MILITARY AND VETERANS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00610R000100050020-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 12
• Document Creation Date: December 14, 2016
• Document Release Date: October 9, 2002
• Sequence Number: 20
• Publication Date: January 1, 1947
• Content Type: REPORT

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lea e Cop,
ILITA W AND VE1ERA S
MAJOR ACTIONS, July-September 1947
Cash redemption of terminal leave bonds - passed House and Senate; approved.
Unification of the Armed Forces - passed Senate and House; approved.
CASH REDEMPTION OF TERMINAL LEAVE BONDS
. When the Armed Forces Leave Act was passed by the House in 1946, it provided for cash
payment for terminal leave for enlisted men as well as officers. In the Senate the bill was amended
to provide for payment of all sums under $50 in cash and larger sums in 5-year non-negotiable
bonds. This provision was retained in the conference agreement, but various Senators and Repre-
sentatives served notice that they would introduce cash-payment bills in the next session (Vol. III,
pp. 514ff.).
The first bill introduced in the House in the Eightieth Congress was for tax reduction. ER 2
,and 3 were for cash redemption of terminal leave bonds. About 30 other cash-payment bills were
introduced in the House. The Armed Services Committee rewrote and reported HR 4017, by Rep-
resentative William W. Blackney (R Mich.), which would allow holders of the bonds to redeem them
for cash after September 1, 1947, would permit payment of all future claims in cash on request.,
and extend the time for applying for terminal leave to September 1, 1948.
There was no real debate in either House, since no one opposed the bill. There were, how-
ever, many speakers in both House and Senate who wished to endorse the measure and to declare
that it would not be inflationary, as the Treasury had contended in hearings. It was estimated that
about 8.5 million veterans held bonds valued at $1,792,000,000. Tribute was paid in both houses
to Representative Dwight L. Rogers (D Fla.) author of the 1946 act and spearhead of the fight to
get action by the House committee on the many 1947 bills.
The House passed the bill July 7 on a roll call, 388 to 0 (see p. 474). The Senate voted for
the bill, 85 to 0, on July 19 (see p. 473).
Ten days after cash redemption of bonds became possible, the Treasury annou iced that more
than one-third of the $1,800,000,000 bonds outstanding had been cashed.
/UNIFICATION OF THE ARr,=D FORCES
Unification of the armed forces, which has been under study since 1944, was authorized by
the Eightieth Congress in July 1947.. In 1945 President Truman sent to Congress a plan for un=-
fication of the Army, Navy, and Air Force as coordinate sections of a single Department of Com-
mon Defense, and this plan was the basis of a bill reported favorably by the Senate Military Af-
fairs Committee in April the following year. The Navy reiterated its objections to concentration
of power in a single department and to having an Air Force coordinate with Army and Navy. It
was also fearful that the Marine Corps and naval aviation might be jeopardized. The Military
Affairs Committee revised the bill to meet some of these objections, but the Naval Affairs Corn-
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he said, would assign to the services their World War II functions and "compel them to accep+
these frozen concepts in dealing with wars in the future." However, he did not attempt to forte
a roll call, and the report was accepted by voice vote.
The House followed suit next day, although some Members regretted that House provisions
for a civilian head of the Central Intelligence Agency had not been retained. Hoffman again, wiirned
that the bill opened the door to military dictatorship, but he said that this was the best bill that
could be obtained.
REORGANIZATION EFFECTED
On September 17 James Forrestal, former Secretary of the Navy, became the new Seer >tary
of Defense. On the following day, John L. Sullivan, former Under Secretary of the Navy, was sworn
in as Secretary. Kenneth C. Royalwho had succeeded Robert P. Patterson as Secretary of War,
now became Secretary of the Army. W. Stuart Symington former Assistant Secretary of War,
became Secretary of the Air Force.
In a press statement, Forrestal said that reorganization would be effected by "evolution,
not revolution." It would take some time to put into practice the provisions of the bill, which rep-
resented divergent points of view, he warned, and large and immediate savings should not be ex-
pected by the public.
