessary therefor.
The Navy shall be generally responsible for naval re-
connaissance, antisubmarine warfare, and protection of
shipping.
The Navy shall devolop aircraft, weapons, tactics,
technique, organization, and equipment of naval combat
and service elements; matters of joint concern as to
these functions shall be coordinated between the Army,
the Air Force, and the Navy.
(c) The United States Marine Corps, within the De-
partment of the Navy, shall include land combat and
service forces and such aviation as may be organic there-
in. The Marine Corps shall be organized, trained, and
equipped to provide 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 campaign. It
shall be the duty of the Marine Corps to develop, in coor-
dination with the Army and the Air Force, those phases
of amphibious operations which pertain to the tactics,
technique, and equipment employed by landing forces.
In addition, the Marine Corps shall provide detachments
and organizations for service on armed vessels of the
Navy, shall provide security detachments for the pro-
tection 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 interfere 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 expansion of peace-
time components of the Marine Corps to meet the needs
of war.
As amended by
sec. 12 (b),
Public Law
216, 81st
Cong., August
10, 1949.
Act of July 26,
1947.
SEC. 207. (a) Within the Department of Defense
there is hereby established a military department to be
known as the Department of the Air Force, and the Sec-
retary 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) Repealed by section 1.2 (c), Public Law 216, Eighty-first
'Congress, August 10, 1949.
(c) The term "Department of the Air Force" as used
in this Act shall be construed to mean the Department of
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NATIONAL SECURITY ACT, 194.7
1 j
the Air Force at the seat of government and all field
headquarters, forces, reserve components, 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 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 performed
by it for the Department of the 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 : And provided further, That, in order to permit
an orderly transfer, the Secretary of Defense may, dur-
ing the transfer period hereinafter prescribed, direct
that the Department of the Army shall continue for ap-
propriate periods to exercise any of such functions, inso-
far as they relate to the Department of 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 Secre-
tary 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 approve, and judi-
cial notice shall be taken thereof.
SEC. 208. (a) The United States Air Force is hereby
established within the Department of the Air Force.
'The Army Air Forces, the Air Corps, United States
Army, and the General Headquarters Air Force (Air
Force Combat Command), shall be transferred to the
United States Air Force.
As amended by
sec. 12 (d),
Public Law
216, 81st
Cong., August
10, 1949,
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12 NATIONAL SECURITY ACT, 1947
Act of July 26,
1947.
,
States Air Force. When such transfer becomes effee.-
tive, the offices of the Chief of the Air Corps, United
States Army, and Assistants 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-
ing General, General 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 Chie:E
of Staff, United States Air Force, the incumbent shall
hold a grade and receive allowances equivalent to those
prescribed by law for the Chief of Staff, United States
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 among them-
selves 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, Navy, 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 present Chief of
Naval Operations.
(c) All commissioned officers, warrant officers, and
enlisted men, commissioned, holding warrants, or en-
listed, in the Air Corps, United States Army, or the
Army Air Forces, shall be transferred in branch to the
United States Air Force. All other commissioned
officers, warrant officers, and enlisted men, who are com-
missioned, hold warrants, or are enlisted, in any com-
ponent of the Army of the United States and who are
under the authority or command of the Commanding
General, Army Air Forces, shall be continued under the
authority or command of the Chief of Staff, United
States Air Force, and under the jurisdiction of the De-
partment of the Air Force. Personnel whose status is
affected by this subsection shall. retain their existing com-
missions, warrants, or enlisted status in existing com-
ponents of the armed forces unless otherwise altered or
(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 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 carry-
ing into execution all lawful orders and directions which
may be transmitted to him.: The functions of the Com..
minding General, General Headquarters Air Force (Air
Force Combat Command), and of the Chief of the Air
Corps and of the Commanding General, Army Air
shall be transferred to the Chief of Staff, United
Forces
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URI terminated in accordance with 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 per-
,%Wmanent or temporary appointments in an existing com-
ponent 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 entitled under existing law.
(d) Except as otherwise directed by the Secretary of
the Air Force, all property, records, installations, agen-
cies, activities, projects, and civilian personnel under the
jurisdiction, control, authority, or command of the Com-
manding General, Army Air Forces, shall be continued
to the same extent under the jurisdiction, control, author-
ity, or command, respectively, of the Chief of Staff,
United States Air Force, in the Department of the Air
Force.
(e) For a period of three years from the date of As alt ende d by
enactment of this Act, personnel (both military and Pu6bl81 taw
civilian), property, records, installations, agencies, cong., August
activities, and projects may be transferred between the 10, 1949.
Department of the Army and the Department of the
Air Force by direction of the Secretary of Defense.
(f) In general the United States Air Force shall in- 847 of July 26,
clude aviation forces both combat and service not other-
wise 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 preparation of the air forces neces-
sary 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 Air Force to meet the needs of war.
