CONGRESSIONAL RECORD - HOUSE OF REPRESENTATIVES HOUSE APPROPRIATIONS

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June 13, 1967
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Vol. 113 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 tZon~rnstonaL PROCEEDINGS AND DEBATES OF THE 90th CONGRESS, FIRST SESSION WASHINGTON, TUESDAY, JUNE 13, 1967 No. 92 House of Representatives tfausrG' A-PPeoPe+k-~,o~s The House met at 11 o'clock a.m. The Chaplain, Rev. Edward G. Latch, D.D., offered the following prayer: Abide in Me, and I in you. As the branch cannot bear fruit of itself, except it abide in the vine; no more can ye, ex- cept ye abide in Me.-John 15: 4. Spirit of God, pressed by the insistent demands of public duty and pursued by the details of daily routine, we are glad for this quiet moment of prayer when in all reverence of mind and heart we may kneel at the altar of Thy presence and find that in Thee our souls are restored, our strength renewed, and our faith takes on new life. We, the Members of this body, con- scious of our responsibilities as the lead- ers of this great Republic, unite in pray- ing for Thy guidance as we faithfully endeavor to do our best for our people and what is right in Thy sight. Give to these Representatives the will to work together for the good of our Nation and for the benefit of all our people. Grant unto them and to all of us the spirit to resist the pressure of selfish appeals, and to our people may there come the insight to realize that sacrifices must be made by all and that there is no substitute for honest labor and genuine faith. In the midst of a changing world abide with us and hold us steady now and always. In the Master's name we pray. Amen. THE JOURNAL The Journal of the proceedings of yes- terday was read and approved. MESSAGE FROM THE SENATE A message from the Senate by Mr. Arrington, one of its clerks, announced that the Senate had passed, with amend- ments in which the concurrence of the House is requested, a bill of the House of the following title: H.R. B424. An act to authorize appropria- tions for procurement of vessels and aircraft and construction of shore and offshore estab- lishments for the Coast Guard. The message also announced that the Senate had passed bills, joint and con- current resolutions of the following titles, in which the concurrence House is requested: S. 1281. An act to authorize the appropria- tion of funds to carry out the activities of the Federal Field Committee for Develop- ment Planning in Alaska; S. 1586. An act to amend sections 3 and 4 of the act approved September 22, 1964 (78 Stat. 990), providing for an investigation and study to determine a site for the construction of a sea-level canal connecting the Atlantic and Pacific Oceans; S.J. Res. 88. Joint resolution authorizing the operation of an amateur radio station by participants in the XII World Boy Scout Jamboree at Farragut State Park, Idaho, August 1 through August 9, 1967; and S. Con. Res. $0. Concurrent resolution to print a report entitled "Mineral and Water Resources of Alaska." CORRECTION OF VOTE Mr. SIKES. Mr. Speaker, on rollcall No. 97 I am recorded as not voting. I was present and I voted "yea." I ask unani- mous consent that the permanent REC- ORD and Journal be corrected accordingly. The SPEAKER. Is there objection to the request of the gentleman from Florida? There was no objection. CALL OF THE HOUSE Mr. HALL. Mr. Speaker, I make the point of order that a quorum is not pres- ent. The SPEAKER. Evidently a quorum is not present. Mr. ALBERT. Mr. Speaker, I move a call of the House. A call of the House was ordered. The Clerk called the roll, and the fol- lowing Members failed to answer to their names: [Roll No. 132] Abbitt Fascell Purcell Arends Fino Riegle Ashley Frelinghuysen Ronan Aspinall Fuqua Ruppe Ayres Gubser Satterfield Brown, Calif. Hanna St Germain Brown, Mich. Herlong St. Onge Celler Hosmer Smith, N.Y. Clark Jones, Mo. Sullivan Collier Kelly Talcott Conyers Kupferman Thompson, N.J. Corman McEwen Widnall Dawson Mathias, Md. Williams, Miss. Dingell Moorhead Willis Dow O'Neal, Ga. Young Eilberg Pelly Younger The SPEAKER. On this rollcall 381 Members have answered to their names, a quorum. By unanimous consent, further pro- ceedings under the call were dispensed with. SPECIAL SUBCOMMITTEE ON EDUCATION Mrs. GREEN of Oregon. Mr. Speaker, I ask unanimous consent that the Special Subcommittee on Education be allowed to sit this afternoon. The SPEAKER. Is there objection to the request of the gentlewoman from Oregon? Mr. HALL. Mr. Speaker, I object. The SPEAKER. Objection is heard. PERMISSION FOR COMMITTEE ON RULES TO FILE PRIVILEGED RE- PORTS Mr. COLMER. Mr. Speaker, I ask unanimous consent that the Committee on Rules may have until midnight to- night to file certain privileged reports. The SPEAKER. Is there objection to the request of the gentleman from Mississippi? There was no objection. DEPARTMENT___OF DEFENSE APPRO- PRIATIONS. 1968 Mr. MAHON. Mr. Speaker, I move that P Holis resolve itself into the Comm-TV-- tee of the Whole House on the State of the Union for the consideration of the bill (H.R. 10738) making appropriations for the Department of Defense for the fiscal year ending June 30, 1968, and for other purposes; and pending that motion, Mr. Speaker, I ask unanimous consent that general debate be limited to 4 hours, the time to be equally divided and controlled by the gentleman from California [Mr. LlPscoMBI and myself. The SPEAKER. Is there objection to the request of the gentleman from Texas? There was no objection. The SPEAKER. The question is on the motion offered by the gentleman from Texas. The motion was agreed to. 11 7061 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 I3 70,62 CONGRESSIONAL RECORD - HOUSE June 13, 1967 IN THE COMMITTEE OF THE WHOLE ing along pretty well toward an early For the forthcoming fiscal year 1968, Accordingly the House resolved Itself adjournment. However, if we should in- the tentative administrative budget into the Committee of the Whole House dulge that fond hope, we would prob- deficit projection in January was $8.1 on the State of the Union for the con- ably be in error and headed for disap- billion-resting, lleweyer, as always, on sideration of thebill H.R. 10738, with Mr. pointment, because the Committee on a number of legisTa~ive actions. That RosTENxowsxl in the chair. Appropriations, after the passage of this projection was recently revised upward The Clerk read the title of the bill. bill, must come to a screeching halt with by the executive branch to $11.1 billion, By unanimous consent, the first read- respect to the five remaining bills sched- an increase of $3 billion. The revenue ing of the bill was dispensed with. uled for enactment at this session. Even projection was lowered by $1.5 billion; The CHAIRMAN. Under the unani- though this is the 13th day of the sixth estimated expenditures were elevated by mous-consent agreement, the gentleman month of the year, and only 17 more days $1.5 billion. from Texas [Mr. MAHON] will be recog- remain before the new fiscal year begins, As to the tentative character of the nized for 2 hours and the gentleman from the Congress has not enacted the neces- projected deficit for fiscal 1968, I pointed California [Mr. LIPSCOMB] will be recog- sary authorizations for the five remain- out on the House floor on January 24- nized for 2 hours. The Chair recognizes ing appropriation bills. the day the President's new budget was the gentleman from Texas. For the reasons we stated we cannot submitted--that even if only a handful Mr. MAHON. Mr. Chairman, this is move with expedition until we have au- of selected budget assumptions and Ion- a rather memorable day in the history thorizations for such things as Coast tingencies did not materialize, the ad- of the Congress and in our service in the Guard procurement, the poverty pro- ministrative budget deficit for 1968 could Congress in that the bill l,Zeing presented gram, military construction, foreign aid, go as high as $18.3 billion, and supplied for the consideration of the Committee the atomic energy program, the space the details in tabular form. And in a today is the largest single appropriation program, and a number of others. So, letter to all Members of the House on bill ever presented to the Congress. this is about the end of the road-we March 14, I said: Mr. CMairman, this means that this is are at a pause-until we get the neces- Even the $8.1 billion deficit for fiscal 1968 the largest single appropriation request sary legislative authorizations. The next hinges significantly on Congress enacting ever presented to any legislative body bill will have to come after the next the 6 percent surtax proposal, a postage in- in the history of the world. fiscal year begins. I would add that our crease, an acceleration of corporate tax Back. in World War II, the War De- appropriations hearing on the unfinished collections, and approval of $5 billion of partment appropriation bill for fiscal -bills have largely been completed, ex- participation certificates. The proposed pay year 1944 carried funds in the sum of cept for the closing supplemental bill. increase is in the budget at $1 billion. If just this series is not estimated $59 billion. The five remaining bills will cover by Congress, some $20.9 billion of known budget re- deficit for r actions instance, the estimated Then, just before the outbreak of the quests plus any last minute supplements. deficit would be $18.3 billiont war in Korea, we had all of the appro- I am not critical over the lack of au- This is not the time to discuss whether priation bills lumped into one package. thorizations because I realize we need there should be a tax increase. But these It was a single-package appropriation _____ _, .. .. ._ - _11r,_ - _ ._ _ ver al these authorizations. the contingencies and uncertainties still of the departments and agencies o ernment, including the Department of To see the aggregate picture, we would surrounding the revised $11.1 billion Defense, but even it carried an amount have to add to the $126.9 billion which budget deficit figure, have evoked esti- of less than $34 billion. So, by any com- we will have acted upon when we pass mates of an. administrative budget deficit parison., we are undertaking today to this measure, and the $20.9 billion-plus upward of $24 to $29 billions in fiscal deal with astronomical sums heretofore remaining-about $15.2 billion which is 1968. This alone should compel us to ulunatched which involve the fortunes automatic because these sums represent greater prudence in conference deal- and the destiny of our country-and for so-called permanent appropriations ings, in considering the $20 billion, plus that matter, the world-not to mention which include principally the interest on in budget requests remaining to be the impact which the expenditure of the national debt. For the entire session, voted on, and in voting on all legislative these funds will have upon our own the budget requests for appropriations authorizations. domestic economy. will total about $163,000,000,000, more or J_Vith this defense bill today, we will OVERALL APPROPRIATIONS SUMMARY FOR THE less. have.,, redlle ldent January SESSION Mr. Chairman, I wanted to make these budget by $a nza nn QVk Is con- Now, Mr. Chairman, it is my opinion preliminary remarks in connection with srderably better than was done last year. that this a good Ctime hairman, it to level with the whole fiscal picture. Appropriate fig- It is considerably better than was done that h on such questions as when with ures will be put in the RECORD in more the year before. Maybe it is not good will adjourn, a matter over which many w detail. enough, but the bills which have passed will us j are no special ventral, and on There are those who have said that have passed almost by a unanimous vote. what we have done appropria ntrolonwise to there is no way to keep up with the ap- I assume that generally the will of date. and one ations business. There are ways, the Congress has been accomplished in We have already considered and formation and one way is which to is note being g carefully printed from om making the $3 billion reduction. passed through the House of Represent- time to time in the CONGRESSIONAL We do not know what the other body atives at this session 10 bills from the RECORD. I cite the RECORD for today, and will do. Out of the 11 appropriation bills, Committee on Appropriations. This bill, for March 23, May 25, and June 5. There it has acted on, I believe, four, it is im- if passed, will make the 11th appropria- will be other reports on the status of possible to tell what the final outcome tion bill passed by the House of Repre- the appropriations business in the com- will be on appropriations at this session. sentatives during this session. ing weeks and months. There must be a meeting of the minds Mr. Chairman, with the passage of For example, I am going to write every on the part of both bodies, the House this bill, we will have acted upon $126.9 Member of the House, a letter again this and the Senate. We hope we may in- billion of the President's budget requests week and give some of these basic facts for appropriations. We will have acted in order that we may all work together, I crease the level of reductions in the upon about' 85 percent of the requests hope, in a continued, concerted effort to forthcoming bills. for appropriations which we will prob- hold the line on spending, at least to Mr. Chairman, under leave granted, ably be asked to act upon this year, and bring the appropriations down to as low I include a summarization of the totals we may be prone to feel that we are sail- a level as may be reasonably possible. of the appropriations bills to date: Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE Summary of action on budget estimates of appropriations in appropriation bills, 90th Cong., 1st seas., as of June 18, 1967 "back-door" type appropriations, or permanent appropriations r under previous legislation. Does include indefinite appropriations carried in annual appropriation bills] All figures are rounded amounts Bills for fiscal 1967 A. House actions: Budget requests for appropriations considered___________ Amounts in 11 bills passed by House____________________ 3. Change from corresponding budget requests .________ B. Senate actions: 1. Budget requests for appropriations considered__.--------- 2 . Amounts in 4 bills passed by Senate____________________ 3. Change from corresponding budget requests .________ 4. Compared with House amounts in these 4 bills __.________ C. Final actions: 1. Budget requests for appropriations considered___________ 2. Amounts approved in 3 bills enacted____________________ 3. Comparison with corresponding budget requests------ $14,411,000,000 14, 238, 000, 000 14, 533, 000, 000 14, 457, 000, 000 -76,000,000 +219, 000, 000 14, 533, 000, 000 14, 394, 000, 000 2, a $112, 477, 000, 000 2.8 109,611, 000, 000 9073, 000, 000 8:954,000,000 -119,000,000 +90,000,000 1, 458, 000, 000 1, 383, 000, 000 Bills for the session $126,888,000000 123,849,000:000 H 7063 There is another factor here. If you calculate from the Treasury Department statements, the spending for defense- and I mean the whole Department of De- fense-it will be observed that the spend- ing rate in March and April was higher than that which was estimated in the budget. In 1 month it was $300 million higher. Whether it will continue that way, it is impossible to predict. We may have a supplemental request later in the fiscal year, but it will not 23, 606, 000000 23,411,000:000 on the part of the President and the Secretary of Defense and the administra- tion generally. -195,000,000. So I did feel it proper to make these +309,000,000 contrasts between the bases of the budget 15, 991, 000, 000 15, 777, 000, 000 I Permanent appropriations were tentatively estimated in January budget at about $15,212,066,000 for fiscal year 1968. 2 Includes advance funding for fiscal 1969 for urban renewal and mass transit grants (budget, $980 000,000? House, $925,000,000). al And participation sales authorizations as follows: Total authorizations requested in budget, t4,300,060,000; total in House bils, $1,946,000,000. I would like now if I may, Mr. Chair- man, to turn to a discussion of this huge measure which is before us. The late Clarence Cannon, longtime chairman of the Appropriations Committee, looked with a great deal of disfavor upon a practice that has grown up in commit- tees when the members arise and heap praise upon the members of the coon- mittee in control of the bill or of the sub- committee, including eloquent praise of the staff. This is not supposed to occur in well-ordered committees, but since this bill is so big, I believe a few en- comiums would be permitted if I can be brief. DEFENSE APPROPRIATION BILL, FISCAL YEAR 1968 I would say that no committee of the Congress is, in a general way, much stronger than its staff, and I challenge any committee to produce a. better staff than we have on the Committee on Ap- propriations. It is not large, but I believe it is better to have a good, professional, experienced staff than to have a large staff overflowing almost into the corri- dors who may be tempted to engage in make-work activities. I would say further than the gentle- man from Florida [Mr. Sncss], who is the ranking majority member of the De- fense Subcommittee, has been especially helpful. He has often presided when I have been at other subcommittee hear- ings. The gentleman from California [Mr. LIYscolSl has distinguished himself on the minority side as a man of great sta- ture, industry, and ability. I pay these special compliments to these two gentleman-and I withhold nothing from other members of the sub- committee who have been likewise faith- ful in, the performance of their duties. We have heard of 4 credibility gap and maybe I just .created one here in these words of praise but I think not. It was said that we were not given the truth last year as to defense appropria- tion, requirements and spending. Well, this issue has been greatly, exaggerated and overstated. In the defense bill last year, we were told early in the session that the finan- cial planning assumptions upon which the budget was based last year presumed that the war would end before June 30, 1967. Nobody thought that it would ac- tually end at that time. But the conflict was escalating rapidly and it was diffi- cult to calculate with precision the exact requirements. We were told that other requests would be made to us, but that they could not and would not be pre- sented until a later date when more pre- cise requirements would be known. This situation brought on a lot of con- troversy and argument. But we were told generally what the facts were. Besides that, we knew them from our own anal- yses and we did not need to be told of the situation. But the budget this year for defense is based upon entirely different financial planning assumptions and the com- plaints applied to the 1967 defense budget cannot be applied to the 1968 de- fense budget which is before us. The January defense budget which is before us assumes that the war in Viet- nam will continue throughout the fiscal year 1968 and into fiscal year 1969. So this budget may be adequate-al- though I admit I doubt it-but my doubts do not arise because of any fear of misrepresentations having been made to the Congress. I just have the feeling that as the result of the progress, or the lack of progress, being made in the war in Vietnam costs will go beyond those which were calculated in the January budget. The January budget is predicated upon having fewer than 500,000 men in Viet- nam during fiscal 1968. There are indi- cations that we may require more than 500,000 men. Therefore, I say there is considerable likelihood that additional funds may be required later in the year. Anyone who wishes to read the mate- rial available knows this. It has already been made clear in testimony before con- gressional committees including the Ap- propriations Committee. for the fiscal year 1967 and fiscal year 1968. BASIS OF COMMITTEE ACTION Now you may ask "Why in Heaven's name is a reduction in the defense budget being recommended in this bill in the sum of $1.2 billion at a time when costs may be greater and at a time when we are engaged in a war?" This, I think, is a pertinent question and requires discussion at this time. I would say to the House that in previous years we have often said, "You have overfunded certain programs. We are going to reduce a certain activity by a certain number of dollars, but since we know you are going to need this money in the same general area for other programs which we think are under- financed, we are going to leave this money in the bill." This year we decided that this ap- proach would tend to cause less control over funds. We provided funds based upon our analysis of the justifications presented. If additional funds are needed for some escalation of the war beyond that which is anticipated in the budget, the Defense Department can come and ask us for more money. If you will get a copy of the report and turn to page 2, you will find that the total budget request is $71.5 billion and the total amount recommended in the bill is $70.3 billion. You will also note that while this is the largest bill ever considered by this Government as a single appropriation bill, it is only $65.5 million above the total appropriation for similar purposes for the current lscal year. The total ap- propriation for fiscal 1967 was made in several bills: the regular appropriation bill, the defense supplemental bill, and the increased pay costs in the second supplemental. So this is not a great ad- dition to the amounts provided for the current fiscal year. If you have time to read three pages in this report, I recommend reading page 3, which discusses the committee approach to the bill, a portion of page 3 and page 4 which discuss the scope of the bill. When we discuss the scope of this bill, we find that the committee added in this bill $404 million above the budget, funds not requested but generally opposed by the administration. The pages referred to follow: Approved For Release 2004/03/11: CIA-RDP69B00369R000100180198-8 H 7064 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 COMMITTEE APPROACH TO THE BILL The budget request before the Committee totals $71.6 billion. The estimated carryover of unexpended funds on July 1, 1967, is $43.7 billion. The sum of the carryover funds and the $70.3 billion recommended in the bill equals $114 billion. In its review of the budget, the Commit- tee determined that in some instances funds were requested for purposes which, in the judgment of the Committee, did not require appropriations at this time. Such funds are deleted :From the bill. The Committee found that, in some in- stances, funds requested in the budget were not needed for the purposes requested. These funds have also been deleted. This appears to be the most logical approach to a Defense budget at this time. Although considerable sums are involved in the total recommended reductions, and world developments may create the require- ments for substantial funds in addition to those recommended, it did not seem appro- priate to provide such sums in the bill as "blank check" amounts to be used for pur- poses which had not been justified before the Committee or discussed by Defense wit- nesses. The Committee-is, however, of the opinion that funds over and beyond those carried over from previous years, and those included in the pending bill, will probably be required for fiscal year 1968. The tempo and cost of the war in Southeast Asia are on an upward trend. The costs of wars can never be pro- jected precisely. The actions of the opponent weigh heavily on such matters. No decision has been made to increase military man- power above those strengths provided for in the estimates. Rates of consumption of am- munition, aircraft loss rates, and so forth, are based on the latest data available at the time of budget submission. If additional amounts are subsequently requested, they will of course be given a high priority. The action of the Committee is based upon the budget request before it; efforts have not been made to anticipate the effect of future world events on Defense needs. The highly dangerous situation in the Middle East emphasizes the absolute requirement for the continuation of a high level of mili- tary strength which the accompanying bill seeks to assure. Emergency funds and other fiscal authority granted to the Department provide flexibility to meet unbudgeted and unanticipated events, and to permit both the Executive and Legislative Branches the time to react to such events. The reductions recommended by the Com- mittee will not hamper the war effort in Southeast Asia. They are made in programs not directly related to the prosecution of the war. The Defense Department estimates that of the $71.6 billion of new funds in the budget about $20.3 billion will be required for the war and about $51.3 billion will be required for Department of Defense efforts in other programs. This compares with the $70.2 billion appropriated for fiscal year 1967 of which the Department estimates about $21.3 billion will be required for the war in Vietnam. SCOPE OF THE BILL -The bu t estimates for fiscal ear , for tlla militaLy-LUngtions covere b this ~~.iIL~ total $ 1,584,000,000, i ud aro- . YYN.Y.~Ly[ A - - - t. Tga jwmT~ hill oirlns for npp=- pr?ia&Jp>ais Of $70 2,2995=Q.OnA. _ _r+ *pnse~f >81.288.SD0,000 below the esti ,t~A11j21 oi)ri _,a- ns for sca ear 1967 il1t1L +n~ the glln- plemen a ense AourOgriaLi~ ^~rL9fiZ, and spl} cable amounts the_Secon ,,, Suu- p entaI Apprap ation_.Act?_ JQA17 t Vital $70.2,2 29:622,000. The amounts recommended in. the it or 1968 are, in the a g r i e an innrr ?Sale of A6 , above t e2~a`roPrla- ipns t Of the reductions recommended by the Committee, $467.7 million was made manda- tory by the exclusion from the authorizing legislation of $301.1 million for fast deploy- ment logistics ships and $186.6 million for conventional destroyers. Other reductions are related to program changes occurring since the budget was formulated as, for example, a slow down in the F-111B aircraft program occasioned in part by the crash of one of the test aircraft. It should be pointed out that the net re- duction of $1,288,800,000 consists of overall reductions of nearly $1.7 billion offset by in- creases of slightly over $0.4 billion. The in- creases stem from the funding of certain procurement and research and development items authorized by Congress over and above the budget, and from the Committee posi- tion that certain military capabilities should not be permitted to be reduced during the forthcoming fiscal year. Each of the items and its relation to the previous general discussion' will be covered in more detail later on in this report. A summary of additions and decreases fol- lows : Additions : Continuation of B--52 strength__ Continuation of Air Force Re- serve Components airlift capa- bility : appropriation increase------ (Within available funds)- EA-NA aircraft---------------- A- 6A modifications (within avail- able funds) __________________ DLG(N), full funding on nuclear power guided missile frigate-- DLG(N), advance procurement-- C-130 airlift aircraft --___---____ G-7 Caribou aircraft --____-_____ CX-2 aeromedical evacuation aircraft --------------------- Aircraft modification in support of Southeast Asia future re- quirements __________________ ASW-(fund highest priority items within available funds) _ AMSA-in support of authorized program -------------------- Total, appropriations recom- mended above budget---- 12. 1 (14.4) 106. 7 114.8 20.0 60. 0 12.5 25. 0 (33.0) 25.0 Decreases Fast deployment logistic ships, failed of authorization----__- 301.1 Conventional destroyers, failed of authorization --------------- 166.6 Recoupments of excessive un- obligated balances --------- -__ 251.0 Civilian employment----------- 136. 0 Multi-service aircraft, support procurement ______________?_ 125.0 '_11B program stretch-out_____ 78.2 Technical manuals and data__.. d^- Tactical and support vehicles, including autos______________ 55.8 Resources management system__ 52.7 Commercial airlift rates (new CAB authorized) ------------ 468.9 AID/DOD realignment of S.E. Asia functions--------------- 47.4 Contract termination charges funding policy on ------------ 46.9 Permanent change of station travel (Army) --------------- 44.0 Revised ship conversion pro- gram ----------------------- 42.1 Research, and Federal Contract Research Centers_____________ 22.8 Management studies, and studies & analyses------------------ 22.4 Support of Eastern Test Range__ 15. 0 Army overcoat material --------- 14.6 Boards of Civil Service Ex- aminers --------------------- 8.9 All others______________________ 138.4 Total reductions in appropria- tions below budget --------- 1,692.8 CONTINUATION OF B-52 BOMBER STRENGTH The additional funds were provided for the following purposes: For a continua- tion of B-52 strength equivalent to three squadrons. Forty-five planes were sched- uled for elimination from the fleet late in the year, for the continuation of which we provided $11.9 million. RESERVE AIRLIFT CAPABILITY For a continuation of the Air Force Reserve components airlift capability, we provided $12.1 million to keep eight Reserve units and three National Guard units in operation. We added these funds because at this troubled time of war in the Far East and the threat of war in other areas of the world, including the Middle East, we did not think we ought to deprive our- selves of B-52 strength or airlift strength. So we took this action. ADDITIONAL EAGA AIRCRAFT We provided $106 million for certain aircraft, for the use of the Marines in Southeast Asia, as to which, I believe, no one could complain. COST OF WAR IN VIETNAM I would point out that in the bill be- fore us about $20 billion is scheduled for the cost of the war in Vietnam and about $51 billion is for the overall cost of oper- ating the Defense Department, We did not make reductions which we felt would impinge in any significant way upon our war effort in Vietnam. The re- ductions made would not have direct application to the war in Vietnam. We provided, above the budget, for the modification of certain types of aircraft required in Vietnam. NUCLEAR PROPULSION FOR SURFACE NAVAL VESSELS We provided for additional ships for the nuclear Navy. With the passage of this bill we will have provided for the Navy 111 ships which have nuclear propulsion. I will not go into detail on that. The funds are given in detail in the report. I see the gentleman from South Caro- lina standing, the eminent and able and articulate chairman of the House Com- mittee on Armed Services. He had the audacity to walk by me, as I spoke ear- lier, and in reference to my statement that I challenged any committee to pro- duce a better staff than we have"on the Appropriations Committee, he said very boldly but in a low tone, "I challenge you." I yield to the gentleman from South Carolina. Mr. RIVERS. I thank the gentleman. What I said, Mr. Chairman, was that I accepted the gentleman's challenge about staff, as the gentleman knows. Mr. MAHON. That is correct. Mr. RIVERS. I just wanted to be cer- tain. I do agree with the chairman, that he does have one of the finest staffs. Mr. MAHON. We do, and the other committees, including the Armed Serv- ices Committee, have able staffs. The staffs of the various committees are very important to the welfare and work of the Government. Mr. RIVERS. I believe the gentleman has a magnificent staff. There is no ques- tion about that. I want to ask the gentleman about nuclear propulsion for ships. Do we prop- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE H 7065 erly take care of the nuclear propulsion for surface ships? What about the two DLGN's which our committee inserted to give this country surface nuclear pro- pulsion? Mr. MAHON. We agreed with the gen- tleman's committee as to the requirement for nuclear powered guided missile frig- ates. With respect to these nuclear frigates, we fully fund one, and we pro- vide $20 million for long leadtime items for the other, which in the judgment of the committee will in no way defer or delay these important ships. Mr. RIVERS. What does that mean in terms of numbers of ships? Last year we funded one, this year we have funded `another. That makes two. Then the gen- tleman appropriates for long leadtime items for one more ship? Is that correct? Mr. MAHON. That is what we have done. Mr. RIVERS. So the gentleman's com- mittee has satisfied the authorization? Mr. MAHON. Yes; we have in that we have fully funded one nuclear powered frigate and provided for, long-lead-time procurements for another. This will pro- vide for an orderly procurement pro- gram. The gentleman is correct. Mr. RIVERS. Two ships including one with long leadtime items. I want the Congress to understand that we have now four of the nuclear surface ships. Four is all we possess. This will give us six, and with long leadtime items for one more. The strongest nation on earth will have only the capacity for seven surface nuclear ships. This is so ridiculous that it is ridiculous. It is so disgraceful that it is disgraceful. Mr. MAHON. There is considerable controversy between the executive and the legislative branches as to the nuclear powered ships, but we have funded in AIRCRAFT $4 billion for research and development on ABM systems, including the Nike X, Now, in this bill, in addition to the nu" the Nike Zeus, or any concept involved in clear ships about which we have had defense against the ballistic missile. Last Department -of Defense will have avail- able to it for the next fiscal year the total sum of $114 billion for the func- tions covered by the bill. That is the sum of $43.7 billion In carryover funds and the $70.3 billion in funds carried in this bill. We made a reduction in the F-111B program, the Navy version of the F-111, in the sum of about $78 million. We did it in large measure because test aircraft No. 4 crashed, and this delayed the pro- gram. Instead of funding 20 of these Navy planes as requested, we would fund 12 in this bill. We made some reductions in various programs otherwise, some on permanent change of station travel, some on re- search and development, and some on the support of the Eastern Test Range, and on other matters. We made total reductions in the amount of $1,692.8 million, and we made increases in the amount of $404 million, making a total decrease in the budget estimates of $1.3 billion, as shown in the excerpts from the report which have been inserted in these remarks. CIVILIAN EMPLOYEES I believe it would be well to talk a bit about civilian employees. There was a request for approximately 50,000 addi- tional civilian employees. About 17,000 plus were requested as substitutes for military personnel needed In Vietnam and elsewhere. The others were for gen- eral utilization in the Department of De- fense. We made a reduction of 1,150 em- from the budget estimates. ANTIBALLISTIC MISSIL R!1(_ARM I should mention the antiballistic mis- sile program, which is the most expensive program, in many ways, confronting the this. ill-wlch we have not-tha.t if we for approximately $20 billion to carry pass tlas bill and it becomes the law, the on the war. I would estimate that prob- were, against the programs, but we lish the fact, in my judgment, that the thought they were overfunded. House. of Representatives is, in support 1 would remind my colleagues, If any- of the war effort in Southeast Asia, be- thinks we have been niggardly in cause if we vote for this bill we will vote e Rise we thought that some of the pro- au h4uizatic . n we reduced certain funds be- tional destroyers, and for fast deploy- ment logistic ships. They were elimi- Now, as to the decreases, and I will only cover them very rapidly here they are detailed in the table I inserted ear- lier, $467.7 million in decreases results frs& . t,1e faj`lure of authorization, That called AMSA. REDUCTIONS BELOW lion for the C-7 Caribou aircraft. We have provided for additional aeromedical evacuation aircraft. We provided $25 million above the budget for development of a new long- range bomber, the followon to the B-52 the budget for additional airlift aircraft, the C-130 airlift aircraft; and $12.5 mil- ably 99 percent of the Members of the House will vote for the bill. The world should interpret this, friend and foe alike, as an evidence that the elected Representatives of the people in the House of Representatives are in support of the prosecution of the war for freedom in Southeast Asia. I would say further that in previous bills, most recently in the supplemental bill for Vietnam of $12 billion, we have expressed our support of the war effort. It is not that we are entirely happy with the progress of the war, or all of the tactics being followed, but we are in support of the overall objectives of the nation. I think, then, unless there are some special questions, this is about as much as need be said at this opening of the debate on this bill. Mr. GROSS. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Iowa. Mr. GROSS. I thank the gentleman for yielding. I think that the committee ought to be commended for having re- jected the demands for a most substan- tial increase in civilian personnel. I think the committee should also be com- mended for taking note of the overlap- ping and duplication of certain training of civilian employees. Whatever else I may have to say about the action of the committee, I do want to commend them in regard to those things about which Mr. MAHON. I thank the gentleman for those comments. Mr. GROSS. May I ask the gentleman this question: I do not want to go over a lot of figures. The gentleman read them off rather rapidly. Some of them are astronomical. But do I understand now that the total bill this year, when everthing is totaled up, will be somewhere in the neighborhood of $163 billion, or was it $141 billion that the gentleman gave? Mr. MAHON. The gentleman now is not discussing defense only but the over- all budget? Mr. GROSS. The overall should make that plain. Mr. MAHON. The $163 billion figure is the probable, or now indicated overall total budget estimate of appropriations for the year, including the fiscal 1967 supplementals of some $14.4 billion which we have already had. These, of course, ut which will not come before us for a ote. Mr. GROSS. So the funds that carry Mr. MAHON. The defense portion of those are included in the total defense expenditures. They are not included in the $70.3 billion. Mr. GROSS. They are not included in this bill? Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 ABM. This year we are providing in this bill something over $700 million. In the military construction bill other fund will be considered. We have provided the amount of the budget estimate for the ABM, except for $11 million. We made a reduction of $11 million in the ABM program because wit- nesses testified, upon inquiry, that there was $11 million which could not be used during fiscal year 1968 as a result of the ut I would say that the passage o H 7066 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 Mr. MAHON. No. Mr. GROSS. I thank the gentleman. I have one other question. Can the gen- tleman give us an estimate of the monthly cost of the war in Vietnam as of this time? Mr. MAHON. I would say that if you would divide 12 into about $21 billion, you would have something in that gen- eral area. Mr. GROSS. I was under the impres- sion some time ago that the total rate of spending in Vietnam for the conduct of the war was some $2 billion a month. Somewhere I seem to recall a figure of between $4 billion and $5 billion which was expended iil'the war in the month of March. I can understand in some months there could be an increase. Mr. MAHON. The gentleman knows that even with all of the computers in the Government, it is impossible for any- one to determine just what spending should be assigned to Vietnam in every case and what should be assigned gen- erally to the overall defense program of the country. Mr. SIKES. Mr. Chairman, will the gentleman yield? } Mr. MAHON. I yield to the gentleman from Klorida. Mr.SIKES. I think it would be help- ful to point out in connection with the cost of approximately $25 billion in the last fiscal year there were some one-time build-up costs and construction costs that will not have to be repeated during the current fiscal year, Hopefully this year the cost may be less. Mr. GROSS. I see. I thank the gentle- man for yielding. Mr. LIPSCOMB. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, at the outset I would like to join the chairman of the Com- mittee on Appropriations and the chair- man of the Subcommittee on Defense in commending the workof our staff and the other committee members with whom I serve. Mr. Chairman, the distinguished gen- tleman from Texas [Mr. MmioNl, chair- man of the Committee on Appropriations, has presented to the members of the committee an excellent report on the bill. Mr. Chairman, the bill before the House of Representatives today, H.R. 10738, will provide appropriations of new obligational authority in the amount of $70,295,200,000 for the Department of Defense for fiscal year 1968. This bill provides appropriations for the regular military functions, including our Nation's military assistance related to the conflict in Southeast Asia. The bill does not pro- vide for other military assistance, mili- tary construction, military family hous- ing, or civil defense. These other require- ments are considered in other appropria- tion bills. The fiscal year 1968 defense budget request as submitted to the Congress by the President was $71,584,000,000. The Appropriations Committee, after lengthy hearings and after exploring all the categories of our military _ programs, found it necessary to make some addi- tions to and reductions from the Presi- dent's request. The committee total program recom- mended additions above the budget are $481.4 million, of which $77.4 million will be financed from available funds making the total net appropriations above the budget $404,000,000. The total committee reductions to the budget amount to $1,692,800,000 for a net re- duction to the President's budget request of $1,288,800,000. It must be emphasized that where re- ductions were made they will have no adverse effect on our ability to carry out our activities in Southeast Asia. Funds are deleted when in some in- stances it was determined the purpose, in the committee's judgment, for which they were requested were not needed. Other reductions were made mandatory by program exclusion from the author- iZing legislation and other reductions are related to program changes. The additions to the budget were made necessary because the committee has taken the position that certain of our military capabilities should not be reduced during the coming fiscal year as recommended by the Secretary of De- fense and we have added amounts for other items which were authorized and known to be needed but not requested by the Secretary of Defense. The bill before us is of great impor- tance in that it represents in dollars over one-half of all budgeted activities of the U.S. Government for the 12-month period beginning July 1, 1967. Funds provided in this bill will affect directly or indirectly the daily activities of probably every American and every American institution, both public and private, in the coming 12-month period and in the period beyond. Though it is difficult to comprehend fully the magnitude and complete sig- nificance of all aspects of this fiscal year 1968 appropriation for the Department of Defense, what can be easily compre- hended is that these funds are vital and they are necessary to serve and preserve the vital interests and purposes of our Nation. Some of the items in my opinion pos- sibly could have been higher, others lower. But the bill represents the com- bined judgment as to the appropriate amount that should be provided. I sup- port H.R. 10738 as reported by the committee. Mr. MINSHALL. Mr. Chairman, I -make the jaoint of order that a quorum is not present. The CHAIRMAN. The Chair will count. Sixty-three Members are present, not a quorum. The Clerk will call the roll. The Clerk called the roll, and the fol- lowing Members failed to answer to their names: [Roll No. 1331 Abbitt Dowdy Railsback Anderson, Eckhardt Reid, N.Y. Tenn. Fuqua Resnick Arends Gubser Rumsfeld Ashley Hays Ruppe Ayres Herlong St. Onge Ben Hosmer Sisk Carter Howard Smith, N.Y. Celler Ichord Steiger, Ariz. Clark Irwin Teague, Calif. Conyers Jones, Mo. Thompson, N.J. Corman Kelly Widnall Cowger McEwen Williams, Miss. Davis, Wis. Mathias, Calif. Willis Diggs Pelly Young Dow Pool Younger Accordingly the Committee rose; and the Speaker having resumed the chair, Mr. RosTENRoWsKI, Chairman of the Committee of the Whole House on the State of the Union, reported that that Committee having had under considera- tion the bill H.R. 10738, and finding it- self without a quorum, he had directed the roll to be called, when 383 Members responded to their names, a quorum, and he submitted herewith the names of the absentees to be spread upon the Journal. The Committee resumed its sitting. The CHAIRMAN. The gentleman from California [Mr. LIr'scoMa]. Mr. LIPSCOMB. Thank you, Mr. Chairman. Of immediate concern is the war in which we are engaged in Southeast Asia. Defense expenditures contained in this bill which are attributable solely to Southeast Asia operations are impossible to determine precisely. Although the ad- ministration estimated that about $20.3 billion of the budget will be required for the war, the question properly asked: Will that be enough? The actual costs could well be running to a magnitude of $25 to $30 billion or more per year. The Defense Appropriations Subcom- mittee has taken every opportunity to as- sure that every program directly related to our Southeast Asia operations is ade- quately funded. Even though the Secretary of Defense at the hearings stated that the war has been adequately funded, his statements were made several months ago and it is now becoming increasingly clear that the administration may again have to come to the Congress with a defense sup- plemental request for fiscal year 1968. Recent statements by administration spokesmen, includingthe President, made after our hearings had concluded, indi- cate to me that the administration may have once again delayed a decision to realistically fund the war effort. It is not appropriate to provide sums inn the bill as "blank check" amounts without first having Defense witnesses justify the purposes and needs for funds. Therefore, - if for any reason increased funds are needed the administration should come forward with a funding re- quest without delay. The President and the Secretary of Defense should submit such estimated funding needs before action on this bill is completed by the Congress. The tremendously expensive Southeast Asia military operations are having a direct, and in some instances an adverse effect, on some facets of many of the de- fense programs which are in the budget before us. It cannot be otherwise when one-quarter or one-third of the budget and perhaps a like amount of our mili- tary combat units are directly involved with that war. If priority programs in this budget, not related to the war, are known to be in need of funds Congress should also be informed of such needs. I have directed these comments to the war in Southeast Asia in order to point out that although it is true that this defense budget is the largest ever proposed since World War II, the dollar figure by itself can be a dangerously mis- leading indicator of the degree of secu- rity it provides both for today and for the future. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11: CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE Today this Nation possesses in total the most powerful military might in the world. But we must remind ourselves of that which our enemies know well. Today our military resources may well be stretched thin and the Department of Defense should evaluate the adequacy of its resources. In this regard the testi- mony before the committee indicates a need for concern. For example, General Greene, Com- mandant of the Marine Corps, said on March 16, 1967, in response to a question about the deployment of additional troops to Vietnam: Our present situation Is this: We have some 73,000 Marines ashore in South Vietnam to- day. We are unable to deploy additional troops and at the same time to maintain our rotation base and also to be ready to handle other contingency requirements, for example, in the Caribbean, Mediterranean, and Europe. If we were to deploy additional units, which of course we could do very rapidly, in order to maintain them in the Western Pacific we would have to mobilize. Statements such as these indicate the seriousness of the situation we face today and the need for constant attention by the Congress to military capabilities and plans. COMMITTEE APPROACH TO THE BILL The committee report on the Defense appropriation bill before the House to- day is a comprehensive document which should be read and studied carefully by every Member of Congress. It discusses broad areas relating gen- erally to the management and adminis- tration of the Department of Defense and the defense programs which are of con- cern to the committee. One of the broad areas where reduc- tions are recommended relates to studies and analyses. The committee is con- cerned about the upward trend in ex- penditures in the Department for studies and analyses on many nontechnical mat- ters. Sometimes studies are contracted for which are not really needed or used. Sometimes it appears studies are resorted to as devices which delay and defer deci- sionmaking. As discussed in the report, though it is recognized that there is a need for out- side studies in some cases, if Federal per- sonnel cannot operate without the help of outside studies and reports, they could be replaced with personnel who can. The committee has therefore reduced the budget request amounting to $22.4 mil- lion for management studies and studies and analyses. The committee also deleted funds for the so-called resources management sys- tem. This action, again, was taken only after the n litter was thoroughly studies, weighed, and evaluated. While is is per- haps true that significant changes should be made in the budgeting and accounting system of the Department, it was the considered opinion of the committee that placing this system into effect as planned could bring about massive change which to some extent would temporarily dimin- ish " congressional control. Also it could produce inflexibility of program struc- ture. As pointed out in the report, the Department could perhaps conduct more extensive tests than those already con- ducted to determine the merits and feasi- bility of the program. The report indi- cates that the committee would not ob- ject to further testing of a new system provided the breadth of the test does not exceed one major command per military service. The budget reduction pertaining to the resources management system in the bill amounts to $52.7 million. The committee also took note of poten- tial problems in the area of fiscal man- agement relating to carryover funds for various items of procurement and re- search, development, test, and evalua- tion. Funds for such projects generally are made available until expended be- cause often the timing on such items is not known or there are other uncertain- ties or complications. This is certainly understood. But this also means that un- expended funds carried over can and do accumlate. As stated in the report the accumulation and continuation of large unobligated balances is an indication of poor management and could threaten congressional control of the appropria- tion process, The committee has emphasized that a constant review must be maintained and funds recouped where no longer needed for their original purposes. Reductions have been made in various accounts totalling $251 million because of the com- mittee's assessment as to the availability of accumulated funds that can be re- couped in lieu of new appropriations. The number of civilian employees in the Department of Defense has been in- creasing sharply. The increase is out of proportion to the demands placed upon the services by Southeast Asia operations in the opinion of the committee. The bill therefore contains significant reductions in the funds requested for new personnel. For fiscal years 1967 and 1968 the aver- age increase in civilian personnel in the Defense Department is 171,905. Of this 75,000 are related to the civilian-military substitution programs, under which cer- tain positions staffed by military person- nel are being filled by civilians. The re- mainder, however, about 96,400, are new positions. The Department estimates that of the total amount an increase of 49,439 is for fiscal 1968. The bill recommends an overall reduction of 18,150 civilian posi- tions, which represents a reduction of 36.7 percent of the increase requested for fiscal year 1968. The reduction is not re- lated to the civilian-military substitution program. Its purpose is to cut back on the huge increases the Department is proposing for its work force and to help reverse the trend toward undue growth of Federal agencies. The action deemed necessary _ by the committee in these and related activities indicates in my opinion the need for im- proved administration and programs in many areas throughout the Department of Defense. A summary of additions and decreases made by the committee follows: [In millions of dollars] ADDITIONS H 7067 Continuation of B-52 strength---- Continuation of Air Force Reserve components airlift capability: Appropraition Increase -------- 12. 