ARMY-NAVY PROMOTION SYSTEM
On June 25 the House passed HR 3830, a bill which would place promotion in the Army on the
same basis as that which has obtained for some time in the Navy -- i.e., selection rather than
seniority. The Navy's selection system would be extended to include admirals. The measure also
abolished the wartime five-star rank except for those now holding it, and limited the number of
four-star officers to 11 -- four in the Army, three in the Navy, three in the Air Force, and one
in the Marine Corps (Vol. III, pp. 309- 10).
The Senate Armed Forces Committee reported the bill July 18, but not until nine otao(~k of
the last night of the session did Senator Raymond E. Baldwin (R Conn.), in charge of the measure,
succeed in getting it to the floor. He did so over repeated protests from Senator Tom Cunaa~
(D Tex.), who said that a bill 330 pages long should not be rammed down the throat of the Senate
in the closing hours of the session. Connally, who had fought against establishment of thy. existing
Army system and so was in sympathy with the aims of the bill, said that he did not want merely
to substitute favoritism and politics for seniority as the basis of promotion. He could not vote
intelligently, he declared, without some study of the bill.
Baldwin explained that 247 pages of the bill were mere codification of present Navy practices
and the rest was simple in its broad outlines. Passage, he said, was earnestly requested by James
Forrestal, shortly to become Secretary of Defense, in order to retain many of the efficient war-
time officers who would not stay in the services if they saw no prospect of promotion except by
the process of getting older. The new rapid-promotion system for men of special ability would
make the military career more attractive to brilliant men, and the bill would also increase mili-
tary efficiency by making it possible to get rid of unqualified officers.
Senator Spessard L. Holland (D Fla.) joined with Connally in trying to postpone consiaeration
until Senators could familiarize themselves with the contents of the bill. However, Hollar d':; motion
to recommit was lost by voice vote, and the Senate refused a roll call.
The Senate then agreed to a long series of committee amendments, most of which were clari-
fications, some occasioned by the passage of the unification bill. Two important changes were made;
The number of four-star officers in each service except the Marine Corps was increase' by one,
making 14 in all. The Army Engineers were assured continuation of the branch chiefs and assis-
tant chiefs concerned with the Engineers' civil functions. The bill was passed on a division re-
quested by Holland. Just before midnight, July 26, the House agreed to the Senate amendments and
completed Congressional action on the bill.
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 U.S.N., BEFGV- TIM, HOUSE
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H.R. 2319 represents a si..cere effort of the services to settle
differences which have e:;isted between them in order to provide for in-
Tho bill represents a coi proniise, drawn up
creased nationwl security.
in a spirit of cooperation and mutual understanding, designed to provide T,
the nation --iith a defense organization adaptable to modern warfare. . L .c
The last war taught us many lessons vhich we should take into ac-
count in planning for the future. This bill incorporates' those lessons,
It gives legal status to those agencies which were fount, to be essertia'
to the conduct of global v:ar. It is geared to the increased ter-pi whicii
modern weapons ir--,nosc upon the conduct of war. It is sufficiently flex,-
isle to permit the ready incor'-oration of methods which future needs may
dictate.
The bill provides for integration of the Departments of State,
Array, wavy and Air Force, through the National. Security Council, to the
extent necessary to keep our military olicy in balance with our foreign
policy . It legalizes, formalizes and amplifies the now e. sting Conimit.-
tee of Three consisting of the Secretaries of State, 'jar and Navy, which
is the genesis of a National Security Council. That is a forcrard-looking
N
and necessary step.
The bill provides for what I believe is vitally needed top manag:-~-
rent. It is ray concept that the President will control the decisions =-)f
the Secretary of_National Defense an matters of great inrortance to tho
United States just as closely as he would corresponding decisions of arty
Secretary of a Depart.ient of the Government. The President is the -,)erron
ultimatel j res onsible for decisions on Tiiatters o national security, and
I cannot believe that a Secretary of Iational Defense would make any in-
portant d-,cision i?i tiiout his a ^-- roval.