SEc. 209. Each transfer, assignment, or change in
status under section 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 Department of
Defense an Armed Forces Policy Council composed of
the Secretary of Defense, as Chairman, who shall have
power of decision; the Deputy Secretary of Defense; the
Secretary of the Army; the Secretary of the Navy- the
Secretary of the Air Force; the Chairman of the Joint
Chiefs of Staffs; the Chief of Staff, United States Army;
the Chief of Naval Operations; and the Chief of Staff,
Act of July 26,
1947.
As amended by
sec. 7 (a),
Public LLaw
216, 81st
Cong., August
10, 1949.
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14 NATIONAL SECURITY ACT, 1947
United States Air Force. The Armed Forces Policy
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 Secre-
tary of Defense may direct.
JOINT CHIEFS OF STAFF
As amended by SEC. 211. (a) There is hereby established within the
Pee. 2aw
Public
), Department of Defense the Joint Chiefs of Staff, which.
c ng.8 August shall consist of the Chairman, who shall be the presiding
10, 11649. officer thereof but who shall have no vote; the Chief of
Staff, United States Army, 1the Chief of Naval Opera-
tions; and the Chief of Staff, United States Air Force,
The Joint Chiefs of Staff shall be the principal military
advisers to the President, the National Security Council,
and the Secretary of Defense.
(b) Subject to the authority and direction of the
President and the Secretary of Defense, the Joint Chiefs.
of Staff shall perform the following duties, in addition
to such other duties as the President or the Secretary of
Defense may direct :
(1) preparation of strategic plans and provision
for the. strategic direction of the military forces;
(2) preparation of joint logistic plans and assign-
ment to the military services of logistic responsi-
bilities in accordance with such plans;
(3) establishment of unified commands in stra-
tegic areas;
(4) review of major material and personnel re-
quirements of the military forces in accordance with
strategic and logistic plans;
(5) formulation of policies for joint training of
the military forces;
(6)formulation of policies for coordinating the
military education of members of the military
forces ; and
(7) providing United States representation on
the Military Staff Committee of the United Nations
in accordance with the provisions of the Charter of
the United Nations.
(c) The Chairman of the Joint Chiefs of Staff (here-
inafter referred to as the "Chairman") shall be appointed
by the President, by and with the advice and consent
of the Senate, froln among the Regular officers of the
.armed services to serve at the pleasure of the President
for a term of two years and shall be eligible for one
reappointment, by and with the advice and consent of
the Senate, except in time of war hereafter declared. by
the Congress when there shall be no limitation on the
number of such reappointments. The Chairman shall
receive the basic pay and basic and personal money
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allowances prescribed by law for the Chief of Staff,
United States Army, and such special pays and hazard-
ous duty pays to which he may be entitled under other
` ftw, provisions of law.
(d) The Chairman, if in the grade of general, shall
be additional to the number of officers in the grade of
general provided in the third proviso of section 504 (b)
of the Officer Personnel Act of 1947 (Public Law 381,
Eightieth Congress) or, if in the rank of admiral, shall
be additional to the number of officers having the rank
of admiral provided in section 413 (a) of such Act.
While holding such office he shall take precedence over
all other officers of the armed services : Provided, That
the Chairman shall not exercise military command over
the Joint Chiefs of Staff or over any of the military
services.
(e) In addition to participating as a member of the
Joint Chiefs of Staff in the performance of the duties
assigned in subsection (b) of this section, the Chairman,
shall, subject to the authority and direction of the Presi-
dent and the Secretary of Defense, perform the following
duties :
. (1) serve as the presiding officer of the Joint
Chiefs of Staff;
(2) provide agenda for meetings of the Joint
Chiefs of Staff and assist the Joint Chiefs of Staff
to prosecute their business as promptly as practi-
cable; and
(3) inform the Secretary of Defense and, when
appropriate as determined by the President or the
Secretary of Defense, the President, of those issues
upon which agreement among the Joint Chiefs of
Staff has not been reached.
SEc. 212. There shall be, under the Joint Chiefs of
Staff, it Joint Staff to consist of not to exceed two hun-
dred and ten officers and to be composed of approximately
equal numbers of officers appointed by the Joint Chiefs
of Staff from each of the three armed services. 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 Staff.
SEC. 213. (a) There is hereby established in the De-
partment of Defense a Munitions Board (hereinafter in
this section referred to as the "Board").
As amended
by sec. 7 (c),
Public Law
210, 81st
Cong., August
10, 1949.
As amended
by sec. 8,
Public Law
216, 81st
Cong., August
10, 1949.