1 (Within available funds) ------- (14.4) EA-6A aircraft ------------------ 106. 7 A-6A modifications (within avail- able funds) __________________ DLG(N), full funding one nuclear powered guided missile frigate__ 114.8 DLG(N), advance procurement--_ 20. 0 0-130 airlift aircraft_____________ 60. 0 C-7 Caribou aircraft------------- 12. 5 CX-2 aeromedical evacuation____ 16.0 Aircraft modification in support of future Southeast Asia require- ments ------------------------ 25.0 ASW (fund highest priority items within available funds) -------- (33.0) AMSA (in support of authorized program) --------------------- 26.0 Total program increases---- 481. 4 Less financing from available funds ------------------------- -77.4 Total appropriations recom- mended above budget---- DECREASES Past deployment logistic ship, pro- gram failed of authorization____ 301.0 Recoupments of excessive unobli- gated balances ---------------- 251.0 Conventional destroyers, failed of authorization ----------------- 166. 6 Civilian employment ------------ 136.0 Multiservice aircraft, support pro- curement _____________________ 125.0 F-111B program stretchout______ 78.2 ec nical manuals ana aata Tactical and support vehicles, in- eluding autos ----------------- 55. 8 Resources management system---- 52. 7 Airlift commercial rates (new CAB authorized) ______________ 48.9 AID/DOD realinement of Southeast Asia functions ---------------- 47.4 Contract termination charges, funding policy on______________ 46. 9 Permanent change of station travel (Army) ----------------------- 44.0 Revised ship conversion program-- 42. 1 Research, and Federal contract research centers -------------- 22. 8 Management studies, studies, and analyses ---------------------- 22.4 Support of Eastern Test Range____ 15.0 Army overcoat material---------- 14.6 Boards of Civil Service examiners__ 8.9 All other ________________________ 138.4 Total reductions in appro- priations below budget__-_ 1,692.8 Net reductions in appro- priations below budget--- 1,228.8 NEED TO EVALUATE MANAGEMENT OF DEFENSE DEPARTMENT The responsibility for managing our Defense Establishment is an awesome responsibility. This Nation must be grateful that there are always those who are willing to come forward and shoulder that responsibility. Recognizing the mag- nitude of the managerial responsibilities and services rendered does not preclude the requirement to evaluate the past and present performance of that manage- ment. It is the task of any management to make decisions and the success or failure of management is reflected by the re- sults. Decisions made today by the De- Approved For Release 2004/03/11 : CIA-RDP69B00369R0001001801.98-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 1'068 partment of Defense will determine our military capabilities and the Nation's welfare tomorrow. The performance of the DOD manage- ment, therefore, must be evaluated in terms of our military posture-in terms of our military capabilities to influence actual and potential events such that the interests of this Nation are protected and advanced. If our interests are anywhere ,not protected because of the lack of a capability to exert military superiority, this then would reflect adversely on the management of our Defense Establish- ment. STRATEGIC ADVANTAGE The overall power advantage which a nation holds over its enemies and which enables it acting alone or in concert with its allies effectively to control the course of military and political situations is its "strategic advantage." We must be concerned with what is happening to our Nation's strategic ad- vantage. Although our military posture is built around many varied forces, it is the forces which serve primarily for strate- gic purposes which make the greatest apparent contribution toward achieve- ment of strategic advantage. In the budget * structure they are called the Strategic Forces. STRATEGIC FORCES In the Strategic Forces there are of- fensive forces such as land- and sea- based ballistic missiles, bombers, mis- siles launched from aircraft, and recon- naissance elements. The defensive Stra- tegic Forces consist of such items as manned interceptor aircraft, surface-to- air missiles, warning, surveillance, and control, systems. If our Strategic Forces make up the largest part of our military posture which are needed for our national security, the question which must be asked is: Should we permit the Soviet Union or any other nation to acquire a capability greater than our own in any element of the Stra- tegic Force structure? Should there be any doubt that Amer- ica must possess strategic advantage if our vital interests and purposes are to be served and preserved? If there are any reasonable doubts whatsoever of the ex- tent of Soviet or any other nation's stra- tegic capabilities, should not those doubts be ,resolved by positive decisions which favor our own capabilities? The manage- ment of our Defense Department has been asked these questions in many ways on many occasions. For instance, Secretary of Defense McNamara., on March 6, 1967, was asked if there could be any reasonable doubt as to the extent of the intercontinental ballistic missile capability of the Soviet Union, even if we credit the Soviets with the capability to deceive our intelligence gathering means. The Secretary, in reply, expressed his belief that our intelli- gence estimates could be off but only slightly. Though the remainder of his response was classified, a significant in- sight into some of the disagreement that exists on this point was provided when General Wheeler, Chairman of the Joint Chiefs of Staff, was asked to comment on the Secretary's response. General Wheeler said: CONGRESSIONAL RECORD - HOU,SE_ - _ - June 13, 1967 As a matter of fact, I am not in full agreement with what the Secretary said. There are several things which I believe worthy of comment. First, the Soviets are, as shown in thelast year, increasing very sub- stantially their deployment of hardened ICBM's. I said in my statement on the ABM that the Joint Chiefs do not know whether the offensive and defensive buildup of the Soviets Indicates they are seeking strategic superiority or strategic parity. DECISIONS AFFECTING STRATEGIC FORCES Several instances can be cited which indicate the adverse effect an our Strate- gic Forces due to Defense Department decisions. The manned bomber aircraft, such as the B-52, is an element of our Strategic Offensive Forces. It is capable of carry- ing nonnuclear as well as nuclear pay- loads. The requirement for that type air craft is well established. Yet, in this past year three B-52 bomber squadrons were phased out at an accelerated rate, and even though the Congress last year spe- cifically provided for the continued op- eration of these squadrons through fiscal year 1967. And unbelievable as it may seem in view of the significance of the B-52 to our Strategic Forces and the action taken by Congress last year, the Presi- dent's budget as presented to the com- mittee this year again called for a phase- out of another three squadrons. The committee has added funds to the bill to continue the B-52 bomber force at a level of 600 aircraft. It is essential that an advanced manned strategic aircraft-AMSA-be available as a replacement for the B-52 which is aging and is no longer in pro- duction. Yet the Office of the Secx,etary of Defense reduced by $25 million the\ funds which were requested by the Air Force for fiscal year 1968 and which are, by the Defense decisionmaking process could create a gap both in capabilities and in numbers of our aircraft. _Car rintihallistic missile system-- ABM-program is snot a eexampTe in volving a. strategic force of where funds added by the Congress have not been effectively utilized. The Soviets have been building and de- ploying their ABM system for some time and the administration policyrnakers have known of those Soviet activities. And, as to offensive missiles which could be used against us. General Wheeler pointed out that the Soviets are increasing very substantially their de- ployment of improved ICBM's, while the Secretary himself told the committee it it believed that Red China too is pur- suing its nuclear weapons and ballistic missile programs with high priority. The arguments which favor a go-ahead decision are well known and they in my opinion are sound. There is almost unan- imous agreement by our top military leaders and other responsible American officials that this Nation must have an antiballistic missile system. A decision is needed which will keep us moving at least enough to stay even with and per- haps catch up to the Soviets. Gen. Harold Johnson, Chief of Staff of the U.S. Army, expressed his feelings to the committee on March 10, 1967, on the need to begin immediate deployment of an ABM. General Johnson said: Now, one cannot argue against discussing the issues that are to be discussed with the Soviets, you cannot argue that at all. How- ever, the uneasiness that I feel is basically this: When do we stop discussing and when do we reach a decision point? The Chairman of the Joint Chiefs of required in order to move ahead with` '""" "a vu iur the required The go-ahead for the con- years unanimously supported the posi- tinued AMSA development must be given ree d to deploy N Nihis kke e X. The e Joint o sh now pro- so that the operationally capable aircraft ecndi Chiefs' will be available when it is needed. The ment t to to maintain is based the total l the strategic ic require- will deemed it necessary to again clear balance clearly e emphatically support AMSA at a higher United States. clin favor no level and $25 million was added to this \decision nits been made *until e to this begin moment te- bill. The bill makes $51 million, the $26 Imenet t of of an been requested, and the $25 million a ABM system. added, available only for the AMSA General l reasons Wheeler once again presented ,the cogent 1?eawhich compels this program. )Nation to proceed with no further delay. The Congress 1 year ago provided $55 { He reminded the committee of the in- million above the budget estimate to )formation from the Intelligence com- maintain a production capability for the ( munity, and made public in the last year, F-12 long-range interceptor aircraft, the `that the Soviets are deploying one and most sophisticated fighter-interceptor elpossibly two ABM systems. He disclosed port on the Defense appropriation bill for fiscal year 1967, those funds were added because such action was deemed desir- able for our military security. Those funds to this day have not been released to the Air Force by the Office, Secretary of Defense. Failure of the Secretary of Defense to allocate the funds in a timely way for F-12's has already resulted in a loss of the option to keep the production plant warm. This, it turn, has caused a serious delay in the available operational date of the aircraft and it is evident there will be need for an increased amount of funds in order to start up the production )destruction capability-that is, our ability plant when a decision is finally made. to destroy their industry and their people, Second, to complicate the targeting prob- As in the case of AMSA, the delay in 1lem which we have in directing our strategic the go-ahead for the interceptor aircraft forces against the Soviet Union. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE States would undertake a preemptive nrst Tense Department planned d to inactivate strike against the Soviet Union, even under the Department by July 1967. It was bility, permitting them freedom to pursue into effect, such as issuing termination It should be remembered that those its to expand Soviet defensive and of- cisively building their capabilities thus "permitting them freedom to pursue specific items where it was the judgment of Congress that increased funding was called for. While we can and do supply the Secretary of Defense on numerous occasions has completely refused to put the funds to use for the stated purpose. In the interest of our national security it is vital that Congress continue its efforts to see that needed programs are ad- vanced and funded. AIRLIFT OF THE AIR FORCE RESERVE COMPONENTS e buildup in Vietnam developed, the Air Force Reserve and Air National Guard were requested by the Military Air Command to help meet our air trans- port needs. They responded effectively and well, providing many thousands of flying hours and thousands of tons of transported cargo to Vietnam and else- where. The Air Guard and Reserve con- tinue to make this valuable transport contribution to our national welfare. In spite of this the Defense Depart- ment last year attempted to phase out three airlift units of the Air National Guard. The units which it attempted to inactivate are located at White Plains, N.Y.; Pittsburgh, Pa.; and Van Nuys, Calif. The Defense Department again at- tempted to inactivate those units and it also scheduled for phase out during the final quarter of fiscal year 1968 the unit at Homestead, Pa. These four units last year produced a total of 18,125 produc- tive flying hours, flying a total of 16,- 014,673 ton-miles. The Defense Depart- meet also planned to phase out eight Air Reserve airlift units during fiscal year 1968. Obviously these and other airlift units are making a 'very meaningful contribu- tion to our effort in Southeast Asia. They are also a valuable source of training and a valuable source of trained. per- sonnel for any emergency situations. aircraft, would have had to begun some time ago, very likely before action would be completed on this regular Defense ap- propriation bill which is now before the House. For that reason the Supplemental Defense Appropriations Act, 1967, which was approved on April 4, 1967, contains provisions requiring that not less than 40 Air Force Reserve troop carrier and airlift groups and not less than 25 Na- tional Guard airlift groups shall be maintained during fiscal year 1968. The effect of this is to maintain the airlift groups at their present level. The bill before us provides $26.5 mil- lion-$12.1 million in appropriations and $14.4 million in available funds-for con- tinuation of Air Force Reserve compo- nents airlift capability as called for by Public Law 8, 90th Congress, the 1967 Defense supplemental appropriations bill. RETENTION OP 8-52 AIRCRAFT The committee has provided funds amounting to $11.9 million over and above those requested in the budget in order to provide for the continuation of 600 B-52 aircraft in fiscal year 1968. The amount provided is based on the further continuation of this number into fiscal year 1969. As proposed in the Defense budget, this represents yet another area where action was taken contrary to the express direc- tion of Congress and which would reduce our defense capabilities. Last year, in response to a proposal to phase our three B-52 squadrons from the fleet, Congress added $6 million to the Defense bill spe- cifically pointing out that the additional funds were to main the B-52 fleet at 600 aircraft. In spite of this, however, the De- fense Department proceeded with a modified phaseout of 45 B-52's, placing 20 in storage and 25 in what it termed a ready status. In view of the obvious need for bomber aircraft capability and the fact that Con- gress took special care to emphasize our need in this area In connection with the Defense appropriation bill last year, it is highly disturbing that this phaseout should have been carried out even in a modified way. It Is even more disturbing that for fiscal year 1968 the Department of Defense has come to the Congress with plans-to phase out an additional 45 B-52's. Fifteen would be placed in moth- balls and 30 in units in ready status. Certainly the situation in the world to- day shows a great need for keeping our strategic bombing force at as full and complete a level as possible. The B-52 can play a most significant part in the case of airborne alerts of our Strategic Air Command. Airborne alert is a unique method of providing a show of force during periods of crisis with a portion of our nuclear capable forces. At the time it is in operation, those aircraft airborne are not subject to a surprise at- tack from either intercontinental or sub- marine-launched ballistic missiles. As H 7069 such, they constitute a force capable of immediate attack, if required. We do not know what kind of engage- ment we would be called upon to fight in the future. For this reason we must main- tain our best options against a threat we cannot predict with certainty. As we have seen in the case of Vietnam and other areas it is to our benefit to have flexibil- ity in our operational capabilities. Our goal must be decisive strategic supe- riority. The B-52 is also of importance to the Air Force in meeting its collateral re- sponsibilities such as conducting anti- submarine warfare and protecting shipping, interdicting enemy seapower through air operations, and in laying mines from the air. These are missions of obvious far-reaching importance and the B-52 is necessary to help fulfill these responsibilities. It is vital to retain the B-52 highly trained efficient crews together so that they would be available should the situa- tion call for their service. The Depart- ment of Defense however, in addition to going ahead with the inactivation against the express direction of Congress, actu- ally accelerated its phase out schedule from the fourth quarter of fiscal year 1967 to the third quarter in order to fi- nance additional civilian personnel au- thorized by the Secretary of Defense and in order to make additional pilots and other personnel available elsewhere. PILOT SHORTAGE Personnel is the most important asset of our military services. Yet the budget and testimony throughout the hearings concerning the management of personnel resources in the Defense Department de- picted what to me seems an incongrous situation. The budget requests an in- creased number of civilians on the pay- roll while the services have been denied the numbers of military personnel which they had requested. And this while we are at war. For example, the Air Force request for military personnel was reduced by almost 26,000 by the Office of the Secretary of Defense. With that action the Defense Department is actually planning a net reduction of 11,500 in the military per- sonnel strength of the Air Force in the coming 12 months. On the other hand, the DOD planned to increase the civilian strength of the-Air Force by 5,863 during the same period of time. It was in the category of military per- sonnel available to fly aircraft, however, that the most glaring example of acts of ommission or commission in personnel management were revealed. Each of the services-the Army, the Navy, the Ma- rines, and the Air Force-are short pilots. The pilot situation in many instances is serious. Since it takes many months to train a pilot, this shortcoming will not be rectified soon and it is obviously the re- sult of an accumulation of past actions compounded by 2 years of war in Southeast Asia. The hearings revealed the office of the Secretary of Defense disagreed with an Air Force request to increase its pilot production rate. As a consequence, the total number of pilots by which the Air Force requested to increase its previously Approved For Release 2004/03/11 CIA-RDP69B00369R000100180198-8 H 7070 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 approved pilot production program was reduced by 376. The OSD disagreement with Air Force pilot training needs was particularly evident as concerns Air National Guard pilots for which the Air Force requested 299 pilot training spaces. This request was denied and the Guard was left with 145 spaces-the same number it had pre- viously. This In spite of the fact that the increased pilot production is needed now by the Guard to meet the forced attri- tion losses which it can foresee occurring 2 years from now. This, also in spite of the fact that the Air Force pilot training course to which Guardsmen are sent, Is the only reliable source of Air National Guard pilots. The Chief of the National Guard Bu- reau believes that a lack of Air Force training facilities is the reason pilots cannot be trained at the rate requested. The Army, too, is in critical need of aviators. Its shortage is of several years' standing and it will not meet its flight training program objectives for some- time into the future. Testimony of Army witnesses shows that the Army requested a training rate of 800 pilots per month. The OSD cut that rate to 610 per month. Admiral McDonald, Chief of Naval Operations, stated the Navy's case this way on March 15, 1967: We do have urgent pilot needs brought about by low pilot training quotas in the early sixties and by the severe pilot reten- tion problems we face today. to open additional training bases or a No. 4 aircraft means there may well need for additional trainer aircraft or be as much as 6 months or more addi- for any other reason additional funds tional slippage to the date by when the are needed, I feel certain those funds Navy will find out if the aircraft it is will be provided by the Congress once the attempting to develop will be satisfac- Department of Defense comes forward tory or not. and makes known those needs. Four preproduction models of the F- THE NAVY VERSION OF THE TFX AIRCRAFT. 111-funded for in the fiscal year 1966 THE F-111B program-are scheduled for delivery be- The F-111B aircraft which the Navy gining with No. 6 about 1 year from now. is trying to satisfactorily develop is an As of the time of the hearings, complete outgrowth of the TFX program which specification weight changes had not was established with the insistence of the been determined but it was believed that top level of the Department of Defense the full package of weight changes would that both the Navy and the Air Force be incorporated in aircraft No. 7. should develop an aircraft of common. In addition to the weight problems basic design. In the case of the TFX the there have been several other problems Navy and Air Force versions have both of continuing concern to the Navy and suffered from compromise in perform- to the committee as the development and ance by the emphasis on commonality, testing program unfolds. Including the funds in this bill, over For example, pilot visibility has been $5 billion will have been approriated for inadequate for safe carrier landing; the all purposes for the various Air Force plane has been tall heavy and a more and Navy versions of the F-111-type air- favorable balance needs to be achieved craft and their associated systems. for carrier deck operations; and this The President's budget request in- Navy development aircraft has now cluded $418.1 million for R.D.T. & E. and grown tremendously in size. procurement of a Navy aircraft and mis- Also, the need for an improved engine sile weapon system which is known as with greater thrust across the entire the F-111B/Phoenix system. thrust spectrum has been determined. Because so many years have now An improved engine is now in the de- elapsed since its need for such a weap- velopment stage with a hoped for de- ons system was first conceived, the Navy, livery schedule to begin early next year. this past year restudied what its re- Aircraft No. 8 would be the first air- quirements might be. craft to include all change for the new The Navy, by its study and exams- engine now required. nation of all available evidence this past Also of continuing concern to ev r e yone More detailed information presented Year confirmed that the Soviets might is the escalated cost figures. The original the committee reveals that the shortage Possess a highly sophisticated threat 1962 estimates for the Navy F-111B pro- of Navy pilots will become increasingly capability against the fleet by the mid- gram was for a unit flyaway cost of $3.5 severe. The short fall of pilots in the 1970's. The study indicated that the de- million. Program changes up to last year coming year is expected to reach almost veloping F-111B/Phoenix system will on the Navy's version have resulted in 2,700 and regardless of whether the meet the Navy's needs for the mid-1970's an estimated unit flyaway cost of $8.0 Southeast Asia war ends or not it will if the system's performance matches the million armed with Phoenix missile sys- take 3 or 4 years to overcome the pilot Performance assumed in the study and tem. Additionally, over the same time shortage in the Navy. if the aircraft can meet the Navy's car- period the estimated cost for support Present capabilities for training Navy rier suitability requirements. equipment for each aircraft has in- pilots are taxed to the limits. The Navy It is increasingly apparent that the created to $3.0 million from $800,000. cannot train them at a rate greater than Navy F-1116 was the most ill-advised As a consequence of these problems it now planned because of the overload to undertaking to come out of the TFX pro- Is impossible for the Navy to determine its training command. According to Navy gram which is now over 5 years old. whether or not the production aircraft Capt. W. R. Flanagan of the Bureau of The Chief of Naval Operations, Admiral will be something they consider satis- Personnel, the Navy's capacity to train McDonald, told the committee that if it factory. pilots is limited by its limited physical were possible to start over again he Clearly much yet needs to be learned plant, by its limited number of trainer would not follow the' course established in the test and development stage of the aircraft, and by its shortage of instruc- by the Defense Department. The Ad- Navy's version of the TFX. tors and maintenance personnel. miral testified: Admiral Bowen, Deputy Chief of Naval The Marine Corps estimates Its pilot i would have designed a plane giving full Operations for Development, testifying shortage now at approximately 850 and consideration to the weight limitations that on April 5, 1967, said: that this shortage will grow to over 1,000 are imposed upon operations from an air- We do not really know whether this plane In the coming craft carrier. year. It was revealed at the [the P-111B] is satisfactory for Navy pur- hearings that the Marine Corps was un- As of early this spring the Navy had poses as envisaged until we have completed the flight test of the plane incorporating the able to go to a wartime pilot manning five research and development F-111B level in South Vietnam. Incredible as it aircraft flying. Aircraft Nos. 4 and 5 had may seem the marines are fighting a war been put togther in a laborious and ex- using peacetime pilot manning levels. pensive superweight improvement pro- The committee provided in full the gram. From flight tests of Nos. 4 and 5 amount of funds requested by the De- the Navy hoped to obtain important in- fense Department for aircraft pilots. formation on the flying qualities, per- This includes flight Pay and other related formance and carrier suitability of Its personnel costs, training programs, flying version of the TFX. Preliminary evalua- hour programs, and so forth. tion flights of those two aircraft began In the time since the hearings con- on March 16, 1967. Tragically, one of cluded the Air Force announced a pro- those planes, No. 4, crashed on April gram of "selective retention" which ap- 21, which date was after the committee parently is based in part on Its need for had heard most of the testimony con- pilots. However, it seems to me that the cerning the F-111 programs. From the pilot shortage problem is one which testimony a possible overall 2-year probably will require additional action slippage in the program had been indi- by each of the services. If there is a need cated. Unfortunately, the loss of the Because of the difficulties encountered which have led to slippages and slow- down in the program occasioned in part by the crash of one of the test aircraft, the committee determined it could not recommend the full $287 million budget request and reduced it by $78.2 million for the F-111B. Further the bill contains a limitation which states that the $208.8 million rec- ommended in the bill shall be available for the F-111B aircraft program only. Thecommittee took this action to keep these funds under better control of the Congress. If for any reason the F-111B program does not proceed in a timely Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11: CIA-RDP69B00369R000100180198-8 June 13, 1967 one and perhaps two ABM systems for their own defense. Last year, aiming at the deployment of an ABM system, the Congress added $167.9 million. Those funds were not used In fiscal year 1967. For initial deployment, the accompany- ing bill provides $298 million, which Is In addition to the $168 million appro- priated in fiscal year 1967 for this pur- an aircraft which will meet the Navy requirements. Whether the aircraft which eventually develops will still be designated the F-111B is immaterial. What is needed by the Navy is an air- craft which can fulfill a Navy mission. Including the funds in this bill, nearly $5 billion will have been provided by Congress for a ballistic-missile defense system. It is our Nation's principal effort to provide defense against attack by intercontinental missiles or missiles launched by submarines. The committee is firmly of the view that funding is required to continue es- sential research, development, test, and evaluation of the Nike X system. There is little controversy concerning such R.D.T. & E. efforts and the bill contains $442 million for this purpose. The question as to whether and when to begin deployment of the system in con- troversial and the committee noted the combined opinion of the Joint Chiefs of Staff which slid call for immediate de- ployment. Over 3 months have now elapsed since the testimony was heard. The Secretary of Defense on the other hand proposes that no action be taken to begin deployment of Nike X pending the outcome of discussions with the So- viet Union. The Soviets of course are capable now of directing ICBM's against CONGRESSIONAL RECORD HOUSE manner or if it should be cancelled be- cause of all the difficulties being encoun- tered, the Secretary of Defense could not reprogram or transfer these funds to some other program. It is to be hoped that the Department of Defense will eventually come up with In commenting on the reluctance to begin to deploy the Nike X system on the part of the administration, our commit- tee report states: It would appear that the initiation of de- ployment of "light" or "thin" defense, now, may very well be a most useful first step to- ward whatever level of ballistic missile de- fense ultimately appears necessary. In other words, the report, adopted unanimously by the committee, says: "C=et oing." "-""~"~'^NVCLEAR ESCORT SHIPS The Defense appropriation bill before the House shows the continuing strong support of the House Appropriations Coniniittee for nuclear propulsion in our major surface warships and, of course, in our submarines. The bill contains $134,800,000 for two nuclear-powered guided missile de- stroyer leaders. These ships are known as the DLGN. Of the amount appropri- ated, $114.8'million is for the full fund- Ing of one DLGN, and $20 million Is for advance procurement for the second ship.1 would personally prefer full fund- ing for both ships. The budget request of $166.6 million for escort vessels was for two conven- tionally powered destroyers. Authoriza- tion to construct such ships was denied however in the Defense Authorization Act of fiscal year 1968 and the two nu- clear powered escort vessels were au- thorized instead. The action in this bill and in the De- fense authorization bill represents mean- ingful progress in the long, continuing struggle toward gaining acceptance by the Defense Department of the concept of nuclear powered surface ships. At least four major fleet escort ships- destroyers or frigates-are assigned to each aircraft carrier. These escorts are designed to operate either on independ- ent missions against enemy targets or as part of a coordinated protective screen to destroy enemy aircraft, missiles, sub- marines, and surface ships that attack the force. The Department of Defense did not request any major fleet escorts In the fiscal year 1964, 1965, or 1966 shipbuild- ing programs. In the fiscal year 1966 pro- gram, Congress, on its own initiative, authorized $150,500,000 for a new, nu- clear powered frigate-DLGN---appro- priated $20 million for procurement of long leadtime items for this ship, and urged the Department of Defense to in- clude the funds required for completion of this ship in the fiscal year 1967 budget request. The Department of Defense did not proceed with the procurement of long leadtime items, nor did they ask for funds for the nuclear frigate in the fiscal year 1967 budget. However, the Department of -Defense did ask for two nonnuclear guided mis- sile destroyers in the 1967 program. The fiscal year 1967 authorization act authorized the two nonnuclear guided missile destroyers, reauthorized one nu- clear frigate, and authorized $20 mil- lion to be appropriated for procurement of long leadtime items for another nu- clear frigate. The House Appropriations Committee recommended that Congress appropriate funds for a nuclear frigate, and further recommended that funds not be appro- priated for the nonnuclear destroyers. These recommendations of our commit- tee were incorporated in the fiscal year 1967 Defense Appropriation Act. As the bill emerged from conference, money was provided to fund one nuclear frigate and provide funding for the procure- ment of long leadtime items for an ad- ditional nuclear frigate. The fiscal year 1967 Defense Authori- zation Act included a provision that: The contract for the construction of the nuclear powered guided missile frigate for which funds were authorized under Public Law 89-37, and for which funds are author- ized to be appropriated during fiscal year 1967 shall be entered Into as soon as practi- cable unless the President fully advises the Congress that its construction is not in the national interest. The Secretary of Defense has now re- leased to the Navy the funds for con- struction of one nuclear frigate, the DLGN-36, but he has not released funds to initiate procurement of the long lead- time items for the second nuclear frig- ate. H 7071 In the fiscal year 1968 Department of Defense budget request the Secretary of Defense again requested two nonnuclear destroyers, but failed to request funds to complete the second nuclear frigate. On May 23, 1967, both the Senate and the House accepted the conference report of the House-Senate Armed Services Committees on the fiscal year 1968 De- fense authorization bill which provided that the two nuclear frigates be substi- tuted for the two nonnuclear destroyers requested by the Department of Defense and agreed to a provision in the authori- zation bill that. The contracts for the construction of the two nuclear powered guided missile frigates shall be entered into as soon as practicable unless the President fully advises the Con- gress that their construction is not in the national interest. In its action on the bill before the House now, the House Appropriations Committee continues to support the po- sition that we must have more nuclear- powered surface warships. Furthermore, it is clear that all future major fleet es- corts should be nuclear powered. The committee, as set forth in the re- port, expects the Department to proceed with the construction of the one DLGN, the advance procurement of the other, and to request funds for the construc- tion of the remaining authorized DLGN in the fiscal year 1969 shipbuilding pro- gram. The Department of Defense should proceed with the contracts for the con- struction of both nuclear-powered frig- ates in fiscal year 1968 as soon as practi- cable. We must get on with building more nuclear-powered surface escorts for our nuclear carriers. This subject has been thoroughly, re- peatedly studied and considered by re- sponsible committees of Congress. The facts clearly support the action being taken by Congress to provide all nuclear- powered escorts for our nuclear-powered aircraft carriers. SUMMARY OF THE BILL TITLE I-MILITARY PERSONNEL H.R. 10738 contains a total of $21,927,- 800,000 for military personnel. This is for pay and allowances for clothing, sub- sistence, permanent change of station travel, and other personnel costs. The amount in the bill is a decrease of $73.2 million below the budget estimates. A substantial portion of the reduction comes as a result of recently announced reductions in the rates for commercial airlifts. Another major portion of the decrease results from savings possible in Army travel costs as proposed in the budget. Language in the bill provides for an average strength of the Army Reserve personnel of not less than 260,000 and not less than 400,000 in the National Guard. Funds provided in the bill for opera- tion and maintenance total $18,994,200,- 000 for fiscal year 1968. This title covers generally the every day expenses involved in running the military establishment, including force units in training and combat; medical care for personnel and their dependents; Approved For Release 2004/03/11: CIA-RDP69B00369R000100180198-8 H 7072 CONGRESSIONAL RECORD - HOUSE to operate logistics support systems; command controls; communications sys- tems; dependents overseas education; for the support of free world forces in South Vietnam; and to operate base establish- ments in support of these functions. The funds supportan.active inventory of 34,468 aircraft, 938 active ships, 204 service hospitals, 54 major service supply depots, the direct hire of 905,195 civilian employees, and support of 628 active mili- tary installations. As proposed in the bill, the "Operations and maintenance" Is reduced by a net amount of $352.8 million, none of which are directly related to our operations in South Vietnam. These include such areas as savings because of reduced commer- cial air carrier rates, a cutback in the amount of additional civilian employees requested, reductions in excessive man- agement studies by independent firms, a holdup in the implementation of a pro- posed new resources management system, a reduction in the enrollment of the over- seas dependents education program, and various other reductions. TITLE III-PROCUREMENT The total contained in the bill for procurement is $22,261,200,000. This is a reduction of $655.8 million below the budget estimates. Basically, the funding provided under this title Is to allow the Defense Department to secure equipment and weapons systems. - For the Army $5.5 billion is contained in the bill to procure ammunition, weapons, and vehicles, aircraft, guided missiles and necessary supporting equip- ment. This includes funds for fixed and rotary wing aircraft, surface-to-air mis- sile systems, for potential procurement of long leadtime components for mis- siles, radars and ground support systems for the Nike X antiballistic system, and surface-to-surface missiles. It provides funds also for such items as tracked com- bat vehicles, tanks, self-propelled artil- lery, and air defense guns. For the Navy and the Marine Corps, $2,9 billion procurement funds are pro- vided in the bill for fixed and rotary wing aircraft, missiles, and related equipment. The sum of $1.42 billion is provided for the construction. of 28 new vessels and conversions of 21. The types of ves- sels involved range from ballistic missile submarines, submarine tenders, nuclear guided missile frigates and destroyers to amphibious ships, minesweepers and patrol ships, and auxiliary craft. For other procurement for the Navy and the Marine Corps a total of $3,011,000,000 is provided for ordnance, weapons systems, communications and electronic equip- ment, ammunition and other items, The amount provided for Air Force aircraft procurement is. $5.59 billion. This is for procurement of combat, air- lift, trainer, helicopter and aeromedical aircraft, for modifications and support programs. $1.34 billion is contained in H.R. 10738 for the procurement of a variety of missiles, including ballistic, air-to-air, air-to-ground, and target drone missiles. Other Air Force procure- ment funds for munitions, vehicles, elec- tronic and other supporting equipment totals $2.4. billion. The Defense Supply Agency, the De- fense Communications Agency, and other Defense-wide activities are funded at $40 million in the bill. TITLE IV-RESEARCH, DEVELOPMENT, TEST, AND EVALTYATION H.R. 10738 provides $7.1 billion for re- search, development, test, and evalua- tion for the military services. The funds included in this title are vital to our overall defense effort so that new weapons systems can be pursued aggressively and purposefully to main- tain our military effectiveness. The funds provided are to move ahead in such critical fields as the antiballistic missile, antisubmarine warfare, missile development, and a host of other proj- ects throughout the services. The amount provided represents a re- duction of $171.2 million in the amount requested for research, development, test and evaluation. Reductions were made in the request for funds for the Federal Contract Research Centers and for studies and analyses generally. CONCLUSION Mr. Chairman, the bill before us today, H.R. 10738, provides necessary funding for our defense program in our National interest. The committee and the staff worked long hours, weeks and months on the measure to get it in the best shape pos- sible, In our judgment, to bring before the House for consideration. When so many billions of dollars are involved there are bound to be areas where cuts and modifications can be made. We have attempted to the best of our ability to locate these areas and where they were found recommend re- ductions from the amounts requested in the budget. All the time, however, we were ever mindful of our needs in Vietnam and no reductions were made which directly or indirectly will affect our efforts in South- east Asia. In other instances it was our decision that additional funds must be provided and this we have done. These have been discussed in detail on the floor here to- day and in the report. In those cases where I have com- mented critically on aspects of the de- fense program today I have done so be- cause in my opinion certain things need to be aired and discussed in the best in- terest and welfare of our Nation. I urge the House to support H.R. 10738. - Mr. GROSS. Mr. Chairman, will the gentleman yield? Mr. LIPSCOMB. I yield to the gentle- man from Iowa. Mr. GROSS. Is this F-111B plane now costing $9 to $11 million per copy? Mr. LIPSCOMB. The original flyaway cost 5 years ago was $3.5 million. At the present time it Is estimated that the F-111B flyaway cost is $8 million plus support equipment costing about $3 mil- lion, or an estimate per unit of $11 mil- lion. Mr. GROSS. This Is one of the most disgraceful chapters in the history of the Department of Defense. Beginning with the award of this contract to the firm to June 13, 1967 which the contract went, the General Dynamics Corp. at Fort Worth, Tex.