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 ?. I have CbEW P 1H 2Q 2/tFE3fe~47A~1@?P -6 361.b kb~e tiers
participated in its drafting will present to you a detailed analysis
of its provisions.
In my opinion this bill, when taken in its entirety, will provide us
with a more effective organizational structure for our national security.
I recommend it to your favorable consideration.
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 ~:opled PAS
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STATEMENT OF
ASS1STAN:T SECRETARY ~E SER.VLCES W. CUIv~Vt T'I'ES Y
BEFORE. THE SENATE ON, S. 758 .
My statement is directed-primarily towards the problem
n best Of SUPPAyi designed.
to do
military establishment and the character of organiz
that with. particular emphasis on purchasing and procurement. I any
stressing that phase of the problem of logistics bee cruse of the interest that
has been evidenced in it. If the committee desires an amplificatioVnion.Ader,
other phases, the Deputy Chie, of Naval Op t of atio view how Logistics, Vice are
Carney, can explain from the military p requirements
determined and how material procured is deliired to the fleet.
S. 758 will, in my opinion, create a m~ ~-esfinve to milatary Y~eeds of d
possible a military establishment that is bo Pons
to the related diplomatic and industrial requirements. However, the ultimate oveno netermination of the ef~ectiveW ~s an~nsecondtL~f? War organization is
vyinrthat war-y
b;~ its ability first to p_ event
The procurement of materia a military- establishment is a-funct ?-?r`
l to suPPl
of service and to that extent is a subordinate and aneillary-function. its
importance should not, however, be underesti o f an as It at'onumust be a -io S'
on which the fighting force rests. The supply g
related to the military establishment it supports or the efficiency of the latter
will be affected.
A supply organization rnust be able----
(1) to provide for expans ion in time of war without disrupticn
of organization or reassignment of functions; - -
(2) to have the flexibility to respond to operational and
technical requirements; .
(3) to provide strategic dispersion of stocks and records
within practicable limits; . . . .
(4) to have effective coord ination w t all open a in wand
technical agencies of related organizations
the government;
(5) to permit economy of operation through mobility of
support and control of material.
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 Speci~iZ~r ~Y .vrll t se ( CWt 1 sh3~J~71 Of?~6~PO bt 4~~~D-0
des for the Resources Board in time of peace:
(1) make studies, collect data, and make recommendations
as to industr. .1 policies and programs, and perform all technical
and statistical staff functions and duties required by the National
Security Resources Board in the development of a National Industrial
Mobilization Plan;
(2) collect and maintain information relating to the actual and
potential manpower, resource s, and production facilities of the
Nation;
(3) develop and recommend educational programs designed to
provide an adequate supply of trained personnel to meet the
industrial needs of the Nation in an emergency;
(4) - assemble for the consideration of the National Security Resources
Board material and personnel requirements of. the Services as these
arc developed from directives of the Joint Chiefs of Staff;
(5) Assemble for the consideration of the National Security Resources
Board the material and personnel requirements of the civil economy
in an emergency as this data is developed by Federal agencies and
other sources;
(6) Delineate for the consideration of the. National Security Resources
Board overages and shortcomings of national industry in respect to
(5) and (6), with recommendations on the feasibility of meeting dcmarld,
the assignment of relative priority, and suggested correction of defi--
ciency.
desirable to have the same indivictuai serve as the unairman uI POW nue-ru .
In this way the complementary character of the Boards to each other can oe
assured.
FxceDt when the Resources Board is an active operating organization it would .re
In conclusion, I wish to emphasize my support of the National Security
Act of 1947. S.758 provides an orderly process for an efficient reorganize ion
of our military establishment and assures a sound foundation for integrated
military, foreign relations, industrial, and economic organizations.