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16 NATIONAL SECURITY ACT, 1947
(b) The Board shall be composed of a Chairman, wha
shall be the head thereof and who shall, subject to the
authority of the Secretary of Defense and in respect to
such matters authorized by him, have the power of de-
cision upon matters falling within the jurisdiction of the
Board, and an Under Secretary or Assistant Secretary
from each of the three military departments, to be des-
ignated in each case by the Secretaries of their respective
departments. The Chairman shall be appointed from
civilian life by the President, by and with the advice
and consent of the Senate, and shall receive compensa-
tion at the rate of $14,000 a year.
(c) Subject to the authority and direction of the
Secretary of Defense, the Board shall perform the fol-
lowing duties in support of strategic and logistic plans
and in consonance with guidance in those fields provided
by the Joint Chiefs of Staff, and such other duties as the
Secretary of Defense may prescribe :
(1) coordination of the appropriate activities
with regard to industrial matters, including the
procurement, production, and distribution plans of
the Department of Defense ;
(2) planning for the military aspects of indus-
trial mobilization;
(3) assignment of procurement responsibilities
among the several military departments and plane
ning for standardization of specifications and for
greatest practicable allocation of purchase authority
of technical equipment and common use items on the
basis of single procurement;
(4) preparation of estimates of potential pro..
duction, procurement, , and personnel for use in
evaluation of the logistic feasibility of strategic
operations; fok
(5) determination of relative priorities of the
various segments of the military procurement pro..
grams ;
(6) supervision of such subordinate agencies as
are or may be created to consider the subjects fall-,
ing within the scope of the Board's responsibilities;;
(7) regrouping, combining, or dissolving of exist-
ing interservice agencies operating in the fields of
procurement, production, and distribution in such
manner as to promote efficiency and economy ;
(8) maintenance of liaison with other depart-
ments and agencies for the proper correlation of
military requirements with the civilian economy,
particularly in regard to the procurement or dispo-
sition of strategic and critical material and the
maintenance of adequate reserves of such material,
and making of recommendations as to policies in
connection therewith; and
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NATIONAL SECURITY ACT, 1947
(9) assembly and review of material and person-
nel requirements presented by the Joint Chiefs of
Staff and by the production, procurement, and dis-
` twl tribution agencies assigned to. meet military needs,
and making of recommendations thereon to the
Secretary of Defense.
(d) When the Chairman of the Board first appointed
has taken office, the Joint Army and Navy Munitions
Board shall cease to exist and all its records and per-
sonnel shall be transferred to the Munitions Board.
(e) The Secretary of Defense shall provide the Board
with such personnel and facilities as the Secretary may
determine to be required by the Board for the perform-
ance of its functions.
SEC. 214. (a) There is hereby established in the De-
partment of Defense 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 who shall, subject to.the author-
ity of the Secretary of Defense and in respect to such
matters authorized by him, have the power of decision
on matters falling within the jurisdiction of the Board,
and two representatives from each of the Departments
of the Army, Navy, and Air Force, to be designated by
the Secretaries of their respective Departments. The
Chairman 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 year. The purpose of the Board shall be to
advise the Secretary of Defense as to the status of scien-
tific research relative to the national security, and to
assist him in assuring adequate provision for research and
development on scientific problems relating to the na-
tional security.
(b) Subject to the authority and direction of the Sec-
retary of Defense, the Board shall perform the following
duties and such other duties as the Secretary of Defense
may prescribe :
(1) preparation of a complete and integrated
program of research and development for military
purposes ;
(2) advising with regard to trends in scientific
research relating to national security and the meas-
ures necessary to assure continued and increasing
progress;
(3) coordination of research and development
among the military departments, and allocation
among them of responsibilities for specific programs;
As amended by
sec. 9, Public
Law 216, 81st
Cong., August
10, 1949.
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(4) formulation of policy for the Department of
Defense in connection with research and develop-
ment matters involving agencies outside the Depart-
ment of Defense; and
(5) consideration of the interaction of research
and development and strategy, and advising the
joint Chiefs of Staff in connection therewith.
Act of July 26, (c) When the Chairman of the Board first appointed
1947. has taken office, the Joint Research and Development
Board shall cease to exist and all its records and per-
sonnel shall be transferred to the Research and Develop-
ment Board.
(d) The Secretary of Defense shall provide the Board
with such personnel and facilities as the Secretary may
determine to be required by the Board for the perform.-
ance of its functions.
Act of July 26, SEC. 301. (a) The Secretary of Defense shall receive
1947. the compensation prescribed by law for heads of exe-
cutive departments.
Amended by (b) The Deputy Secretary of Defense shall receive
sec. 2, Public
Law 36, 81st compensation at the rate of $14,500 a year, or such other
amenmen
a compensation plus $500 a year as may hereafter be pro-
ded as b
see. 10 (a), vided by law for under secretaries of executive depart-
21sislstw ments. The Secretary of the Army, the Secretary of
COng949August the Navy, and the Secretary of the Air Force shall each
receive compensation at the rate of $14,000 a year, or
such other compensation as may hereafter be provided
by law for under secretaries of executive departments.