- and I am not going into details for the gentleman knows the story better than I do-but It Is one of the most disgrace- ful chapters in the history of the Depart- ment of Defense. I want to commend the gentleman for the searching inquiry that he gave this matter in the hearings be- fore his committee. I thank the gentle- man for yielding. Mr. LIPSCOMB. I thank the gentle- man. I know that he has been in the forefront in trying to keep tab on the F-111 program up, as he refers to it, the TFX. There is a great deal of additional information to be disclosed in the days and months to come. Mr. ANDERSON of Illinois. Mr. Chair- man, will the gentleman yield? Mr. LIPSCOMB. I am happy to yield to the gentleman from Illinois. Mr. ANDERSON of Illinois. I was in- terested in the observation which the gentleman made that the Department of Defense has identified, out of the fund- ing represented In this bill, approxi- mately $20.6 billion as being attributable directly to the cost of the war in Viet- nam. I noted then that the gentleman went on to say that in his opinion the real cost of that war probably amounted to between $25 and $30 billion a year. The question which I would put to the gentle- man is simply this: Does the gentleman therefore believe that in addition to this bill it is likely we will have a supple- mental appropriation bill In the amount of $13 to $18 billion? Is that a correct inference? Mr. LIPSCOMB. No. I did not give a figure such as that, but I have confidence that we will have a figure which I esti- mate at this time will vary anywhere from $3 to $8 billion. It is our estimate, which we verify from the cost of the efforts in Vietnam. I believe it is recog- nized by the Committee, that we are going to be faced with an additional supplemental bill. Mr. ANDERSON of Illinois. If the gentleman will yield further, I suppose the other variable in the picture is the possibility of escalation, about which we read something in the paper just this morning. Mr. LIPSCOMB. If we have to send additional personnel to Southeast Asia, if the attrition rate of our aircraft in- creases, if the sinking of our ships and other factors increase, if the use of am- munition increases, we will be faced with additional supplemental appropriations, and I must say this is recognized by our committee. Mr. ANDERSON of Illinois. If the gentleman will yield further, I merely want to add to what has already been said. I compliment the gentleman on an extremely fine and informative state- ment. The Information he has presented, especially with respect to the reluctance of the Department to proceed with the advanced manned strategic aircraft, and the information with respect to the F- 111B program and the TFX program should be spread on the RECORD. The Approved For Release 2004/03/11: CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD'- HOUSE H 7073 gentleman has made a good contribu- that the Russians are bringing in me- The problem before us is equally di- tion In pointing them out today. dium range missiles with which to strike vided between securing the countryside Mr. MAHON. Mr. Chairman, I yield U.S. bases or Vietnamese cities from and pacification. Because of poor per- 20 minutes to the gentleman from Flor- North Vietnam. The American people formance, or waste, or black market, or Ida [Mr. SIKEsl. want the Vietnam war won, for they are some of all of these, it has been neces- (Mr. SIKES asked and was given per- concerned with the fact that it goes on sary to place the problem of pacification mission to revise and extend his re- and on and the end Is not in sight. in military hands also. marks.) The total cost of the war to Israel was There is growing awareness that the Mr. SIKES. Mr. Chairman, it Is dis- $100 million. The U.S. Defense Establish- situation behind the lines in Vietnam appointing to note that some of the top ment costs twice that much every day for has been deteriorating. The pacification people in the Pentagon Are leaving Gov- 365 days a year, year in and year out. program in many areas is failing to se- ernment service. Among these are De- It should be noted that the Israelis did cure the countryside and win over the fense Deputy Secretary Vance, Under not allow themselves to be influenced by peasant. Our troops can win battles but Secretary of the Navy Baldwin, and Ad- third parties. They wasted no time with behind the battlelines the communities miral McDonald, Chief of Naval Opera- useless diplomatic flip-flap, or the endless are strongly laced with Communist sym- tions. I do not think too much can be said cacophony of the U.N. They looked after pathizers. The job of weeding out the about the caliber of these men or the Israel's interests first and talked after- Communist infrastructure, organizing quality of their contributions to Ameri- wards. These facts it would be well to the village population, and economic de- can defense. Each of them has been out- keep in mind. Again, there may be noth- velopment is considered the weakest link standing in his field and each will be ing significantly new or different in what in the strategic concept. This is the cru- sorely missed. It is not easy to replace they did on the field of battle, but it is cial key to an allied victory or eventual such men and the Pentagon has been well to remember that the winds of defeat of allied aims and justification of fortunate to have had their services. change blow constantly. What was good American sacrifices. It has been stated that this is the that we read in yesterday's books may be We know that our field commanders largest appropriation bill in history. It outdated today. We must be certain that want additional forces and there doesn't has been estimated that the House is Israel's military leaders have not learned seem to be much doubt that they will being asked to approve a billion dollars something that we have failed to teach have been made available. We still have every 5 minutes. All of this bears out the our own, a long, long way to go. During the past fact that even though we are fighting an Even so, it has been a long time since year, we have gained some in territory undeclared war, it is one of the biggest in the Communists have won an important held and in population controlled. But American history. It should Also be victory in Vietnam. An effort has been the percentage gained is small compared pointed out that this measure provides underway for months to mount a sus- to the size of the effort put forth. From the most effective defense package in his- tained and effective offensive by the this point forward, it may be possible to tory. The committee has seen fit to rec- North Vietnamese regulars. Presumably roll up the enemy forces and to get on ommend some deletions and some addi- such an offensive would include a sub- with the job of pacification at a more tions. All of them are sound. The addi- stantial part of that country's remaining rapid pace than has heretofore been pos- tions are of particular moment in that effective forces. North Vietnam desper- sible. If the threatened offensive can be they strengthen our defenses in areas ately needs a major victory for the contained and defeated decisively, the which obviously are very Important- morale of its own people, for that of the end of the fighting could come much AMSA, ASW, EA-6A aircraft, nuclear Communist world, to provide grist for more rapidly than now appears in pros- frigate, airlift capability, the continua- the Communist propaganda mills and for pert. tion of B-52 strength, and others. the doves In this country who still want In the meantime, the fighting appears I think it is almost certain to be found to go to the conference table. more and more to be an American re- that we have not faced up to the full re- To the credit of the U.S. forces, they sponsibility. This is had to fathom. We quirements for funding the Vietnamese have kept the Communists off balance to have spent much time, money, effort, and war. We have, however, approved the the point that their offensive still is not equipment-yes, lives-in helping to de- budget estimate. If the present scale of underway. Their supply lines continually velop effective Vietnam forces. The re- fighting continues through another fis- are being disrupted. Their concentrations suits have not fulfilled expectations. cal year, the cost will be nearer $30 bil- of manpower and equipment are under Many people wonder why more effective lion than $20 billion. Possibly, and hope- steady harrassment. This should indicate use cannot be made of the Vietnam fully, this scale of fighting will diminish, that the military situation In Vietnam is forces. It is their war. It is time that the and so will the costs. well in hand. But it does not take into U.S. high command found a way to Before we get too deeply into the details consideration the fact that half of South secure more effective support from the of this bill, let us consider the amazing Vietnam's area or more still is outside the Vietnamese toward insuring their own success of the Israel forces in the Mid- control of the South Vietnam Govern- freedom. For years we have heard of the east. This compels a very careful anal- ment. Some of It is safe only by day. importance of spending the taxpayers' ysis by U.S. strategists of Israel tactics Despite the presence of half a million money to help build up forces of other on the field of battle. By defeating the U.S. forces who have acquitted them- nations so that in time of emergency armies of three nations in less than ,a selves magnificently, a very large part of those forces, rather than American, week at the cost of 679 d th d h ea , ey ave Vietnam is Communist-controlled or would bear the brunt of the fighting, accomplished a feat unmatched in the Communist-infiltrated. The actual job Regretfully, history records but little in history of warfare. We and our allies of fighting and even that of pacification practice to justify that theory. There are have lost as many in the same period in has fallen more and more upon American exception, particularly in the case of Vietnam with very little to show for it soldiers. _ Korea. and I do not decry their sacrifice. The most productive area, the delta, is I think it important that there be full I realize full Well that the circum- largely in Communist hands. I have understanding of the concern of the stances ,are,,eptirely different. Neither pointed out many times that the delta is committee about the proposed reorgani- terrain or foe are comparable, But there the principal food reservoir of Vietnam, zation of the Reserve components. You should be lessons to be learned. Signifi?? but its abundant rice crops benefit the will have noted the language in the re- cantly,'the Israelis made all-out and best Communist armies and the Communist port on page 7 which deals specifically use of their facilities, including full use supporters, even the North Vietnamese, and clearly with this subject. This lan- of airpower. For most of the time that more than it benefits the South Viet- guage is intended to prevent the dis- we have been in Vietnam, we have fought namese. By whatever means are neces- banding of combat units in a time of ser- a, one-handed ,war, despite the protests sary, we should insure the clearing and ious danger to the United States unless of U.S..field commanders,. It goes on and pacification of the delta before another the proposals have been fully justified on and the casualty lists mount. More year runs out. U.S. forces which were in- before the proper committees of Congress and m,Slre Russian equipment is being tended to help alleviate this situation and until such time as formal legislative brought in to offset our air superiority have had to be moved northward to the expression can be made. and the losses, there, too, in men and area of the DMZ to meet the new off n - Th e proposed reorganization of the planes, are piling up. Now we are told slue threat which is building there, e Reserve components is altogether too Approved For Release 2004/03/11 : CIA-RDP69B00.369R000100180198-8. H'7074 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 similar to the merger proposal which would have eliminated the Reserves a few short years ago. Since that time, it is significant that the Reserves have gradually been whittled down and so has morale. Beginning with a strength of 300,000, they were reduced step by step to the present level of 260,000 which is provided for in the accompanying bill. The reorganization plan, however, would reduce them further to 240,000 and elim- inate all combat units. By way of history, the present reor- ganization plan was submitted by the Department of the Army to the Section 5 Committee which is charged with re- sponsibility in these matters. The Sec- tion 5 Committee is made up of officers from the Regular forces, from the Guard, and from the Reserves. Despite OSD support for the reorganization plan, it was approved by a vote of only 11 to 10. The plan would strip all combat units from the Reserves, including four brigades and 316 smaller units, with an authorized strength of more than 50,000 men in combat units. It would eliminate 15 divisions in the National Guard. A to- tal of 400 combat units would be affected. Ten of the 21 who serve on the Section 5 Committee supported plans to give com- bat units to the Reserves also. It will have been noted that we have In the bill before the House a floor of 260,000 for the Reserves and 400,000 for the National Guard. There also is lan- guage in section 638 which was added to deal with a threatened merger at an earlier date. That language is largely meaningless insofar as the present prob- lem is concerned because it refers to un- expended balances rather than to the total appropriation. Since action must be taken at this time to show the interest of Congress, we have written language into the report which we feel is strong and meaningful. Our procedure avoids legislation on an appropriation bill. It gives further opportunity to the Com- mittees on Armed Services of the House and Senate to take any legislative action which may be required. Such an oppor- tunity is before the Congress in H.R. 2 which :has passed the House and which is awaiting action in the Senate. H.R. 2 will have to be amended to be effective in the present case but at least it provides a vehicle to which amendments are ger- mane. I would call attention to the fact that wader the language in our report, a reprograming action would be required to accomplish the realinement which has been proposed. This would require at least a, measure of compliance with the intent and interest of the Congress in knowing more about the proposal by the Department of Defense. Essentially, then, we have been asked to approve carte blanche a plan which has not been reviewed by Congress. In fact, Congress has not even been given the courtesy of a request for approval- during or after the budget submission. the liberal press has par- ithfull F y a roted the Pentagon propaganda support- widespread. They come from highly- tive weapons. The comparative inactiv- ing the cutback in combat units in the placed individuals in and out of the mili ity of the United States in this field un- Reserve components. They say this will tary. Included in these objections is a doubtedly will encourage the Russians to result in better trained and more effec- statement by the national executive continue discussions while stepping up tive waits. I fail to see what magic units committee of the Reserve Officers As- their own anti-ballistic-missile deploy- can be trained,-adequately equipped, and sociation which includes members of all ment. Every week that goes by widens combat sharpened in the Guard but not branches of the service and a statement in. the Reserves, or by what magic battle from the Senior Reserve Commanders effectiveness in either Guard or Reserves Association. These individuals know can be gained through disbanding com- what the effect of such a reorganiza- bat units and making their trained per- tion would be. Please note, however, that sonnel into clerks and food handlers. the Congress is not attempting to say It is very obvious that we live in a to the Pentagon that it can or cannot world of crisis. We have just gone carry out a reorganization. We realize through a very serious period in. the Mid- that reorganizations sometimes are dle East and it cannot be said today that necessary. We simply are asking that the all the probleips in that area have been proposed realinement be deferred pend- resolved. We are confronted with a re- ing such time as formal legislative ex- quirement for more troops in Vietnam. pression can be made in the matter. The field commanders there have re- The bill and the report before you quested them and it should be obvious make no mention of it but it is entirely that they are necessary. Vietnam, which possible that serious damage is being started out to be a little war, has become done to the Navy's selected or drill pay one of the biggest in our history. We are reserve. During the past 4 years the spread thin. If there should be another strength of this force has been cut from crisis anywhere which involves American 155,000 to 126,000 despite the fact that forces, it will also almost certainly be the Joint Chiefs have approved a necessary to call up the Reserves. For strength for the Naval Reserve forces of some strange reason, they have not been 160,000 and despite the fact that the used except in very limited numbers in Chief of Naval Operations and the See- the Vietnam war where the Reserve retary of the Navy have for 3 years rec- components could have contributed ommended to the Defense Department much. an increase for the Naval Reserve to If preparedness is to be insured by this reach this planned strength. The fact bill, we should not, in its passage, ap- that the situation is serious is empha- prove by indirection the loss of combat sized because the Navy's Selected Re- units. Preparedness should be a central serve is a "D" Day reserve which cannot theme of this Nation's policies. It is ob- depend upon fillers to build it up to vious that our Nation may at any time strength when reporting for active duty. need every trained military man that it It has been estimated that more than has. If this is true it is equally obvious $7 million is needed to build the drill pay that we should be strengthening, not program to 132,000 people by the end of weakening, all our forces including the the next fiscal year. Reserves; that dedicated, trained, and ex- Let me get into other areas. I cannot perienced manpower, organized and say that we have accomplished anything ready, and the drill strength Reserves of significant in this bill toward attain- both the National Guard and the USAR ment of. an anti-ballistic-missile system. be given full support and encouragement A year ago on good authority that the to carry out the assignments which may Russians were building such a system at any moment be theirs. this committee provided funds to initiate Again, this would not be the case if construction of a system of our own. The the new plan for reorganization of the money was not used although the Secre- Reserve components is carried out as tary of Defense confirmed late in the proposed by the Secretary of the Army. year that a Russian system is under con- Under this plan, as I stated, the organ- struction. We have money in this year's nation Reserves would be composed en- budget to continue testing but that is tirely of support forces. All combat ele- about all. The committees of Congress, ments now in the Reserves would be the House and the Senate, the Joint transferred to the National Guard or Chiefs, the Secretaries of the Army, abolished. In substance, the Reserves Navy, and Air Force agree that the would become hewers of wood, bakers of United States should have an antibal- bread, and carriers of water. I do not de- listic-missile system. But the Secretary cry the function of support forces. With- of Defense disagrees. His word is law in out them no army can win. But I am the Pentagon. We are embarked on one concerned, and seriously concerned, with of those strange quests in which America the proposal to abolish 15 National. sometimes finds itself. Instead of pro- Guard divisions; to abolish four infantry viding for our own defense, we hope to brigades which. I am informed are now convince the Russians by talk that they full strength and capable; and to abolish should dismantle the anti-ballistic-mis- several hundred USAR combat units, sale system they are building. Through- with their 50,000 trained and experienced out her military history Russia has not men. It would appear that in the thirst had a break like this. Months have for economy or merger of the Reserves, passed and they still are busily engaged as the ease may be, would not be suffi-? in building an anti-ballistic-missile sys- ciently compelling to cause a weakening tem to protect their nation and to re- of the Nation's military capability in the adjust the balance of military power in face of its serious commitments world- their favor. But they say they are willing wide, in a time of grave international to talk about it. That does not provide pressures. me with any substantial degree of com- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA=RDP69800369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD -HOUSE H 7075 the gap and increases the danger to the United States and to American citizens. Now to manned aircraft. Throughout this bill it will be noted that there Is a gradual scaledown of manned air- craft. In fact were it not for the efforts of this committee and the Congress we would be much weaker today in manned aircraft than we now are. It is proposed to continue that scaledown even for fis- cal 1968 when the Nation is very defi- nitely engaged in a serious war which is testing our military resources. There are altogether many people in the Pentagon who still seem to look upon the war in Vietnam as a minor engagement to be carried on one-handedly while the grand scale of the Pentagon's program for some mythical future engagement is carried forward as the primary objective. It would occur to me that the primary ob- jective of the Department of Defense should be to win whatever war we find ourselves engaged in and to do so as quickly as possible and to think of the grand program later. There may be new danger in the Rus- sian submarine threat with their missile launch capability and their threat to American shipping. During recent years there have been few indications of stress by Soviets on submarine construction. Apparently this resulted from Soviet em- phasis on their anti-ballistic-missile system and even on the belief that the Soviet submarine program was sufficient In numbers and capability for any re- quirements that might be placed upon it. It does not now appear that this is the case. There seems to be a renewed em- phasis on Russian submarine program with a high degree of modernization. For a long time the United States held the edge in the submarine field in quality even though badly outnumbered. This picture can rapidly change if indications of improvements and progress In the Russian submarine are borne out. It is entirely possible that we should be plac- ing much more emphasis on submarine construction to reflect Soviet increases in numbers and their added defensive capability. This is the best report that has accom- panied any defense appropriations bill. It deals more carefully and explicitly with the background of our funding prob- lems than any previous report, and spells out the particular reasons for each of the committee's important actions. Reading it will take time, but it is well worthwhile. A great deal of work is required for a measure of the magnitude and detail of this one. The services of a great many people go into it. Long hours through many `days of hearings and study are re- quired. 'iaoh of the committee and staff members with whom I have worked are die a large measure of appreciation for the product which is before you. How- ever, I would like particularly to call your attention to the very dedicated effort of the distinguished gentleman from Cal- ifornia [Mr. LrpscomBl. I suspect that he has put in longer hours and given more effort to the bill than did any other in- dividual. His contributions were monu- mental and he, particularly, is worthy of credit. This Is not to take credit from the chairman of the committee, the distin- guished gentleman from Texas [Mr. MAHON], whose great contributions to defense are so well recognized. It is his leadership which has insured a balanced defense program time after time when those in the Pentagon seemed disposed to follow too closely the defense pana- cea of the moment. The cuts that have been made are not crippling. It is a healthy thing that the committee has faced up to the fact that military expenditures must not, be- cause of their nature, be immune from the same close scrutiny that should be given to other governmental expendi- tures. Since the serious buildup began in Vietnam, it has not been possible to make meaningful cuts. The continuous escala- tion of warfare has meant an anticipated need for more money than that being appropriated each year. This situation is understandable, but in itself it is produc- tive of carelessness and waste. It should now be obvious to the Pentagon that Congress is again looking carefully at expenditure and will expect an equally careful scrutiny by the Department of Defense as expenditures are made. At least in some instances where cuts were made, they could have been deeper. Yet the committee does recognize the neces- sity of leaning over backward to provide funding for all the items needed to sup- port the fighting forces. The cuts set forth in this bill are an indication of renewed interest on the part of the com- mittee in obtaining savings where savings are possible. When you consider the fact that we are involved with a deficit between $14 and $29 billion, it is time to think about savings and to wonder whether we really cut deeply enough; particularly in the fields which are not associated with winning the war in Vietnam and which smack so strongly of bureaucratic build- up at so many levels. There are areas which offer promise for further reduc- tions In spending. I am not at all certain that we have cut deeply enough into pro- posed additions for civilian personnel or that we have tightened the lines enough on the nonprofit corporations. The nonprofit institutions are the organizations which are set up to pro- vide services to the Government by con- tract and who attract for their operating personnel individuals who are not will- ing to work for the salaries paid to Gov- ernment employees. The organizations have borne a charmed life. There seems to be too little indication of an effort by the Pentagon to require them to hold down expenditures or to require a realis- tic return from the projects assigned to them. Admiral Rickover, who is one of the most capable thinkers in the Penta- gon, has stated repeatedly that the De- partment of Defense needs more in- house capability rather than contract or nonprofit operations. Certainly the hour is late and Congress should be reestab- lishing a measure of control on continued expansions in noncombat areas. I have long been convinced that the Pentagon is running studies into the ground. At any time witnesses do not have an answer to a congressional query, they say the mat- ter is under study. The rapidly escalating number of civil- ian employees now In the Department of Defense is to me an equal cause for con- cern. Every year we hear of savings in the operation of the Pentagon, but each year there is a mounting wave of higher costs. I question that there is really much that can be substantiated in the way of real, not theoretical, savings, in many of the activities which are carried on there. The United States employs nearly 3 mil- lion civilians worldwide. The number has increased by several hundred t.iousand in the past few years. Mushrooming Washington shows where most of them have found a happy home. A part of the civilian buildup has to do with substituting civilians for mili- tary. Testimony reveals that there is no plan to convert these jobs back to mili- tary slots when the fighting in Vietnam has ended. This means maintaining a very large civilian establishment and a cutback in the Military Establishment when conditions return to normal. I do not think this is a healthy program. Ob- viously, we cannot have an all civilian Military Establishment. We must have people in uniform to fight battles and win wars. They need promotion oppor- tunities. We can have so many civilians in the Military Establishment that there will be no place for military personnel other than in overseas defense posts. That adds to the problem of separation of families. In time of emergency we would have fewer military personnel to report to battle stations and there would be the problem of delay which would result from requirements to train addi- tional personnel to fill the ranks. I just do not think this program has properly been thought through. Very possibly many of the studies which are designed to evaluate Penta- gon programs are useless or irrelevant or both. The entire field has been studied by the Government Operations Commit- tee and their findings are scorching. They show duplication and ineffective conclu- sions and too frequent disregard of the findings of the studies. This is the sort of thing our committee seeks to elimi- nate. There are too many cases of studies made of studies and nothing concrete to show savings to the Government. There are areas of activity in which I am sure the taxpayer would welcome a greater show of zeal on the part of gov- ernmental negotiators. Some of these, such as the case of U.S. negotiations for compensation for U.S. bases and operat- ing facilities in France, are in the hands of the State Department, rather than OSD. It would be very well, however; at whatever level, to urge U.S. negotiators to work harder to get something of value for whatever property we leave in France or wherever. The French appear to be- lieve that they can get our installations and nonmoveable equipment for little or nothing. Frequently this is what happens and the taxpayers are tired of it. So far we have just exactly nothing to show for our efforts. Now finally this: Because we have car- ried on the war In Vietnam while ad- hering to a policy of business as usual at home; because we have leaned over back- wards to keep from exposing the average American to any hardship or deprivation as the result of war, there are many who have overlooked some very significant Approved For Release 2004/03/11 : CIA-RDP69B003.69R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7076 CONGRESSIONAL RECORD - HOUSE facts. it should be emphasized that there are some among us; those who bear the brunt of battle, those who bear the bur- den of keeping open supply lines and their families, who are in a war. They are bearing a burden just as serious and frequently, just as great and just as dan- gerous as that in any major crisis in our country's history. For those who carry the load in Vietnam the exposure to dan- ger, the separation of families, the incon- veniences which most people knew in prior wars when our whole Nation was mobilized in once again a way of life. The fact that most Americans are not personally involved in the war does not diminish the sacrifices required of the fighting men and their families, and it should result in greater appreciation for them on the part of the rest of us. They have Performed magnificently and they are entitled to the respect and admira- tion of the American people. Theirs has been an example which should not be overlooked even by those who conduct demonstrations, burn draft cards, and desecrate the American flag. Mr. RIVERS. Mr. Chairman, will the gentleman yield? Mr. SIKES. Of course I yield to the distinguished chairman of the Commit- tee on Armed Services. Mr. RIVERS. Is the gentleman satis- fied with .the Hebert bill on the reorga- nization of the Reserve or the Guard? Mr. SIKES. H.R. 2, which the gentle- man aptly refers to, is an important measure that has twice passed the House and which now awaits the action of the Senate. That bill, while it would not now deal specifically with this situation, would not now deal specifically with this situation, would at least prove to be a vehicle to which germane amendments would be applicable as an expression of the congressional interest and intent in this matter. Mr. RIVERS. Within the framework of this proposal by the gentleman from Louisiana [Mr. HEBERT], and Senator RUSSELL has assured me-and it is the first time he has done it-is such that he will schedule this bill for hearings. If he does, it will certainly pass. Within the framework of this bill, is it not the gen- tleman's understanding and assurance that we can work out, by legislative and congressional mandate and action, a mandate to protect the integrity of the Guard and of the Reserve components? Mr. SIKES. It would be my hope that the problem of Reserve reorganization can be dealt with in this manner. That is exactly the reason we have placed lan- guage in our report to deal with the sub- ject rather than writing new law into the bill itself. Our committee has leaned over backwards in an effort to avoid legislat- ing in an appropriation bill. Mr. RIVERS. Well, of course. Mr. SIKES. We have asked that the re- organization be deferred through the medium of the language of the commit- tee report until such time as an expres- sion of the Congress could be manifested through regular legislative channels. Mr. RIVERS. Mr. Chairman, if the gentleman will yield further, I think the gentleman and his committee have done a wise thing. And, further, Mr. Chairman, I can as- sure the gentleman that we on the House Committee on Armed Services do have the same concern. We are going to keep the numbers as they are, and the in- tegrity of these units will be preserved, if humanly possible, in this area. Mr. Chairman, I want the distin, guished gentleman from Florida [Mr. SIRES] to continue his great assistance to us, because the gentleman knows so much about it and we do need his help. But, again, I want to congratulate the gentleman for helping us save those units from those people in. the Pentagon who are seeking to change our policy in the Guard and in the Reserves until the Con- gress clearly stepped in and stopped it. Mr. SIKES. I appreciate very much the comments of the distinguished gentle- man from South Carolina [Mr. RIVERS], the gentleman who has contributed so much to the defense of America. Mr. Chairman, permit me to warn that what is desired here for the preservation of combat units will not be attained sim- ply by the language of the report, or by the language of H.R. 2 as it now is writ- ten. H.R. 2, however, does provide a vehi- cle to which amendments dealing with the subject can be offered. Further, Mr. Chairman, I would like to call attention to the fact that the lan- guage of our report and the reprogram- Ing action required thereunder, would require at least a measure of compliance with the intended interest of the Con- gress in learning more about the justi- fication of the proposals which are made by the Department of Defense on the Re- serve components. Mr. RIVERS. Mr. Chairman, will the gentleman yield further? Mr. SIKES. I yield further to the gen- tleman from South Carolina. Mr. RIVERS. Not necessarily indispen- sable to the consideration of this Con- gress, because we could provide that the divisional setup shall be maintained, if we have the assignment of missions or units. Mr. SIKES. That is correct. And, we recognize that reorganizations are neces- sary from time to time in order to keep the military forces modern and effective. Mr. RIVERS. Mr. Chairman, if the gentleman will yield further, I would much rather have a responsive force cut up in smaller units than have larger forces with no missions and no equip- ment, as has been true in the past. Mr. SIKES. That is the point. Today, however, the Congress is particularly dis- turbed about the proposed elimination of combat units as such. Mr. LIPSCOMB. Mr. Chairman, I yield 20 minutes to the gentleman from Wisconsin [Mr. LAIRn]. Mr. LAIRD. Mr. Chairman, I join with the distinguished gentleman from Flor- ida in paying tribute to the chairman of this subcommttee, the Honorable GEORGE MAHON, of Texas, for the diligence and hard work that has gone into this com- mittee report. I particularly pay tribute to the gen- tleman from California who sat in this committee and spent more time studying this bill and the justifications and the June 13, 1967 statements of the various witnesses than, any other member of the committee. This committee report is a compro- mise report, worked out under the lead- ership of the gentleman from Texas and the gentleman from California after many hours of testimony, morning and afternoon every day in each of the weeks of the last 5 months. This is a good committee report-the best committee report that has ever ac- companied a defense appropriation bill since I have had the opportunity of serv- ing on the Committee on Appropriations in 1953. This is one of the best reports that has ever come from the Committee on Appropriations accompanying a bill cov- ering the national security costs of our country. It is a good report in many re- spects because it faces up to the many challenges which we as a nation must face during the next few years. It points up some of the weaknesses of the Department of Defense, as far as the management of that Department is con- cerned, as far as the planning and pro- graming of that Department are con- cerned, and also it recognizes for the first time that we are not clearly and ade- quately estimating the defense costs of our Nation as far as the third largest war which this country has ever been involved in is concerned and that is the war in Southeast Asia, In Vietnam. Mr. Chairman, I support H.R. 10738, the largest single appropriation measure ever considered by the Congress. The distinguished chairman of our commit- tee, the gentleman from Texas [Mr. MAHON] and the ranking minority mem- ber of our committee, the distinguished gentleman from California [Mr. LrPs- coMB] have done their usual outstanding job In outlining the contents of this bill. For my part, Mr. Chairman, I would like to make some general comments about the bill and the report and then briefly discuss some of the larger ques- tions that concern all Americans. ABSENCE OF ADDITIONAL VIEWS First, Mr. Chairman, let me point out that there are no "additional views" at- tached to the report this year. I am pleased to report this and would like briefly to explain why the minority mem- bers of this subcommittee did not sub- mit "additional views" to the fiscal 1968 report as we have for the past 2 fiscal years. Basically, there are two reasons. First, agreement was reached in mark- up among all members on several major items contained in this bill. One of the more significant is the language con- tained in our report-House Report No. 349-on page 3 which clearly indi- cates that substantial additional funds will be required for Southeast Asia ac- tivities in fiscal year 1968. My own view, Mr. Chairman, after hearing the testimony so far before our committee, is that the administration has once again underestimated South- east Asia requirements by a minimum of $5.5 billion for fiscal year 1968. The second reason there are no "ad- ditional" or "minority" views is that our deep concerns about the future posture of our country in the national security Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 4 C1A-RDP69BQ0369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD -HOUSE arena especially in the decade of the 1970's and beyond were amply spelled out in last year's additional views contained in House Report No. 1652 and in my own extensive remarks which appear in the CONGRESSIONAL RECORD dated June 28, 1966, Since very little has changed in the intervening period, there seems to be no compelling reason to restate our very deeply held views on these vital matters. I will very briefly summarize those con- cerns a little later in my remarks, Mr. Chairman. VIETNAM REQUIREMENTS UNDERFUNDEIS= AGAIN No member of this committee, major- ity or minority, can take pride in the fact that the experience of the fiscal year 1966 and 1967 Southeast Asia require- ments is to be repeated again in fiscal year 1968, albeit on a soinewhat smaller scale. In fiscal year 1966, Southeast Asia re- quirements were underestimated in the original budget by some $15 billion. In fiscal year 1967, Southeast Asia re- quirments were underestimated by over $13 billion. In this budget, Southeast Asia require- ments, on the bases of our hearings these past 5 months, are underestimated by a minimum of $5.5 billion. There is evidence that they could well go much higher. Mr. Chairman, it seems to me it would be much better in a time of war to state accurately the defense needs of our Na- tion. This is a minimal requirement. Actually, it would probably, be far bet- ter to overstate defense requirements in a time of war rather than coming back the following January each year with substantial supplemental requests after all or most domestic appropriations measures have been adopted. . This would be the fiscally same course to follow. This would be the prudently wise thing to do, Mr. Chairman, the budget that is sub- mitted to this committee is supposed to be based upon a ground force level in Vietnam of 500,000 men during the fiscal year 1968. That is 500,000 ground forces, plus 87,000 Navy, and 100,000 Air Force personnel, all engaged in this, the third largest war in the history of our coun- try. Yet the Department of Defense and the President in submitting this budget have once again underestimated the cost of this conflict, and in the budget sub- mission the figure of $20.3 billion is used when every member of our committee on either side of the aisle knows full well that this is an underestimation of those costs, According to my informants in the De- partment of Defense-and My inform- ants. he,v been. better about cost figures than ?tl e direct testimony of the Secre- tary of Defense in both ,fiscal .1966 and fiscal 1 67 ~tslg the same criteria that was,US Tn figuring the $20.3 billion, the expeM1turerate in Southeast Asia war CoSti fot' April and May is closer to $4 bil- liori rno th,Tbe annual cost of the war in Vietnam Is .closer to $28 billion for fiscal year 1968 than it is to the estimates given in the budget submitted early in January. Why do I think it is important to point this out now? It is important for us to have these cost figures before the Con- gress as we review the various domestic programs that are going to be considered by this Congress in the next few months. We have been fighting the Vietnam war on the basis of "Fight now, pay later," for too long. The situation has developed here where in both fiscal 1966 and 1967, we have had supplemental requests of $13 billion-plus at the start of each new session of Congress. After all the domestic programs have been funded, then we come up with a supplemental approach to finance the costs of the war. In every major war that this country has ever been involved in people have been willing to make sacri- fice after sacrifice in order to cover the costs and support the fighting men that are assigned by our Commander in Chief wherever they happen to be assigned. And I say that the American people to- day are also willing to make sacrifices, but in order to make those sacrifices, the costs must be estimated on a fair and accurate basis, and the people must be told in advance what those costs are. With supplemental requests of over $13 billion in 1966 and supplemental re- quests this year of over $13 billion, al- ways coming in after the domestic pro- grams have been funded, the Congress is unable to establish a clear set of prior- ities as far as funding various programs in the Federal Establishment, in this federal system of ours, and it is time, it seems to me, that we recognize that in periods of war it is better to overestimate your stated expenditure rate, your stated appropriation rate, than to underesti- mate it to the extent that it has been underestimated by the current manage- ment in the Department of Defense. CREDIBILITY The problem, Mr. Chairman, is that this administration attempts to blame the war in Vietnam and the consequent increases in defense spending for the "national sales tax" we call inflation and for the deteriorating state of our econ- omy, not to mention the prospectiife massive deficit we are facing in this fiscal year and in fiscal year 1968. Yet, Defense spending since 1960, as we have seen, has risen 68 percent while nondefense spending has skyrocketed some 97 percent. If more accurate forecasts had been submitted with the original budgets in fiscal years 1966, 1967, and 1968, there is no question in my mind that Congress would have more responsibly and thor- oughly scrutinized nondefense programs and the prospect of a massive deficit of over $25 billion in fiscal year 1968 prob- ably would not have been as likely. Mr. Chairman, the budget deficit for fiscal year 1968 was originally estimated at $8.1 billion. That estimate has now been officially revised to some $11 billion. Members of this Subcommittee on De- fense are also members of the full Com- mittee on Appropriations and must pass judgment on the funding requirements of all other levels of Government activ- ity. 11 7077 We are also Members of the Congress who are required to judge all authoriza- tion levels when they come to the floor of the Douse for final action. Our responsibility to our own con- science and to all our colleagues in the Congress cannot be appropriately dis- charged in the face of incomplete or misleading information. "Yet, this is precisely what we have had to contend with in increasing degrees 'during the past 2 years. The inflation we faced last year and today, the sluggishness of our economy, the inappropriateness of some of the legislative actions this Congress has ap- proved in the past 24 months, the pros- pects of a large and, apparently necessary tax increase-all of these problems and many more can be attrib- uted in part to an incomplete under- standing by Congress of the true and largely predictable requirements of Southeast Asia activities in the _ past 2 fiscal years. Mr. Chairman, in no area of national need-domestic or foreign-can this Congress fulfill its responsibilities ade- quately until it insists upon and obtains full, complete and accurate information from the executive branch of our Gov- ernment. It is this which has led us to the posi- tion we are in today, where domestic ex- penditures have increased by 97 percent since 1960, while Defense expenditures have increased only by 67 percent-at a time when we are engaged in a massive war. At no time in the recent history of this country-either in the time of World War I, or World War II, or in the Korean con- flict-did domestic expenditures go up at a rate of 97 percent. As a matter of fact, during World War I, and during World War II, and during the Korean conflict, just the opposite was the case in the ad- ministration of our budget and fiscal Matters. Mr. Chairman, a budget is nothing more than the fiscal plan of our country. It is sent to the Congress at the start of each year to give some indication on the part of the executive branch as to what the fiscal plans are for the next fiscal year. The credibility of the budgets that have been submitted have been com- pletely discounted as far as Defense is concerned during each of the last 2 fiscal years, and the same thing is true this year. I point this out not in the interest of criticism. Mr. GROSS. Mr. Chairman, I make the point of order that a quorum is not present. The CHAIRMAN. The Chair will count. [After counting.] Fifty-three Members are present, not a quorum. The Clerk will call the roll. The Clerk called the roll, and the fol- lowing Members failed to answer to their names : IRoll No. 134] Abbitt Celler Hanna Anderson, Clark Heckler, Mass. Tenn. Conyers Horlong Arends Corman Holifleld Ashbrook Daddario Hosmer Ashley Diggs Kelly Ayres Dow McEwen Battin Dowdy McFall Berry Fuqua Moss Brown, Calif. Gubser Polly Approved For Release 2004/03/11 CIA-RDP69B00369R000100180198-8 H 7078 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 _- CONGRESSIONAL RECORD - HOUSE June 13, 1967 Pepper St Germain Widnall Pickle St. Onge Williams, Miss Pool Skubitz Willis Resnick Smith, N.Y. Young Ruppe Thompson, N.J. Younger Accordingly the Committee rose; and the Speaker pro tempore (Mr. PnrcE of Illinois) having assumed the chair, Mr. ROSTENKOWSKI, Chairman of the Com- mittee of the Whole House on the State of the Union, reported that that Com- mittee, having had under consideration the bill H.R. 10738, and finding itself without a quorum, he had directed the roll to be called, when 387 Members re- sponded to their names, a quorum, and he submitted herewith the names of the absentees to be spread upon, the Journal. The Committee resumed its sitting. The CHAIRMAN. The gentleman from Wisconsin [Mr. LAIRD] has 11 minutes remairdng. Mr. LAIRD. Mr. Chairman, the point that I was attempting to make before-the quorum call was that this bill does not fund the war effort in Southeast Asia. Mr. FLOOD. Mr. Chairman, if the gen- tleman will yield, I think the gentleman should take the well. He looks better down there and he was doing so well and on a matter of this importance i think he should address the Committee from the well of the House. Mr. LAIRD. I want my distinguished friend, the gentleman from Pennsyl- vania, to be completely comfortable. Al- though I might be more comfortable where I am now standing, I will yield to his suggestion and take the well. Mr. Chairman, additional war costs will be funded in a supplemental appro- priation bill which will come before the Congress early in the second session of this 90th Congress. The expenditure rate in Vietnam will be closer to $28 billion than the $20.3 billion which is earmarked, in this ap- propriation bill and as set forth by the President in his budget as submitted to the Congress. This is true on the basis of the present rate of expenditure of am- munition, and the present steaming rate in Southeast Asia today. Ammunition and steaming costs are underestimated by in excess of $1,500,- 000,000 in this bill on the basis of the present use of ammunition and fuel in Vietnam in the third quarter and now in the fourth quarter of fiscal year 1967. Mr. MAHON. Mr. Chairman, will the gentleman yield? Mr. LAIRD. I yield to the gentleman. Mr.:MAHON. I would like to exchange views with the gentleman from Wiscon- sin, if he will permit. Is it not true that last year we were told that under the assumptions under- lying the military budget for the fiscal year 1967, the current fiscal year, if the war should continue beyond June 30, 1967, that additional funds would be re- quired? That is question No. 1, which I am sure the gentleman would answer, "Yes." Mr. LAIRD. The answer to that ques- tion is, "Yes." But to further amplify that answer, even if the war had ended on the 30th of June 1967, I am sure the distinguished gentleman from Texas knows full well that a supplemental ap- propriation bill would have been needed and necessary in order to restore the drawdown on stocks and supplies, the loss of aircraft, and the loss of helicop- ters that would have been needed in or- der to put the Defense Establishment in the same position in which it was 18 months earlier. Mr. MAHON. Mr. Chairman, will the gentleman yield further? Mr. LAIRD. I am happy to yield to my distinguished chairman. Mr. MAHON. Everyone I know of, in and out of Government, thought that in all probability the war would con-, tinue beyond June 30. Therefore, the gentleman from Texas now on his feet? and the gentleman from Wisconsin, and many others said early last year that there would have to be a supplemental appropriation. The Defense Depart- ment, the President, and many others said that there would have to be a sup plemental bill. We shouted this view from the housetops. It was well known.. Mr. LAIRD. They said that after they were pressed, but they never admitted they would need a supplemental if the war would have ended on a certain given date. This was a false assumption to start with in drawing budgets. At no time in the history of warfare or defense planning has any administra- tion, to my knowledge, assumed a given. date that a war would end. This has never happened in the history of any military establishment or in the history of any country in the world that a given date was picked upon which the war would end, and they would draw budget assumptions based upon a given fixed date for the end of the war. Mr. MAHON. Mr. Chairman, will the gentleman yield further? Mr. LAIRD. I am happy to yield to the gentleman from Texas. Mr. MAHON. Of course, it is true that in making any budget certain assump- tions must be made. Some of them may be arbitrary. I myself felt that the as- sumptions underlying the fiscal 1967 de- fense budget were not as realistic as they should have been but the assumptions were clearly delineated. Mr. LAIRD. I know the gentleman does not like to use the word "phony," but they were false, were they not? Mr. MAHON. They were not false and they were not phony. They were based upon technical budgetary assumptions. Mr. LAIRD. I do not think it is a very technicalassumption to project the way on which a war is going to end and base assumptions on that date. Mr. MAHON. The gentleman knows that the war was escalating rather rap- idly and it was impossible to tell exactly how much money would be needed. We were told that additional funds would be needed if the war continued. It can be argued that a more definitive figure should have become available earlier. I am not arguing that point. The purpose of this colloquy, in my judgment- Mr. LAIRD. If the distinguished gen- tleman will permit me, he is defending the assumption that was used in the 1967 budget that on a certain date the war would end. If that was such a good assumption to make in the fiscal year 1967, why did they not use the same as- sumption in 1968? The gentleman from Texas knows full well that they did not use the -same assumption in the 1968 budget. Mr. MAHON. The fiscal year 1968 budg- etary assumptions are entirely different, in most ways, from those for fiscal 1967. So while you and I shouted from the housetops last year that there would have to be a large supplemental, this year the situation is quite different because the budgetary assumptions are different. Mr. LAIRD. I agree absolutely with the gentleman that the supplemental will be just about half the supplemental of this year. Mr. MAHON. My point is, that we all agree there will probably have to be a supplemental because the expenditures for the war will very likely go beyond those which were calculated in the Janu- ary estimates. Even though a greater number of troops than those present now have been funded in the budget, we think it very probably will go beyond that figure. The estimated personnel fig- ure for Vietnam is less than 500,000. We believe the figure will very probably go higher. Therefore, we think there will have to be some additional funding. The fact that we did not fully fund the costs of the war in fiscal year 1967 early in the year did not influence the war effort, in my opinion. It may have influenced some other things. Mr. LAIRD. The gentleman from Texas knows full well that it did influence some other things. However, when we get into the other parts of our fiscal planning, in the other areas of fiscalresponsibility in which the Congress has certain re- sponsibilities, we can easily see that by underestimating these costs and by using a false assumption-that the Secretary of Defense, as well as others in the ad- ministration, knew was a false assump- tion, to pick out of the hat a date when the war is going to end-that is certainly the way to mislead people as to what the total overall fiscal plan of our country should be. Mr. MAHON. But the gentleman from Texas and the gentleman from Wiscon- sin were in no way misled, and assuming our colleagues haveconfidence in us, they knew all along that there would be a heavy supplemental, and that defense costs would soar. Therefore, when the Great Society programs and domestic programs generally were considered, it was known that there would be addi- tional sums needed. So this should not have adversely influenced Members of Congress. Mr. LAIRD. The Members full well know that when the Secretary of Defense was asked at the press conference in January 1966, about the projection I made that the supplemental request for 1967 would be well over $10 billion, he said it was false, He came right out and said it was false. And my assumptions were correct, and his were wrong. I see the Secretary of Defense in this budget has not used the same assumptions he did in 1967. The assumptions are some- what different. But I would never want to be in a position of arguing that the assumptions he used in 1967 were a Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE proper means of estimating defense ex- penditures while we were engaged in the third largest war this country has ever been engaged in. He would have been a great Secretary of Defense if we had been at peace during his tenure, but unfor- tunately we are at war, and in estimating costs and budgets, we have to let our people know what the costs are, so that they can tighten their belt in other areas of the economy. Mr. MAHON. I am not, enamored of the defense budgeting system which was employed for the current fiscal year, but I want to proceed further. There are assumptions underlying the 1968 budget, to the effect that the war will continue throughout fiscal year 1968-that is, through June 30, 1968, and beyond that time-, Mr. LAIRD. For at least that amount of time, The assumption goes far beyond; there is no cutoff date on June 30, 1968. The war is a continuing thing and pro- jections are in this budget. Mr. MAHON. But the additional costs will be required for 1969. So my point is, if one lacks agreement with the budget- ary system for the current fiscal year, he should realize fully that if the war does not escalate beyond the present estimated level, the probabilities are that if there is a supplemental-and there probably will be-it will be relatively small as compared to the supplemental of 1967. Mr. LAIRD. I agree with the gentle- man from Texas. It will be less than the supplemental for 1967, but it will be a sizable supplemental. If the manpower level goes above 500,000 troops on the ground, then we will have to have a much larger supplemental, a supplemental of at least $5.5 billion. But even if the war stays at the projection of 500,000 troops on the ground, we will still have to have a supplemental appropriation bill for 1968. We could take examples. Ammunition for destroyers-right now I can tell the gen- tleman on the basis of information I have from the Defense Department-was underestimated at the very time the Secretary of Defense was making his budget submission to the Defense Appro- priations Committee by many millions of dollars. Mr. MAHON. Mr. Chairman, will the gentleman yield further? Mr. LAIRD. I yield to the gentleman from Texas. Mr. MAHON. It s true that we reduced the defense budget by $1.6 billion. We also added-on $400 million. We made a net reduction. We do not feel that these reductions, will interfere with the war effort, We are supporting the committee report and the funds requested in this bill, because neither the gentleman from Wisconpn nor I believe that we should at this time give a blank check for an undetermined amount of money which may later be required. We would rather they would lay the further requests be- fore us in clear terms when the need is more ap Arent. - There re, the fact that the costs of the war nay to some extent be unfunded is in no way a reason why we should in- crease