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SPEECH BY THE HONORABLE OLIVER LYTTLETON
BEFORE 1946 ON OCTOBER THE HOUSE OFTRA ON-ZATION FOR DEFENSE
PLANS FOR C EN
SUPPLY MATTERS
I turn to some supply matters touched upon by the White Paper, and 1
wish to make a point regarding the Ministry of supply, with which is now embo b,-
od the Ministry of Aircraft Production. My point arises out of paragraphs 2O (b)
and 26- (a). The Ministry of Supply is responsible for the production of weapons
of war for the Army and Air Force. Honorable Members must distinguish be- thei
-n, and
,n inrius whichr
vye n the relations of the Admira ~ Far to
h%h
w With theindustries sup I y t?en1?
the relationship of the Army an d
their owr
The relationships are entirely different. The Admiralty, so to place spernalytical and %xnianatory Sta F tent" i r = d
for the use of the Senate Committee or. Military Affairs by the i.overnnment ?
)ffice, 1919:
 e~i~"The aAt~ 3 1.i.lta a i torsi Act V1, 947"
A, lp"
he senate. . . # t; .
In many respects this bill which I ant introducing rsSambles 5en+,t.e -sill ,.,=F
t;;ined, such as ,,he joint Chiefs of Staff, the ?':uniti,ons bard, surd At = W`
n, Development Board. In many re::pec is It differs from S. 758 a.i ac 11 i!
Yp !OViSion for a single departure: t of r .a erred forces, for a sli- l o;,.;,
ecreta.r r or an overall High Com~:.aad. :;Lost imports: nt of all, it
it continues those coordinating agencies now in existence ah.Cn 3rol:. e
;,ovsrnLrental t:gencies concerned with national defense in their prep!
to e2CII other and ma-4-Mains the civilian control over the. armed fcr _.es
to the continued existence of our democratic form of gov.:rhmeht.
It is rr r belief that the provision of this bill will alloy to ose e; A u,
::~hich h pve b.=en voiced cn ell sides by s;,oka>::en for the Nati f, fetvx ins t, ic ,`:
n&vbl vi-_t_cn; for ti=e -Ground Forces, LOSS of it C1.GJt su
r:rm; for ve ?.:"r: .e Corr;s, fearing the "'Loss of its Fleet Fv'..rini Fcr':es; n?:i tj'.
Air Force, ?e rir.a ti L1t it -icy be suo~er fed under the surf:;_ce els^ e :t ac :?cs
: . ~ -1 r~
Army mnd: Nevy. Further it is ;;y - eli.a2. the t this bill F: ii. ut-. s - e J- t.
con'ai'oiono the tiaps-taste,_`! decocr.'".iC Y?rinc: 'l S of org'nizetiorl c.i our :"l.^c
f ' .h Ch L ve 3?"V.:Ci so sl.rcce~:~.t'u~ T. to de?t:L,if to~.a Ni .to'
forces -- pr,- ~es s
the 150 years o. its existence.
in ....
Utr but one or two exceptions, every simile el:.ment set fort
hes been subjected to the test of they carried us through 'hot Id tiv: : 1.1
victory; they hove carried us through the da _ys off' read j us tm :nt sir e'-t; lu'
1945.
Chile ?voiding th it-falls of bane to B122.1 753 v~h ch c: n sui e
along the road to nilitrry dictatorship, to :;ill will prosride the ^ ~r eL
are so necessary for the proper cocrdir. tion of all the elercents c cove n
concerned with cur national defense ?r_d, ,_t th same time, it is uerpc
us cnd for the genera Lions yet unborn the democratic pri,~ef
N-!tion v+a.s founded.
If we feil to h =-ed those principles, ilk: will do irreparable Y ra:'m
security of the Notion. If .~e fail to heed `.hc:se prin.:iples, ._e ihl .j(
ve , - oundotions of democ_r Bic ?o-:ernmer.t.
I. T'G'3pect'~`'i11ay;~3 eGl 4
to the 1`.L cor
ft Y