As amended by SEC. 302. The Assistant Secretaries of Defense and
see. Public Law' the Under Secretaries and Assistant Secretaries of the
216
Cong81August Army, the Navy, and the Air Force shall each receive
10, 1649. compensation at the rate of $10,330 a year or at the rate
hereafter prescribed by law for assistant secretaries of
executive departments and shall perform such duties as
the respective Secretaries may prescribe.
As amended by SEC. 303. (a) The Secretary of Defense, the Chair.
Publi claw' man of the National Security Resources Board, the Di..
con'gH1August rector of Central Intelligence, and the National Security
10, 1949. Council, acting through its Executive Secretary, are
authorized to appoint such advisory committees and.
to employ, consistent with other provisions of this Act,,
such part-time advisory personnel as they may deeni
necessary in carrying out their respective functions and
the functions of agencies under their 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
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committees and other part-time advisory personnel so
employed may serve without compensation or may re-
ceive compensation at a rate not to exceed $50 for each
day of service, as determined by the appointing au-
thority.
(b) Service of an individual as a member of any such 1Ac47 of July 28,
advisory committee, or in any other part-time capacity
for a department or agency hereunder, shall not be con-
sidered as service bringing such individual within the
provisions of section 109 or 113 of the Criminal Code
(U. S. C., 1940 edition, title 18, sees. 198 and 203), or
section 19 (e) of the Contract Settlement Act of 1944, un-
less the act of such individual, which by such section is
made unlawful when performed by an individual re-
ferred 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 depart-
ment or agency is directly interested.
Snc. 304. All transfers of civilian personnel under this
Act shall be without change in classification or compensa-
tion, 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 classification as he may deem necessary and
appropriate.
Act of July 20,
1947.
Snc. 305. (a). All laws, orders, regulations, and other 1947 of July 28,
actions applicable with respect to any function, activity,
personnel, property, records, or other thing transferred
under this Act, or with respect to any officer, depart-
ment, or agency, from which such transfer is made, shall
except to the extent rescinded, modified, superseded, ter-
minated, 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, person-
nel; 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 trans-
fer was made.
(b) No suit, action, or other proceeding lawfully com-
menced by or against the head of any department or
agency, or other officer of the United States, in his official
capacity or in relation to the discharge of his official
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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 maintained 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 settlement of the
questions involved.
(c) Notwithstanding the provisions of the second,
paragraph of section 5 of title I of the First War Powers
Act, 1941, the existing organization of the War Depart-
ment under the provisions of Executive Order Numbered
9082 of February 28, 1942, as modified by Executive
Order Numbered 9722 of May 13, 1946, and the existing
organization of the Department of the Navy under the
provisions of Executive. Order Numbered 9635 of Sep-
tember 29, 1945, including the assignment of functions
to organizational units within the War and Navy Depart-
ments, may, to the extent determined by the Secretary of
Defense, continue in force for two years following the
date of enactment of this Act except to the extent modi-
fied by the provisions of this Act or under the authority
of law.
Act of July 26,
1947.
Snc. 306. All unexpended balances of appropriations,
allocations, nonappropriated funds, or other funds avail-
able or hereafter made available for use by or on behalf
of the Army Air Forces or officers thereof, shall be trans-
ferred to the Department of the Air Force for use in
connection with the exercise of its functions. Such other
unexpended balances of appropriations, allocations, non-
appropriated funds, or other funds available or hereafter
made available for use by the Department of War or the
Department of the Army in exercise of functions trans-
ferred to the Department of the Air Force under this Act,
as the Secretary of Defense shall determine, shall be
transferred to the Department of the Air Force for use
in connection with the exercise of its functions. Unex-
pended balances transferred under this section may be
used for the purposes for which the appropriations, allo-
cations, or other funds were originally 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, sec-
tion 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 carry into. effect. pro-
visions of this Act.
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AUTHORIZATION FOR APPROPRIATIONS
SEC. 307. There are hereby authorized to be appro- 1947 of July 26,
priated such sums as may be' necessary and appropriate
to carry out the provisions and purposes of this Act.
SEC. 308. (a) As used in this Act, the term "function"
includes functions, powers, and duties.
(b) As used in this Act, the term "Department of De-
fense" shall be deemed to include the military depart-
ments of the Arlny, the Navy, and the Air Force, and
all agencies created under title II of this Act.
SEc. 309. If any provision of this Act or the applica-
tion thereof to any person or circumstances is held in-
valid, the validity of the remainder of the Act and of the
application of such provision to other persons and cir-
cumstances shall not be affected thereby.