the budget or attempt to guess as to what*the additional figure may be, or provide a blank check to the Executive for expenditure of funds which have not been justified. Mr. LAIRD. I agreed with the gentle- man from Texas. The reductions made here in no way will affect the war in Vietnam. It is a reflection on the part both of the ma- jority and of the minority members of the committee that we should have tighter control over budgetary processes so far as the Department of Defense is concerned. This is what we have tried to set forth in our committee report, which is agreed to by both the majority and the minority members. Mr. MAHON. I thank the gentleman. Mr. LAIRD. Mr. Chairman, if I may, I would like to touch on one or two other points of general concern to all Amer- icans in connection with our Defense Establishment NEED FOB A BLUE RIBBON COMMISSION - Mr. Chairman, I referred earlier to the additional views submitted by the minor- ity members of this subcommittee last year. In connection with those views we, together with other Members of Con- gress, introduced a resolution calling for the early establishment of a Blue Ribbon Commission, made up of the highest calibre experts from both the civilian and military communities, to conduct an independent and objective evaluation of the projected defense posture of this country. My own rather extensive defense of the need for such a commission is con- tained in my remarks of last June 28 alluded to earlier. Those of us who introduced this resolu- tion did not do so lightly. We came to the conviction that it is vitally needed only after deep delibera- tion and much soul-searching and after noting the grave concern felt and pub- licly expressed by leading members of both parties in and out of Congress, by high-ranking military officers, by past holders of the Nation's highest positions in the Department of Defense-both military and civilian-and by almost uni- versal concern in the journals and pub- lications of this country that deal pri- marily with defense matters. We came to this conviction ; s well after noting the cavalier disregard on the part of the Office of Secretary of Defense with respect to clear direction by Con- gress in several vital matters, with re- spect to unanimous recommendation on the part of the Joint Chiefs, and with respect to the apparent reliance in that office on preconceived assumptions that often fly in the face of all available evi- dence. We came to it finally, Mr. Chairman, because it is no longer possible to rely on the unsupported pronouncements of the highest officials in the Department with regard to the most vital matters of concern to Congress in discharging its constitutional responsibilities in the area of national security. SUMMARY or CONCERNS If I may, Mr. Chairman, I would like briefly to restate in summary fashion the principal concerns that point, in my judgment, to the need for early estab- H 7079 lishment of such a Blue Ribbon Com- mission. First, the defense structure of any na- tion is determined by that nation's for- eign policy. Primarily, it is our belief as stated in last year's additional views that certain basic changes have taken place in the defense policy of the United States since 1961. These changes need immediate evaluation by this impartial Blue Rib- bon Commission. Among he changes, the following are particularly significant: First, a changed attitude toward the cold war and, as a result, a different assessment of the potential and current threat; Second, a changed attitude toward the desirability or necessity of pursuing ad- vanced weapons development as vigor- ously as possible; and Third, a changed attitude toward those areas of defense and defense plan- ning which should receive priority. In foreign policy, the basic assump- tions upon which the administration ap- pears to base its defense strategy include the following: First, that there has been in recent years a reduction in tensions between the free world and the Communist bloc-except China-and that further accommodations in the future can be anticipated and should be encouraged; Second, that our military force struc- ture should be related primarily to the "visible" threat posed by potential ad- versaries; Third, that nuclear war is as unthink- able to the Communists as it is to the United States and the free world and that, therefore, the balance that is be- ing achieved between the Soviet Union and the United States with regard to strategic forces should not be upset; Fourth, that the United States should continue to assume a posture of response both in the area of "crisis control" such as Vietnam and in the area of weapons development; and Fifth, that the threat from world Communism has, in fact, eased during the course of recent years and, therefore, any attempt to maintain a decisive su- periority in the years ahead would re- verse this trend. In defense policy, the basic assump- tions would include: First, that the aggressive pursuit of advanced weapons development such as the antiballistic missile system-ABM- or the advanced manned strategic air- craft-AMSA-would lead to a "reac- tion" on the part of the Communists that would accelerate the "arms race" and that, therefore, whenever possible, such decisions should be stretched out, studied to death, or postponed. Second, that the level of effort in new weapons systems should be tied, predom- inantly, to what the potential enemy is doing and that the determination of what "the other side is doing" must be based on "visible" information. Third, that the Defense Establishment must be prepared to execute and imple- ment a strategy of "flexible response," one that permits the United States to gradually escalate any conflict and that Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7080 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 will not force us into the dilemma of "humiliating retreat or nuclear war." It is our belief that many of the as- sumptions that guide our foreign and de- fense policy may be unrealistic and incor- rect. The experience of the past 6 years bears out this contention. The impor- tance of a complete evaluation of these assumptions cannot be overstated. We believe that there has not been a reduction in tensions but, rather a re- duction in our desire to recognize Com- munist actions for what they are. We believe that our military force structure should not be :related to the "visible" threat but rather to the capa- bilities of the Communists and to the ful- fillment of our own national objectives. We believe that nuclear war should be "unthinkable" to the Communists but that this country should not base its plans on that illusive hope. We believe that the strategy of - re- sponse both with regard to crisis situa- tions and with respect to weapons devel- opment should give way to a strategy of initiative. We would define a "strategy of response" as one in which this Nation permits a situation to become so serious that it must take extraordinary steps even to return to the status quo, and a "strategy of initiative" as one in which this Nation, when it first sees the pos- sibility of a situation developing, will take steps to prevent its becoming a crisis situation either with respect to po- tential conflicts or to new advances in weapons development. We believe that the threat from world communism has not eased and that, therefore, it is of the utmost importance that this Nation maintain a decisive superiority in offensive and defensive weapons. We believe that the Soviet Union is not "leveling off" its effort in advanced weapons development and that it is, as a matter of fact, aggressively pursuing new development both in outer space and inner space. Secretary McNamara's be- lated admission of this last November should make this fact clear, Mr. Chair- man. Finally, we believe that under the poli- cies of the past 5 years, rather than es- cape the dilemma of "humiliating retreat or nuclear war," we have actually en- larged that possibility, in effect, adopt- ing policies that have reduced rather than. increased our options. To reverse this. situation, four basic requirements are necessary: First. A more objective and realistic assessment of the threat coupled with a thorough reevaluation of our foreign policy; Second. A return to greater participa- tion by and acceptance of military judg- ment in what are predominantly military affairs; Third. A more aggressive pursuit of re- search and development especially in the area of advanced weapons; and Fourth. A reassessment by the Con- gress of its own role in the area of na- tional security. There is, in our judgment, little possi- bility that these requirements can or will be fulfilled unless the initiative comes from the Congress. It is for this reaspn that we have called for and strongly support the establishment of a blue ribbon commission of military and civilian leaders to reassess and reevalu- ate the defense posture of this Nation now and for the future. Only in this way, Mr. Chairman, can the American people be reassured that this Nation is buying the very best de- fense consistent with the long-term best interests of the United States. The CHAIRMAN. The time of the gen- tleman from Wisconsin has expired. Mr. MAHON. Mr. Chairman, I yield 10 minutes to the gentleman from Mis- sissippi [Mr. WHITTEN]. (Mr. WHITTEN asked and was given permission to revise and extend his re- marks.) Mr. WHITTEN. Mr. Chairman, I do not expect to take much time on this particular topic, but the discussion be- tween the gentleman from Wisconsin and my chairman, the gentleman from Texas [Mr. MAHONl brings to mind the fact that if we would finance the Defense Department as we did during World War II, and as I believe we should be doing now-that is, by providing funds as they are needed instead of trying to fully fund in advance-this discussion would be needless. I look back to 1955, when we were dis- cussing this matter on the floor, and to my remarks at that time. I pointed out that as a result of full funding the De- fense Department had continued to buy airplanes which would not fly because they had the money and did not want to cancel the contract because that might cause unemployment. There are many similar examples. There may be some jockeying for posi- tion here between my colleagues on the committee. I do not want to let this statement conclude without also commending the very fine work done by our chairman, the gentleman from Texas and by the other members of the subcommittee. This is a long and detailed and complex bill. I do say again that this argument about whether something is full funded or not might have some repercussions in a political way, I do not know, but any department which has in addition the funds in this bill some $40 billion or $50 billion of unspent funds, and a great amount of money not obligated, is a department about which there is no need to worry whether it has enough money to finance itself for the next year. There might be some argument about the wisdom of funding some domestic programs or whether we should do this or should not do some other things. The point I want to bring out today is the fact that I have gone back through the records to 1961. For that whole period I cannot see where. a single thing has worked out like the Secretary and his-as- sociates at the Pentagon anticipated it would. I cannot see today where anything in Vietnam today is in line with the way it was projected and estimated to us by our experts and throughout that whole time the Secretary of Defense has im- posed his will not only on the Defense Department but has consistently tried to virtually eliminate or weaken the Re- serves and National Guard combat units. Here again, we find public announce- ment, without congressional approval or knowledge, by the Secretary of Defense that he is going to abolish combat ui}its of the Reserves and the Guard. This ac- tion is unsound. Our committee has again disapproved such action and has called upon the Secretary to hold such action up unless approved by the Congress. TIME TO CHANGE OUR COURSE Mr. Chairman, we need to review to reassess, and, I believe change our for- eign policy. I can see how years ago you may have had high hopes for the United Nations when it was created, but I can- not see how those same folks would have any hopes for it now, having had ob- served its failures, right up to recent weeks. Mr. Chairman, after World War II, we went around the world injecting our- selves into the internal affairs of just about every nation that would let us help them with foreign aid, underwriting the incumbent governments, governments which sold our goods to their people for what the traffic would bear. Of course, once the governments we aided got thrown out the new govern- ment had no use for us. That is the answer to the feeling against us in so many areas around the world. All nations engaged in the recent war in the Mideast were recipients of our aid-as a matter of fact we first went into Vietnam with foreign aid. We see the results, a war with no apparent end, unless we change our course. Let us take further stock of our posi- tion today and think about how we got there. Think of it. Only a few short years ago we were confronted with communism in Cuba. This was halfway around the world from Russia and a place greatly to her disadvantage. When her hand was called, she got out. Where do we con- front communism today? We are half- way around the world, with all of the disadvantages on us and with the ad- vantage with communism. We have read the word "Vietcong" so frequently in the press that most folks today do not stop to realize that the Vietcong are the South Vietnamese who do not agree with us and are trying to throw us out of their country. They are not North Vietnamese but South Viet- namese. Those South Vietnamese who give us lukewarm support we call South Vietnamese. - There are six volumes of hearings here. I challenge you to read them and come out with any feeling that the South Viet- namese on our side want to put out very much themselves except to satisfy us. Why have we had to put our soldiers in there? Because though we could train the South Vietnamese to the point of using this equipment themselves, all too fre- quently too many had little desire to fight. If they-had had half of what the Israelisshowed last week, there would be a different story. The war would likely have been over. Besides, we don't know who is with us and who is not. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL ' RECORD - HOUSE H 7481 On another point we are here today we need to go all out to get rid of the (Mr. MINSHALL asked and was given presuming that we can continue to spend Vietcong, and to bring North Vietnam permission to revise and extend his re- $20 billion to $25 billion a year in Viet- to her knees, we must then at least say marks.) nam and that our economy can stand it. to the lukewarm South Vietnamese that Mr. MINSHALL. Mr. Chairman, I am Well, can it? We turned down the other we say we are trying to free, "All right. indeed honored Subcommittee obeen on f the Cthis day an increase in the ceiling on our We have given you equipment; we have great Defense national debt to $375 billion, a level we trained you. We have broken the mittee on Appropriations. I do not think are bound to reach if we follow our pres- enemy's force. If you have any heart in that there is any more important conv- ent course. It has been estimated that we you, then take this equipment and get mittee in the House and, certainly, none have an inflationary spiral of $27 billion going, because we have done our share." that is harder working and one which this year. That means $27,000,000,000 loss I do not see any other way open to us. spends more hours listening to the testi- in the value of our savings. I know that I say to you today the only plans to win mony of experts from the Department of the Defense witnesses testified we had an that you will see in these hearings are Defense than do we, the members of the average of 7 percent inflation each year. that we hope to stay there until they de- Defense Subcommittee. In other words, it costs 7 percent more cide that they cannot win-and all the Mr. Chairman, I would be remiss if I each year to buy the same thing that time the Vietcong and the North Viet- did not pay tribute to my distinguished you bought the year before. How long namese win each day they keep us tied colleague, the chairman of this com- can our economy stand up to this course down. mittee, the gentleman from Texas [Mr. without a crackup? Now, Mr. Chairman, the Vietcong MAHON], and commend the gentleman Now, what am I getting to? I am say- group of South Vietnamese-one can see for the fair and impartial manner in ing that we owe it to the men we have that they have an issue. They are like the which he conducts our hearings. You in South. Vietnam, trying to help people Israelis. They are instilled with a desire have already heard about the gentleman . who do not have the enthusiasm for to push foreigners out of what they con- from California [Mr. LIPSCOMs]. He has themselves as their South Vietnamese sider their land. And, I seriously question worked like a Trojan this year on this relatives whom we call the Vietcong, whether we should have ever gone there. most important bill. Unfortunately, be- have for driving us out. But we are there, and I say that we owe cause of committee conflicts not all com- Our supply lines reach half way it to our boys who are fighting to see that mittee members have been able to be around the world. We are greatly com- they are permitted to win. We need to there to help him as much as we would mitted with millions of men behind the win in the interest of the safety of our like, but the gentleman from California 460,000 in Vietnam. We have recom- country. We must get this war over with [Mr. LIPSCOMB] has carried the ball in a mitted ourselves- to Southeast Asia to the for as long as it continues we will be over- magnificent manner and has performed point that Russia could have called us extended over the world, dangerously so. an outstanding job. We Members of the to task in the Middle East and likely And, thirdly, Mr. Chairman, our econ- House are very indebted to both of these would have if the Israelis had not been omy calls for getting this war over. Do men, the distinguished gentleman from victorious so quickly. Who knows, our not let them tell you that the GNP-the Texas [Mr. MAHON], and the distin- tie down in the Far East may have set gross national product-is increasing at guished gentleman from California [Mr. off Egypt. Could they not tweak our nose so great a rate that we can stand a $25 LIPSCOMB]. In Berlin? Or any where else where we billion war in South Vietnam year in and Mr. Chairman, I wish to bring to the have commitments. We need to get this year out without a crack up in our do- floor of the House my grave misgivings war over, or get it in condition to turn mestic economy. and reservations about the $208.8 mil- fighting over to the South Vietnamese Mr. Chairman, what is the gross na- lion which is being committed in this Government, with every advantage on tional product? I asked our Director of fiscal year 1968 bill for procurement of their side. Unfortunately we do not seem the Bureau of the Budget when the hear- 12 F-111B airplanes for the Navy. to have a plan to win. ings first commenced this year about this, Mr. Chairman, during our long hours If you will read these hearings you and he said that the gross national prod- of hearings which extended over a period cannot find a plan to win. The best uct is the value of goods and services. of several months, we on the Defense that I can point out to you about our They count the face value of services Appropriations Subcommittee heard tes- plan to win is that the Secretary says: on the ground that you would not pay timony from the Secretary of Defense, "We will stay there until they get con- for those services unless they are worth the Secretaries of the Army, Navy, and vinced they cannot win." When a smaller it. But, you know, they put the same face ? Air Force as well as from the Joint Chiefs country like Vietnam can tie up the value on governmental services, govern- of Staff and their top echelon military United States and leave us wide open to mental programs, even though they may and civilian backup witnesses. trouble in the Middle East, Africa, and be completely wasteful. In other words, Out of these hearings have come six everywhere else, it is a sorry day. We the more you waste in the case of gov- volumes involving more than 3,500 pages certainly should not let this condition ernmental services, the more your GNP of testimony cleared for publication, and continue. I am no military man, but is. So, the more worthless governmental thousands more pages of top-secret in- neither is Mr. McNamara. I have sat in services you have the greatest the GNP formation were deleted for either rea- on a good many defense hearings. I and therefore the more such programs sons of security or as part of the Penta- started listening to defense problems and they say "we could afford." gon's policy of deleting material for polit- plans long before the Secretary. I went Mr. Chairman, I say that it is time for ical purposes, but the testimony which to inly this no exnet . in 1943, but I am curt us to put up and not to shut up, to issue has been permitted to stand open for enough no ex expert, I do believe I am jI the necessary orders to win for these public inspection still is sufficient to give would lea leave a these hese military however, decisions that up I boys whom we have over there; to issue some insight into the opinions of the And from that testi- to the military,` including those that the the order to clean out these North Viet- military moray, even expeerrtts. iA numerous deletions, Secretary of Defense has appointed. It is namese from South Vietnam, for we have it is not difficult to discover overwhelm- my belief that we have reached the point the power with which to do it. And, Mr. Chairman, when we have done that, we ing arguments against the Navy version where we have to go all out. I know many of the TFX or, as it has come to be of my colleagues on the committee will should said to the South Vietnamese, in known, the F-111B. agree with me on this and I have reason addition to training, expertise, and the Let me quickly capsulize the stormy to believe many military leaders agree. i tremendous amount of equipment which history of the TFX, Navy version, as it believe we must go all out to push the we have furnished you, we have given you was originally called. The TFX is now Vietcong back and to bring a collapse every advantage over your enemies, now, labeled, as I have said, the F-111B, and it of North Vietnam's ability to support. like Israel, you take it and go from here. is the brainchild of Defense Secretary Now, as for fear China may get in the Now, Mr. Chairman, no one can win for McNamara who, in 1963, said he wanted war. We should think of Israel. If we are those who do not have the desire to win- a fighter aircraft of great dependability afraid of China under the present condi- We should put it up to them. for joint use by the Navy and the Air tions, would we not be more afraid 10 Mr. LIPSCOMB. Mr. Chairman, I yield Force. years from now when she has had 10 15 minutes to the gentleman from Ohio This concept of commonality would years in which to progress? When I say [Mr. MINSHALLI. save at least $1 billion, according to Sec- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H7082 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 retary McNamara. The award of the con- Original design and specifications have Mr. FLOOD. That is all very fine, but tract for the TFX touched off a contro- been thrown out the window. Future it is only partly so. I did start at them versy which is raging as of this day, and prototypes will look different and be about the Bomarc missile a number of 4 years later one thing is clear: General different especially as to weight and years ago, but I dropped the ball and the Dynamics, with headquarters in Fort flying characteristics. gentleman in the well picked up the ball Worth, Tex., has failed to develop an It is a changed aircraft with a changed and did a lot of research and work on it aircraft for the Navy at its Long Island, mission. and carried it through to where we now N.Y., plant which, despite repeated de- American taxpayers are being asked know where it is as of this afternoon. sign changes, fails to measure up to the to take a chance that the Navy can over- We have information but because of its minimum standards set by the Navy for come serious problems of overweight classification, we cannot divulge it. introduction into its inventory. which affect the plane's range, speed, But I can remember using the expres- Mr. FLOOD. Mr. Chairman, will the acceleration, maneuverability, fuel con- sion on the floor at that time in the gentleman yield? sumption and weapons carrying char- earlier days and in meetings with the Mr. MINSHALL. I yield to the gentle- acteristics. Air Force people that this missile will marl. Recently, I gave serious thought to not even be good enough to knock the Mr. FLOOD. Mr. Chairman, I am sure striking out procurement funds for the starlings off the Archives Building in the gentleman, when he referred to a Navy F-111B, in this appropriation bill. Washington where we are having a lot single-engined plane, did not actually The situation recalls one that con- of trouble with that problem. mean a single engine. fronted me several years ago when the Mr. MINSHALL. I remember the gen- Mr. MINSHALL. I will say to the gen- defense bill came before this Chamber. tleman making that statement-and it tlelxian, No, I did not. I have on some I am sure that many members of this is just as true today as it was then-if glasses that do not improve my eyesight defense subcommittee remember the not more so. Only, I might add further for close work. situation. It was about the Bomarc. that what the Mr. FLOOD. I would say to the gentle- gentleman mentioned, man that my glasses do not help, either. At that time I was a relatively new mem- which is classified, secret, bears out what INSHALL. my glass I presume I will have ber of the defense subcommittee, and the gentleman has said. Mr. 11at to go back to my original glasses. I thank even though I have gained a total of 9 Mr. FLOOD. Could the gentleman give the gentleman for calling that to my years' experience on the subcommittee, us at least the amount of money-would attention and correcting ng I certainly do not now consider myself a the gentleman consider that classified or Even these orrndards far the Navy military expert and I do not pretend to would he consider the whole document veEven t the stand avy be a prophet. But I do remember in 1960, classified? r F 113 have reduced despite strong pressures, I armed myself Mr. MINSHALL. I would be glad to do drcations astic toally the satisfy tom orrig al been ego of those design specifl- who with information that I had received that. I have it in another document here caiginslly conceived the ducpupose, both in the subcommittee and from pri- that is not classified. origin ylity approach for our military vate sources on the question of reliability The Bomarc program was subse- circraft. regarding the Bomarc missile. Like the quently curtailed but not before nearly- Any dollar savings which might have F-111-B the Bomarc had a bad history in answering my colleague's query-? been achieved savings the commonality have of throwing good money after bad after nearly $3 billion tax dollars went down con beet ache been canceled out long ago. repeated tests and repeated failures. In the drain. I as a Mir. Chairman, I do not come to the whrhic the airifore finally agreed totcut In all candor, I feel that this will be floor today as a military expert, but I $160 million from the Bomarc funds, the fate of the situation, I1 am But in view ng for F- I.B. of have listened intently to the experts, and My efforts to eliminate the remaining world scon today I of not funss am the experts on the record and fre- $200 million for Bomarc were defeated elimination today of these funds. I le- quently off the record are overwhelm- later on the House floor. giving the Secretary of Defense the bene- ingly against the Navy F-:111B. Based on At the height of the Bomarc con- fit of every doubt for the sake of the testimony before our Subcommittee on troversy, Phil G. Goulding, military security of our country. I hope that he Defense, and statements of the highest affairs reporter for the Cleveland Plain is right. ranking naval officers, both in the com- Dealer-and I emphasize again-I did As I said earlier, we have had days of mittee and out of the committee, the not then nor do I now claim to be a mili- testimony on the F-111B. Much of it has F-111B at its very best is an "iffy" air- tary expert but Phil G. Goulding's views been deleted from the printed hearings craft. Why is it "iffy"? The plane was on defense matters were considered ex- for security reasons, and I might also say originally hailed-as having a dual mis- pert enough in 1960 and his opinions stamped "Secret" in many Instances sion as a fighter-interceptor and as an were so highly valued in this area that merely to protect Pentagon political aircraft platform for launching attacks he subsequently was tapped by Secre- interests. against a possible threat in the 1970's. tary McNamara to serve in the post he Let me refer you to just a few excerpts Some contend that this threat may now fills at the Pentagon as Assistant which escaped the military censor's red never materialize. Be that as it may, one Secretary of Defense for Public Affairs. pencil in this year's printed hearings. thing is certain: The F-111B's capability In his report on efforts to cut Bo- On page 839, part 2, of our hearings: to meet such a threat does not exist mare funds, Goulding wrote in the May Secretary Nitze: We do not have a F-111B today, nor is It certain it ever will exist. 1, 1960, Plain Dealer: which contains in it the changes which we Economy and efficiency were major Rep. William E. Minshall (R) of Cleveland think are either desirable or necessary to boasts of Secretary McNamara's much- probably is more responsible than any other give us full confidence in carrier suitability. touted commonality concept which we man for cuts of hundreds of millions of dol- Yet we are asked to spend more than were told would save billions of dollars. lars being made in the Bomarc anti-air- The F-111B originally was estimated at craft missile program . . . Chief supporter $200 million to procure them 12 such T e F-111 of the third-term Republican has been the aircraft. per copy, per plane, if you missile itself, which stubbornly refuses to On page 847, part 2, of this year's will. Today procurement costs, depend- pass its flight tests and which has lagged be- hearings, the following colloquy: ing on who is giving the figure, the hind its development schedule. If Minshall Mr. Minshall: ... If you had to all figure averages out to $8 million or $9 is right, and if reductions now recom- over again would you follow the scour dothe million per plane. American taxpayers mended by the House Appropriations Com- Defense Department has or would the Navy are being asked to gamble an additional mittee are upheld he will have earned his start over and design its own airplane? $208.8 million on an aircraft which is $22,500 salary for the next 3,000 years. Admiral McDonald, Chief of Naval Opera- already more than 2 years behind sched- Mr. FLOOD. Mr. Chairman, will the tions: I wasn't here at that time, Mr. Min- We. American taxpayers are being asked gentleman yield? shall. If I had been around at that time I to procure a Navy plane which is still at Mr. MINSHALL. I would only add one might not be here now.... No, I would not least ,a year and a half from even being thing and that is the gentleman who is have done it that way. tested on and off a carrier's deck. The now standing, the gentleman from Penn- Admiral rinshau: What would you have none? initial testing of a changed key prototype sylvania [Mr. FLOOD] is probably just Ad signed a r plane ne giving gI full wonsi have dto will not be done until November of this responsible, if not more responsible for rosideration to year. the weight flimitations rom that are imposed upon helping-to delete these funds than I. operations from an n aircraft carrier. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD- HOUSE But they want us to procure 12 such planes immediately. Look at page 234, part 4, of the hear- ings. This colloquy is with Vice Adm. Thomas F. Connolly, Deputy Chief of Naval Air Operations: Mr. Minshall: ... There are a lot of things about the F-111B that have not been proven or checked out. Is that a correct statement? Admiral Connolly: That is right. Mr. Minshall: But you ask in this budget for 20 aircraft, F. 111B, a bird that has not been checked out yet? Admiral Connolly: Of course, Mr. Minshall, I am up here defending the President's budget. And that is the crux of the Navy's argument when all is said and done. They are defending the President's budget-Mr. McNamara's budget, in reality, and they are being stifled in voic- ing their criticism. The current issue of the Saturday Eve- ning Post, in its excellent article, "Is This Plane a Billion Dollar Bungle," contains this significant quote in regard to the F-111B: "There is a fear of recriminations," one highly placed source explains. "Most Navy people feel we have to go along on this and keep, our mouths shut or there won't be any Navy." Even so, sifting through the volumi- nous hearings, we find the Navy admit- ting to a serious lack of pilot visibility in the F-111B. Admiral Connolly, on page 229, part 4, himself says: There is a lot of work to do on the air- plane. There are configuration changes to make the visibility for the pilot better. The combat ceiling of the aircraft is considerably lower than was originally considered desirable. Dr. Robert A. Frosch, the Assistant Secretary for the Navy for Research and Development, ad- mitted on page 402 of part 3 that the Navy does not know whether the plane will flunk or pass all of the tests. He told our subcommittee: On the basis of flight tests with the final configuration aircraft we cannon` expect to know that until next year. I asked in subcommittee and I ask again on the floor today: Why does the Navy want the F-111B when it is such a questionable aircraft based on the testi- mony we have heard in years past? Look at what Adm. F. H. Michaelis replied to me under questioning a year ago in our defense subcommittee-and he was in charge of the program. The date was April 19, 1966. I asked him his opinion of the F-111B. Admiral Michaelis replied: It is a very questionable aircraft for car- rying out the Navy mission ... question- able to perform the missions for which it was designed in the Navy. The Navy's lack of enthusiasm for the TFX is conspicuous on the record. I assure you that, off the record, it is far more emphatic. I debated long and hard with myself about jintroducing an amendment today asking that the, $208.8 million procure- ment ,money for the 12 F-111B's be elimi- nated,from the budget. I know all of the facts about this air- craft. I feel strongly that it is as big and perhaps even more costly a mistake than Bomarc. If this were 1960, when Bomarc was the issue, I would not hesitate for a moment to ask this House to eliminate procurement funds for the Navy's TFX. Fortunately there were alternatives to Bomarc. But under Defense Secretary McNa- mara there is no alternative to the F- 111B. Mr. GROSS. Mr. Chairman, will the gentleman yielde, Mr. MINSHALL. I will be glad to yield to the gentleman from Iowa [Mr. GROSS]. Mr. GROSS. Mr. Chairman, I thank the gentleman for yielding and I want to tell him of my appreciation for his good work on the Appropriations Com- mittee. Apparently the committee got better answers from the military than it did from the civilians in connection with the F-111 planes. I was most inter- ested to read on page 839 of the hear- ings the following colloquy: Mr. LIPSCOMB. Does the Navy have in its possession now a F-111B that is carrier-suit- able? Secretary NITZE. We do not have a F-111B which contains in it the changes which we think are either desirable or necessary to give us full confidence in carrier suitability. Mr. LIPSCOMB. So the answer is "No." Secretary NITZE. We have not yet tested it on the carrier. The contractor claims it should be in its present configuration, but we do not believe that. Mr. MINSHALL. Why not just say "No," Mr. Secretary? Secretary NITZE. I want to be precise. Mr. MINSHALL. "No" is a pretty precise word. Secretary BROWN. Some things can be pre- cise without being accurate. This appears to be another contribu- tion to the credibility gap and evasion that seems to flourish in the Department of Defense under Secretary McNamara. Mr. MINSHALL. Mr. Chairman, I will let the gentleman decide that for him- self. I think the record speaks for itself. There were some evasive answers on this subject, many of which do not appear in the printed record, but I believe this col- loquy the gentleman has so well pointed out typifies the response of the Pentagon to the F-111B program. Mr. WRIGHT. Mr. Chairman, will the gentleman yield? Mr. MINSHALL. I yield to the gentle- man from Texas. Mr. WRIGHT. Mr. Chairman, I ap- preciate the gentleman's remark that in spite of his reservations on this system, at this juncture in world affairs, the situa- tion being what it is, he does not propose to offer an amendment to further curtail or cut back or slow down this program. I feel very strongly that any such an amendment would be a grave mistake. The Navy says it needs this plane. It is not true that, in spite of any of the de- velopmental problems that have oc- curred, as might be fully understandable in any such revolutionary new program, this program, according to the Navy and the Air Force, still represents the greatest single advance in the state of aerial war- H 7083 fare, wrapped together in a single pack- age, that we have ever had. This is how Secretary Nitze and the program project officers expressed' it to me and it seems to me that they should know. Mr. MINSHALL. I believe when the his- tory is written, we will know more about that. - I would like to point out I believe the F-111B part of the program will be the most significant failure-if the gentle- man has been listening to my remarks- that we have ever had in this country since the Bomarc boondoggle. Mr. WRIGHT. I am sure the gentle- man does not want it to- be a failure.' Mr. MINSHALL. I certainly do not. I said in my remarks I hope Secretary McNamara is right, and that is why I gave him the benefit of every doubt and did not move to strike out the funds for the Navy version of the TFX commonly known as the F-111B. Mr. WRIGHT. I believe history will prove Secretary McNamara right. I, having had some familiarity with the program, believe it will be a truly great success. Mr. MINSHALL. The gentleman should know about it. He is from Texas and he should know. Mr. WRIGHT. That is exactly correct. I have had the privilege of following this program very closely since its inception. The F-111B, however, is not made in Texas but in New York. But if I had been from California or Florida or any other State, knowing - what I do about this program, I would be just as strongly for it. Mr. MINSHALL. I would like to con- clude by saying: that despite the fact that it cannot perform its original mis- sion, the substitution of existing aircraft might or might not be feasible. This is not 1960. The world climate has changed radically from those cold war days. International tensions are near the breaking point. We are in a hot war in Vietnam. We have just witnessed an ex- plosion in the Middle East. The world is holding its breath until a new trouble spot erupts. And, thanks to the omnipotent man in the Pentagon, we are stuck with the Navy TFX, at least for the immediate future. In deciding not to offer an amend- ment striking procurement funds for the F-111B, I can only, echo the words of the eminent Senator RUSSELL of Geor- gia: If (McNamara) is right, we will save a few dollars. If he is in error, may a benign Providence save these United States. Mr. MAHON. Mr. Chairman, I yield 10 minutes to the gentleman from Ala- Mr. ANDREWS of Alabama. Mr. Chairman, first I should like to pay my respects to our distinguished chairman, the gentleman from Texas [Mr. MAHON]. I have served under three chairmen of the full Appropriations Committee dur- ing my tenure in office, and I have yet to see one who in my opinion has done Approved-For Release 2004/03/11: CIA-RDP69B00369R000100180198-8 H 7084 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 a better job than has the gentleman from Texas. This is a big bill. It is the biggest bill that will come before the Congress-$70,- 295,200,000-to provide the weapons of war for our servicemen who are today engaged in what I consider to be one of the worst wars, if not the worst war, this country has ever been involved in. There are high ranking members of the military who have agreed with that statement; namely, that this is the worst war this Nation as ever been engaged in. Unfortunately, Mr. Chairman, it seems that only those who have relatives in the jungles of South Vietnam are con- cerned about this war. The man on the street, who has no son or no relative in South Vietnam-and the Members know it-has an attitude of "I couldn't care less." I want to pay my respects to that little country of Israel. I hope the leaders of this country will learn something from the actions of Israel last week. I believe the record of that war is one of the most brilliant chapters ever written in the history of wars, A little nation, completely surrounded by enemies, outnumbered three to one both In personnel and in equipment, with full knowledge of the fact that Russia was threatening to go to the aid of her enemies, won a war In the unbelievable time of about 5 days. It was for one reason, Mr. Chairman. Israel fought that war to win. Israel car- ried out the statement made by the late General MacArthur, that In war there is no substitute for victory. Israel cared nothing for the threats of Russia. Figuratively speaking, she used the words of Admiral Farragut when she said, "Damn the Russians, full speed ahead." And, bless her heart, she came out victorious because she fought that war to win. My great concern, Mr. Chairman, Is that our people are not fighting the war to win in South Vietnam. Either one of two things is happening. Either we are not fighting to win, or we cannot win. It is one of the two. I will say that if this great and power- ful. Nation, the most affluent nation in the world, cannot whip a little country like North Vietnam, which is not as big as the State of New Jersey-a little na- tion that has no air force and has no navy-then we have no business in the war business, and we ought to beat our swords into plowshares and declare to the world that we are a nation of Quakers and get out of the war business com- pletely. Something is going on that I cannot pinpoint. I know that I have talked to many, many, many military men. I have been on this committee for 23 years- I asked a very high-ranking offi- cer, "Do you have enough equipment?" His answer was, "Yes, sir." I asked, "Do you have enough planes?" He said, "Yes, sir." I asked, "Do you have enough guns and ammunition?" He said, "Yes, sir." I asked, "Well, why can you not whip that; little country of North Vietnam? What do you need to do it?" His answer was, "Targets-targets." Now, you know, if we had sent a team of experts all over the world looking for the very worst place to commit our troops, that team of experts would have come back with a report that would have had South Vietnam high on the list as being the worst place to commit troops. During those 23 years I have been on the committee military men have told me and the committee that in a guerrilla- type war you cannot hope to win unless you have a superiority of 10 to 1. We have nothing like that superiority today in South Vietnam. According to the latest reports, we have approximately 435,000 men in South Vietnam. General Westmoreland recently said he needed 200,000 to 250,000 more troops in South Vietnam. The French stayed there for 10 years fighting. They had the best troops in the world down there, members of the Foreign Legion. The French had 600,000 troops in South Vietnam. Did they win? The answer is no. I do not believe you can win a land war in Southeast Asia. You must have a superiority of 10 -to 1. One man in the jungle with a rifle is worth 10 men out in front of him. My prediction here is that If this war continues to be fought as it has been for the last 6 years, we will be there at least another 20 years. To say that this great Nation is pinned down in South Vietnam is an understatement. We are pinned down by a little nation that will not rate 75th in the family of nations. That little nation today has the most powerful, the most affluent nation in the world pinned down. And I say that Is an understatement. We can win if we fight to win, in my humble opinion. I think the most cou- rageous decision ever made in the history of this Nation was made by former Presi- dent Harry Truman when he ordered the use of atomic weapons at Hiroshima. He served notice on the Japanese Govern- ment, "You surrender within 3 days or expect further bombings." Hearing nothing from the Japanese on the third day the second bomb fell on Nagasaki, and the war ended, and literally thou- sands of lives were saved, because we had planned for the first week in November of 1945 what would have been the blood- iest invasion in the history of the world. Maybe some of you men were in the Pa- cific at that time waiting for the invasion onto the main islands of Japan the first week in November of 1945. The coura- geous action of Harry Truman brought that cruel World War II to an end. That second bomb which fell on Nagasaki was the last bomb that we had in our arsenal. We could not have gotten additional bombs until March or June of 1946. I think we can win this war if we fight to win, but if we continue going as we have for the last 6 years, we will never win. I told the Secretary of Defense when he was before the committee, we have to get tough in order to win this war. Power is the only thing that the Communists understand. I remember when I served as district attorney in Birmingham, Ala., an old police officer told me, "You must never pull a gun on a man unless you are ready to kill him." The same advice is good for a nation that commits troops to battle. Never send troops into battle un- less you are willing to back them up with every resource at your command. And, not to do that for those kids in South Vietnam is a criminal shame and an in- justice. The CHAIRMAN. The time of the gentleman from Alabama has expired. Mr. SIKES. Mr. Chairman, I yield the gentleman from Alabama 2 additional minutes. The CHAIRMAN. The gentleman from Alabama is recognized for 2 additional minutes. Mr. ANDREWS of Alabama. Mr. Chairman, I told the Secretary, "Mr. Secretary, let us win this war. The people are getting restless. Our casualty lists are going up now to the point where the number killed runs anywhere from 250 to 300 a week. Now, let us pick up that telephone and call those people in Hanoi and tell them we will give them 30 days to get out of South Vietnam, and if you are not out within 30 days, then we are going to bring you to your knees. We think we can do it with conventional weapons but, frankly, I would have no compunctions about using the big weapon to bring this war to an end and thus save the lives of young Americans." Mr. Chairman, there are those who say that it might jeopardize the lives of the people in this country. So what? This is war. And, we all should share the burden, And I am thinking of that kid in the snake-infested, malaria-infested, sniper-- infested jungle. That little fellow's life Is in danger 24 hours a day. I hope that we can follow the courage of Israel and Harry Truman and bring this nasty, dirty war to an early conclusion. Mr. LIPSCOMB. Mr. Chairman, I yield 15 minutes to the distinguished gentle- man from Ohio, the ranking minority member of the full Committee on Appro-? priations [Mr. Bow]. (Mr. BOW asked and was given per- mission to revise and extend his remarks.) Mr. BOW. Mr. Chairman, I appreciate what my distinguished friend, the gentleman from Alabama [Mr. Ax-. DREWS], had to say about what happened in Israel, because what I am going to speak about today took place over there, since I think that war-and I believe the gentleman from Alabama would per-? haps agree-was won by civilian soldiers, their reserve components-a great many of them-rather than the Regular Army units over there. So, Mr. Chairman, I would like to talk a little about the realinement of the Guard and the realinement of our Re- serve combat units. Mr. Chairman, I was very much dis- turbed when I learned that the Penta- gon had decided to wipe out 15 National Guard divisions and a number of Reserve units and set up eight divisions and ab- sorb many of those that were being taken over. Mr. Chairman, I think every member of this Committee has in the past had great pride in the Guard units of their respective States. I know I have great pride in the great 37th Division of the State of Ohio. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 CIA-ROP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE Mr. Chairman, in 1963 four Guard units were deactivated, the primary reason being given for the elimination of these divisions was the alleged in- efficiency resulting when command was divided. Now, Mr. Chairman, that is exactly what they are doing in this reorganiza- tion plan. They are dividing the com- mand. They are taking these divisions and setting up brigades and assigning many of the brigades of your States to other States. Now, all of this was done without the consent or the knowledge of the Con- gress of the United States. Mr. Chairman, permit me to cite to the Members of the Committee section 104 of the United States Code which states that no change in the branch, organiza- tion, or allotment of a unit located en- tirely within a State may be made without the approval of its Governor. Section 104(c), goes on to say: To secure a force, the units of which when combined w4l1 form complete higher tactical units, the President may designate the units of thg",National Guard, by branch of the Army or organization of the Air Force, to be aintained Jn each State and Terri- tory, Puerto Rico, the Canal Zone, and the Distrlc of. Colupihia. However, no. change in the ,~ra icTi organization, or allotment of a unit.,l,ocated en~I rely within. a State may be made without the approval of its governor. The plan was 4made by the Pentagon was taken up with the adjutants general of the ' various States in Indianapolis a few, weeks ago prior to its being con- sidered; by any committee of this Con- gress. I believe after they had made their plan and met with the adjutants general they took it to one of the subcommittees of the Committee on Armed Services but not to the Congress. I have bone advised they take great pride over at the Pentagon in the fact that nine Governors have already ap- proved of this plan after some weeks, nine out of A. I know at least one Gov- ernor who has vetoed the plan. __ What I am disturbed about is how they can go ahead in the executive branch of the Government and take away these units from the States with- out any consideration of the Congress. I say to you that the Congress has the authority, as the law provides, to take some part In the determination of the setup of these organizations. I have been greatly tempted to offer an amendment to this' bill which would limit and prohibit the Defense Depart- ment from making these transfers. It could be done with a limitation. How- ever, the distinguished gentleman from Florida [Mr. SIKES] offered an amend- ment to the report. He accepted one amendment which I offered to his report. And I call your attention to that on page 7 under realinement of Army Re- serve components, in which is said: The Committee has considerable misgiv- ings over the prospect of disbanding combat units of the Reserve Components in a time of crisis. The, proposal for a major realign- And v1 go on to say why. Then we say In the report and direct, that the proposed realinement be deferred pend- ing such time as formal legislative ex- pression can be made in the matter." It seems to me, when a Committee on Appropriations directs them to with- hold until there is legislative authority, that the Defense Department should ac- cept that direction. And with the state- ment made here on the floor by the dis- tinguished chairman of the Committee on Armed Services, the gentleman from South Carolina [Mr. RIVERS], who said the other body is going to consider H.R. 2, and that he was opposed to the re- alinement and the taking down of these divisions, I am with some reluctance go- ing to withhold my limitation amend- ment. Mr. SIRES, Mr. Chairman, will the gentleman yield? Mr. BOW. I yield to the gentleman. Mr. SIKES, Mr. Chairman, the gentle- man should be commended for his in- terest in this important subject. I am sure he would want me to call attention at this point to the fact that the action of the Committee on Appropriations in directing that this reorganization not be affected pending further action by the Congress was unanimous on the part of a 51-member committee and, that only In deference to the fact that ours is an appropriation committee and not a leg- islative compnittee, was the' language placed in-the report rather than written into the bill as a binding limitation. Mr. BOW. The gentleman is correct. I may say to the gentleman I was pre- pared at that time to offer the limitation in the committee, but the `gentleman's language as amended in the report caused me to withhold the offering of the amendment. I am going to withhold the amendment today, on the basis that the Defense Department will take cog- nizance of this discussion and of the language in the report, until 'H.R. 2 is acted on by the other body and comes out of conference and until there has been a conference on this bill. Mr. LIPSCOMB, Mr. Chairman, will the gentleman yield? Mr. BOW. I yield to the gentleman. Mr. LIPSCOMB. I want to join the dis- tinguished gentleman from Ohio in his remarks and support him one hundred percent. I believe that with the gentle- man from Ohio [Mr.