SEC. 310. (a) The first sentence of section 202 (a) and
sections 1, 2, 307, 308, 309, and 310 shall take effect
immediately upon the enactment of this Act.
(b) Except as provided in subsection (a), the pro-
visions of this Act shall take effect on whichever of the
following days is the earlier : The day after the day
upon which the Secretary of Defense first appointed
takes office, or the sixtieth day after the date of the
enactment of this Act.
SUCCESSION TO THE PRESIDENCY
SEC. 311. Paragraph (1) of subsection (d) of section
1 of the Act entitled "An Act to provide for the per-
formance of the duties of the office of President in case
of the removal, resignation, death, or inability both of
the President and Vice President", approved July 18,
1947, is amended by striking' out "Secretary of War" and
inserting in lieu thereof "Secretary of Defense", and by
striking out "Secretary of the Navy,".
TITLE IV
PROMOTION of ECONOMY AND EFFICIENCY THROUGH ES-
TABLISHMENT OF UNIFORM BUDGETARY AND FISCAL
PROCEDURES AND ORGANIZATIONS
COMPTROLLER OF DEPARTMENT OF' DEFENSE
SEC. 401. (a) There is hereby established in the De-
partment of Defense the Comptroller of the Department
Act of July 26,
1947.
As amended by
sec. 12 (e),
Public Law
216, 81st
Cong. August
10, 1ii49.
Act of July 26,
1947.
Act of July 26,
1947.
Act of July 26,
1947.
Added by sec.
11, Public Law
216, 81st
Conj., August
10, 49.
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of Defense, who shall be one of the Assistant Secretaries
of Defense.
(b) The Comptroller shall advise and assist; the See-
retary of Defense in performing such budgetary and fiscal
functions as may be required to carry out the powers
conferred upon the Secretary of Defense by this Act,
including but not limited to those specified in this sub-
section. Subject to the authority, direction, and con-
trol of the Secretary of Defense, the Comptroller shall--
(1) supervise and direct the preparation of the
budget estimates of the Department of Defense;
and
(2) establish, and supervise the execution of-
(A) principles, policies, and procedures to be
followed in connection with organizational and
administrative matters relating to-
(i) the preparation and execution of the
budgets,
(ii) fiscal, cost, operating, and capital
property accounting,
(iii) progress and statistical reporting.,
(iv) internal audit, and
(B) policies and procedures relating to the
expenditure and collection of funds adminis-
tered by the Department of Defense; and
(3) establish uniform terminologies, classifica-
tions, and procedures in all such matters.
MILITARY DEPARTMENT BUDGET AND FISCAL ORGANIZA-
TION-DEPARTMENTAL COMPTROLLERS
SEC. 402. (a) The Secretary of each miiltary depart.
ment, subject to the authority, direction, and control of
the Secretary of Defense, shall cause budgeting, account;-
in.g, progress and statistical reporting, internal audit and
administrative organization structure and managerial
procedures relating thereto in the department of which
he is the head to be organized and conducted in a manner
consistent with the operations of the Office of the Comp-
troller of the Department of Defense.
(b) There is hereby established in each of the three
military departments a Comptroller of the Army, a
Comptroller of the Navy, or a Comptroller of the Air
Force, as appropriate in the department concerned.
There shall, in each military department, also be a Dep-
uty Comptroller. Subject to the authority of the respec-
tive departmental secretaries, the comptrollers of the
military departments shall be responsible for all budget-
ing, accounting, progress and statistical reporting, and
internal audit in their respective departments and for
the administrative organization structure and mana-
gerial procedures relating thereto. The Secretaries of
the military departments may, in their discretion, ap-
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NATION L SE URITY A T, 1947
point either civilian or military personnel as comptrollers
of the military departments. Departmental comptrollers
shall be under the direction and supervision of, and di-
rectly responsible to, either the Secretary, the Under
Secretary, or an Assistant Secretary of the respective
military departments : Provided, That nothing herein
shall preclude the comptroller from having concurrent
responsibility to a Chief of Staff or a Chief of Naval
Operations, a Vice Chief of Staff or a Vice Chief of
Naval Operations, or a Deputy Chief of Staff or a Deputy
Chief of Naval Operations, if the Secretary of the mili-
tary department concerned should so prescribe. Where
the departmental comptroller is not a civilian, the Sec-
retary of the department concerned shall appoint a
civilian as Deputy Comptroller.
SEC. 403. (a) The budget estimates of the Department
of Defense shall be prepared, presented, and justified,
where practicable, and authorized programs shall be ad-
ministered, in such form and manner as the Secretary of
Defense, subject to the authority and direction of the
President, may determine, so as to account for, and re-
port, the cost of performance of readily identifiable func-
tional programs and activities, with segregation of op-
erating and capital programs. So far as practicable, the
budget estimates and authorized programs of the mili-
tary departments shall be set forth in readily comparable
form and shall follow a uniform pattern.