` Bowl laying this on the record, It will help the Depart- ment of Defense to realize that the Com- mittee on Appropriations, by the lan- guage in the report, means exactly what it says. H 7085 At this time, Mr. Chairman, I would like to read an article which appeared in the Cleveland Press concerning the 37th Division which my good friend, the gentleman from Ohio [Mr. Bow] has mentioned. The article is as follows: TAPS FOR THE 37TH? Unless the order is reversed, Ohio's proud 37th Infantry Division is about to slip into history after having helped make it for a half century. The death warrant for the Buckeye corps. Identified by its round red and white shoul- der patch, was handed down yesterday when the Defense Department announced its re- tirement after maneuvers this summer. It is part of the Pentagon's streamlining program for the Army National Guard. For Ohio National Guard officials, the news was not surprising. More than two years ago the Pentagon announced its modernization intention, and many observers expected the 37th to be demobilized then. Writing at that time of the 37th's impend- ing retirement, Press Military Editor Robert Stafford said: "It has a record of gallantry in combat unmatched by any other National Guard division, of conduct above and beyond the call of duty in three wars, and of patrio- tic response to any call to service in peace as well as war." Stafford pointed out that the 37th's record is all the more impressive because it was com- piled by "weekend warriors"-the civilian- soldiers suddenly called to fighting duty. They became professionals fast, though, as the Germans can testify in World War I (Meuse-Argonne front) and the Japanese in World War II (Bougainville). Eight members of the 37th have won Medals of Honor. One of them was Pvt. Rodger Young whose heroism was memorial- ized in the famous "Ballad of Rodger Young." The fighting 37th, 1917-1967. Ohio-and the nation-can be proud. Mr. BOW. I appreciate the gentle- man's remarks and am glad that he has read this statement from the Cleveland Press into the RECORD. Mr. LAIRD. Mr. Chairman, will the gentleman yield? Mr. BOW. As always I am delighted to yield to my good friend, the gentleman from Wisconsin. Mr. LAIRD. I thank my distinguished friend, the gentleman from Ohio, for yielding to me at this time. I know of my colleague's long interest in the National Guard and the record of the State of Ohio Guard units. I too come from a State that has a long and dis- tinguished history with our 32d Division during World War I, in World War II, and again during the Berlin crisis. It was one of two National Guard divisions that were called up by President Ken- nedy. It was combat ready in a very short period of time. I think it is important that the lan- guage suggested by the gentleman from Florida and the gentleman from Ohio and contained in this report be called to the attention of every Member of this Committee. I am confident that the Department of Defense will honor this language and that a congressional committee will be given an opportunity to have a thorough review in connection with the bill, H.R. 2, which is currently before the other body. I have been assured that in the case of Wisconsin our National Guard unit I believe It is incumbent upon the De- partment of Defense to withhold this re- alinement until it gets some good and adequate exp?essions of the Congress of the United States as to just what should be done and how it should be done. Therefore, I commend the gentleman in the well for his remarks and offer him my support. Mr. MINSHALL. Mr. Chairman, will the gentleman yield? Mr. BOW. I am delighted to yield to my colleague, the gentleman from Ohio. Mr. MINSHALI,. Mr. Chairman, my colleague, the gentleman from Ohio, as usual has made an outstanding state- ment regarding the realinement of the -National Guard and the Reserve units throughout the country. He is certainly to be commended and I join him in every- thing that he has said. Approved For Release 2004/03/11 CIA-RDP69B00369R000100180198-8 H 7086 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 can maintain some identity of its own by probably changing its name from the "32d Division" to the "32d Brigade." It will 'be an independent brigade. I think it is important that this be thoroughly reviewed by the legislative committees of both the House and the Senate and that the language sponsored by the gentleman from Florida and the gentleman from Ohio does just this. I think they have made a valuable con- tribution to this report and to the con- sideration of this bill, and I commend them. for their intrest and the job that they have done in behalf of the National Guard and the Reserve. Mr. BOW. I thank my colleague, the -gentleman from Wisconsin. May I say In addition, that under the change suggested of calling the division a brigade rather than a division, it would no longer be a complete unit and the plan contemplates the elimination of major generals and a couple of brigadiers and at least eight colonels. In other words, the divisions will be eliminated if they are changed to brigades. These men have been trained for com- mand. And this is the important element. If you are going to keep manpower, this is important. But you are going to have stretcher bearers, cooks, bakers, and others to fill it up. You will take from the top echelon all these combat-ready divisions. Mr. LAIRD. Of the Reserve. The gen- tleman is talking about the Reserve. The National Guard brigade will be a combat brigade. Mr. BOW. But you are going to lose your top officers. You are going to lose eight colonels in that division and you are not going to have a complete unit. You are not going to have artillery sup- port. I recognize the brigade as one thing. Some of these brigades will be under the command of other States and National Guard units. I should like to make one other state- ment and then I shall be glad to yield to both of my friends who would like me to yield. I would like to point out why I believe Congress has a great stake in this. Does the Congress have anything to do with it, or is it Mr. McNamara's computers that can do all of these things? I would like to refer to the Constitution of the United States, which many of us forget to read at times. What does the Constitution have to say about this? In'article I, section 8 of the Consti- tution there appears the following lan- guage, giving powers to Congress. The Congress has the power- To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years; To provide and maintain a Navy; To make Rules for the Government and Regulation of the land and naval Forces; That is the responsibility of Congress. Continuing to read: To provide for calling forth the Militia to execute the Laws of the Union, suppress In- surrections and repel Invasions; To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of train- ing the Militia according to the discipline prescribed by Congress;- Not by the Secretary of Defense. There are four, five, or six paragraphs in the Constitution outlining the author- ity of the Congress. Some of you will say to me, "The Pres- ident is the Commander in Chief." That is correct. Let us turn to the lan- guage of the Constitution that gives him his authority, after reading' these para- graphs on the authority of the Congress in this matter. Under the Constitution, which we have taken an oath to support and defend, article II, section 3, states: The President shall be Commander in Chief of the Army and Navy of the United States, and of the Militia of the several States, when called into the actual Service of the United States. He is the Commander in Chief. He will decide where we are going to bomb and to send troops after we raise them, after we get up the organization of them. That is our responsibility, not the computers in the Pentagon. So I urge my friends that if we get into this question in H.R. 2, where if we find they have violated this direction in the committee report, the Congress will ac- cept its responsibility under the Consti- tution and see to it that these units are not destroyed. I would like to speak a little more about the units, but first I yield to my friend from Pennsylvania. Mr. FLOOD. I thank the gentleman. As the gentleman knows, some of us have been at this for a number of years. I compliment the gentleman on his posi- tion, especially his reference to the Con- stitution. Of course, my leader on this subject is the distinguished gentleman from Florida, both on the Reserve and the Guard. I rise only to join with my friend, the gentleman from Wisconsin [Mr. LAIRD]. I am from Pennsylvania. Of course, everyone has heard of the 28th Division. You do not have to go beyond that. Mr. BOW. I might say to the gentle- man that I congratulate him. The 28th Infantry Division is going to stay in ex- istence. It .is not one of the 15 divisions that have been taken away. But the 28th Infantry Division of Pennsylvania will include a Pennsylvania brigade, a Mary- land brigade and a Virginia brigade. So the great old Pennsylvania division of the hometown boys is now going to be infiltrated. Mr. FLOOD. Except that a number of years agomy grandfather hadtrouble with some of those fellows at Gettys- burg, and they found that if you cannot lick them, you join them. Mr. BOW. The gentleman is correct, and it raises a rather interesting ques- tion about how they are going to get along with each other. Mr. FLOOD. Oh, just like we do here. Mr. BOW. Fine. Mr. BRAY. Mr. Chairman, will the gentleman yield? Mr. BOW. I yield to the gentleman from Indiana [Mr. BRAY]. Mr. BRAY. Mr. Chairman, I congrat- ulate the committee for making this very fine effort, which we hope will be successful, to save the destruction of the Guard and Reserves. I read very care- fully the section of the report entitled "Realinement of Army Reserve Compo- nents," which is on page 7 of the report. I do want to say that it does express the intent of Congress, that the Secretary of Defense go no further in destruction of Guard Reserves until Congress has the time and the opportunity to do some- thing about the matter. I want also to mention that for the last 6 years there have been organiza- tions, reorganizations, and attempted re- organizations and rumors of reorganiza- tions, each of which would make the Guard and Reserves a weaker and less effective force. I do want to say we must do every- thing we possibly can to save and strengthen the Guard and the Reserve. The constant reorganization, the con- stant threat of reorganization, is destruc- tive of the morale of any unit. That is academic. The fact that the Guard and the Reserve have been able to maintain their morale and their willingness to per- form-in spite of the tremendous handi- cap that has been placed upon them by this constant changing policy and the constant attempt to reduce and reorga- nize and reorganize, which has been going on now for 6 years-is very com- mendatory of the officers and men of those services. Also I want to mention here an article in the New York Times of June 13, 1967, by Charles Mohr, entitled "Rapid Mo- bilization of Reservists a Key Factor in Israel Victory." The article is as follows: RAPID MOBILIZATION or RESERVES A KEY FACTOR IN ISRAEL VICTORY (By Charles Mohr) BANIYAS, SYRIA, June 12.-The Israeli Army is a highly professional striking force but it is composed overwhelmingly of amateurs. Israel's military reserve and mobilization system, a model of efficiency, constituted one of the major factors in the quick victory achieved against the Arabs. The army that destroyed six Egyptian divi- sions in the desert, conquered Jerusalem and dislodged the Syrian Army from fortified hill positions did not exist physically four weeks ago. It existed in the card indexes of the offices of reserve units in every Israeli town and city. Some of the best units were com- bat-ready only twelve hours after comman- deered taxis began delivering call-up notices tO Israeli homes, mostly on the evening of May 20. Even "sloppy" units were ready within 48 hours. It is this reserve-mobilization system that gives Israel a highly responsive striking force without imposing on her the burden of sup- porting a large regular army. It is a volunteer army in a real sense. During the present crisis some reserve units had a 108 per cent response to the call-up as overage and dis- charged reservists tried to get back into com- bat units. There were almost no evasions of the call- up orders. "Next to Nasser," said a lieutenant colonel, "our biggest obstable to success was people arguing with us and trying to get in the action." LIFE ENDS AT 45 "I don't know about other countries," said another officer, "but in Israel the male cli- macteric comes at 45 when you must leave the active reserves. We say life ends at 45." For the ingenious, however, there are ways to see action after 45 and they were eagerly taken advantage of. Part of the Israeli war plan is to mobilize a large number of civilian Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE vehicles. The owners of such vehicles have with the Commander of the Israel Army, the right to volunteer to drive them even if he might receive some good advice as to overage, and most owners did so almost joy- ously. There is universal conscription for both boys and girls, the former serving 30 months and the latter 20 months, usually at about age 18. These conscripts spend their entire active service in training because the Israeli staff believes that only a superbly trained army can protect the country. No time is wasted on garrison duty or in occupying static de- fense posts. Normally a special border police force guards the nation's frontiers. IMGIILAR r'' ORCE IS SMALL Thus the conscripts in service are not real- ly a part of the "regular" army, although the description is usually applied to them. The true regulars consist only of a small group of officers of the rank of captain and above and senior noncommissioned officers= a nucleus around which the army is built at full mobilization. After national service training men are assigned to reserve units and remain in them until age 45. Those reservists keep basic per- sonnel equipment, such as fatigue uniforms, webbing boots, at home. Like most democratic nations, Israel has a grumbler's army in peacetime, and a 90 percent response to annual training call-ups is considered good. "Every device of the human imagination is used to avoid the training call-ups," an officer said, "and although by law we are allowed to call men up for 30 days each year, political pressures mean that most men get less than a week's training each year, which is not enough. "But when war comes, all this changes and the . same men who have fought for exemp- tions fight to get back in." The call-up notices are usually delivered at night or in the evening by taxi drivers and other messengers because, as one staff officer says, "They are at home then and that is when you catch your fish." One Haifa civilian who fought his way to this Syrian town described it this way: "I came home from a drive with my wife and children and there it was-greetings!" The summoned reservist makes his own way to the armory or storehouse of his unit, where he, is issued weapons, ammunition and other equipment. None of this is as smooth or easy as it may sound for the small number of regulars who must maintain these stores in a state of readiness. "Even the flashlight issued to a company commander must be filled with fresh bat- teries," said one regular. Ideally, the plan is that every tank and jeep should be able to start at a touch of the ignition button. Fuel is regularly changed, batteries are checked and radiators are kept flushed. The military system is built around a philosophy that is almost totally offensive and does not anticipate prolonged defense. Israel's military doctrine is essentially to at- tack, but first, to plan for the attack. On the first day of the war, 25 Arab air- fields were bombed and strafed, some re- peatedly, within three hours. On the Syrian front, assault infantry units knew far in ad- vance exactly how they would tackle Syria strongpoints. Though discipline sometimes seems in- formal, that does not mean it is lax. Instant and determined response to combat orders is expected and officers who let an attack bog down may be removed almost immediately strengthening of the Guard and Re- serves instead of weakening them. Mr. BOW. Mr. Chairman, I thank the gentleman. In conclusion, I would like to say that in World War I the Guard units of the various States were immediately called into action and the Guard units served admirably and with great distinction throughout that world war. Our 37th was one of those. Then came World War II, and one of the first divisions activated was the 37th Division of Ohio. It made the long trek back to the Philippines and the return of the Pacific and South Pacific to vic- tory. It was my great honor to be with them, not as a member of the division, but as a war correspondent with the 37th Division, from the landing at Lingayen through the trip down into Manila, through the liberation. of Manila, and the liberation of Baguio, through the battles up over Balate Pass and down into the Cagayan Val4ey. I saw this great division operate. May I say it is one of the very few divisions that left this coun- try early in the war with Maj. Gen. Rob- ert S. Beightler, commanding-one of our great commanding officers. And after Bougainville and Guadalcanal and going up through the Pacific, it returned victorious after the war, with Major General Beightler still commanding the division. Very few divisions in World War II went out with their original commanders and came back with them. These units have been depended upon for the preservation of our freedom over the years. They have been ignored and now are being decapitated. Fifteen States are going to lose these great divisions. Mr. Chairman, I hope that the De- fense Department will pay heed to this language in the report and that it will not be necessary again to discuss this question until the House has had an op- portunity, with the Senate, to bring in legislation which will protect these fine units. Mr. Chairman, the plan contemplates the elimination of one major-general officer-and eight-colonel or lieutenant colonel-subordinate commands within each combat division. The headquarters scheduled for deactivation are integrated units possessing the required tactical, logistical, and administrative capabilities for command and control of their sub- ordinate units. Long years of training and close coordination is necessary to train these cohesive command and staff entities. There appears to be no evidence of any replacement for these control headquarters which would retain the years of experience and close coordina- tion. The proposed plan will require such a multitude of headquarters to clear com- from command. mand and control matters that efficiency This a,;ticle veryiclearly shows that will be lost. For example, the 38th In- the reserves of Israel were most ef- fantry Division based in Indiana has fective. Perhaps if the Secretary of De- brigades in Ohio and Michigan. Three fense would discuss the use made of Governors, three adjutants general, reserves in the recent Egypt-Israel war three State headquarters detachments, H 7087 and two U.S. Army areas will become in- volved in all actions of the 38th Division. Command and control of a combat division requires a highly trained and effective team of commanders and staff members at all levels. The higher the level of command the more complex and demanding the mission becomes. Confi- dence is gained through experience and frequent contacts between all levels of command and staff. The requirement to coordinate all matters with such a mul- titude of higher headquarters is un- realistic. An infantry division deactivated, and replaced with an infantry brigade con- sisting of a headquarters and three in- fantry battalions represents a loss of 927 officers, ranging in grade from second lieutenant to major general, and the years of experience represented by their total commissioned service. Based on commissioned service, and only minimum times in each grade, the officer personnel of an infantry division represent a minimum of 4,113 years of military experience. Mr. Chairman, may I refer to the proven competency of National Guard officers. National Guard officers have proven efficiency through all periods of service. The following extracts from Jim Dan Hill's book "The Minute Man in Peace and War" shows various comparisons between Regular Army and National Guard officers during World War II. At the time of induction in 1940 there were 21 major generals in the Regular Army and 21 major generals in the Na- tional Guard. as of January 1, 1945, five, or 23 percent, of the Regular Army major generals were still in the service and that nine, or 42 percent of National Guard major generals were still in the service. At the time of induction in 1940 there were 45 brigadier generals in the Regu- lar Army and 74 brigadier generals in the National Guard. As of January 1, 1945, 26 or 57.8 percent. of the Regular Army brigadier generals were still in the serv- ice. As of June 30, 1945, 43, or 58.1 per- cent, of the National Guard brigadier generals were still in the service. At the time of induction in 1940 there were 704 colonels in the Regular Army and 273 colonels in the National Guard. As of January 1, 1945, 273, or 39 percent of the Regular Army colonels were still in the service, and that 148, or 54 per- cent of the National Guard colonels were still in the service. Of the 1,100 lieutenant colonels In- ducted in 1940, 883 were still in the serv- ice at the end of the war. Of the 1,379 majors inducted in 1940, 1,129 .were still in the service at the end of the war. - Of the 14,604 company grade officers inducted in 1940, 12,405 were still in the service at the end of the war. Additionally, 3,168 enlisted men held reserve officer commissions and were commissioned when inducted in 1940. Of these, 2,686 were still in the service at the end of the war. More than 75,000 National Guardsmen received commissions through the officer candidate school program during World War U. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7088 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 It is of particular significance that the losses expressed in the various grades were results of all factors, from losses in combat to physical disability, but that the age in grade policy established just before Pearl Harbor caused more separa- tions than any other single cause. Let us consider the impact of reorgani- zation on unit efficiency. The redesignation of units will in many instances, involve a change of branch which results in changes in mission, or- ganizational structure, equipment re- quirements, personnel, and required skills. This so-called "streamlining," while effectively accomplished on paper, rend- ers redesignated units relatively inef- fective during the transition period re- quired to completely effect the change due to the following: First. Negates existing training results, and, generates a requirement for the de- velopment of new training programs. Second. Time required for procure- ment of new and/or different equipment. Third. Lack of qualified officer and noncommissioned officer personnel in the new branch. Fourth. Loss of time and continuity as a result of adjustments in command structure. Fifth. Increased administrative re- quirements-administrative actions, rec- ords, supply transactions, and so forth. Sixth. Effect on morale. Let us consider also the loss of hard skills as a result of deactivation of divi- sions. Inasmuch as the retention and place- merit of personnel in the National Guard is predicated on authorizations con- tained in tables of organization and equipment, the deactivation of divisions and their replacement with brigades will render hard skilled and professionally qualified personnel in the following cate- gories as excess: Fixed- and rotary- winged aviators; medical and dental professional personnel; legal profes- sional personnel; signal, engineer, and logistical career field personnel; and, maintenance personnel. It is noted that all artillery with the divisions is eliminated without an ap- parent replacement. With five artillery battalions to be lost in each division this is an elimination of 75 battalions. Military doctrine as taught in the U.S. Artillery and Missile School requires the assignment of minimum necessary artil- lery to the combat division. It is axio- matic that additional artillery must be available to the divisions from corps and Army. No provision appears to have been made in the troop list for artillery to reinforce that contained organic to a combat division. Mr. MYERS. Mr. Chairman, will the gentleman yield? Mr. BOW. I am delighted to yield to my colleague. (Mr. MYERS asked and was given permission to revise and extend his re- marks.) Mr. MYERS. Mr. Chairman, it is with deep concern that I discuss with you, my colleagues of the House of Repre- sentatives, a proposal recently an- nounced by the Defense Department to reorganize again the Reserve components of the Army. The Secretary of Defense acknowl- edged in his annual posture statement on the military forces that he could not merge the Army Reserve into the Na- tional Guard. The Congress, following months of investigation in depth and extensive hearings, has twice rejected the Defense Department's proposal to merge the Army Reserve into the Na- tional Guard, and has established the requirement for maintenance of sepa- rate components in the appropriations bills and the Reserve bill of rights which has been passed by the House of Repre- senatives in this session as H.R. 2. In December 1965, the Secretary of Defense ordered 748 Army Reserve units inactivated, saying this was necessary in order to eliminate the low-priority units. He declared these low-priority units were not needed in the Army's contingency plans. All six combat divisions of the Army Reserve were inactivated and approxi- mately 55,000 well-trained Army reserv- ists were affected in the 748 units elimi- nated. These inactivations were ordered by the Secretary of Defense in direct defi- ance of the expressed wish of the Con- gress that the action shculd not be car- ried out until the Congress had an op- portunity to review the proposed unit inactivations. The Defense Department said the in- activations had to be completed by De- cember 31, 1965, in order to eliminate units that were low priority and were not needed under the contingency plans. It hastened to accomplish the destruc- tion before the Congress came back into session in January. At the same time, it should be noted that there were twice as many low priority units in the National Guard, also presumably not part of the con- tingency plans, but the Guard's units have not been touched. I would not in any way cast a reflec- tion on the i ne dedication and service of the officers and men of the National Guard. However, I cannot but wonder at the Defense Department's deliberate and persistent moves in these last 24 months to destroy the Army Reserve in violation of the desires of Congress. The Secretary of Defense has further said in his posture statement of this year that, since the Congress has not approved the merger of the Army Re- serve Into the National Guard, he was directing the Secretary of the Army to find other ways of accomplishing the same objectives. In other words, under orders from the Secretary of Defense, the Army must find ways to reorganize the Reserve into the Guard and thus to circumvent the will of the Congress. The words are not the same, but the intent is clear. And so the Army has now prepared this new reorganization proposal which should be reviewed with that background in mind. I am informed that this reorganiza- tion proposal includes the following: First. Inactivating all combat and combat service support units in the Army Reserve, This includes four high priority, immediate ready brigades that are part of the required contingency force struc- ture. Second. A reduction of the Army Re- serve's strength to 240,000, which is 20,- 000 below the minimum strength of not less than 260,000 mandated for the Army Reserve by the Congress. Third. Establish the strength of the Guard at 400,000. Fourth. Eliminate the 15 low-priority Guard divisions and convert them to bri- gades. The effects of this reorganizaton- which is nothing more than a further piecemeal implementation of the merg- er-are far reaching with a heavy im- pact of Reserve component readiness that the casual announcement of the De- fense Department does not reveal or in- dicate. Consider these untold facts: First. The Joint Chiefs of Staff did not recommend or approve a reduction on the Reserve components below 660,000-- 400,000 for the Guard and 260,000 for the Army Reserve. I am told-their recom- mendations for the Reserve components are said to exceed 660,000. Second. The four-star commanding general of the U.S. Continental Army Command which is responsible for train- ing and preparing for combat all the units going to Vietnam has not concurred with the plan because of the loss of unit readiness it would cause. Third. The chief, Army Reserve, a man of 40 years' experience in the National Guard, Regular Army, and the last 17 years in the Army Reserve, does not con- cur with the plan. The chief, Army Re- serve, is responsible for the personnel, training, and equipping of the entire Army Reserve. Fourth. The Army staff is reported in disagreement on the proposal, even though the matter is one of special inter- est to the Secretary of Defense per- sonally and a proposal which the Regular Army has been "expected" as "good soldiers" to support. This is evidenced by the fact that when the Section 5 Committee voted on the plan that vote "approved" the plan by a slender margin of only one vote-- 11 to 10. In the committee there are seven Na- tional Guard members who may be pre- sumed to have voted for the proposal. The seven Army Reserve members were 100 percent a#-ainst it. This left the seven Regular Army general, members of the Army staff agencies divided 4 to 3 on the proposal. Fifth. The General Staff Committee on Army Reserve, made up of seven Regular Army members and seven Army Reserve members voted 9 to 5 against the pro- posal. They also voted to keep combat units in the Army Reserve and to main- tain an average strength in the Army Reserve of not less than 260,000. Sixth. More than JO0 well-trained, Im- mediate Ready Army Reserve units with a strength of almost 40,000 would be in.- activated under the plan, only to turn about and immediately reactivate new Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE identical units in the Guard, or upgrade, train and equip low priority Guard units in order for them to reach the already existing immediate ready standards of the Army Reserve units that would be inactivated. Seventh. All units of the Army Reserve are now Immediate Ready, high priority units that are part of the contingency plan requirements. Eighth. The Guard's structure now in- eludes more than 100,000 in the low pri- ority category, not part of contingency requirements. Yet, the Pentagon is push- ing for the inactivation of the Army Re- serve's high priority units that are essen- tial to the contingency plan. Ninth. In the Army Reserve alone, tre- mendous turbulence would result from this proposed reorganization. It would disrupt more than one-third of the en- tire Army Reserve and many thousands of dedicated, trained men will be left with no units in which to train. The Congress traditionally has sup- ported the needs of the national defense and the Nation's security has been re- garded above all else. The element of cost has been a secondary consideration. However, we cannot overlook the cost to the taxpayer, especially when a pro- posal is submitted which has apparently subordinated real military requirements and the needs of the national defense to other considerations of questionable nature. ' This reorganization would destroy well-trained units of the Army Reserve that are needed in our contingency plans only to activate or build up other similar or identical units in the Guard. The trained officers and men of these Army Reserve units would, for the most part, be lost, just as they were in December 1965 when the previous large scale Reserve inactivations took place. These units of the Army Reserve and their personnel have been trained and equipped at, great expense and now we are to be asked to condone their in- activation only to turn around and activate the same type units in the Guard, or to take low priority units in the Guard and bring them up to the standards of the already existing Army Reserve units being inactivated. This defies understanding. There seems to be no real military justification for the plan. We know from the hard lessons of the 1965 inactivations of the 748 Army Re- serve units that their personnel will not volunteer for service in the Guard. When those units were inactivated, the end re- sult was that only about 2 percent of the Army reservists volunteered for serv- ice in the,Guard.,, The rest ofthose 55,- 000 reservists were largely lost. The Army Reserve, in 1965, had six combat divisions, all with outstanding World War II records. Some of these in 1965 had reached an advanced state of training that included company, level Army training tests and live fire exer- cises with close-in, overhead artillery and air support. It wast this point the Secretary of Defense, with the glib comment that their people would be absorbed and trained in other needed units, proceeded to inactivate these divisions. Many of those officers and men of the inactivated units have found no other units in which to train. For a while, a large number were carried as over- strength in units where they had no specific assignments or requirement. As of now, almost the entire 55,000 have been lost. Some few officers and men are contin- uing to hold onto reinforcement training units which they formed after the in- activations, and which are meeting with no pay and almost no support from the Army. The Deputy Secretary of Defense promised these RTTJ's would receive support, but it is noted that there is no funding for such support in the 1968 budget. I have often thought, especially in light of recent ominous international developments, that we may wake up one day and wish we had those six fine Army Reserve divisions. In fact, if newspaper reports are correct, we are sending men and units into battle today who are less well- trained than the units and men af- fected by the 1965 inactivations and who also may have had less training than those units and men the Secretary of De- fense is now proposing to eliminate from the Army Reserves. This new plan becomes more incon- sistent when you consider that the De- fense Department is about to call up some 31,000 Army Reservists as "pun- ishment" for not participating in the Reserve program. The public has not been told that the majority of these men cannot participate because there are no units left in their areas. A callup of Reserves if needed for the defense of our country, is one thing. But to "punish" these men when they are caught in a situation beyond their control that was created by the Penta- gon itself is a highly questionable ac- tion. Yet, at this moment the Pentagon is proposing to inactivate more units, mak- ing it impossible for more men to meet their military obligations. There is talk of mobilization of Re- serves. This has become a matter of al- most daily speculation. There was a recent press report of a 15,000-man-division size-unit having been formed in Vietnam from bits and pieces to meet ar, urgent troop require- ment just below the DMZ. Press reports o a few weeks ago said the 1st Armored Division is now being stripped in order to form a new brigade to meet Vietnam troop needs. There are continuing reports of pilot shortages. General Westmoreland is known to want and to need more troops. When the speculation arose only a few months ago that Vietnam troop needs might rise as high as 600,000, these predictions were ridiculed by the Pentagon. Yet today we are nearing that figure and new specu- lation raises the estimates. It is in the face of these facts that we are being presented with a Pentagon proposal that will reduce the Army Re- serve to a new low, will inactivate im- portant high priority units, drastically lower unit readiness, will eliminate such needed units of the Army Reserve as H 7089 immediate ready brigades and aviation units staffed with skilled personnel and pilots, and which will create new and widespread turbulence and loss of morale in the Army Reserve. This seems almost unbelievable, but it is true. I view these developments with the greatest alarm. There is a clear and, I believe, urgent need for the Congress to stand firmly on its previous rejections of the Reserve- Guard merger and to refuse to be hood- winked by this new proposal. It cannot be justified as being in the national in- terest any more than the first merger plan which the Congress found to be poorly planned and would damage our national security. This new proposal is, if anything, worse than the first one. The Congress must stand firm on its present language in the appropriations bill and the Reserve bill of rights-H.R. It must be made clear once and for all that these bills mean what they say and that the maintenance of strengths and the preservation of the separate com- ponents is a matter of high interest to the Congress. The Defense Department must understand that the Congress will expect compliance with the language of the bills which state that the National Guard will maintain an average annual strength of not less than 380,000 and the Army Reserve an average strength of not less than 260,000. There must be no compromise. Mr. MAHON. Mr. Chairman, I yield 10 minutes to the gentleman from Pennsylvania [Mr. FLOOD]. Mr. FLOOD. Mr. Chairman, as all of us know, nothing sounds as sweet to the ears of a Congressman as the sound of his own voice. It is rather late in the afternoon. It is rather late in this bill. First, I do not want the Members to believe that I am sailing under false colors with these black glasses. I have got a "bum" right eye. I did not walk into a barroom door, as I want the Members to see. It just leaks, somehow. The appear- ance is perfectly proper and entirely legitimate. Second, I understand, after some 20 years of service on this committee, what the rules are and what one should or should not say, but I am a natural maverick and nonconformist. Otherwise, how could one expect anybody with a mustache like this to be elected to Con- gress from the heart of the coal fields? So one has to be sort of a nonconformist. I want to say the same thing now that I said about this time last year, and at about this time of the day. I hope there will be no quorum call, because this is one of my annual speeches. I desire to talk to these real hard core interested persons. Mr. HALL. Mr. Chairman, will the gentleman yield? Mr. FLOOD. I yield to my friend from Missouri. Mr. HALL. I should like to accom- modate the gentleman with a quorum call. I, too, believe it is a perfidy and an injustice to the Nation to consider a $71 billion appropriation bill, worthy as its intent may be, with so few Members on the floor. Only my respect for the Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7090 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 self'-styled nonconformist gentleman of Pennsylvania, and his expertise here in this area and particularly in the defense features of the Panama Canal Zone, plus my desire not to "set him down" in the middle of a good speech, precludes my point of order. Mr. FLOOD. I agree with that, but, as the gentleman knows, these are not trained seals. We are all prima donnas. We all have rights. The redeeming feature of this is that it expresses great confidence, it is an extraordinary exhibition of confidence, in the chairman of the Subcommittee on Defense, from the great State of Texas, that in his sublime hands would rest the fate of the Nation and of this great bill. Mr. DEVINE. Mr. Chairman, I agree with the gentleman. I make the point of order that a quorum is not present. Mr. FLOOD. Mr. Chairman, will the gentleman please withdraw his point of order? Mr. DEVINE. Does the gentleman not want the Members present to hear him'? Mr. FLOOD. I am probably the last speaker. There is only an amendment, or perhaps two, for consideration. I am satisfied with the sound of my own voice and that of the gentleman. Would the gentleman please withdraw his point of order? Mr. DEVINE. Mr. Chairman, I with- draw the point of order. Mr. FLOOD. Now, my remark about being a nonconformist is this: I have been on this committee for many more years than many of you can recall. This is largely for the new men who are here. I regard the members of this subcom- mittee with an esteem and respect which is difficult to fathom. You sit there for 5 or 6 hours a day, for 5 and some- times 6 days a week, for 5 months at a time and then consider supplementals, and you develop an affection and a re- gard for your colleagues that you reserve only for members of your family. I have said it is true on my side now down South-and I was raised in the South, although how long ago is none of your business-and this Is not unparliamen- tary language, Mr. Chairman, but the word "damnyankee" down there is one word and not two. In some parts of the State of Pennsylvania where I come from "damndemocrat" is just one word, too. Now, these damndemocrats on this subcommittee go on like Tennyson's brook, forever and forever. As I have told you, I have been on there 20 years, and I have been low man until this year when we had the good fortune to bring in the gentleman from West Virginia [Mr. SLACK] and my good friend from New York [Mr. ADDABBO], who have contributed much and who in the years ahead will bear a great deal of this burden. How these men can do what they do is beyond me. Everyone of these Democrats up to the subcommittee chairman does a tremendous job. The distinguished gentleman from Wisconsin [Mr. LAIRD], sits to my right as the ranking Republican on Health, Education, and Welfare, the second big- gest bill, which we brought in just a short time W. We miss GERRY FORD. It was a loss to the Republican Party, I think, and to this House and to the Nation when GERRY had to leave us after 15 years to take over the mantle of leadership. He did his homework. Mr. RHODES of Arizona we have seen here for years. As a leader how he got there I do not know. I do not know the rules on your side. They write their own there. On our side we do not have any rules. We would not dare to have a caucus. I have been at one caucus in 20 years, and the blood was so thick on the floor that we have not had one since. Now let me tell you this: This is what I would like the public to hear. You all know-oh, I slipped there when I said "you all"-you see what influence will do-the public should know that never have I heard in 20 years acrimony, vili- fication, abuse, or one word of partisan politics on either side of the aisle on this Subcommittee on Defense. Not once in 20 years. In view of the tremendous and fantastic problems involved, just try and match that. You cannot match it. It is unbelievable. That is the way we come to you today. The trouble with this bill now is years ago I could talk here for an hour because I was mad about things that were not in it or mad about things that were in it. Every year it is getting tougher and tougher for me to talk 10 or 15 minutes, because I have fewer and fewer things to get mad about. I have some things- some things. I went down, Mr. Chairman, to the launching of the greatest fighting ship in the world 3 weeks ago, the great fight- ing aircraft carrier, the John F. Ken- nedy.. named after our beloved and re- vered President. My heart was in that, but I never felt so bad in my life as I did when she started down the ways. And, Mr. Chairman, if you have never been to the launching of a great fight- ing ship, when it is started afloat, and after the bottles of champagne have been broken, and she starts slowly to move down those ways, and the band plays "Anchors Aweigh," and if the lump is not in your throat, there is something the matter with you-there is something the matter with you. I have been to 50, and the last one was just like the first one. But you know, Mr. Chairman, what the trouble was. Mr. McNamara and "Mr. McNamara's Band" at the Pentagon made one of the most shocking errors and mistakes in the history of our mili- tary Establishment. The trouble is, Mr. Chairman, that that great carrier is not nuclear powered. That is a disgrace. She was obsolescent the minute she hit the water. That broke my heart, because I came to this floor and I beat my breast and pulled handfulls of hair out of my head and did everything but get down on my knees and pray to you that a nuclear carrier as provided for under my proposed amendment, should be con- structed. I got a lot of votes, but not enough. So, Mr. Chairman, we have gotten no place, and I am mad about that. I feel better right now, however. But, second, this bill fully funds one nuclear frigate and the money for lead- time on a second nuclear frigate is made available. The CHAIRMAN. The time of the gen- tleman from Pennsylvania has expired. Mr. MAHON. Mr. Chairman, I yield 5 additional minutes to the gentleman from Pennsylvania. Mr. FLOOD. I thank the distinguished chairman of the full Committee on Ap- propriations. Mr. Chairman, the money providing for leadtime procurement is made avail- able. Mr. Chairman, I introduced an amend- ment in the subcommittee to fully fund both of these two nuclear frigates, con- forming with the authorization act. That is the practice of the Committee on Ap- propriations. But, that does not impress them. I had the vote of my distinguished friend from Alabama [Mr. ANDREWS], and I say to the gentleman now, Mr. Chairman, never as long as I am on this subcommittee will I ever again vote for a combat ship of the line which is not nuclear powered-never, never again. I hope you do not; I hope you do not. Mr. HOLIFIELD. Mr. Chairman, will the gentleman yield? Mr. FLOOD. I yield to my distin- guished friend, the gentleman from Cali- fornia [Mr. HOLIFIELDI. (Mr. HOLIFIELD asked and was given permission to revise and extend his remarks.) Mr. HOLIFIELD. Mr. Chairman, I thank my distinguished friend, the gen- tleman from Pennsylvania [Mr. FLOOD], for yielding. The gentleman knows how dear to my heart this subject matter is, and how dear to the heart of the Joint Committee on Atomic Energy is this sub- ject. That committee has been fighting, along with the Committee on Armed Services and the Committee on Appro- priation, for this very objective which you have achieved in today's bill. Mr. Chairman, I wish to compliment the distinguished gentleman from Penn- sylvania [Mr. FLOOD] for his stand on this matter over the years and also I wish to compliment the Committee on Appro- priations for the courageous position that it has taken. They are 100 percent right. Mr. Chairman, it is also a great pleas- ure for me to stand up and add my hum- ble commendation to the words that the gentleman from Pennsylvania has just spoken and for the action which the gentleman's Committee on Appropria- tions has taken. Mr. FLOOD. Mr. Chairman, I know the position of the distinguished gentleman from California as chairman of the com- mittee dealing with this subject, and I know the position of my distinguished friend from South Carolina, whom I call oer "cousin," the great chairman of the great Committee on Armed Services of the House of Representatives. Mr. RIVERS. First cousin. Mr. FLOOD. Yes, first cousin. Mr. RIVERS. Mr. Chairman, I wish to thank the distinguished gentleman from Pennsylvania [Mr. FLOOD] for his defense of nuclear propulsion of surface ships. Mr. Chairman, I told the Secretary of Defense that so long as I occupy the Chairmanship of the Committee on Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 196 Approved For Fe"&eRiggINA.