(b) In order to expedite the conversion from present
budget and accounting methods to the cost-of-perform-
ance method prescribed in this title, the Secretary of
each military department, with the approval of the
President and the Secretary of Defense, is authorized
and directed, until the end of the second year following
the date of enactment of this Act, to make such transfers
and adjustments within the military department of
which he is the head between appropriations available
for obligation by such department in such manner as he
deems necessary to cause the obligation and administra-
tion of funds and the reports of. expenditures to reflect
the cost of performance of such programs and activities.
Reports of transfers and adjustments made pursuant to
the authority of this subsection shall be made currently
by the Secretary of Defense to the President and the
Congress.
SE a. 404.. In order to prevent overdrafts and de-
ficiencies in any fiscal year for which appropriations are
made, on and after the beginning of the next fiscal year
following the date of enactment of this Act, appropria-
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tions made to the Department of Defense or to the mili-
tary departments, and reimbursements thereto, shall be
available for obligation and expenditure only after the
Secretary of Defense shall approve scheduled rates of
obligation, or modifications thereof : Provided, That
nothing in this section shall affect the right of the De-
partment of Defense to incur such, deficiencies as may
be now or hereafter authorized by law to be incurred.
WORKING-CAPITAL FUNDS
SEG. 405. (a) In order more effectively to control and
account for the cost of programs and work performed
in the Department of Defense, the Secretary of Defense
is authorized to require the establishment of working-
capital funds in the Department of Defense for the pur-
pose of-
(1) financing inventories of such stores, supplies,
materials, and equipment as he may designate; and
(2) providing working capital for such industrial-
type activities, and for such commercial-type activi-
ties as provide common services within or among the
departments and agencies of the Department ofDe-
fense, as he may designate.
(b) The Secretary of the Treasury is authorized and
directed .to establish on the books of the Treasury De-
partment at the request of the Secretary of Defense the
working-capital funds established pursuant to the au-
thority of this section.
(c) Such funds shall be--
(1) charged, when appropriate, with the cost of
stores, supplies, materials, and equipment procured
or otherwise acquired, manufactured, repaired, is-
sued, and consumed and of services rendered or work
performed, including applicable administrative ex-
penses; and
(2) reimbursed from available appropriations or
otherwise credited for the cost of stores, supplies,
materials, or equipment furnished and of services
rendered or work performed, including applicable
administrative expenses.
Reports of the condition and operations of such funds
shall be made annually to the President and to the Con-
gress.
(d) The Secretary of Defense is authorized to pro-
vide capital for such working-capital funds by capitaliz-
ing inventories on hand and, with the approval of the
President, by transfer, until December 31, 1954, from
unexpended balances of any appropriations of the mili-
tary departments not carried to the surplus.fund of the
Treasury : Provided, That no deficiency shall be in-
curred in any such appropriation as a result of any such
transfer. To the extent that such methods do not, in the
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NATIONAL SECURITY ACT, 1947 GL
determination of the Secretary of Defense, provide ade-
quate amounts of working capital, there is hereby au-
thorized to be, appropriated, out of any moneys in the
Treasury not appropriated for other purposes, such sums
as may be necessary to provide adequate working capital.
(e) Subject to the authority and direction of the Sec-
retary of Defense, the Secretaries of the military depart-
ments shall allocate responsibility within their respective
military departments for the execution of functions
which each military department is authorized by law to
perform.in such a manner as to effect the most economical
and efficient organization and operation of the activities
and use of the inventories for which working-capital
funds are authorized by this section.
(f) No greater cost shall be incurred by the requisi-
tioning agenc for stores, supplies, materials, or equip-
ment drawn from inventories, and for services rendered
or work performed by the industrial-type or commercial-
type activities for which working-capital funds are au-
thorized by this section, than the amount of appropria-
tions or funds available for such purposes.
(g) The Secretary of Defense is authorized to issue
regulations to govern the operation of activities and use
of inventories authorized by this section, which regula-
tions may, whenever he determines the measures set forth
in this subsection to be required by the needs of the
Department of Defense, and when such measures are
authorized by law, permit stores, supplies, materials, and
equipment to be sold to, and services to be rendered or
work performed for, purchasers or users outside the De-
partment of Defense. In such cases, the working-capital
funds involved may be reimbursed by charges against
appropriate appropriations or by payments received in
cash.
(h) The appraised value of all stores, supplies, ma-
terials, and equipment returned to such working-capital
funds from any department, activity, or agency, may be
charged to the working-capital fund concerned and the
proceeds thereof shall be credited to the current appro-
priations concerned ; the amounts so credited shall be
available for expenditures for the same purposes as the
appropriations credited : Provided, That the provisions
of this subsection shall not permit credits to appropria-
tions as the result of capitalization of inventories au-
thorized by subsection (d) of this section.