(11:RECORD69BOO 698000100180198-8 7 Armed Services, there will never be an- other conventional-powered carrier. I have also gotten word to the DOD that there will be other frigates, nuclear- powered, for the future. Mr. Chairman, we never received any help out of the Department of Defense, but we have come up with these two nu- clear-powered frigates. We had quite a fight with the other body in the confer- ence, but it is wonderful to have the backing.of the great Joint Committee on Atomic. Energy and the backing of the great Committee on Appropriations, working in conjunction with the Com- mittee on Armed Services. Mr. Chairman, one must remember that if it were not for the Congress, we would not have a singglar nuclear- powered submarine today. The Congress has been the beginning of all this.. Mr. Chairman, it is just refreshing to me to see the gentleman from Pennsyl- vania [Mr. FLOO)] with his strength back again, making his own appealing plea and defending the things that ought to be done. May God bless the gentleman. There, will. never be another like you. Thank God you are on our side. Mr. FLOOD. I am for you also. You know, he is a very fast studier, Mr. Chairman, because I just wrote that out for him, about 3 minutes ago, and how he memorized it so fast I do not know. Mr, LAIRD. Mr. Chairman, will the gentleman yield? Mr. FLOOD. Mr, Chairman, I yield to quite a character. If you ever heard this man on the back of some admiral, chew- ing him out as a cross examiner, it would do your heart good because he will never allow a witness to get away from him without losing at least one ear. So I yield to my friend from Wisconsin [Mr. Mr. LAIRD. Mr. Chairman, I thank the gentleman for yielding to me. I would like just to substantiate what he had said about, partisan votes in our committee. We have never had a parti- san vote in our committee since I first went on the committee in 1953; by parti- san vote I mean one in which we divided on in our committee on the basis of our political associations. Mr. FLOOD. I will say to the gentle- man that is correct. Mr. LAIRD. We put aside all partisan politics. We try to make our decisions based on what is best for the national se- curity of the country with defense appro- priations. Mr. FLOOD. The gentleman does not mean we have never had some very stiff arguments, does he? Mr. LAIRD. Oh,, we certainly have had some very stiff arguments, that is true. Mr. FI:,QOD. Trie gentleman does not mean that it. have; not had trouble with him, and that he has not had trouble with me, but we always got along. Mr. LAIRD. But we have always got- ten along. We have been able to resolve our differences. Our dispute here is with, the Department of Defense. We are dis- appointed in their not going forward with the nuclear frigate last year. We appropriated lead time money for this last year. Mr. FLOOD. That is right. Mr. LAIRD. What I am afraid of is that they may very well hold back, in- sisting upon conventional power again. This would be a great mistake because we just built an obsolete carrier. When we launched it, the launching was on the television all over this country, and that carrier was obsolete the day it was launched. Mr. FLOOD. Can you imagine sitting there with me when she went down those ways? It would break your heart. Mr. LAIRD. I was glad I was not there with you because it would have broken my heart, too. Mr. FLOOD. I want to add just one more additional thing, even though I dis- like taking up this additional time and holding things up: The CHAIRMAN. The time of the gentleman has expired. Mr. MAHON. Mr. Chairman, I yield the gentleman 5 additional minutes. Mr. FLOOD. I will not take that much time. I will do it in English. The CHAIRMAN. The gentleman is recognized for 5 additional minutes. Mr. FLOOD. Mr. Chairman, there is one thing that sooner or later we must take a look at. ' I do not know who is going to do it, but somebody must take a look at it, and that is this business in the Department of Defense of making it mandatory that every officer must serve a tour of duty in almost every bureau or department in the hope that he will become Chief of Staff of the Army or the Air Force, or commander in chief of naval operations in the Navy; that he must have a couple of years of service in every office in the Pentagon. This is simply 19th century thinking, it is an obsolete thing and it should be corrected. I do not know how we would do that, but as a result of that what we get is appalling incompetence in those sections. The fiscal people and the budget people are good, but when they send up line officers, we should not have line officers coming up there in the first place, and they do not like it, and I do not blame these officers, especially officers from four-striper up. They do not want to be here. They want to be with the fleet, or they want to be with the troops, and I do not blame them. That system should be changed. I hope as soon as we can that a proper committee or a special commission be named to revise that entire procedure which is an archaic and obsolete -method of filling these bureau chiefs. It is a dan- gerous and a bad thing. Finally this: I know the Fourth of July is approaching, and I am going to make some speeches on the Fourth of July, and so are you. I do not intend this as a rehearsal-I do not want to try it-but I would just like to say this. I hope for obvious rea- sons that there is not one vote in this House against this bill-not one. Now I can understand why a handful of my friends may have voted against the supplemental bill for South Vietnam. That is pretty clear and understandable. But there is less than $20 billion out of the $71 billion in this bill for Vietnam. In all conscience-as strong as you feel on that subject, I would hope, as I say H 7091 for obvious reasons, that this be a unani- mous vote as a warning and as a sign to the world. I know this bill and I know what is in it, so far as finite man can know with a can of worms like this-and it is a can of worms. But make no mis- take about this. We on this subcommit- tee know, and I now report to you, if you have any doubts, the United States of America is the richest, the strongest and the most powerful nation on the face of this earth-bar none. There is not a na- tion or a combination of nations in the world that does not know it. We did not ask for this job. God knows we did not ask for this job. But we have it and, Mr. Chairman, that is the way it is going to be. There is only one thing for a leader to do, a leader must lead or quit, lead or get out. Two laps around the track, and go to the showers, hand in your uniform, get out or leave. Mr. Chairman, from now on this Nation in- tends to lead, whether anybody likes it or not. The CHAIRMAN. The time of the gen- tleman from Pennsylvania has expired. Mr. LIPSCOMB. Mr. Chairman, I yield such time as he may require to the gentleman from New York [Mr. Hox- TON]. Mr. HORTON. Mr. Chairman, I rise in support of H.R. 10738, a bill making appropriations for the Defense Depart- ment in the fiscal year which begins July 1. Other than the crisis years of World War II, this measure directs the spend- ing, of more money than ever before in the history of our Nation for the com- mon defense. I rejoice not in the estab- lishment of such a record. Yet, I recog- nize its necessity both to assure our de- terrent posture in a world frequently strained by the ambitions of arms and to insure the fulfillment of American commitments in Southeast Asia. If this bill related directly to the ques- tion of how we should pursue our mili- tary course in the next year, I might be inclined to comment further; for there are questions on my mind, too, about the effectiveness of our military strategy in ending the aggression in Vietnam. But, that is not what is really before us today. Our Constitution vests the President with the responsibility to direct military engagements. His departments have come to Congress asking appropriate funds to carry out this responsibility. Our colleagues on the Appropriations Committee have given these requests their laborious and dutiful attention, amending them . where they felt it needed, reducing them where they be- lieved it prudent, and affirming them where their wisdom counseled them to do so. The committee report and the statements we have heard today from our colleagues who took the testimony and then wrote the bill offer their own evidence of the competent and compre- hensive determinations which surround the committee's recommendation. As I stated a moment ago, the sheer size of this bill is indicative of the strategically imperiled world in which we live. That it should require of the resources of the United States $70 billion in 1 year to maintain democ- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H'7092 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 racy's defenses can only be viewed as regrettable. And, I feel certain I share the feeling of so many of my fellow Congressmen and citizens that a much better world would result If this Nation could devote similar financial strength. to pursuits like education, housing, ur- ban revitalization, health, and pollution control. Still, reality makes us realize that without the freedom protected by such defense expenditures, even that which we now are applying to these peaceful undertakings simply could not be. Mr. LIPSCOMB. Mr. Chairman, I yield 15 minutes to the gentleman from Ari- zona [Mr. RBODES], a member of the committee. (Mr. RHODES of Arizona asked and was given permission to revise and ex- tend his remarks.) Mr. RHODES of Arizona. Mr. Chair- man, there is really nothing lower any- where than the junior member of a subcommittee, on the minority side. Rec-? ogr.fzing that fact, I wish to inform my colleagues, and I am sure they will re- ceive this knowledge gratefully, I do not intend to consume all of my time. Mr. Chairman, I do not intend to try to prove that I am a great military strat-? egist-because I am not a great military strategist-I have not been on this com- mittee long enough. But I have been on the committee long enough to form a great and lasting ad- miration for the other members of the committee and for the staff of the com- mittee. It has been said that this is a hard-working committee. It is a hard- working committee. It has been said that the members are devoted to their duties. They are devoted to their duties. It has been a great experience for me to be able to be on the committee, to compare notes and to listen to the in- cisive questioning by the members of the committee of those who come from the Pentagon building to justify their budget. This is a $70 billion budget. It started out to be $71 billion. As befits my station on the committee, I am going to do some nit-picking. Somebody has to nit-pick a little bit and I think in my position I can do a good job of it. The Item I am going to talk about is three-tenths of a millionth of this par- ticular budgetary request. The item I am going to talk about amounts to $20,000. If you will turn to page 75 of part V of the hearings, you will see the follow- ing colloquy under the heading of "Beau- tification Program": BEAUTIFICATION PROGRAM: Mr. LIPSCOMB. What was the item you. mentioned about the report on natural beau- ty? N[r. HoRwrrz. This is money provided to the Director of the Bureau of the Budget. Mr. LIPecoMR. What has this to do with the Defense Department? Mr. HoRWITZ. It is our share of this pro- grain, and of course we do have our real estate holdings where we carry out certain programs to keep them looking nice. (Off the record.) Mr. ANDREWS. Is that amount for beauti- fication an assessment against the Defense Department? Mr. AIRHART. If I remember correctly this was the President's report. Mr. ANDREWS. The so-called beautification program? Mr. AIRHART. That is right. Mr. ANDREWS. I believe you stated you made the contribution because it was assessed. Mr. AIRHART. The Budget Bureau would make a determination as to each partici- pating agency's share of the cost. Mr. ANDREWS. I assume then all or most od the Government agencies are assessed so much for beautification. Mr. AIRHART. I should think this would include a great many of them, not all. Mr. Chairman, the meaning of all of this is that someone in the President's office decided that various branches of the executive department should be as- sessed for some beautification program somewhere. The Bureau of the Budget decided how much each of them was to pay, assessed them accordingly, and the money was put into a beautification pro- gram for some purpose somewhere, we know not what or where. In fact, the people who testified from the Depart- ment of Defense were not very firm in their own knowledge as to where this particular sum of money went. I do not know how much total money was raised by the executive department in this way, but it seems to me obvious that this is a clear circumvention of the power of the Congress to appropriate. Going on, Mr. Fisher was asked where this money came from. I will read the colloquy: Mr. Lipsconsa. And then there was a repro- graming action taken? Mr. FISHER. Internally. Mr. LIPSCOMB. For you to obtain the $20,- 000 to pay your share? Mr. FISHER. We financed it from internal resources. Mr. LIescomB. Have you told us where you obtained the money to do this, from what funds? W. FISHER. No, sir; we have not. Mr. LIPscoMB. This is what you are going to tell us for the record? Mr. FISHER. We will; yes, sir. (The information following:) The $20 thousand was derived from within the OSD funding due to the refinement of Supplies and Materials estimated require- ments. As one member of the Appropriations Committee, I would like to serve notice on the executive department that this sort of thing, which is apparently a brandnew gimmick, had better stop. We do not intend that this type of circtun- vention of the authority of the Con- gress--actually the duty of the Congress as set forth by the Constitution-will be thwarted by operations such as this car- ried out through the Bureau of the Budget or any other part of the executive department. Now, some more nit picking, but this is a little bigger nit because I imagine if what I propose were done, it would save something like three one-hundred- thousandths of the $70 billion which we are appropriating. This involves the du- plication of effort amongst the three services insofar as service schools are concerned. For example, each of the services has a Judge Advocate General School. It is true that the main Judge Advocate Gen- eral School is the Army school located at Charlottesville, Va. But the other two services also have JAG schools. The same Code of Military Justice applies to personnel of the armed serv- ices. The laws which pertain to them may not be identical, but they are cer- tainly almost identical insofar as their approach is concerned. I defy anyone to put forward a cogent argument as to why it is necessary to have three sep- arate Judge Advocate General Schools. It seems to me they could very well be consolidated into a Department of De- fense Judge Advocate General School, and I, for one, recommend that this be done. As a former JAG officer-I might say a retired JAG officer-I happen to know that ,before long new arrangements will have to be made in Charlottesville or elsewhere for, the Judge Advocate Gen- eral School of the Army. When this is done, I hope that the school will be made Into a DOD school, and the officers from all services, who are lawyers and who need to be oriented or trained in military justice, will be sent to this particular school. Other schools in the same category concern training for hospital corpsmen. It is my understanding that all three services train their corpsmen differently. On chaplain schools, I cannot imagine why it would be necessary to have three different chaplain schools. Certainly the finance schools of the three services could be consolidated, as could all of the management types of schools. I do not have any idea how much money could be saved, Mr. Chairman, if the schools of the types I have mentioned were consolidated, but I daresay it would be a rather substantial sum. I venture to say it would be at least equal to three one-hundred-thousandths of this very large budget. One of the topics often mentioned by members of the subcommittee during the course of the hearings was a concern that this Nation was becoming myopic con- cerning our responsibilities in Vietnam-- that our concentration on Vietnam was so deep, so intense, that we were neglect- ing our duties and responsibilities throughout the world. I noticed in the newspapers not too long ago a mention of the fact that we probably have 40-some treaties with other nations involving some obligation or another on the part of the United States of America. None of us wants the United States not to be in a position to fulfill treaty commitments. But I do not know what these commitments are. One thing I definitely suggest is that there be some sort of high-level meeting between the Secretary of State and the Secretary of Defense, so that at least the latter may be informed-if he is not already-as to what the possible mili- tary commitments of this Nation might be, as a result of these treaties. When we think of the magnitude of the commitment in Vietnam, when we think of what could have happened in the Middle East not too long ago, when we think of what could happen in South America and other areas of the world in which we are interested and in which we have treaty obligations, we realize that we in Congress are facing a task, in carrying out the responsibilities of this Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R0D0100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE H 7093 Nation, of a magnitude which we prob- Air Force, by the nature of its mission, comparable size if they are conventional- ably cannot even visualize. there are jobs which should be filled and ly powered than if nuclear powered. But We realize that the executive branch must be filled by pilots. measured over a span of years, it now ap- also is facing the responsibility of plan- I hope that in our zeal to hold down pears that no defense funds are actually ning for future actions which they prob- pilot training and our necessity to man saved through the construction of con- ably cannot visualize. aircraft we have not set up ground rules ventionally powered vessels. I hope that some day there will be an for filling jobs which take pilots out of It was pointed out during the hearings inventory made of these responsibilities, jobs they should fill. I suspect we have that new naval vessels being built today that we may face up to them realistically done this. may reasonably be expected to provide in the cold hard light of the late 20th I hope the Department of Defense will for our defense during the next 35 years, century, to determine whether or not we engage in a reappraisal of this whole or into the 21st century. Viewed from as a nation really can survive the situation to make certain that the pilot this standpoint we would do well to ask type of burden which we apparently training program is adequate to fulfill ourselves whether or not the Congress have assumed throughout the years, and all the needs of the Air Force, but also should not take a stronger position with to make if necessary some agonizing re- that, pilots will continue to have the op- regard to planning and procurement of appraisals as to our national responsi- portunity to move into command and nuclear-powered vesselsnow. developed in which bilities, squared with our national ability staff positions not directly related to fly- The the Middle quick crisis focused our attenped n to discharge those responsibilities. ing. In doing this, of course, it is going to We are told that already there are the possibility that we may be required be necessary for us to make certain very pilots who are doing a second tour of to establish a military presence in sev- basic assumptions. Many of our responsi- duty in the Vietnam theater. Rotation eral parts of the world at once during bilities were assumed when the use of of military personnel certainly is to be some series of international events. nuclear weapons was contemplated, if desired. I believe all of us agree this is Speed of deployment and flexibility of necessary, to fulfill them. If we are going a fine morale factor. When one rotates logistics is critical in a situation of this to carry out those same responsibilities a man from his tour of duty and then kind. The vessels which can get there with conventional weapons, then we have a year later sends him back, I wonder fastest and stay on station longest will a brand new game as far as training, how good a morale factor that is? have the greatest value to us. The world procurement, and logistics of our Armed I recognize the need for pilots, but at outlook today does not offer us any as- Forces are concerned. We have new de- the same time we should grind into the surance that a future year will not find us cisions to make as to our national eco- need for pilot training some question of faced with two or three critical situations nomic ability to fulfill these responsi- whether this is the type of thing we want separated by thousands of miles of ocean. st that bilities under the rules of the game as to do, or whether we should train more Prudence ra dde to the ubes of ldt u ges ability fe b u e re- pared they now exist. It is important that we pilots than we are now. make these basic decisions and square Mr. Chairman, in closing I also want set of circumstances. them with the action which the rest of to express my agreement with the com- During the hearings it was also testi- the world might reasonably expect us to mittee in insisting that we maintain cer- fled that to bring our Navy up to full take in the event of aggression else- tain airlift capabilities of the reserve cognizance of all modern developments where in the confines of our globe. arms of the Air Force. The C-5 is to be would cost some $15 to $20 billion. As a I believe it is also necessary that we a great airplane. I hope that we will worldwide power we must have a Navy look at one very important part of our proceed posthaste to build it and to de- with worldwide capabilities, so it follows defense arsenal as it exists today. ploy it. Certainly it is not now built and that modeerni atiot of he Navy is not Throughout the hearings, whenever the it is not now deployed. Air Force and the Army or the Navy were Therefore, at this time, in order to ful- alternatives for debate. in the room testifying, they were queried fill the commitments which we have not During the coming years we will find concerning their pilot training programs. only in Vietnam but also in other parts that the money must be spent and the The Air Force had 2,956 pilots programed of the world, it seems to me to be great modernization must be effected. The de- for training in fiscal year 1967. In 1968 wisdom on the part of the Congress to bate will center upon the question: how this goes up to 3,492. I, for one, hope that insist that the National Guard airwings best can the goal be accomplished, and this is enough, but I am not satisfied that which were scheduled for deactivation will feature the nuclear versus conven- this is enough-for this reason: We have be retained as active units of the Air Na- muChl ipowered vessel. But today tare spin the g the two uab tt the h effete been fulfilling our pilot requirements in tional Guard. costs less Vietnam and elsewhere by taking some Mr. MAHON. Mr. Chairman, I yield have hard actions which a lot of us a never thought gsuch time as he may e tleman from West c Virginia [Mr. trained naval officers to study, and that would be necessary to take. g One o of the actions s is to take people SLACK], a member of the subcommittee. experience is being gained every day in ia. from jobs which are not flying jobs and Mr. SLACK. Mr. Chairman, I rise in the waters of Southeast Asoperation of The compari put them back in the cockpit after years support of this legislation. nuclear and conventionally powered vef of limited flying and at ages which are Mr. Chairman, one of the less impos- appears our be luth Vietnam the far advanced from those which one ordi- ing dollar items in this multibillion-dol- sels in support narily ascribes to a combat pilot, and lar bill, amounting to a total of only avoidable appears that our first then send them out to combat. $134.8 million, provides funds for the I should say, in the next breath, these construction of a nuclear-powered guided line fighting forces must all be nuclear are rely older pilots have certainly acquitted missile destroyer leader, and for ad- powered if the high seas in on maxi mum themselves beautifully. They are fine vance procurement activity on another defense. pilots. They are good men. ship of the same class. This item is not def. (ens SLACK asked and was given per- -1.t the same time, one wonders for how large as today's military expenditures to revise asked and a -wend his re- long ,we should rely on this type of pilot go, but it appears to be a forerunner of mission marks) reserve. In other words, should we not be events to come. marks.) may Mr. consume Chairman, , I the yield training more people so that it is not During recent years there has been such Mr. MAHON. necessary to take pilots out of nonflying growing a conviction in the minds of time he c from New 'York fobs and put them back in the cockpit? many that all major naval vessels will tinguished ing shed ed gentleman member of he sock Many of them are literally "flying grand- one day be nuclear powered. But during committee. fathers," capable though they may be. those same years there has been a reluc- Also, is it really a good thing to take tance on the part of defense planners to (Mr. ADDABBO asked and was given pilots out of nonflying jobs and send move firmly away from conventionally Per is kssio.) n to revise and extend his them back to pilot duties? . In many instances it is true, I am sure, It is quite true that nuclear-powered Mr. ADDABBO. Mr. Chairman, the that there are jobs which can be han- vessels cost more in the construction and House today has the task of passing on died by nonpilots just as well as any preparation stages. For the same amount the largest single defense appropriations pilot can handle them. However, in the of money we can obtain more vessels of bill in the history of this country. After Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7094 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 months of study and review, the Appro- certainly become a more powerful in- Congress before they realined the Na- priations Committee-of which I am a stitution with each succeeding year. Yet, tional Guard and the Reserve forces of member-now asks this body to approve except for the limitation to two terms, this country. more than $70 billion for our national I cannot think of any respect in which Mr. Chairman, it just does not make defense during fiscal year 1968. I want to the Congress has seen fit to put addi- sense to me at this time to eliminate assure my colleagues that the commit- tional braking power upon the Office of these National Guard units and these tee, under the leadership of its distin- the Presidency. For example, I raise the Reserve units, when our country, as this guished chairman [Mr. MAHON] and question: What limitations are placed on report says, is in a time of crisis. ranking minority member [Mr. Lips- the President of the United States in Now, Mr. Chairman, most of the Na- COME,I has approved only those expendi- respect to the military forces to be cre- tional Guard divisions that will be elimi.. tures which proved under rigorous in- ated by this bill? Can he send these forces nated by the Secretary of Defense are in vestigation to be absolutely necessary to on his own personal decision any place camp right now training. These 15 divi- our national defense. in the world for almost any type of mis- sions are in camp right now. About three-tenths of the proposed ap- sion? In the absence of a declaration of You know, Mr. Chariman, Secretaries propriation, or more than $21 billion, war, does the President really have this of the Department of Defense in the past represents the rising cost of the war in authority? We face the possibility if not have tried to update and not eliminate Vietnam. Because the action of the oppo- the prospect of the President sending these National Guard units. nent., as it may either increase or de- another 200,000 or 300,000 combat forces Mr. Chairman, I recall that the 36th crease, is unpredictable, costs in Vietnam to South Vietnam. Upon what legal au- Division in World War I-at least I was cannot be precisely projected. Nor did thority will the President undertakesuch told today-had a cavalry regiment that the committee attempt to anticipate the an action? Would it be the Gulf of fought in World War I. They did not do effect of future world crises, such as the Tonkin resolution? Was this really an away with the 36th Division when they Middle East war, on our national defense explicit, act on the part of the Congress brought in tanks and mechanized the requirements. I concur with the other authorizing the President to go that far division. They eliminated the cavalry committee members in the belief that we in that region of the world so as to put a regiment and put in an armored regi- must continue to improve our ability to half a million people into combat? I ment in place of the cavalry regiment. deal with international crises as they question really whether the Congress has Mr. Chairman, when they had the may Occur. measured up to its constitutional re- horse-drawn artillery, they did not elim- I lament as I know mai,y others do the sponsibilities in recent years. The re- inate these divisions, but the Secretary fact that the greatest part of our budget, sponsibility, the duty-not just the right, came in and ordered that there be year in and year out, must be devoted but the duty-to declare war. It seems brought into the division the self-pro- to securing our homefront and those of to me that we have really shirked our pelled artillery weapons. our allies from the threat of useless and duty, and I direct this criticism at myself Mr. Chairman, my point is that you despicable aggression. I am dismayed to as well as others. do not have to eliminate a division or a think, that we are spending more each We seem to have been willing to let Reserve unit in order to bring it up to year fighting a protracted war in Viet- the President, on his own, make a fateful date or to build it up to the present war nam than we are on all the new domestic decision to send military forces into bat- level. You can still keep the individual- programs combined. Just think what a tle on the Asian mainland. Does the ity of the various units involved. fraction of this proposed defense expend- President have adequate authority to Mr. Chairman, it is said that these are iture could do at home to aid the poor, send half a million soldiers to other good National Guard divisions, and they improve health care and facilities, up- places in the world if, in his opinion, the are. grade education, discourage crime-in national interest so directs? Could he short, treat the maladies which permeate send them into the Middle East, for Mr. Chairman, I quote the 31st Divi- America and, especially her cities. sion which is composed of men from Defense esp is not r cities but example, if war should break out and he Mississippi and Alabama. These spending should decide that this is really what mandatory. It is like medicine which is ought to be done? sions, rmyn in ers a are listed rs Rn l ulax necessary for staying alive. As we In other words, has the Congress sent Army officers divisions enlisted Secretar l strengthen our defense we also seek ways yielded completely in these modern-day sent to these diviasions by the Secretary and means to a lasting peace and until a circumstances to the Executive the Con- of Defense. better remedy is found a strong defense gress right to declare war? Mr. Chairman, the 31st Division in is still one of the best deterrents to pos- To me, Mr. Chairman, these are sober 1965 had 88 individual-type units or bat- sible all-out aggression by those who questions that deserve our attention. teries-company-sized units. These 88 would try to destroy free and independ- Mr. LIPSCOMB. Mr. Chairman, I have units which were graded by Regular ent nations. no further requests for time. Army personnel who grade them as Mr. LIPSCOMB. Mr. Chairman, I Mr. MAHON. Mr. Chairman, I yield 5 being superior, excellent, satisfactory, or yield 3 minutes to the gentleman from minutes to the gentleman from Missis- not satisfactory-in 1965 all 88 of these Illinois [Mr. FINDLEY]. sippi [Mr. MONTGOMERY]. units received a superior rating which (Mr. FINDLEY asked and was given (Mr. MONTGOMERY asked and was indicates that they were proficiently permission to revise and extend his re- given permission to revise and extend trained and ready to fight. marks.) his remarks.) These are the units which the Secre- Mr. FINDLEY. Mr. Chairman, I was Mr. MONTGOMERY. Mr. Chairman, tary of Defense is trying to eliminate. much impressed with the presentation I would like to limit my remarks to page In 1966 this same division-and these just a few minutes ago of the gentleman 7 of the report made by the Committee same figures will hold true for other from Ohio [Mr. Bow], in which he set on Appropriations pertaining to the re- divisions of the National Guard-of the forth quite clearly and properly the con- alinement of the Army Reserve compo- 88 units that went to camp, 81 received stitutional responsibilities of the Con- vents. My friend, the Congressman from a superior rating by regular Army per- gress in respect to military forces; that Pennsylvania [Mr. FLOOD], said that he sonnel and seven received a satisfactory is, not only the responsibility to raise was the last speaker of the day on the rating. armies and navies but the responsibility Democratic side. I certainly agree with Mr. Chairman, it is the opinion of to regulate them. him, because I cannot compare with others-it is not my opinion alone-that This, is truly a bill to raise an army, him. Also he said that "damnyankee" If you eliminate these National Guard to provide for the paying of the men was one word, and I certainly want to divisions and these Reserve units, and if and their equipment. It does raise some agree with him on that, too. you realine them, it is going to take at additional constitutional questions which I would like to commend the chair- least 3 years during which to bring these I attempted to raise at a rather late hour man of the Committee on Appropria- new concept brigades and these new Re- in connection with the draft bill several tions, the Congressman from Florida serve units up to the trained level that weeks ago. I Mr. Sl c s], and also the gentleman from these National Guard divisions and these When engineers build a larger engine, Ohio [Mr. Bowl, in seeing that these Reserve units have at this time. they generally put a bigger brake on it. statements were inserted asking the De- Mr. Chairman, insofar as I am con- Through the years the Presidency has partment of Defense to come to the cerned this is a very important point. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 18, 1967 CONGRESSIONAL RECORD - HOUSE Mr. SIKES. Mr. Chairman, will the gentleman yield? Mr. MONTGOMERY. I yield to the distinguished gentleman from Florida. Mr. SIKES. Mr. Chairman, I wish to compliment the gentleman from Missis- sippi [Mr. MONTGOMERY] for a very sound statement and for his strong interest in this matter. Further, Mr. Chairman, I wish to agree with the gentleman that it is a lot sim- pler, less costly, and more effective to keep a combat-trained man in a combat unit than it is, to convert him to a carrier of water, a hewer of wood, or a baker of bread. Mr. Chairman, we must have proper logistical support units. We cannot win *wars without them. However, it just does not make sense to convert combat- trained units to logistics support units. Mr. MONTGOMERY. Mr. Chairman, I Certainly agree with the statement of the distinguished gentleman from Flor- ida and I.thank the gentleman for his remarks. .Mr. Chairman, another real danger that I see- The CHAIRMAN. The time of the gentleman from Mississippi has expired. Mr. MAHON. Mr. Chairman, I yield the gentleman 1 additional minute. Mr. MONTGOMERY. Mr. Chairman, another real danger that I see-and I would like the Members of Congress to hear me out on this-is that in most States you are going to lose individual units. For Instance, I can use my State as an example where we now have 120 company- and battery-sized units located throughout the small towns of my State which are participating National Guard units. However, under the new proposal, we will have to cut back to 79 units. That represents a reduction of 41 units. However, the problem under the new proposal is where you have a company- or battery-sized unit, you could end up under this new proposal with a platoon or even a squad. I certainly think at that time it is un- reasonable and unbelievable and cer- tainly not in the best interest of the country to realine these National Guard divisions and also the Reserve units, and I hope the Secretary of Defense will heed the request of Congress. I recall to the Members of Congress that the concept of citizen-soldiers is older than this Nation Itself. Certainly Congress should be consulted when such sweeping action is taken by the Secre- tary of Defense. Mr. MAHON. Mr. Chairman, I yield 5 minutes ttZ, the gentleman from Texas [Mr . WRIGHT] ",Mr. WRIGHT. Mr. Chairman, because of the well-iptentioned_ comments of my friend, the gentleman from Ohio [Mr. MINSHALL], and because of certain other things that have been said and written .with regard to the F-111 program, I should like to take this time simply to accentuate the positive. I want to bring to the attention of the Members of this House some of the really fine advances that this program does symbolize and embody. The F-111 is a magnificent air- craft and all of America has ample cause to be extremely proud of it. Those pilots who took the F-111 plane to the Paris air show, Col. Ray O. Rob- erts And Maj. Robert K. Parsons, re- turned reporting that it had been the sensation of the entire show. They re- ported that the Russians had been so impressed that they had spent hours walking around it, looking at it, photo- graphing it and even asking if they might scrape a bit of metal from its wings to, take back with them. This clearly indicates- ' Mr. MINSHALL. Mr. Chairman, will the gentleman yield? Mr. WRIGHT. Of'course I will yield to the gentleman, but'I have only started. Mr. MINSHALL. Mr. Chairman, I would like to just make the record clear and state that the F-111 that was at the Paris air show was the Air Force version of the F-111, it is the other version of the F-111, the so-called F-111B with which I was critical. Mr. WRIGHT. Mr. Chairman, I appre- ciate the gentleman's elucidation. It is true that the planes demonstrated in Paris were F-111A's. But I believe the worldwide reaction to the stunning new developments In this program applies with equal force to both versions. Mr. MINSHALL. They are two differ- ent airplanes, weightwise, flight charac- teristics, and in many other respects. Mr. WRIGHT. Of course, they are two slightly differing versions of the same basic design, in spite of the best efforts of the Defense Department to achieve the maximum degree of commonality. Mr. MINSHALL. That commonality concept has gone out of the window. The Air Force version of the F-111 is as dif- ferent as night is to day with respect to the Navy version. Mr. WRIGHT. Mr. Chairman, I appre- ciate the gentleman's deep interest. I did not ask him to yield earlier until he had spoken for about 10 minutes, and I have only 3 or 4 minutes remaining in which to emphasize some of the really positive advances achieved in this revolutionary new development in airpower. Permit me, therefore, to emphasize those things which apply to both the Navy and Air Force versions of the F-111. We have all heard a lot about com- monality. I believe it is a valid goal to achieve. Adm. T. F. Connally, Deputy Chief of Naval Air.Operations, after fly- ing the plane, said he believed that De- fense Secretary McNamara was right. Admiral Connally expressed his own opinion that the commonality factor would save many hundretL of millions of dollars in the follow-on programs and in parts and maintenance. He spoke en- thusiastically of the performance char- acteristics of the F-111B. He said, "I think this F-111B is going to land on that carrier like a lady." I have talked person- ally with Secretary Nitze and the Navy project officers, and I have no doubt of their enthusiasm for this program. But let me mention just two or three things that have not yet been brought out in this debate. I believe you will see why the Navy spokesmen are enthusiastic for the F-111B. It brings together in one package the greatest number of totally revolutionary new advances in the state H 7095 of the art of air-to-air warfare that we have ever seen in the United States. First, of course, is the swept-wing de- sign, the first of its kind. It is truly revo- lutionary and extremely significant. By extending the wings at a 90-degree angle from the fuselage the plane is capable of very low speed takeoffs and landings. This, of course, is extremely important on aircraft carriers and on short, hastily built jungle landing strips. But with the wings swept back alongside the fuselage, it can fly 2i/2 times the speed of sound. One plane contains both extreme capa- bilities. This makes it the most versatile combat aircraft ever developed by Ameri- can industry. Another extremely significant innova- tion is the modulated turbo-jet engine which, for the first time in jet aircraft, will permit a wide range and a rapid change in speed. Heretofore military jet aircraft have had, let us say, to coin some terminology, just two gears, low gear and floorboard. There were only two choices-either subsonic speed or full jet power. But with the modulated turbo- jet engine in the F-111, we do not have to just kick on the afterburners and go from a very slack speed into top speed. Our pilots will have a wide range of speeds where they can modulate and make much more flexible the speed and maneuver- ability of the aircraft. Nothing has been mentioned in this discussion about the truly revolutionary new radar fire control system. This is an almost unbelievably spectacular advance in target tracking and controlled fire- power. Better by far than anything that any nation has conceived in the past, the F-111's fire control system is capable of firing simultaneously at six targets, and while destroying those six targets, it can maintain a constant computerized track- ing of 16 more simultaneously. This fan- tastic new development has been tested and proven in more than 8,000 hours of ground and airborne operation. It works. There has never before been anything like it in the history of warfare. An equally dramatic thrust forward is involved in the Phoenix air-to-air mis- sile in the F-111. It will extend the ef- fective range of air-to-air missilery by as much as five times the present distance. Think of it. With this new system it will be possible to destroy targets in the air from five times the distance. Consider the advantage. In other words, if we can knock out a target that is 10 miles away today, this new forward-looking missile system will be able to knock that target out from 50 miles away. The airplane also embodies a new ejec- tion capsule system, which for the first time, will work at extremely low levels on the ground and on the water, and insure the survivability of the pilots. Each one of these new systems is a daring and truly spectacular advance in the art of aerial warfare and, wedded to- gether as they are in this revolutionary new airplane, they constitute the great- est potential advance in aerial combat capability that the Nation has ever put together in a single production program. So I am sure you can see why I say that it is high time to accentuate the Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7096 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 positive about the F-111. There is no need to be the least bit defensive about it. It is inconceivable to me that the Con- gress would want to delay by 2 weeks or 2 days-let alone 2 years--the entry of this badly needed weapons system into our inventory. Mr. MAHON. Mr. Chairman, I yield such time as he may consume to the gen- tleman from California [Mr. HOLIFIELDI. (Mr. HOLIFIELD asked and was given permission to revise and extend his re- marks.) Mr. HOLIFIELD. Mr. Chairman, I have come to the floor of this House many times before to discuss the issue of nuclear propulsion for the surface war- ships of our Navy. On May 29, 1967, I told you about the commissioning of the nuclear frigate Truxtun and the sad state of affairs represented by the recent christening of the nonnuclear aircraft carrier John F. Kennedy. The Kennedy could have and should have been nuclear powered. On May 8, 1967, I spoke in support of the fiscal year 1968 defense authoriza- tion bill presented on the floor of this House by the distinguished chairman of the House Armed Services Committee, the Honorable L. MENDEL RIVERS. That bill, as originated in the House and as subsequently agreed to in a Senate-House conference and signed into law by the President on June 5, 1967,, authorized three new nuclear submarines, long lead- time procurement funds for a third nu- clear aircraft carrier, and two new nu- clear powered guided missile frigates which Congress substituted in place of two nonnuclear destroyers requested by the Department of Defense. This law, Public :Law 90-22, represents a forward step toward equiping our Navy with the finest in nuclear powered surface war- ships-;a step which is badly needed and long overdue. The bill before the House today ap- propriates funds for these nuclear-pow- ered warships. In my capacity as a Inem- ber of the Joint Committee on Atomic Energy I have delved deeply into the fac- tors involved in the value of nuclear pro- pulsion for warships. As you all know, the Joint Committee has studied and an- alyzed the question of nuclear pro- pulsion for submarines and surface warships for many years. This intensive review was required before the commit- tee could recommend to Congress the re- search and development effort necessary to build a nuclear Navy "second to none." As I stated before, the defense appro- priation bill for fiscal year 1968 includes funds for two nuclear-powered frigates substituted by Congress in place of two nonnuclear-powered destroyers requested by the Department of Defense. Further, the appropriation bill includes funds for performing the contract definition of a new class major fleet escort called the DXG; the Armed Services Committee Report No. 221 dated May 2, 1967, on the fiscal year 1968 defense authorization act and House Report No. 270 dated May 22, 1967, on the Senate-House Armed Services Committee conference contain language which prohibits using any of these funds for the design of any major fleet escorts not powered with a naval he intends to ask for the remainder of nuclear propulsion plant-a step which I the funds for the third carrier next year also endorse, Of course, the intent of this and another in a future year. provision is not to confuse you with the At least four major fleet escort ships- nomenclature used for various types of destroyers or frigates-are assigned to ships; the intent clearly is to provide all each aircraft carrier. These escorts are nuclear escorts for our nuclear aircraft designed to operate either on independ- carriers--no matter whether they are ent missions against enemy targets or as called DLGN, DDGN, DXGN, or DXN's, part of a coordinated protective screen to or anything else. destroy enemy aircraft, missiles, sub- The aircraft carrier continues to be marines, and surface ships that attack one of our prime naval attack weapons. the force. It provides a movable platform from The facts behind the action recom- which to launch airplanes wherever they mended by the House Armed Services may be needed. It is a floating airbase Committee and the Joint Committee on complete with maintenance and repair Atomic Energy to proceed now on a facilities. It has proved to be a vital as- nuclear-powered surface escort warship set in support of our military activities in building program can be assessed by re- Vietnam. The tremendous problems and view of the reports I identified in my floor expense of building up land airbases in statement of May 8, 1967. To this list I Vietnam continue to demonstrate the should add House Report No. 270 dated great advantages of the aircraft carrier May 22, 1967, on the conference of the concept. Senate and House Armed Services Com- However, to fully exploit the full po- mittees concerning the fiscal year 1968 tential of the carrier task group, every- defense authorization bill. thing possible must be done to minimize In addition, the Joint Committee on the logistic support required to sustain Atomic Energy is currently preparing for the ships in a combat environment. Elim- public release a report prepared by the ination of the requirement for a continu- committee staff on the issue "Nuclear ous supply of propulsion fuel makes Propulsion for Major Fleet Escorts" and nuclear-powered ships valuable. This be- a record of executive hearings held this came abundantly clear to the members year on the naval nuclear propulsion of the Joint Committee when we studied program. this problem in 1963 and prepared our The committee staff report, of about report on nuclear propulsion for naval 450 pages, will give the complete history surface vessels. See the December 1963 of nuclear propulsion for naval surface Joint Committee report entitled "Nuclear warships. It will be a document that will Propulsion for Naval Surface Vessels." be useful to every person who is inter- The Department of Defense has finally ested in the national defense of our come to realize this, in the case of air- country, It is well documented. It will craft carriers-after Congress repeat- furnish the complete story on this prob- edly pointed it out. They still have not lem of whether we should go back to the recognized this important truth in the days of the sailing vessels, you might say, case of ships built to escort nuclear by using oil, because oil today in the carriers. propulsion of our neval vessels is just as In fact. I saw an interesting item in obsolete as sails were when oil took over. Sunday's Washington Post about Navy This report and the record of hearings Secretary Nitze being designated to re- provide a complete chronology of the place Cyrus Vance as Deputy Secretary positions of key people in Congress, the of Defense. The article said: Navy, and the Department of Defense Perhaps one of Nitze's greatest accom- from 1961 when the Enterprise first went plishments there (as secretary of the Navy) to sea up to as recent as May 29, 1967. It was to use McNamara's own yardsticks=cost- also specifically considers all the studies effectiveness-to convince a doubtful Seere- and correspondence provided to Con- tary that all carriers in the future should be nuclear gress by the Navy and the Department powered. of Defense since 1961 on the isssue of I do not mind letting Secretary Nitze whether or not the Navy should have have some credit. nuclear-powered surface warships. These As I was saying, we must be able to studies and correspondence are pub- operate attack carrier task forces any- lished in the report to the maximum ex- where on short notice. Nuclear propul- tent permitted by consideration of our sion in our naval striking forces will national security. greatly enhance our capability to operate I am sure you will agree that the case our carrier task forces throughout the is clear and well supported that we, the oceans of the world-without the en- Congress, will have to take extraordinary tangling logistic support problems cre- steps if the Navy is to get the number ated by conventional fuel requirements of nuclear-powered major surface vessels and free from the constant changes in they need. It is certainly clear that the the worldwide political climate. Navy does not need more "studies" on Our one nuclear-powered aircraft-car- this issue. No one has ever won a war rier, U.S.S. Enterprise, which is now de- with paper studies. ployed for the second time in Vietnam, The Present Middle East crisis clearly has set record after record since she supports the conclusion reached by the joined the fleet 5 years ago. She has Joint Committee on Atomic Energy, the proven so effective in battle in Vietnam Senate and House Armed Services Com- that the Secretary of Defense requested mittees, and the Senate and House Ap- a new nuclear-powered attack carrier in propriations Committees that the Navy last year's bill, asked for advanced pro- proceed now building nuclear-powered curement funds for the third nuclear car- major warships. This crisis supports the rier this year and has told Congress that position of Congress that it is not in the Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE best interest of this country, either About one-third of this total is for carrier short term or long term, to continue propulsion fuel, about one-third for es- building nonnuclear major surface war- cart fuel, and the remaining one-third ships, as has been repeatedly proposed for aircraft fuel, Thus, nuclear power in by the Department of Defense. the carrier would reduce the fuel require- While only a small fraction of our ments in the logistic pipeline by one- domestic consumption of petroleum third and nuclear power in the escorts comes from the Middle East, more than would reduce the fuel pipeline to the half the petroleum products used in striking forces by another one-third. Vietnam have been coming from Persian The Chief of Naval Operations pointed Gulf sources, On June 7, the Secretary out over a year ago that- of Defense announced that he was in- The compelling reason for the Navy's i n l e ion r a n ear pow r ecommend for