MANAGEMENT FUNDS
SEC. 406. The Act of July 3, 1942 (56 Stat. 645, c.
484), as amended, is hereby further amended to read
as follows :
"(a) For the purpose of facilitating the economical
and efficient conduct of operations in the Department of
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NATIONAL SECURITY ACT, 1947
Defense which are financed by two or more appropria.
tions where the costs of the operations are not suscep-
tible of immediate distribution as charges to such appro-
priations, there are hereby established the Navy Man-
agement Fund, the Army Management Fund, and the
Air Force Management Fund, each within, and under
the direction of the respective Secretaries, of, the De-
partments of the Navy, Army, or Air Force, as the case
may be. There are authorized to be appropriated from
time to time such funds as may be necessary to accoin.-
plish the purposes of the funds.
"(b) The corpus of the Navy Management Fund shall
consist of the sum of $1,000,000 heretofore transferred to
the Naval Procurement Fund from the Naval Emer-
gency Fund (17X0300), which amount, and all balances
in, and obligations against, any accounts in the Naval
Procurement Fund, are hereby transferred to the Navy
Management Fund; the corpus of the Army Manage-
ment Fund shall consist of the sum of $1,000,000, which
shall be transferred thereto from any unobligated bal-
ance of any appropriation available to the Department
of the Army; the corpus of the Air Force Management
Fund shall consist of the sum of $1,000,000, which shall
be transferred thereto from any unobligated balance of
any appropriation available to the Department of the
Air Force; in each case together with such additional
funds as may from time to time be appropriated to any
of said funds. Accounts for the individual operations to
be financed under the respective management funds shall
be established only upon approval by the Secretary of
Defense.
"(c) Expenditures may be made from said manage-
ment funds from time to time for material (other than
material for stock) and for personal and contractual
services under such regulations as may be prescribed
by the Secretary of Defense : Provided, (1) That no
obligation shall be incurred against any such fund which
is not properly chargeable to available funds under an
appropriation of the department within which the fund
is established, or, whenever necessary to effectuate pur-
poses authorized by this Act to funds of another depart-
ment or agency within the Department of Defense, and
(2) that each fund shall. be promptly reimbursed from
the appropriate appropriations of such department for
all expenditures properly chargeable thereto. Nothing
herein or in any other provision of law shall be construed
to prevent advances by check or warrant, or reimburse-
ments to any of said management funds from appropria-
tions of said departments on the basis of the estimated
cost of a project, such estimated cost to be revised and
necessary appropriation adjustments made when ade-
quate data become available.
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NATIONAL' SECURITY ACT, 1947
(d) Except as otherwise provided by lativ, amounts
advanced to the management funds under the provisions
of this Act shall be available for obligation only during
the fiscal year in which they are advanced : Provided,
That nothing contained in this Act shall alter or limit
the authorized period of availability of the funds from
which such advances are made. Final adjustments of
advances in accordance with actual costs shall be effected
with the appropriate funds for the fiscal year in which
such funds are advanced.
"(e) The portion of the Naval Appropriation Act,
1945 (58 Stat. 301, 310), relating to the Naval Procure-
ment Fund is hereby repealed."
ADJUSTMENT OF ACCOUNTS
SEC. 407. (a) When under authority of law a function
or' an activity is transferred or assigned from one depart-
ment or agency within the Department of Defense to
another such department or agency, the balances of
appropriations which are determined by the Secretary of
Defense to be available and necessary to finance or dis-
charge the function or activity so transferred or assigned
may, with the approval of the President, be transferred
to, and be available for use by, the department or agency
to which said function or activity is transferred or as-
signed for any purpose for which said funds were origi-
nally available. Balances so transferred shall be credited
to any applicable existing appropriation account or
accounts, or to any new appropriation account or ac-
counts, which are hereby authorized to be established on
the books of the Treasury Department, of the depart-
ment or organization to which such function or activity
is transferred, and shall be merged with funds in the
applicable existing or newly established appropriation
account or accounts and thereafter accounted for as one
fund. Balances transferred to existing accounts shall be
subject only to such limitations as are specifically appli-
cable to such accounts and those transferred to new
accounts shall be subject only to such limitations as are
applicable to the appropriations from which they are
transferred.
(b) The number of employees which in the opinion of
the Secretary of Defense is required for such trans-
ferred functions or activities. may, with the approval of
the Director of the Bureau of the Budget, be deducted
from any personnel maximum or limitation of the de-
partment or agency within the Department of Defense
from which such function or activity is transferred, and
added to any such personnel maximum or limitation of
the department or agency to which such function or
activity is transferred.