uc t yoking an emergency plan to provide strong products for our forces in surface warships is based on the increased petroleum Southeast Asia' without being dependent survivability and tactical flexibility which de- upon the Middle East. This plan involves rive from freedom of dependence on propul- sion fuel oil logistic support. more than doubling the number of tank- The dependence of U.S. air power on the ers which have been supplying our fuel distribution system in the western Pa- Southeast Asian forces. cific is well known. The vulnerability of the In addition to the possibility of losing system to attack, particularly the overland these Mideast petroleum products at' and terminal fuel distribution required for their sources for political reasons, the land-based air operations, is a matter of con- closing of the Suez Canal will further cern. While the Navy's underway replenish- ment groups are considered to be less vulner- inerease the difficulty of transporting able, they can also be brought under attack. ' Current utilization of Enterprise and Bain- petroleum products since tankers will now be forced to take the longer route bridge is reducing our dependence on fuel oil around the Cape of Good Hope. I com- and thus strengthening our total air posture mented publicly on the importance of in Southeast Asia. The introduction of nuclear power in warships to decrease CVAN68 and other nuclear-powered warships our military dependence on' petroleum could be of critical importance to the efficient supplies last Saturday. projection of air power during the early 1970's. " Over and alcove the obvious difficulty From the above you can see that the and increased cost involved in this move, I hope you all remember that no one is Chief of Naval Operations appreciates the attacking these logistic supply forces, no importance of nuclear propulsion in min- bombs dropped, no shells fired, or no tor- imizing logistic support requirements. pedoes fired at these tankers. Our sur- However, it appears that other officials in face Navy, fortunately, has been fighting the Department of Defense have either a "War College" exercise where nobody forgotten these lessons or feel that for is firing at them. They have every possi- some reason they can be ignored. ble advantage. How often must history repeat itself The Joint Committee hearing record before these lessons are learned by the and report documents some history people in a position of responsibility in which is pertinent to this situation and the Department of Defense; before they I would like to summarize some of this pick up the step of the drummer leading for you. the way toward a modern Navy for this For example, how many remember that country? it was largely due to our submarine and The bill before you is an important step air attacks on the Japanese fuel supply as it provides funds for two more nu- lines from Southeast Asia to Japan dur- clear-powered guided missile frigates to ing World War II that the Japanese war escort our nuclear aircraft carriers. An machine was beaten to its knees, very overwhelming vote of support should much shortening that war in the Pacific? make it clear to the Department of De- Do you remember when the Atlantic fense that the American people, through Coast beaches of the United States were their elected representatives in Congress, coated with oil from sunken tankers-our believe this is the direction this country tankers sunk by German U-boats right should go. off our own coast? We lost some 130 tank- Mr. NEDZI. Mr. Chairman, it is under- ers to German U-boats in World War II. standable that there are several Mem- Our logistic support forces are poten- bers who are trying to stop the Defense tially more vulnerable today-with the Department from reorganizing the Re- advent of foreign nuclear submarines and serve components; however, the fact is longer range aircraft and missiles. that the structure of our Army Reserve To assess the importance of reducing components desperately needs reorganiz- the liquid fuel required by naval striking ing. It lacks 989 units which are needed. forces through the utilization of nuclear It has 1,076 units which are not needed. correcting this situation can the Onl b y y propulsion, it should be borne in mind that the monthly usage rate of petroleum structure be made to conform to that products fgr tfie Navy's ships and aircraft which the Joint Chiefs of Staff unani- is as great as the mously say is required. And only if the heast Asia toda ` o i y fi a lt maximum monthly rate the Japanese Joint Chiefs recommendation is met, can o ort p m p c aa.p were able et+ole o+ t^ into tli'e home Islands during World War None of us are wise enough to know II. The quantity of ship and aircraft fuel exactly how many artillery battalions, currently required per month for the car- ordnance companies, combat brigades, rier strike groups alone in Southeast Asia divisions, special forces, and other units is two-thirds as much as the average the Reserve components ought to have. mont~ilyrequirement for the U.S. carrier That is the job for professionals. To try strike forces in the 5 months of the Palau to substitute our judgment under the campaiggn-one of the peak naval opera- circumstances seems to me outrageous. tions of World War II in the Pacific. The Reserve Subcommittee of the 117097 Armed Services Committee on which I sit has been fully briefed on the proposed reorganization. It provides the Gover- nors with the forces which they need for local disturbances while at the same time continuing the U.S. Army Reserve at virtually its current strength. Fur- thermore, the plan is not intended for implementation for another 2 months- a schedule purposely designed to en- able the Congress to be fully informed with respect to the plan and to permit further consideration of H.R. 2, a bill which this House passed overwhelmingly only 4 months ago, and which explicitly endorses the authority of the military to establish, reorganize, or deactivate units as required by contingency and war plans. We have no business, particularly at a time when we have nearly 500,000 men in Southeast Asia and over 200,000 men in Europe in telling the military profes- sionals that they cannot put our Reserve forces into the condition necessary to adequately serve the national interest. To the contrary we ought to be telling the Army to get on with the job. Mr. Chairman, to set the record straight on the proposed realinement of our Reserve components, I submit, in ad- dition, the following statements from the Department of Defense: REALINEMENT OF ARMY RESERVE AND NATIONAL GUARD APPROVED BY SECRETARIES MCNAMARA AND VANCE Secretary of Defense Robert S. McNamara and Deputy Secretary Cyrus R. Vance an- nounced today that the Army has proposed, and they have approved, a plan for realign- ing the Army's Reserve and National Guard forces to improve significantly the early de- ployment capability and combat readiness of the United States Army's Reserve Forces. The realignment, to be started this year and to be completed by next summer, is de- signed to provide Army Reserve Forces as recommended by the Joint Chiefs of Staff to the Secretary of Defense in April 1967, and to bring the Army's Reserve Component structure into balance with contingency plans and the supporting equipment pro- gram. Because of its serious imbalance, the pres- ent Reserve Component structure has seri- ous readiness deficiencies. More than.a thou- sand units in the current structure are not needed. Most of these surplus units are manned at only 50 percent of full wartime strength and no equipment is being pro- cured for them. At the same time, the Army Reserve Forces need almost a thousand units it does not have. The Reserve Forces will be realigned to: a. Bring the force structure into conform- ity with that needed to satisfy military requirements and for which equipment pro- curement has been authorized. b. Update the Reserve Force structure. c. Provide adequate forces for the needs of each state. d. Locate the units in the proposed struc- ture geographically and in relation to popu- lation so that in the event of mobilization the burden is shared equitably among states and populations. e. Diminish the need to assign involuntar- ily to reserve units individuals who have completed two or more years on active duty. Under the proposed reorganization, the Army's Reserve Components will consist of units with a total paid drill strength of 640,- 000. Units in the new structure will be manned at an average of more than 90 per- cent of full wartime strength. The new struc- ture will be supported with equipment, tech- nicians, spare parts, and all the other es- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7098 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 sentials necessary to achieve required readi- ness. The structure of the Army's Reserve Com- ponents under this new plan will consist of eight combat divisions, 18 brigades, 13 Train- ing Divisions and the necessary supporting units to reinforce the Active Army and to provide the support required for the Reserve units. At present there are 23 divisions, 11 bri- gades and 13 training divisions in the Army's Reserve Components. Of the. 23 divisions, only 8 are manned at 80% of full wartime strength. The remaining 15 low-priority di- visions are manned at 50% of full wartime strength. Equipment is not being procured for the 15 low-priority divisions. The realignment plan continues paid drill units in both the Army National Guard and the Army Reserve. The paid drill strength in the Army National Guard would be 400,- 000 and 240,000 in the Army Reserve. The Army National Guard will consist of 8 divisions, 18 brigades, other combat and combat support units, and service support units necessary to maintain equipment and to satisfy state needs. Sufficient forces will be allocated to the states to meet require- ments for units needed in the event of civil disturbances and natural disasters. The Army Reserve will consist of mobiliza- tion base units, including 13 training divi- sions, two maneuver area commands, the Army Reserve schools, and the service sup- port units except those necessary to provide for the Army National Guard and state needs. The allocation of all combat and combat support units to the National Guard will give the Guard the units most relevant to state missions and will provide a basis which has not existed heretofore for allocating a given type unit to the Guard or to the Reserve. There 38 precedence for this action in the Reserve Components of the Air Force. In the Array, the Army National Guard is pres- ently composed of approximately 84% of combat and combat support units. The United States Army Reserve, on the other hand, consists primarily of Mobilization Base and Service Support units with about 79% of its strength in units of that type. The transition from the current structure to the proposed structure will be accom- plished by: a. Consolidating each of the existing 15 low-priority Army National Guard divisions into a high priority divisional or separate brigade. b. Forming a division base and high priority divisional bridage from each of the eight existing high priority National Guard divisions. c. Forming the additional 19 divisional or separate bridages needed from the 11 high priority brigades now in the structure and from low-priority units being discontinued. d. Organizing the resulting 8 division bases and 42 brigades into force of 8 high priority divisions and 18 brigades. e. Utilizing the Immediate Reserve and the residual assets of the Reinforcing Re- serve to form the remaining units required in the proposed structure. The Selected Reserve Force will be sub- stantially unchanged. The Army estimates that approximately 92% of the units in the proposed structure will consist of units in the current structure which will continue in being with no change, or will be continued after making a moderate conversion such as the conversion of a 105- mm battalion to a 175mm battalion. Eight percent of the units in the proposed struc- ture will be newly activated. A significant proportion of these activations would be re- quired in any event, because units that do not now exist, or do not exist in the number required, must be added to the structure. The plan is intended for implementation after the 1967 summer field training has been substantially completed, and will be com- pleted before the beginning of summer field training 1988 so that all units may then attend training in their realigned con- figuration. Secretary McNamara emphasized the im- portance of the reorganization in order that the total force structure-Active and Re- serve-will have the units required to enable the Army to respond promptly in meeting any emergencies that may arise in the future. Detailed stationing plans will be worked out by the Commanding General, Contin?- entai Army Command for the units in the Army Reserve and by the Chief, National Guard Bureau and State Adjutants General for the units in the Army National Guard. STATEMENT OF DEPUTY SECRETARY OF DEFENSE, CYRUs R. VANCE, REGARDING REALINEMENT OF ARMY RESERVE AND NATIONAL GUARD, MADE JUNE 2, 1967 The Reserve Forces of the United States are in the best shape in their history but more needs to be done. Secretary McNamara and I yesterday approved an Army plan to strengthen further the combat readiness of the Reserve Forces for contingencies any- where in the world. The Army's plan is based on an assessment by the Joint Chiefs of Staff of what Reserve Forces our nation needs, and what forces are surplus. When the Army received the results of the Joint Chiefs' analysis, Secretary Resor and General Johnson developed this plan, de- signed for streamlined readiness and sus- tained effectiveness. Our country must have a modern and up- to-date reserve forces structure. What we want and what we must have are reserve forces, manned, trained and equipped, to carry out missions within a balanced force structure. This is precisely the objective of the Army's plan. The realignment will assure maximum effectiveness. The fighting edge of the reserve forces will thus be further sharpened. This plan is the culmination of six years of effort to improve the readiness and effec- tiveness of our reserve forces. Six years ago our reserve forces lacked readiness objectives that were adequately linked to our contin- gency war plans. Thousands of units throughout the country were undermanned and ill-equipped. Many were surplus to our military requirements. Major steps to cor- rect these deficiencies were taken in 1982 and 1.965, and a third will be taken with this new Army plan. In the process we will have elimi- nated more than 3500 unneeded units, and will have added to our force structure more than 2000 needed units. We feel that great progress has been made over the last six years. The plan which is now before us will give us a balanced, ready, and effective re- serve force. The proposed reorganization will eliminate about 1000 unneeded units in the Army Na- tional Guard and the Army Reserves, and will create approximately 1000 new units. These activations will make the reserve forces compatible with the Active Forces and will give us an improved support struc- ture for both Reserve and Active Forces. National Guardsmen and Reservists under the realignment plan will know that they are fulfilling a heightened role in our nation's defense. Our civilian leadership and our military commanders will know that they have balanced reserve forces on which they can count for rapid response if necessary. And the American people will know that this major gain in national defense can be main- tained for years to come at the minimum cost possible. Our reserve forces have served the nation in an outstanding manner in the past. This realignment will give them even greater op- portunities for more effective service to our nation in the future. STATEMENT OF MR. STANLEY R. REsoR, SEC- RETARY OF THE ARMY, JUNE 2, 1967 Gentlemen, as you came in you were issued a press release which has a number of charts attached that provide information concern- ing the proposed Reserve Components re- organization we are announcing today. There are several matters which I would like to emphasize with regard to this pro- posed reorganization. Under the reorganization plan which we are announcing today the Army's Reserve Components will have 8 combat divisions, 18 brigades, 13 training divisions and the re- quired reinforcing and supporting units with a total paid drill strength of 640,000. Units in the proposed structure will be manned at an average of over 90 per cent of full war- time strength and will be fully supported with equipment, technicians, and spare parts. The Army National Guard will have a paid drill strength of 400,000 and will include 8 combat divisions and 18 combat brigades. It will also include the necessary service sup- port units to provide essential maintenance. The Army Reserve will have a total paid drill strength of 240,000 and will include 13 train- ing divisions, whose mission is to prepare in- dividuals for combat, 2 maneuver area com- mands, the USAR schools and service support units. The plan will achieve the following major objectives: It will bring the reserve force structure into conformity with that needed to satisfy military requirements and that for which equipment procurement has been authorized. It will give the reserves the 8 combat divi- sions, 18 brigades and supporting units rec- ommended by the JCS. It will update the reserve force structure to conform to modifications which have been made in the Active Army over the last two years. It will continue to provide adequate forces for the needs of each state. It will locate unitsgeographically and in relation to population so that the burden of mobilization will be shared equitably among the states and population. It will diminish the need to assign invol- untarily to reserve units individuals who have completed two or more years of active service. Unlike the reorganization proposal which we made in 1965 and 1966, the current plan will maintain units and paid drill strengths in both National Guard and the Army Re- serve. The proposed reorganization can be ac- complished without an unacceptable degree of turbulence. Ninety-two per cent of the units in the new structure, measured in terms of total strength, will be units al- ready in the current structure which will be coninued with no change or with merely a conversion to closely related types of units. The Selected Reserve Force consisting of 3 divisions, 6 brigades and 150,000 men will remain substantially unchanged except for modernization of certain support units to conform to changes made in similar units in the Active Army. We intend to begin implementing the plan after field training is completed this sum- mer. This will permit Congress time to take action on pending legislation which may be relevant to the plan. A major portion of the reorganization will be accomplished by con- solidating existing units not required by cur- rent plans into new units which are re- quired. This will enable us to retain most of the trained personnel now in the Reserve Components. Approved For,Release 2004/03/11: CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE H 7099 STATEMENT ' OF GEN. HAROLD K. JOHNSON, serve Components be fully equipped and organization will permit additional improve- CHIEF OF STAFF, V.S. ARMY, JUNE 2, 1967 properly supported to enable them to engage ments in readiness. In their annual review of the military in sustained land combat promptly when I want to pay special tribute to those mem- forces the Joint Chiefs of Staff analyzed the called upon to do SO. - bers of the Army National Guard and the requirements and military force levels needed When this reorganization is completed and U.S. Army Reserve who have devoted so much to fulfill the requirements of the national when the resulting force reaches the pre- time and energy to the security interest of military strategy. From this analysis, it was scribed strengths, equipment levels, and our country. A new opportunity now presents determined that the forces in the Army's Re- readiness, it will meet the requirements for itself which will require an intensified effort serve Components should consist of 8 dtvi- Reserve Components in the Army as we see and renewed devotion on the part of these sions and 18 brigades, together with other them today and in the foreseeable future. individuals. I know that it is their basic pur- Units to t, augment and and co anmmpp asemen Active vThe establishment of the Selected Re- pose to continue to devote their talents and Army forces. The Joint Chiefs of f Staff rec- serve Force was a first step in reaching a energies to the nation's security and that all Army ornritended that all of the units in the Re- higher state of readiness. The proposed re- other interests become secondary. Comparison of present and proposed Reserve component structure IMMEDIATE RESERVE UNITS Air defense ------------------------------------------------ Units to round out Active Army------------------------------ Brigades (now 11 brigades, to be increased to 18 brigades)______ Mobilization base and training units -------- _--------------- .-_ 8 division forces------------------------------------------- __________ _________ _ --- -- -- Support to other services--------------------------------- State headquarters and U.S. Army Reserve schools, staff and faculty------------------------------------------------ Subtotal------------------------------------------ REINFORCING RESERVE UNITS Other divisions (15 divisions, Army National Guard)____________ Nondivisional units---------------------------------------- Command headquarters, divisional___________________________ Subtotal-------------------------------------------- Total ----------------------------------------------- Proposed structure Army National U.S. Army Guard Reserve Army National Guard U.S. Army Reserve Total Manning level Thousands Thousands Percent 7.4 -------------- 77. 0 88.7 43.6 15.9 8.7 66.9 164.8 72. 5 2. 5 11. 4 7. 4 165.7 59.5 75.6 237.3 13.9 85 80 75-80 75-100 75-80 70 10 88 65 9 222 --------- ---------45 66 --------- 6 16 14 5 100 90 90 90-100 90 90 240 96. 3 -------------- 13.6 .7 96. 3 13.6 .7 -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- -------------- I418.5 I 260. 0 I 678.5 r Breakout of strength between Army National Guard and U.S. Army Reserve and between categories is approximate and subject to refinement. Comparison of present and future structure Combat divisions--------------------------------------------------------- Training divisions------------- ------------------------------------------- Command headquarters, divisional__________________________________________ Combat brigades ---------------------------------------------------------- Maneuver area commands_________________________________________________ Air defense battalions____________________________________________________ Field Army support command______________________________________________ Support brigades-------------------------------------------------------- Adjutant Generalunits ---------------------------------------------------- Civil affairs units--------------------------------------------------------- COSTAR units------------------------------ ------------------------- Finance units ---------------------------------------------------------- JAG units---------------------------=--- ---- ---- ------------- -------- Hospitalunits ---------------------------------------------------------- Military police battalions -------------------------------------------------- Publicinformation units--------------------------------------------------- PSYOPS units------------------------------------------------------------ ------------------------------------ Garrison units ----------------------- Ter inal units---------------------------------------------------- Total companies and detachments+ ---------------------------------------- Paid drill strength (thousands)r ------------------------------------------ U.S. Army Reserve, Army U.S. Army rve R Immediate Reserve r Reinforcing Reserve 2 Immediate Reserve8 National Guard ese 8 0 23 0 8 0 13 13 13 13 0 0 5 0 0 7 4 11 0 18 2 2 2 44 0 44 31 0 0 0 1 0 3 4 4 36 96 132 116 1 77 77 51 51 38 38 208 248 18 19 53 53 0 196 196 226 226 15 107 122 121 121 6 4 10 0 11 34 25 59 35 35 8 8 6 0 0 18 18 4 4 0 19 19 19 19 2 520 480 1 575 3 7 575 2,90 3,400 6, 300 , 307.9 , 110.6 , 260 08:5 40 240 640 1 Manned at 80 percent or higher or full wartime strength; necessary equipment being procured. a Fiscal ximt1967 budget strength. 2 Manned at 511 percent of full wat-time strength; no equipment being procured. year s jyjanned at 90 percent or higher or full wartime strength; to be fully supported with equipment, technicians, and spare parts. .:{yAJOR- UNITS dIYERENTLYv IN THE ARMY NATIONAL GUARD Immediate Reserve divisions and brigades normally manned at 80% war-time strength for which equipment is being procured. IC141T AND LOCATION :.;. 30th Armored 'Division, Tennessee. 50th Armored Division, New Jersey. 26th Infantry Division, Massachusetts. 28th Infantry Division, Pennsylvania. 80th Infantry Division, North Carolina. 88th Infantry Division, Indiana. 42d Infantry Division, New York. 47th Infantry Division, Minnesota. 53d Armored Brigade, Florida-South Caro- lina. 86th Armored Brigade, Vermont-Connecti- cut. 29th Infantry Brigade, Hawaii-California. 69th Infantry Brigade, Kansas-Missouri. 92d Infantry Brigade, Puerto Rico. 258th Infantry Brigade, Arizona-Missouri- Virginia. 67th Infantry Brigade (Meth), Nebraska- Iowa. Reinforcing Reserve divisions (National Guard) manned at 50% war-time strength for which no equipment is being procured. " . UNIT AND LOCATION 27th Armored Division, New York. 40th Armored Division, California. 48th Armored Division, Georgia. 49th Armored Division, Texas. 29th Infantry Division, Virginia-Maryland. 31st Infantry Division, Alabama-Missis- sippi. 32d Infantry Division, Wisconsin. 33d Infantry Division, Illinois. 36th Infantry Division, Texas. 37th Infantry Division, Ohio. 39th Infantry Division, Louisiana-Arkan- Approved For Release 2004/03/11 CIA-RDP69B00369R000100180198-8 H 7100 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 41st Infantry Division, Washington-Ore- gon. 45th Infantry Division, Oklahoma. 46th Infantry Division, Michigan. 49th Infantry Division, California. Current and proposed paid drill strength of Army National Guard by State--Continued MAJOR UNITS IN THE ARNG UNDER THE PRO- Maryland---------- ---------- 6, 843 POSED REORG NI Massachusetts 15 001 A ZATION PLAN Michigan--------- ------------- , 9 999 Eight divisions and eighteen brigades, all Minnesota_________________ , 10, 850 to be manned at 90% full war-time strength Mississippi________________ 10, 928 and fully supported with equipment, tech- ni i Missouri Montana _..--------------__---- 9, 299 2 477 c ans and other essentials for readiness. Nebraska , 4 861 UNITS AND LOCATION Nevada__ , 880 New Hampshire_________________ 2 280 26th Infantry Division New Jersey--------------------- , 14, 761 Hq and Base, Massachusetts. New Mexico New York 3,398 24 765 Brigade, Massachusetts. Brigade, Massachusetts. _ North Carclira North Dakota___________________ , 11, 262 2, 993 Brigade, Connecticut. Ohio--------------------- 15, 892 Oklahoma-------- 8 974 28th Infantry Division Oregon -- ----------------- , 6,718 Hq and Base, Pennsylvania. Pennsylvania________________- - - 18,753 Brigade, Pennsylvania Puerto Rico Rh 6,923 . Brigade, Maryland. ode Island South Carolina____ 3, 343 11 053 Brigade, Virginia. South Dakota___________________ , 4 145 Tennessee , 11 734 30th Infantry Division ? Texas , 17 225 Hq and Base, North Carolina Utah , 4 886 . Brigade, North Carolina. Vermont Virginia ----------------------- , 3,144 7 698 Brigade, Georgia. Washington_..___________________ , 6, 757 Brigade, South Carolina. West Virginia_______________.._-- 3,576 Wisconsin----------------- 9 942 38th Infantry Division Hq and Base, Indiana. ----- Wyoming-- ---- , 1,681 Brigade, Indiana. Brigade, Michigan. Brigade, Ohio. CURRENT LOCATION OF U.S. ARMY 42d Infantry Division Iiq and Base, New York. Brigade, New York. Brigade, New York. Brigade, Pennsylvania. 47th Infantry Division Hq and Base, Minnesota. Brigade, Minnesota. Brigade, Illinois. Brigade, Iowa. 30th Armored Division Hq and Base, Tennessee. Brigade, Tennessee. Brigade, Alabama. Brigade, Mississippi. 50th Armored Division Hq and Base, New Jersey. Brigade, New Jersey. Brigade, New York. Brigade, Vermont. Infantry Brigades (Sep) (14): Arkansas, California, California, Florida, Hawaii, Illi- nois, Kansas, Louisiana, Oklahoma, Oregon, Puerto Rico, Texas, Washington, Wisconsin. Infantry Brigades (Mech) (Sep) (2): Nebrasska, Texas. Airborne Brigade (Sep) (1) : Alabama. Armor Brigade (Sep) (1) : California. Current and proposed paid drill strength of 6, 467 14, 877 9, 750 9,653 10, 500 8, 450 2, 443 4, 334 950 2, 243 14,183 3, 267 24, 520 11, 037 2, 600 14, 991 8, 400 6, 309 17, 943 7, 000 2, 900 9, 714 3,757 10, 588 17, 409 4:618 2, 900 7, 761 5, 904 3, 066 9, 940 1, 564 RESERVE TRAINING DIVISIONS MANEUVER AREA COM- MANDS AND SUPPORT BRIGADES UNIT AND LOCATION Training divisions 100th, Kentucky. 104th, Washington, Oregon. 108th, North Carolina, South Carolina. 70th, Michigan, Indiana. 76th, Connecticut, New Hampshire, Ver- mont, Rhode Island, Maine. 78th, New Jersey. 80th, Virginia, Maryland. 84th, Wisconsin. 85th, Illinois. 89th, Kansas, Colorado, Nebraska. 91st, California. 95th, Oklahoma, Arkansas, Louisiana. 98th, New York. Maneuver area commands 87th, Alabama. 75th, Texas. Support brigades I 103d, Iowa. 301st, New York. 377th, Louisiana. Mr. McCLURE. Mr. Chairman, ac- cording to an article in This Week mag- azine last Sunday, all of the wars in America's history have cost $500 billion. The bill before us today is thus equiva- lent to 14 percent of that figure. When you add what was appropriated in sup.. plementals earlier this year, you will find that the 90th Congress already has au- thorized defense spending totaling as Alabama.. 16, 16,283 15 355 Alaska -.. 2, 253 , 1 940 Arizona _..---------------------- .2, 948 , 2 800 Arkansas .______________________ 7, 720 , 8 050 California_____________ 22, 332 , 21 958 Colorado--__-_?--_ 2,987 , 2 706 Connecticut 6, 393 , 5 800 Delaware __ :3,130 , 2 800 District of Columbia_____ :1, 714 , 1 705 Florida------ 8,333 , 7 549 Georgia_________________ -- H 7,613 , 8, 800 awaii------------------------ Idaho 4, 253 4, 595 Illinois----- 3,408 11, 563 3, 319 11 338 Indiana----- 11,596 , 10 489 Iowa 8,333 , 7,811 Kansas ------------ ----------- -- Kentuck 8,401 7, 300 y---?---------------- Louisiana 5, 502 7, 726 4, 957 7 890 Maine----------------- 2, 788 , 2, 800 " Infantry vs. Mechanized status is under study. much as the entire cost of all American wars prior to World War II. And so I cannot help wondering why it is, with these billions upon billions available for our defense effort, we stag- ger on and on through a seemingly end- less stalemate in Southeast Asia? What, indeed, will it take to achieve victory or even a face-saving settlement? If this budget cannot do the job, then it prob- ably cannot be done. The root of the problem must lie with those who administer the program. Under proposed reorganization, one new brigade will be added. Strangely enough, it is in the civilian offices at the Defense Department where the will to win is about as obscure as the reasons given for our presence in Viet- nam in the first place. Mr. McNamara's conduct as Secretary of Defense has given rise to that new phenomena, the credibility gap. On more than one occasion, he has flouted the ex- pressed will of Congress. Against the ad- vice of this Nation's foremost military experts, the Secretary has relied solely on the F-111 to fill our bomber require- ments. He has practically invited missile attacks on this country by stubbornly refusing to build an adequate anti-bal- listic-missile defense. Furthermore, I think that any man who has misjudged the costs of the Viet- nam War by $15 billion as the Secretary did in fiscal 1966 and by $13 billion as he did in fiscal 1967 has a right to expect criticism of his performance. It probably would be presumptuous of a freshman Congressman to call for the resignation of a Cabinet official. So, I shall merely say that I heartily endorse any such ex- pression on the part of my colleagues and wish them Godspeed in their efforts. Mr. BINGHAM. Mr. Chairman, as I have done in similar cases in the past, I shall vote for this enormous defense ap- propriation because there really is no alternative, as I see it. In today's world, we must maintain the strength of our Defense Establishment and our forces in Vietnam must have the equipment and supplies they need. In the bill before us, there is no way of determining how much of the total is to be used in Vietnam or in the process of bombing North Vietnam, and there- fore it is not practicable to propose amendments to limit or reduce these amounts. If amendments to this effect are offered, I shall be inclined to support them. I compliment the committee for the reductions it has made in the budget re- quests, but I am disturbed that the com- mittee has proposed additions to the ad- ministration's requests totaling over $400 million, and I intend to propose an amendment that would reduce these add-ons. It is imperative that, in these days of economic strain, we conduct our affairs in as economical a way as possible. If the Department of Defense, having carefully studied the matter, concludes that an ex- penditure is not needed, I am inclined to support that judgment. Mr. MAHON. Mr. Chairman, I believe this concludes the general debate on the bill. I hope that the hearings and the re- port, which are available to all Members, as well as the CONGRESSIONAL RECORD of today, will enable all of us to be generally familiar with the huge operations of the Department of Defense. I hope that that familiarity will instill a confidence in, and support of, the defense operations of our Nation. The CHAIRMAN. The Clerk will read. The Clerk read as follows: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the following sums are appropriated, out of any Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD HOUSE money in the Treasury not otherwise appro- priated, for the fiscal year ending June 30, 1968, for military functions administered by the Department of Defenses, and for other purposes, namely: Mr. MAHON. Mr. Chairman, I ask. unanimous consent that on page 1, line 6, where the words "Department of De- fenses" appear that the letter "s" be deleted so that the words will read "De- partment of Defense". The CHAIRMAN. Without objection, it is so ordered. There was no objection. The CHAIRMAN. The Clerk will read. The Clerk read as follows: PRACTICE, ARMY For the necessary expenses of construc- tion, equipment, and maintenance of rifle ranges, the instruction of citizens in marks- manship, and promotion of rifle practice, in accordance with law, including travel of rifle teams, military personnel, and indivi- duals attending regional, national, and inter- national competitions, and not to exceed $21,000. for incidental expenses of the Na- tional Board; $428,000: Provided, That travel expenses of civilian members of the National Board shall be paid in accordance with the Standardized Government Travel Regula- tions, as amended. AMENDMENT OFFERED BY MR. M'CARTHY Mr. McCARTHY. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. MCCARTHY: on page 13, strike out line 19 and all that fol- lows down through and including line 6 on page 14. Mr. McCARTHY. Mr. -Chairman, this amendment is very simple. It would strike $428,000 for the National Board for the Promotion of Rifle Practice. This money is used for ammunition and the loan of rifles to National Rifle Associa- tion clubs. The present law requires that groups which want this Federal aid must join the National Rifle Association. I offer the amendment because I do not believe that the Government of the United States should subsidize an orga- nization which espouses vigilantism within the confines of the United States. I refer to a suggestion in the May issue of The American Rifleman, the official organ of the National Rifle Association, that citizens acquire firearms to form civilian posses in order to provide a po- tential community stabilizer against the threat of urban rioting. I would like to quote briefly from this editorial: Mob action on a scale unprecedented in the modern United States has ravaged com- munity after community in recent years . With homefront safeguards spotty and uncertain, the armed citizen represents a potential community stabilizer. His support of law and order, whether as a civilian mem- ber 9f the posse comitatus or as one of the unorganized militia, defined as the whole- body of able-bodied male citizens," could prove essential. I suggest to you that this is a prescrip- finn for mass mayhem for taking the H 7101 were given the job of checking out the and more importantly, in the purposes suitability of groups that get Federal of the use, of firearms. It is a relation- guns "because we have the expertise and ship between a private group and our know-how." defense agencies that is bad in principal I say that expertise and know-how did and worse in practice. It should be not prevent them from running an edi- brought to a prompt halt by the passage torial like the one to which I referred, or of this amendment. from carrying on their membership rolls (Mr. SCHEUER asked and was given the head of the lunatic-fringe Minute- permission to revise and extend his re- men. marks.) I suggest also that they do not need Mr. SIKES. Mr. Chairman, I rise in the money for they are prosperous, hav- opposition to the amendment. ing assets of almost $11 million, partly The CHAIRMAN. The gentleman from because of their tax-exempt status under Florida is recognized for 5 minutes. section 50i as-and I quote the IRS- (Mr. SIKES asked and was given per- "an organization exclusively for the pro- mission to revise and extend his re- motion of social welfare." marks.) I think we know it as a lobbying or- Mr. SIKES. Mr. Chairman, I am not ganization. But it is not registered under sure that I understand the purposes of the Lobbying Act. I think they have the amendment offered by the distin- performed a disservice to this country in guished gentleman from New York. His fighting reasonable firearm legislation. remarks were directed against the Na- We- are going to hear about arming the tional Rifle Association, but if we look Arabs. I suggest to you that because of at the language of the bill, it has no the lack of effective firearms laws, we reference to the National Rifle Associ- have permitted the arming of very mili- ation. His amendment strikes at the Na- tant far left and far right antagonistic tional Board for the Promotion of Rifle groups, groups like the Black Panthers Practice. and the Minutemen. This situation rep- Possibly the amendment was inspired resents a force for instability, especially by a story in one of the local newspapers in the coming hot summer. that NRA is subsidized by the U.S. Treas- Mr. Chairman, I think this whole prac- ury. This is not the case. The National tice is at best questionable, and I cer- Rifle Association gets no subsidy from tainly think that the record shows that the U.S. Government. Nor has it pro- the NRA is not a proper or responsible vided arms and ammunition to either conduit for Federal guns and ammuni- of the groups named by the distinguished tion, and that we could save the tax- gentleman. payers $428,000 by adopting this amend- The National Rifle Association, by ment. helping to carry out the duties and re- Mr. BINGHAM. Mr. Chairman, will sponsibilities which are assigned by law the gentleman yield? to the National Board for the Promotion Mr. McCARTHY. I yield to the gen- of Rifle Practice, is actually subsidizing tleman from New York. the U.S. Treasury. What is done repre- Mr. BINGHAM. I would like to com- sents a service to the Government which mend the gentleman from New York for is not paid for from Government funds. bringing this matter to the attention of I believe the principal point we want the Committee, and I would like to be to consider today is that we have a pro- associated with his remarks and I shall gram which has been carried on -since be glad to support his amendment. 1903 to train young men in the use of Mr. McCARTHY. I thank the gentle- arms in the realization that this could man. be helpful to them and to our country Mr. SCHEUER. Mr. Chairman, will the in case of war. The clubs and the in- gentleman yield? dividuals who participate are carefully Mr. McCARTHY. I yield to the gen- screened. - tleman from New York. Nothing is taken from the active forces Mr. SCHEUER. I would like to com- by making arms and ammunition avail- mend the gentleman, and I support him able for this purpose. The rifles and the most wholeheartedly. I do this as a Mem- ammunition which are used generally ber who has enjoyed for decades the use are obsolescent or overage, but in the of firearms. As a young fellow I was a hands of the National Board for the Pro- member of a National Championship motion of Rifle Practice they serve a very Rifle Team, and earned the "Expert useful purpose. I believe this is better Rifleman" citation of the National Rifle than making them into scrap or selling Association. I have been a member of them as surplus into what may be irre- rifle and pistol clubs for almost all my sponsible hands. life. I own a wide variety of sidearms, I would like to point out that this shotguns, and, rifles. At my home in a program has been going on since 1903 locked box I have what constitutes a when Elihu Root, as Secretary of War, veritable arsenal of weaponry. My four sponsored the program. During that time kids aged 7 to 15 all handle pistols, rifles, the program has worked well. The people and shotguns, with skill, respect, and have found it useful. No one has tried care. The NRA plays a useful educational before in my 27 years here to kill the role in teaching Americans, myself in- program. Now, when we are at war it is law into one's own armed hands. This eluded, how to use firearms prudently $428,000 is only part of about $2 million and skillfully. But I am persuaded from this organization gets annually under their recent published statements and this kind of program. activities, that they should play no for- This morning's issue of the Washing- mal official, governmentally sanctioned, ton Post quotes the executive vice pres- and subsidized role, directly or indirectly, ident of the organization as stating they in the training of our citizenry in the-use, an inopportune time to do so. If that is the purpose of the amendment, it simply falls on its face, because it would eliminate the directing force of the pro- gram, the National Board for the Pro- motion of Rifle Practice, and accomplish nothing useful. Approved For Release 2004/03/11 : CIA-RDP69800369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H7.102 CONGRESSIONAL RECORD - HOUSE June 13, 1967 Mr. MAHON. Mr. Chairman, I move to strike the last word. Mr. Chairman, when we return to the House, I shall ask unanimous consent to place in the RECORD at this point a breakdown of the funds carried here. They include $159,000 for the civilian personnel to operate the National Board for the Promotion of Rifle Practice, for example. There is also included $80,000 for the travel of. civilian teams to the National Rifle and Pistol matches. At the 1966 national matches, held at Camp Perry, Ohio, 46 rifle and 56 pistol teams, representing 49 States and Puer- to Rico, participated. Funds for the lease of Camp Perry, Ohio, which is the site for the national rifle matches, are included in the $428,000 provided for this activity. The material referred to follows: The primary mission of the National Board for the Promotion of Rifle Practice is to pro- mote marksmanship training with military type individual small arms among able- bodied citizens outside the active services of the Armed Forces, to formulate policy gov- erning civilian marksmanship programs, and to formulate rules and regulations governing the National Trophy Matches. The training program of the National Board is conducted through civilian shooting clubs and schools scattered throughout the United, States. As of 30 June 1966, there were 387,947 individuals enrolled in 5,789 clubs and schools. The $428,000 requested for FY 1968 is not intended to cover all the expenses of the marksmanship program carried out by civ- ilian clubs. The ammunition and targets fur- nished constitute only a fraction of the year's requirement of the average shooter. Most of the ranges used are privately owned and maintained and the instructors contribute their own time as a public service. The Board's program is a stimulant to get young men interested in shooting with military weapons and to maintain a corps of instruc- tors to teach young men to shoot properly. In return for the assistance given, the re- cipient must agree to fire one of the U.S. Army's qualification courses with a military weaport and the clubs must report the re- sults of the firing In order to remain eligible for assistance the following year. Funds for personnel costs in FY 1968 will support the present personnel authorization, 22 civilian positions. The reduction of $3,000 in FY 1968 represents the savings in the number of working days and the elimination of overtime costs. Funds requested for travel in FY 1968 are $43,000 below the FY 1967 level. U.S. teams will participate in one international shooting match :1n FY 1968, the Pan American Games, to be held in Winnipeg, Canada in July 1967. The cost will be $19,000. Target funds required in FY 1968 are esti- mated to be $53,000, which is $18,700 less than the amount required in FY 1967. Dur- ing FY 1967, the Army adopted a new high- power rifle target. In order to keep the civil- ian marksmanship program in line with the Army's training methods, an initial issue of these targets was made to all clubs firing high-power rifles. It is anticipated that the requirement for FY 1968 will be reduced since many clubs will have a stock of the new target on hand. Equipment requirements for the National Matches, $25,000, are continued at the FY 1967 level. This item includes all of the non- expendable equipment used at the matches, to include range equipment, mess equip- ment, bedding and the many miscellaneous items necessary to support approximately 7,000 competitors and 2,900 support per- sonnel. Mr. MAHON. Mr. Chairman, I ask for a vote on the amendment. Mr. FLYNT. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Georgia. Mr. FLYNT. Mr. Chairman, I rise in opposition to the amendment offered by the gentleman from New York. In op- posing this amendment, I would like to associate myself with the remarks of the gentleman from Florida [Mr. SlxEsl and the gentleman from Texas [Mr. MAHON]. The reasons given by them clearly demonstrate that the overall national benefits derived from this program far exceed the $428,000 provided for in this item of the bill. The National Board for the Promotion of Rifle Practice, since its establishment in 1903, has fulfilled an important func- tion in training servicemen and civilians alike in the fundamentals of knowledge and use of firearms. - This knowledge and use of weapons has been in the national interest and there are few, if any, examples in which the knowledge and proficiency thus gained have been for any criminal ac- tivity, anywhere, at any time. The author of the amendment un- doubtedly has not reviewed the 64-year history of this board and the functions which it has performed. If he had done so, I am confident he would have come to the unmistakable conclusion that it; has been a good program, and has justi- fied its existence and continuance over the years. Insofar as I have been able to learn, the history and record of the National Board for the Promotion of Rifle Prac- tice does not form a basis for the stor y As in FY 1967, $80,000 is requested for the which appeared in the newspaper this travel of civilian teams to the National Rifle morning. Contrary to the contents of this and Pistol Matches. At the 1966 National newspaper story, the organization re- Matches, held at Camp Perry, Ohio, 46 rifle ferred to therein has contributed much and 46 pistol teams, representing 49 States more to this program than the entire and Puerto Rico, participated in the matcheao. amount provided for in this item of this Funds for the lease of Camp Perry, Ohio, appropriations bill. Mr. Chairman, if any as a site for the National Matches are con- change should be made in either the tinued at $50,000 a year. The original lease language or the amount contained in provided payments of $150,000 a year for the this item of the bill, the amount should first four years (FY's 1961-1964) and $50,000 be increased to at least equal the amount year for the remaining 21 years of the provided in fiscal year 1967. The amount requested for badges, medals Mr. Chairman, I oppose the amend- and trophies, $17,950, is the same amount as went offered by the gentleman from requested in FY 1967. This itens includes all Now York and I urge that it be rejected. marksmanship awards issued to civilians and (Mr. FLYNT asked and was given per- all trophies, plaques and medals awarded at mission to revise and extend his re-' the National Matches. marks.) Mr. LIPSCOMB. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from California. Mr. LIPSCOMB. I thank the gentle- man for yielding. I wish to join the gentleman and others in opposing this amendment. The Na- tional Board for the Promotion of Rifle Practice has promoted rifle marksman- ship instruction over a great number of years. It has encouraged U.S. participa- tion in many international smallarms competition. These funds provide for our participation in the coming Pan American games. It is a worthwhile operation. I encourage the Members to vote down the amendment, The CHAIRMAN. The question is on the amendment offered by the gentleman from New York [Mr. McCART11Yl. The amendment was rejected. The CHAIRMAN. The Clerk will read. The Clerk read as follows: PROCUREMENT OF EQUIPMENT AND MISSILES, ARnry For expenses necessary for the procure- ment, manufacture; and modification of mis- siles, armament, ammunition, equipment, ve- hicles, vessels, and aircraft for the Army and the Reserve Officers' Training Corps; purchase of not to exceed five thousand passenger motor vehicles (including eleven medium sedans at not to exceed $3,000 each) for replacement only; expenses which in the discretion of the Secretary of the Army are necessary in providing facilities for produc- tion of equipment and supplies for national defense purposes,, including construction, and the furnishing of Government-owned facilities and equipment at privately owned plants; and ammunition for military salutes at institutions to which issue of weapons for salutes is authorized; $5,475,000,000, to re- main available until expended. Mr. GROSS. Mr. Chairman, I move to strike the last word. (Mr. GROSS asked and was given per- mission to revise and extend his re- marks.) Mr. GROSS. Mr. Chairman, I take this time to ask the distinguished chairman of the Appropriations Committee or some member of the subcommittee to provide us with a estimate of the amount of military equipment which is proposed to be purchased abroad. I have in mind, I would say to the distinguished gentle- man, the proposal by this Government to buy some $60 million to $80 million worth of military equipment in Great Britain. May we have some figures, if it is available, as to how much of the $70 billion in this bill is going to go for mili- tary equipment purchased in foreign countries? Mr. MAHON. Mr. Chairman, will the gentleman yield? Mr. GROSS. I yield to the gentleman from Texas. Mr. MAHON. I should like to give some information on that subject to the gen- tleman from Iowa. The United States has sold over $11 billion in military equipment to our allies in the 5-year period from fiscal year 1962 through 1966. Mr. GROSS. I would say to the gentle- man that I am not asking about how much we have sold. I am asking how Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE much this Government is going to buy in foreign countries? Mr. MAHON. I was about to say that we have sold $11 billion worth and we propose to buy $325 million worth. That is the quick answer. Mr. GROSS. Is that the total, $325 million? Mr. MAHON. I do not believe it would include all items. I do not have a list of items before me. If one calls oil military equipment, we must remember that a lot of oil is bought overseas. Mr. GROSS. It was publicized in the newspapers a few days ago that the United States was considering the pur- chase of 200 executive-type jet airplanes from Great Britain. Did this come be- fore the gentleman's committee? Does the gentleman know anything about the purchase of 200 jet executive-type planes? If so, why do we buy them in Britain and who is going to use them when they get to this country? Mr. MAHON. We are buying from Canada, under this bill-and it is above the budget estimate, by the way-a few copies of the Caribou aircraft, in the total sum of $12.5 million. . Mr. GROSS. What about the execu- tive-type planes they are talking about buying? Mr. MAHON. Offhand, I do not think those would be involved here. Perhaps some other member of the subcommittee is able to provide some further infomma- tion on your inquiry. Mr. LIPSCOMB. Mr. Chairman, will the gentleman yield? Mr. GROSS. I yield to the gentleman from California. Mr. LIPSCOMB. There have been some ideas expressed as to the possible future procurement of aircraft of this type, but there is nothing in this par- ticular bill for a procurement of jet-type executive aircraft such as has been men- tioned by the gentleman from Iowa. Mr. GROSS. If purchased, who is going to get these British executive-type planes, and why does this Government not buy Jet Stars made in this country or some other similar type of plane made in this country? Mr. LIPSCOMB. I am all for keeping it in this country. I do not believe in this particular type of procurement being ac- complished with foreign firms. Mr. GROSS. I do not understand why we are buying some $325 million worth of military equipment from Great Brit- ain or from any other country. We have the capacity to produce all we need in this country. We hear about poverty in .this country every 15 minutes. What is wrong with our employing more Ameri- [r, MAH.