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AVAILABILITY OF REIMBURSEMENTS
SEC. 408. To carry out the purposes of this Act, re-
imbursements made under the authority of the Economy
Act (31 U. S. C. 686), and sums paid by or on behalf of
personnel of any department or organization for services
rendered or supplies furnished, may be credited to au-
thorized replacing or other accounts. Funds credited to
such accounts shall remain available for obligation for
the same period as the funds in the account so credited
and each such account shall constitute one fund on the
books of the Treasury Department.
COMMON USE OF DISBURSING FACILITIES
SEC. 409. To the extent authorized by the Secretary
of Defense, disbursing officers of the Departments of the
Army, Navy, and Air Force may, out of accounts of
advances available to them; make disbursements cover-
ing obligations arising in connection with any function
or activity of any other department or organization
within the Department of Defense and charge upon
vouchers the proper appropriation or appropriations oJ'
the other department or organization : Provided, That all
said expenditures shall subsequently be adjusted in settle-
ment of disbursing officers' accounts.
REPORTS OF PROPERTY
SEC. 410. The Secretary of Defense shall cause prop-
erty records to be maintained in the three military de-
partments, so far as practicable, on both a quantitative
and monetary basis, under regulations which he shall
prescribe. Such property records shall include the fixed
property, installations, and major items of equipment
as well as the supplies, materials, and equipment held in
store by the armed services. The Secretary shall report
annually thereon to the President and to the Congress.
REPEALING AND SAVING PROVISIONS
SEC. 411. All laws, orders, and regulations inconsistent
with the provisions of this title are repealed insofar as
they are inconsistent with the powers, duties, and re-.
sponsibilities enacted hereby :Provided, That the powers,
duties, and responsibilities of the Secretary of Defense
under this title shall be administered in conformance
with the policy and requirements for administration of
budgetary and fiscal matters in the Government gen-
erally, including accounting and financial reporting, and
that nothing in this title shall be construed as eliininat--
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ing or modifying the powers, duties, and responsibilities
of any other department, agency, or officer of the Govern-
ment in connection with such matters, but no such de-
partment, agency, or officer shall exercise any such
powers, duties, or responsibilities in a manner that will
render ineffective the provisions of this title.'
(Nom.-The following, although not amendments to any particular
sections of the National Security Act of 1941, are pertinent:)
The titles of the Secretary of Defense, the Secretary See. 12~w
of the Army, the Secretary of the Navy, the Secretary tie, slat
ng,
of the Air Force, the Under Secretaries and the Assistant Co 1
949.?gust
Secretaries of the Departments of the Army, Navy, and
Air Force, the Chairman of the, Munitions." Board, and
the Chairman of the Research and Development Board,
shall not be changed "by''virtue 'bf this 'Act, and'the' re-
appointment of the officials holding such titles on the
effective date of this Act shall not be required. It is
hereby declared to be the intention of Congress that
section 203 (a) of the National Security Act of 1947, as
amended by section 6 of this Act, shall not be deemed to
have created a new office of Deputy Secretary of Defense
but shall be deemed to have continued in existence, under
a new title, the Office of Under Secretary of Defense
which was established 'by the Act entitled "An Act to
amend the National Security Act of 1947 to provide for
an Under Secretary of Defense", approved April 2, 1949
(Public Law 36, Vighty-first Congress). The title of
the official holding the Office of Under Secretary of De-
fense on the effective date of this Act shall be changed to
Deputy Secretary of Defense and the reappointment of
such official shall not be required.
All laws, orders, regulations, and other actions relating 8cc. o2 (g), Law
v,,4 to the National Military Establishment, the Departments 210, slat
of the Army, the Navy, or she Air Force, or to Cong., August
ny 10, 1949.
officer or activity of such establishment or such depart-
ments, shall, except to the extent inconsistent with the
provisions of this Act, have the same effect as if this Act
had not been enacted; but, after, the effective date of this
Act, any such law, order, regulation, or other action
which vested functions in or otherwise related to any
officer, department, or establishment, shall be deemed to
have vested such function in or relate to the officer or
department, executive or military, succeeding the officer,
department, or establishment in which such unctionwas
vested. For purposes of this subsection the Department
of Defense shall be deemed the department succeeding
the National Military Establishment, and the military
departments of Army, Navy, and Air Force shall be
deemed the departments succeeding the Executive De-
partments of Army, Navy, and Air Force.
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Reorganization Plan Numbered 8. of 19495 which was
transmitted to the Congress by the President on July 18,
1949, pursuant to the provisions of the Reorganization
Act of 1949, shall not take effect, notwithstanding the
provisions of section 6 of such -Reorganization Act of
sec. 12 (i),
Public Law'
216, 81st
Cong., August
10, 1949.
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