`ON. Mr. Chairman, will the gentleman yield? Mr. GROSS. I am glad to yield to the gentleman. Mr. MAHON. Are we not taking care of American industry and labor in selling $11 billion worth of military equipment to our allies_in a 5-year period? What is wrong with that? Wr. GROSS. Everything in the world is wrong with it. We are getting an awful good lesson right now out of the Middle East. We armed those nations and then they started fighting and tearing each other up. Now we are getting the word over in the Committee on Foreign Af- fairs that we probably will be asked to put up many millions of dollars in order to patch things up again. That is what is wrong with it. Mr. MAHON. We did not sell $11 bil- lion in military equipment to the Middle East countries. I referred to our allies. Mr. GROSS. How cockeyed contradic- tory can we get in this country when we talk about peace, spend millions of dol- lars a year on a disarmament agency, and then peddle $2 billion worth of arms a year around the world? How contra- dictory can we get? The CHAIRMAN: The Clerk will read. The Clerk read as follows: PROCUREMENT OF AIRCRAFT AND MIssILEs, NAVY For construction, procurement, produc- tion, modification, and modernization of air- craft, missiles, equipment, including ord- nance, spare parts, and accessories therefor; specialized equipment; expansion of public and private plants, including the land neces- sary therefor, and such lands, and interests therein, may be acquired, and construction prosecuted thereon prior to approval of title by the Attorney General as required by sec- tion 355, Revised Statutes, as amended; and procurement and installation of equipment, appliances, and machine tools in public or private plants; $2,946,500,000, to remain available until expended of which $208,- 800,000 shall be available only for the Fill-B aircraft program. ADMENTMENT OFFERED BY MR. BINCHAM Mr. BINGHAM. Mr. Chairman, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. BINGHAM: On page 16, line 14, strike out $2,946,500,000" and insert in lieu thereof "$2,839,800,000,". (Mr. BINGHAM asked and was given permission to revise and extend his remarks.) Mr. BINGHAM. Mr.. Chairman, my amendment would be to eliminate the $106.7 million that has been added on to the request for the EA-6A aircraft. It is an item which appears on page 4 of the committee report under the summary of additions recommended by the com- mittee. Mr. Chairman, I do want to commend the distinguished committee for the con- scientious job I know they have done in making reductions in the requested ap- propriations, but I am seriously con- cernedat the amount of over $400 million in add-ons. I propose this amendment as a way of pointing up the problem. This sum of $106.7 million was not requested by the Defense Department but apparently was made by the Depart- ment of the Navy. In this era, when we are faced with inflation and when there are great demands from all sides for expenditures that are necessary, we should economize to the extent we can. When the Defense Department has studied the matter and has come up with the conclusion that this request from the Navy Department should not be met, I believe that it would be wise and economical for this body to go along with the Department of Defense. Mr. LAIRD. Mr. Chairman, will the gentleman yield? Mr. BINGHAM. I will be glad to yield to the distinguished gentleman from Wisconsin. Mr. LAIRD. Does the gentleman from New York intend to submit amendments on all of the add-ons which we made? Mr. BINGHAM. No, but, as I said, I am concerned about the total amount of add-ons. Mr. LAIRD.This add-on for the EA-6A is in accordance with the recommenda- tions of the Committee on Armed Serv- ices of both the House and the Senate. It is true that the Chief of Naval Op- erations and the Secretary of the De- partment of the Navy appealed the deci- sion of the Secretary of Defense. The Secretary of Defense did not support this particular item. But the Secretary of the Navy and the Chief of Naval Oper- ations did support it. The House Commit- tee on Armed Services supports it, the Senate Armed Services Committee sup- ports it, and the conference committee agreed to this particular add-on. Mr. BINGHAM. Mr. Chairman, I want to state to the gentleman from Wisconsin [Mr. LAIRD] that I am aware of that. I am proposing this amendment as a way of protesting the fact that such heavy additions have been made to the request submitted. This item is also the type of expenditure which I believe has to do at least, in part, with the intensified bomb- ing of North Vietnam with which I and other Members of the House of Repre- sentatives are not in agreement. It is dif- ficult to make out from the hearings on this item-part 4, pages 209 to 212- just what the facts are. Mr. MAHON. Mr. Chairman, I rise in opposition to the amendment.. (Mr. MAHON asked and was given per- mission to revise and extend his remarks.) Mr. MAHON. Mr. Chairman, the Con- gress has authorized $106 million, through legislation sponsored by the Committee on Armed Services, for these EA-6A aircraft for use in the war in Southeast Asia. The Joint Chiefs, who have primary responsibility in connection with the war, have recommended these aircraft and have stated that they are urgently needed by the Marines in order to fight the particular type of war in which they are involved. Mr. Chairman, it is my opinion that it would represent a serious blow to our defense effort should the Congress deny the funds provided herein for the EA-6A aircraft. Mr. PIKE. Mr. Chairman, will the gen- tleman yield? Mr. MAHON. I yield to the gentleman from New York. Mr. PIKE. I thank the distinguished gentleman from Texas, the chairman of the Committee on Appropriations, very much for yielding to me at this time. Mr. Chairman, I would like to say that I appreciate on behalf of Marine avia- tion in general the fact that these air- craft have been added. They are not essentially a bombing aircraft. They are electronics jamming aircraft. They are designed to save American lives by jam- ming the radars and the SAM's of the North Vietnamese. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7104 CONGRESSIONAL RECORD - HOUSE Mr. MAHON. Mr. Chairman, the Marines need these planes very, very badly and I commend the Armed. Serv- ices Committee for having added them to the authorization. I further wish that all these planes were available at this moment in Vietnam where they are badly needed. This is a new plane for a vital mission and we have! very few of them. Mr. LAIRD. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Wisconsin. Mr. LAIRD. Mr. Chairman, I thank the gentleman from Texas for yielding to me at this time. Mr. Chairman, this is one of the most important additions made by the com- mittee from the strategic standpoint of the prosecution of the war in Vietnam. It is the most important of any that the committee added. Mr. Chairman, I would caution the members of the Committee today against voting for this amendment. This amend- ment should be defeated. These add-ons are necessary in order to protect the lives of our fliers and in order to see that the war is prosecuted on a much safer basis from the standpoint of our service personnel. Mr. SIKES. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Florida. Mr. SIKES. Mr. Chairman, the record of the committee hearings is full of in- stances where witnesses have stated, one after the other, that this is the greatest single need in additional aircraft. This plane is not a bomber, as has been pre- viously pointed out. Primarily, it is an electronics aircraft, and one which illus- trates a state of the art in aircraft de- sign not heretofore reached. The CHAIRMAN. The question is on the amendment offered by the gentle- man from New York [Mr. BINGHAM]. The amendment was rejected. The CHAIRMAN. The Clerk will read. The Clerk read as follows: SE[IPBUILDING AND CONVERSION, NAVY For expenses necessary for the construc- tion, acquisition, or conversion of vessels as authorized by law, including armor and armament thereof, plant equipment, ap- pliances, and machine tools, and installation thereof in public or private plants; procure- ment of critical, long leadtime components and designs for vessels to be constructed or converted in the future; and expansion of public and private plants, including land necessary therefor, and such land, and inter- ests therein, may be acquired and construc- tion prosecuted thereon prior to approval of title by the Attorney General as required by section 355, Revised statutes, as amended; $1,420,000,000, to remain available until ex- pended: Provided, That none of the funds herein provided for the construction or con- version of any naval vessel to be constructed in shipyards in the United States shall be expended in foreign shipyards for the con- struction of major components of the hull or superstructure of such vessel. Mr. ANDERSON of Tennessee. Mr. Chairman, I move to strike the requisite number of words. Mr. Chairman, I wonder if I might ask a question of the distinguished chairman of the Committee on Appro- priations. Mr. Chairman, the committee report states on page 47 that the Committee on Appropriations will expect the Defense Department to proceed with the advance procurement of the second fiscal year 1968 nuclear frigate, and that the com- mittee will expect the Defense Depart- ment to request funds for the full con- struction of the second nuclear frigate in the 1969 shipbuilding program. Is that statement, Mr. Chairman, suf- ficient to insure that the Defense De- partment will actually build this second fiscal year 1968 nuclear frigate? Mr. MAHON. Mr. Chairman, if the gentleman will yield to me, I would say the answer to the question is "No." The language is not sufficient to compel the Department of Defense to build the ad- ditional frigates that are provided for in this bill. You can lead a defense offi- cial to water, but you cannot make him drink,, and that is the problem here. I believe these funds will be used, and I certainly would want to emphasize that it is the position of the committee, and I am sure of the House, that we should proceed with all deliberate speed with the construction of these ships for the nuclear navy. I believe this is the wave of the future in navy warfare. Mr. ANDERSON of Tennessee. Then, Mr. Chairman, would it be proper to say that it is clearly the intention of the Committee on Appropriations and, therefore, the intention of the House, that they should be built? Mr. MAHON. I say to the distinguish- ed gentleman, who has distinguished himself in the field of nuclear propul- sion in the Navy, that it certainly is the view of the committee, and I believe of the House, that the Department of De- fense should proceed with construction. I commend the gentleman for his interest. Mr. ANDERSON of Tennessee. I thank the distinguished chairman. AMENDMENT OFFERED BY MR. BYRNES OF WISCONSIN Mr. BYRNES of Wisconsin. Mr. Chair- man, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. BYRNES of Wis- consin: On page 17, line 9, before the period, add the following: "Provided further, That none of the funds herein provided shall be used for the construction of any naval vessels in foreign shipyards." (Mr. BYRNES of Wisconsin asked and was given permission to revise and ex- tend his remarks.) Mr. BYRNES of Wisconsin. Mr. Chair- man, first I do want to congratulate the subcommittee that has had the responsi- bility of preparing this bill and bringing it to the House. Theirs has been a mam- moth job, and I believe we should all ex- press a feeling of appreciation to them for the job they have done. Because I offer an amendment certainly should not be interpreted as being critical of the work of the committee. Mr. Chairman, I do believe here is one area, however, that a change should be made in the bill as it comes to us. I would ask the members of the Com- mittee to take the bill as reported by the committee and read the last five or six lines of the first paragraph on page 17 where, after making the funds available, June 13, 1967 the $1.42 billion foe shipbuilding and conversion, Navy, there is a proviso in the bill: Provided, That none of the funds herein provided for the construction or conversion of any naval vessel to be constructed in ship- yards in the United States shall beexpended in foreign shipyards for the construction of major components of the hull or superstruc- ture of such vessel. We already have, therefore, a limita- tion on the construction of all major components of naval vessels abroad, but the interesting thing is that there is no restriction about having the whole ship built abroad. What I suggest, Mr. Chairman, is that we should add this additional proviso that none of the funds herein shall be used for the construction of a naval ves- sel in foreign yards. The reason this comes to my attention is the fact that there is a practical situ- ation that has been developing and is before us today, in a sense. This appro- priation provides for the funding of seven vessels called MOS, ocean mine sweepers. Their duty is mine sweeping and mine hunting, and they operate in support of our amphibious forces. It is a combat ship. It is a ship of new design, new advance design, according to the words of the Navy, a prototype. The seven that are funded in this bill are seven out of 16 that it is proposed to be built. We have already authorized and funded in previous years nine of this type vessel, but none of them has yet been contracted for or bids let. Four were authorized for construction in fiscal year 1966. Five were authorized for construction in fiscal year 1967. This bill contains seven for 1968. But what is the plan of the Defense De- partment? The plan is to give all 16 ships of this new prototype and new vessel of advanced design-that they all are to be given to the British for British construc- tion. The nine that have already been funded are for 1966 and 1967. Of course, we cannot touch that by legislation here. So there is nothing we can do in a sense, I suppose, to affect their intention to go ahead and let the contracts on those nine. But I suggest to this House that we should have the responsibility of at least having seven of the 16 constructed in yards here so that we can maintain in this country an expertise with regard to the construction of this type of vessel and so that we do not lose the know-how and experience in building this type or class of vessel. In my judgment, we should not place sole and immediate reliance upon a for- eign source 3,000 miles away and beyond our control. Where are we going to get this type of ship when foreign yards either cannot or will not `build them in case of some future emergency? To me, it is utter folly to put all of our eggs in one basket and then put that basket abroad. All I am suggesting here is that we say to the Navy or to the De- partment of Defense that these seven- these seven out of 16, at least let us let the contracts for their construction to American yards. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE Mr. GARMATZ. Mr. Chairman, I move to strike out the last word. Mr. Chairman, I am completely in favor of the distinguished Member's amendment to restrict expenditures un- der this bill to American yards. As chairman of the Merchant Marine and Fisheries Committee, on many occa- sions I have been told by witnesses that it is unnecessary to restrict construction of merchant ships to American yards be- cause the necessary know-how to build merchant ships during wartime would came from the fact that Navy ships are being built in American yards. I must say that I am not persuaded at all by this argument and the very fact that an amendment such as this has be- come necessary amply supports my mis- givings with respect to maintenance of an adequate shipbuilding base in the United States. True it is, that up to the moment only a few isolated contracts have been given out abroad and only a few more bids have been sought. But, nevertheless, the intent to build abroad is evident and I am firmly convinced that it is wholly detri- mental to the United States. I am aware of the argument in favor of building abroad-that our airplane industry receives large orders from abroad and that we must do something to spend some of these profits in Britain and elsewhere, but I feel that our ulti- mate survival in case of war is far more important than a balance-of-payment matter, and that we can assure our future only by having the necessary skills within our immediate control. We cannot count on Britain or Japan to build our warships or our merchant ships in case of an emergency. We can only rely on our own strengths and skills, and we must keep these skills alive. Mr. DOWNING. Mr. Chairman, will the gentleman yield? Mr. GARMATZ. I am glad to yield to the gentleman from Virginia, a member of the Committee on Merchant Marine and Fisheries. Mr. DOWNING. Mr. Chairman, I com- pletely concur in the statement just made by the gentleman in the well, the chair- man of the Merchant Marine and Fish- eries Committee of the House. He is knowledgeable in this matter and has made a good statement. I am also in sympathy with the intent of the amendment just offered. For some reason it seems to me the administration is intent on building our ships in foreign yards. For what reason I cannot know. We .talk about. the balance of payments. ut e Certainly this is not going to contrib to a5olution of our balance-of-payments problem," by -'building ships in foreign ard"s. We talk about keeping the employment level high. This is taking employment away from these people. We talk about maintaining the state of the art. We are be built at home. I intend to support the amendment. Mr. MILLER of California. Mr. Chair- man, will the gentleman yield? Mr. GARMATZ. I yield to the gentle- man from California. Mr. MILLER of California. I thank the gentleman from Maryland. I have had the privilege of serving with him on the Merchant Marine and Fisheries Com- mittee for many years, and I subscribe to the thought that he has submitted When are we going to learn? Those of us who can remember 1917 remember that one of the things that was the pac- ing item of that war was the buildings of ships to supply logistically our troops abroad. Many of us still remember the old saying that the wooden ships we built were built with wood so green that they could still hear the birds singing in the trees. Then came World War II, and again the pacing item was shipping to support our foreign efforts. Are we going to forget, or have we for- gotten the lessons of these two wars? I remember when a group of people representing a foreign chamber of com- merce came before the Committee on Merchant Marine and Fisheries and pled that this country abandon its merchant marine because we had other resources, and let them handle the sea traffic of the world as they need no great natural resources. What would happen to our foreign exports if we should become de- pendent upon foreign shipping? This is what we are rapidly coming to. I thank the gentleman for his very fine state- ment. Mr. LAIRD. Mr. Chairman, will the gentleman yield? - Mr. GARMATZ. I yield to the gentle- man from Wisconsin. Mr. LAIRD. I would like to add to what the gentleman from Maryland said. I think this is a reasonable amendment which has been offered. It does not de- mand that all 16 of these minesweepers be built in the United States. It says that instead of all 16 being built abroad, at least seven of the 16-just seven-be built in the United States so that we can maintain this capability which could be very important at some future time. I agree with the gentleman from Mary- land. I hope the chairman of the sub- committee, the gentleman from Texas, will accept this amendment because it is a good amendment and it should be accepted. Mr. GARMATZ. I thank the gentle- man. Mr. MAHON. Mr. Chairman, I rise in opposition to the amendment. I have be- fore me a statement of the position of the administration on this issue. The ef- fect of the pending amendment is that we deny the Navy the right to let Great Britain compete for the construction of certainly not helping that. Right, at this some minesweepers. moment the Secretary of Transportation It is not proposed that these ships be is trying to sell a maritime policy which built abroad unless the bidding abroad is has as one of its cornerstones the build- below that proposed by shipbuilders in ing of ships abroad. I think it is time this country. that we stop this. I would like to read a portion of the Implements of war, such as naval ships statement with respect to this matter: and maritime vessels which will be used 1. The US has sold over $11 billion in mili- and are necesary in time of war, should tary equipment to our Allies in the five year H 7105 period, FY 62-66. As a general principle the US must be willing to procure selected equip- ment abroad for use by US Forces as part_ of large scale foreign purchase programs in the US under competitive arrangements consist- ent always with our principal interests in military preparedness, security of our equip- ment and our own political and economic ob- jectives. To eliminate ships from any such small selective purchases abroad is to pro- vide a special and unwarranted privilege to one military equipment industry at the ex- pense of others. We do not propose to eliminate pur- chase of some aircraft in Canada. No, just the special purchase of this type of ship. Now I will continue to read the statement: 2. Specifically the UK committed itself to purchasing over $2 billion in equipment from the US industry over the next ten years. The US in return committed itself to purchasing $325 million of equipment from UK industry on a competitive basis over the same time period. This is a matter of commitments which have been made. If we do not buy the ships, then we have to buy aircraft or something else, because we are com- mitted. The United Kingdom has already con- firmed orders for approximately $1.3 billion and has committed itself to follow-on costs of over $700 million over the 12-year period of the agreement. The United States has con- firmed $143 million was for ships, $100 million for aerospace industry items, and the balance in miscellaneous Army and supply items. Based on prior consideration of the ship- building problem by the DOD and Congress, the United States has additionally com- mitted itself to placing 16 minesweepers, 2 AG's and 2 salvage tugs into competition between United Kingdom and United States industries in addition to many other aero- space and ground items. This competition involves 9 MSO's for which funds have al- ready been appropriated by the Congress, and 7_MSO's, for which funds are in S. 666. This would bring the total ships to be placed into competition abroad under the United Kingdom arrangement to $143 million if the United Kingdom industry successfully competes, out of a total shipbuilding appro- priation for these three years of $6.2 billion or less than 2.5% of the total new shipbuild- ing program not counting the backlog of about $7 billion in United States shipyards. To place the shipbuilding industry in a priv- ileged position as proposed by the Byrnes Amendment even for this small percent would not only be unfair to all other United States industries but would place the DOD in a position of being unable to carry out a commitment entered into formally with the United Kingdom and previously discussed with the Congress of the United States. I underline the word "commitment." We are committed. Members of Congress from districts where they produce aero- space equipment and aircraft should get up under this technique and offer amend- ments to prohibit the carrying out of these arrangements. (By unanimous consent, Mr. MAHON was allowed to proceed for 5 additional minutes.) Mr. MAHON. Mr. Speaker, I will con- tinue reading the statement: 3. The proposed amendment prohibits all types of ships. However, the record shows that it is the purchase of the minesweepers which probably involves only three ship- yards in the United States which is at issue. These ships were selected by the U.S. Navy for competition by United Kingdom industry in 1965. Approved For Release 2004/03111 : CIA-RDP69B00369R000100180198-8 H 7106 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 While they are slightly longer than pre- vious MSO's, there are no new basic tech- niques involved in the hull portion-and the US Government will furnish all of the com- plicated equipment to be installed on the ship from US sources. The basic changes in hull specifications are similar to those already incorporated into coastal mine- sweepers being built in US shipyards. Thus it is the opinion of the Department of De- fense that there is no need to provide a spe- cial privilege to the few shipyards who have indicated an interest in competing on these ships. I say, as a matter of fairness to our colleagues, if we are to do this for the shipbuilding industry then we ought to do it for the aerospace industry and for other industries in the United States. Since we have sold $11 billion worth of military equipment abroad it seems to me we ought to be willing to buy a small fraction of our equipment abroad. Mr. ANDREWS of Alabama. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Alabama. Mr. ANDREWS of Alabama. I might say that Admiral Fahy told our com- mittee : This is part of the exchange program for the British buying the F-111 or TFX, and our share of supporting them is to let them bid in on MSO's and ATS's and the two AG's. Mr. MAHON. I thank the gentleman. Mr. ANDREWS of Alabama. And he did say that price would be taken into consideration. Mr. MAHON. Of course prices will be taken into consideration. Mr. DOWNING. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Virginia. Mr. DOWNING. I thank the gentle- man. Of course we all know that if this is put out to competitive bidding the United States will not have a very good chance, because our costs of things here are so much higher. They will underbid us. It will go to Great Britain. Mr. MAHON. But, in return for their buying the F-111's, we have committed ourselves to buy other items. Mr. DOWNING. Who committed us, on an industry that is sick? We are trying to revive the shipbuilding industry. We have no maritime industry. Some of our yards are folding. Why was a commit- ment made which would further hurt a sick industry? Mr. MAHON. A commitment is a com- mitment, and a strong and powerful nation ought to stand by its commit- ments. Wd ought to vote down this amendment. Mr.:BYRNES of Wisconsin. Mr. Chair- man, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Wisconsin. Mr.:BYRNES of Wisconsin. Do we have a commitment that we will fund this in this bill? The gentleman is not telling us that somebody has made a commitment that all this has to be done, that the Congress even has to fund the seven involved here. That is up to the Congress, as to whether we will authorize these seven and fund them. Mr. MAHON. They have been author- ized, and this is providing the funds for the ships. We have committed ourselves to buy certain amounts of material from the British. The Navy has selected these wooden-hull minesweepers, and we are going to furnish the technical equipment for them. Why not stand by our commitments? What is wrong with that? Mr. GROSS. Mr. Chairman, will the gentleman yield? Mr. MAHON. I yield to the gentleman from Iowa. Mr. GROSS. Who made the commit- ments? - Mr. MAHON. The U.S. Government. Mr. GROSS. Who made the commit- ments for the U.S. Government? Mr. MAHON. The Department of De- fense. Mr. GROSS. That means Robert Strange McNamara? Mr. MAHON. It means the Department of Defense, and he happened to be the Secretary at the time. I would hope we could at least let these ships be completed in this country and in Great Britain and that we will not try to take an action which would be equivalent to the great and proud United States welshing on its commitments. Mr. GROSS. Is this the same individ- ual who closed down the shipyards? Mr. MAHON. No one is advocating that we close down shipyards. We may possi- bly have too many, but no one is propos- ing that we close them down. Mr. GROSS. He did close them down. The same McNamara closed them down, Mr. MAHON. Other shipyards than those which would be involved here. Time marches on. Mr. CEDERBERG. Mr. Chairman, I rise in support of the amendment. I would urge the Members to give it very serious consideration. I believe there is more at stake than the three shipyards which are involved. I admit a particular interest in this because I have one of the small shipyards in my hometown. I know the diffictilty that the small yard has today in compet- ing. The yard in my district has already lost bids to British concerns. Saying that the American yard has a right to com- pete with the foreign yard is just non- sense because it is absolutely impossible for American shipyards to compete with British shipyards. It just cannot be done. Now, let me tell you another reason why I am opposed to allowing these ships to be built in Great- Britain. The Navy now has a new method of awarding con- tracts on ships for the Navy. The ship- yard in my area over the years built many Navy ships-guided missile de- stroyers, destroyers and destroyer es- corts--on the Great Lakes that go up through the St. Lawrence Seaway to the ocean. But now the Navy, when it lets bids for these ships, will let a bid for a large number of ships for one yard whereas in the past they would break these bids up so that they could keep a mobilization base. Now, this yard and others on the Great Lakes and other small yards do not get an opportunity to compete on this Navy work. So what you are doing is allowing the smaller yards that can build these ships to go out of business. You are requiring them to com- pete with Great Britain. With the pres- ent policy of the Navy in shipbuilding, allowing only the very largest yards in this country to build these Navy ships, we are leading to the destruction of the small yards. The small yards that have historically had a part in the shipbuild- ing business-and-I might say have done a very efficient job in providing ships to the Navy-are about to go out of busi- ness. I do not think this is fair. I do not think it is fair for our own Navy to have a kind of construction program which makes it impossible for these yards to bid effectively and also places them in competition with foreign yards. Mr. BYRNES of Wisconsin, Mr. Chair- man, will the gentleman yield? Mr. CEDERBERG. I yield to the gen- tleman. Mr. BYRNES of Wisconsin. These 16 ships would involve around $120 million. Mr. CEDERBERG. Let us say it is $120 million out of about $2 billion-I do not know how much the gentleman from Texas said was involved here, but cer- tainly they can find some other items for this $120 million and keep these ship- yards in business. It would give these smaller yards an opportunity to compete among themselves within the United States without having to compete with foreign yards. It is impossible for them to compete. If you want to put some ship- yards in this country out of business, just vote this amendment down and that is exactly what you are going to do. Mr. PIKE. Mr. Chairman, I move to strike the last word. (Mr. PIKE asked and was given per- mission to revise and extend his remarks.) Mr. PIKE. Mr. Chairman, I think all of us recognize the great emotional appeal of buying anything we can get in America and never buying anything anywhere else. We in New York are not indifferent to the problems of shipyards. We even used to have a shipyard in New York, too. We do not have a naval shipyard there any more. It is gone. The gentleman from Virginia, who is a very articulate spokes- man for a very excellent shipbuilding area has said that if this amendment does not pass we are not going to buy these ships in America. He says the American yards will not have a chance. This is another way of saying in the final analysis that they are going to be obtain- able cheaper if this amendment does not pass. The ships will be procured at a lesser cost in open competition. I do not think that the American taxpayer is go- ing to be outraged at the concept of spending a little less money to buy some of these ships. Mr. Chairman, I do not believe that anyone isgoing to be too unhappy if we buy something of equivalent value at a lesser price somewhere else. Now, Mr. Chairman, I am not in favor of doing this all over the place. I do rec- ognize the peculiar problems of the American shipbuilding industry. But we Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11: CIA-RDP69B00369RO0100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE H 7107 cannot buy anything ever, anywhere If we are just interested in economy you follow the argument of the gentle- abroad, without stepping upon the toes of I am sure these ships can be built cheaper man from New York. The ships can some American industry. In Japan. That nation can build ships probably be built much cheaper in Japan. Mr. Chairman, there has never been a for about half of what the Western As the gentleman from Virginia has proposal to buy anything anywhere that World can. said, and the gentleman from Maryland did not offend someone; I do not care Of course, I realize we have to have said earlier, there is a 40-percent differ- whether it was ships or planes or engines reciprocal trade. I know that. But my enital as far as Great Britain is con- or tanks or fabrics or buttons or wine, you argument is that when we reciprocate cerned. The amendment asks only that name it. we should pick an industry that is not seven of the 16 minesweepers be built in Mr. Chairman, we do have a tremen- sick. We should pick a vibrant industry, the United States next year. This is all dously favorable balance of trade and we one that can stand the shock of this. tied in with the TFX procurement. There have a. tremendously favorable balance But we are picking on an industry that has been no contract from Great Britain of commercial trade. We have a tremen- needs help. on this. There cannot be a real and final dously favorable balance of military Mr. Chairman, I have watched the commitment made on the part of the trade. hydraulic turbine industry dwindle in U.S. Government until the Congress ap- Mr. Chairman, the chairman of the about 10 years' time when they had 10 propriates the money, and there has been committee has properly pointed out how firms who were manufacturing this huge no appropriation for these seven ships tremendously favorable this balance is. equipment, and today we have only three. that are being authorized in this bill. We just cannot hope to sell and sell and Primarily that was because our Govern- Mr. Chairman, I ask that this amend- sell abroad and never, never ever buy ment has been constrained to award tur- ment be agreed to. abroad. bine contracts abroad because they can I yield back the balance of my time. Mr. Chairman, I hope that this amend- get them cheaper. Therefore we have Mr. GROSS. Mr. Chairman, I move ment will be defeated. ruined an industry which can produce to strike the requisite number of words. Mr. RHODES of Arizona. Mr. Chair- these valuables pieces of machinery, and (Mr. GROSS asked and was given man, will the gentleman yield? as a result we have lost some of the val- permission to revise and extend his re- Mr. LONG of Maryland. Mr. Chairman, uable know-how. I do not want to see marks.) will the gentleman yield? that happen here. Mr. GROSS. Mr. Chairman, unlike the Mr. PIKE. I yield to the gentleman Mr. SIKES. Mr. Chairman, I rise in States of Maryland, Texas, and New from Maryland. opposition to the amendment. York, the State of Iowa has not a single Mr. LONG of Maryland. Mr. Chairman, Mr. Chairman, I shall not take the shipyard. the gentleman from New York has made full 5 minutes, but simply want to point I want to see Americans employed in a statesmanlike speech. I support his out again that the Congress has author- shipyards as well as elsewhere in our in- position and wish to associate myself ized the action which is proposed in the dustries because the American labor has with his remarks. bill. Acting on the authorization by Con- been and always will be the best market Mr. PIKE. When I read it in the gress, the U.S. Government has entered for our American farm products. I want RECORD tomorrow, I may perhaps wish into an agreement which very definitely to see American labor employed. I know I had made it myself. Is favorable to us in that Britain will of no reason why-and at this time of all Mr. ZION. Mr. Chairman, I move to buy many more times as much from us times, when the British are running sup- strike the requisite number of words. than we propose to buy from them. Since plies into Haiphong to help kill Amer- Mr. Chairman, I rise in favor of the our Government, acting on the author- icans in Vietnam-I see no reason why amendment. ization by Congress, has in good faith we should go to Britain for a dime's worth Mr. Chairman, I have in my files a entered into an agreement; to abrogate of anything. You tell me why. The chair- newspaper clipping from Hong Kong that agreement by an amendment here man of the committee talks about billions dated about 16 months ago, when I was today would leave us in a very bad light, of dollars of military equipment that there. It announced a big contract for worldwide. I cannot believe the Congress we are selling around the world these a Hong Kong shipyard to build barges wants to put our Government in the Po- days. for the United States, apparently because' sition of having to repudiate its own Mr. MAHON. We are selling to Britain, the States were incapable of building agreement. It would not place the U.S. if the gentleman will yield. them themselves. Government in good light in its negotia- Mr. GROSS. What is that? Mr. Chairman, this was an interesting tions on many important subjects Mr. MAHON. We are selling billions contract because it provided a substan- throughout the world at this critical of dollars of military equipment to Brit- tial profit to these Hong Kong shipbuild- time. ain. ers. I was a little bit distressed about it Mr. LAIRD. Mr. Chairman, I move to Mr. GROSS. And do you have the at the time, and I am considerably more strike out the last word. slightest knowledge as to what they owe distressed about it now, because through Mr. Chairman, I will not take the full us? They are our biggest debtors from the Hong Kong Harbor goes about one- 5 minutes, but in view of the discussion World War I and right down to the pres- half of the gross national product of Red which has just gone on, I would like to ent day? They owe us more billions of China, without which we would not be say to the gentleman from New York dollars than any other country in the facing all of this armament in North that I was glad to oppose the amend- world. There is not the slightest assur- Vietnam, ment to delete the EA-6A from the bill. ance that they will pay us for anything Mr. Chairman, if we are going to cote- Of course the F-111 aircraft involved that they get. These leeches have been tinue to support these countries which in this matter. But there is no contract on on our back for years. Let us stop this are stabbing us in the back in Vietnam the Part of the British Government to business of going to Britain for ships. by giving them valuable contracts in- buy the TFX. There have been no con- If you want cheap ships, as one of my stead of producing the items ourselves, tracts placed in the United States for colleagues said just a moment ago, go then it is my opinion that we shall con- the TFX on behalf of the British Gov- to Japan. ,tinue to see "Vietnams" occur all over the ernment. Mr. MAHON. The Congress has au- world. The gentleman from ' Wisconsin has thorized these ships and the law provides Mr. Chairman, I am very much in merely asked that of the minesweepers a means for the type of action proposed favor of the amendment and I hope that that are going to be built this next year, in this bill. my colleagues will joint me in my effort seven of the 16 to be build in the United Mr. GROSS. The Congress does the to see that we stop helping these coun- States-only seven of the 16, in order to authorizing, not the Secretary of De- tries that are killing our men in Vietnam. maintain some capability here in Amer- fense. It is certainly right that the Con- Mr. DOWNING. Mr. Chairman, will ica to build this new type minesweeper. gress do the authorizing. the gentleman yield? Mr. Chairman, I would like to just Mr. MAHON. That is right and the Mr. ZION. I yield to the gentleman, point out that as far as the cost differ- Congress has approved the budget pro- Mr, DOWNING. Mr. Chairman, i ential is concerned, this is tied in to a gram for these ships and has not re- would just like to answer my friend, the great extent to labor wage rate con- stricted the program. gentleman from New York, who was tracts in the shipbuilding industry. Mr. GROSS. Let us just make the talking about the economics of this mat- If you wish to go to the country that start here today to cut down on those ter. can build the ships the cheapest, then who demonstrate every day that they are Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7108 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD -HOUSE June 13, 1967 not in our camp. Instead of giving us help in Vietnam the British are helping to supply the enemy. If the British are friends, who needs enemies? Mr. JOELSON. Mr. Chairman, I move to strike out the last word. Mr. Chairman, I take this time to ask the gentleman from Iowa what is the basis of his statement that British ships are supplying the sinews of war to Hanoi, because it is my understanding that that :is not the case. Mr. GROSS. Does not the gentleman know that British ships are running into Haiphong? Mr. JOELSON. I do not know any- thing of that sort. I would like to know if the gentleman hashis own State De- partment-because I have been told by our State Department that that is not happening. Mr. GROSS. Of course, that is hap- pening. Mr. JOELSON. That is not happen- ing and I would like to ask the gentle- man what he bases his statement on. Mr. GROSS. I base my statement on the fact that they are running ships into Haiphong. Mr. JOELSON. The gentleman has never taken a trip out of this country so I assume that he has not 'seen it. I would like to know what information he bases his statement on. Mr. CHAMBERLAIN. Mr. Chairman, will the gentleman yield? Mr. JOELSON. I would like an an- swer from the gentleman who made the statement. Mr. GROSS. Do I have to take a trip to Vietnam to read a newspaper or to read the CONGRESSIONAL RECORD? The gentleman from Michigan will give you the figures. Mr. JOELSON. I would like to know the newspaper that made that state- ment. Mr. CHAMBERLAIN. I will tell you where it comes from. Mr. Chairman, will the gentleman yield?' Mr. JOELSON. Mr. Chairman, I yield no further and yield back the balance of my time. Mr. CHAMBERLAIN. Mr. Chairman, I move to strike out the last word. Mr. Chairman, since the gentleman raised his question, I have taken this time to set the record straight. Just a few days ago I stood in this very spot and reported to the Members of the House here that during the month of May there were nine free world ships that carried cargo tc North Vietnam, seven of which fly the British flag. One was from Malta and one was from Cyprus. Now last Thursday, if the gentleman will take the trouble to look in the RECORD- Mr. JOELSON. Mr. Chairman, will the gentleman yield? Mr. CHAMBERLAIN. The gentleman declined to yield to me and I have 5 minutes and I ask or the courtesy of being able to respond to the question the gentleman has raised. As I was saying, if the gentleman will look at the CONGRESSIONAL RECORD Of Thursday last, he will see that I have in- cluded. there a list of 829 ships that have sailed to the port of Haiphong during the last 2 years. Of these 829 vessels, 210 were flying free world flags. More than 25 percent of all cargoes from any source whatsoever that have gone to North Vietnam during the last 2 years has been carried on free- world-flag ships. What more does the gentleman want? If you will see me later, I will give you the name of every ship, its tonnage, the date it was in the harbor, and everything else. The gentleman should know this. Of the nine ships that went to North Viet- nam during the month of May, one of the ships-and I cannot tell because this is classified-was carrying startegic cargo to the enemy. Now, you will have to use your own imagination as to what this strategic cargo was, but if you will see me after the debate is concluded, I will tell you. If the gentleman wantsme to yield, I am now happy to yield. Mr. JOELSON. Yes, I would ask you the same question that I asked the gen- tleman from Iowa. What is the source of your statement that British ships are supplying North Vietnam? Mr. CHAMBERLAIN. I got this in- formation from the Department of De- fense, and I will take you to the safe in my office and show you the whole list. What more do you want? Mr. JOELSON. All I can say is that I do not resort to confidential information. I have been informed publicly, as have many other Members of Congress, in White House briefings that free world ships-British ships-are not supplying North Vietnam with supplies. Mr. CHAMBERLAIN. I will take the gentleman to my office with me right now and I will show him this material. it is classified "Secret." I cannot divulge it, but I will give you the name of every one of the 829 ships that has been to North Vietnam for the last 2 years. Mr. JOELSON. Well, if it is classified "Secret," I am surprised that the gentle- man would disclose it. The CHAIRMAN. The question is on the amendment offered by the gentle- man from Wisconsin [Mr. BYRNES]. The question was taken; and on a di- vision (demanded by Mr. BYRNES of Wis- consin) there were-ayes 119, noes 61. So the amendment was agreed to. The CHAIRMAN. The Clerk will read. The Clerk read as follows: SEC. 637. None of the funds provided herein shall be used to pay any recipient of a grant for the conduct of a research project an amount equal to as much as the entire cost of such project. AMENDMENT OFFERED BY MR. VANrK Mr. VANIK. Mr. Chairman, I offer an amendments The Clerk read as follows: Amendment offered by Mr. VANIK: On page 43, line 8, insert a new section 638 as follows: "SEC. 638. None of the funds provided herein shall be used to pay for the travel and subsistence of civilians not in the employ or service of the United States Government at.. tending national and international rifle matches." Renumber present section 638 and subse- quent sections accordingly. Mr. VANIK. Mr. Chairman, I submit herewith an amendment which would strike out the appropriations for the travel and subsistence for the civilian components of rifle teams attending national and international rifle compe- titions. My amendment is directed toward present practices under the law which permits the participants to have a "rifle match junket" at the expense of the taxpayer. Every year the National Rifle Associa- tion utilizes Camp Perry in Ohio during the months of August and September involving the attendance of approxi- mately 8,000 participants who travel to and from Camp Perry at public expense and who are billeted -on the camp- grounds. Camp Perry is owned by the State of Ohio but it is leased and used by the De- partment of Ohio National Guard, Army Reserve summer training, and the na- tional rifle and pistol matches conducted by the Department of the Army and sup- ported by the civilian marksmanship program. Earlier this year I requested the De- partment of Defense to make available the facilities of Camp Perry as a summer camp for 5,000 disadvantaged young peo- ple of central Cleveland areas. It seemed to me that such a program would be very helpful in removing these young people from difficult and trying environmental conditions in their home communities for at least, a short period to time. The purpose of my suggested program was to provide a camp facility for thousands of young people who had never been ex- posed to the experience of camp life. Mr. Edward J. Sheridan, Deputy As- sistant Secretary of Defense, advised me on May 19, 1967, that although Camp Perry is owned by the State of Ohio, it is used by the Department of the Army for the national rifle and pistol matches during the months of August and Sep- tember. From the standpoint of priorities, it seems to me that the facilities of Camp Perry would be more prudently used as a summer camp for needy young people than as a sharpshooters assembly ground. It has just come to my attention that, in addition to providing for the travel and subsistence of 8,000 participants of the national rifle matches at Camp Perry, the Department of Defense spends an additional $2.7 million to provide per- sonnel and facilities to support the 8,000 trainees during the training period. In addition, 3,000 active members of the U.S. Army are assigned to Camp Perry to take care of other needs of the training group during this training period. While 3,000 Army personnel are doing training and porter work for the civilian participants at the Camp Perry training program, young men, 29,000 in the month of August alone, are being drafted to do military work in their stead. It seems ridiculous for the taxpayers of America to pay for the travel, billet- ing, and ammunition expended by pri- vate citizens involved in these rifle matches. The National Rifle Association justifies the utilization of public moneys on the basis of its service as a community stabilizer. it seems to me that we might do an infinitely better job of stabilizing communities of discontent through the establishment of a summer camp pro- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE gram for the young and the development of training and educational programs for the other groups. I therefore urge that this Congress halt its practice of providing a Government- subsidized junket to Camp Perry and the adjacent resort areas for the sole benefit of private citizens who have no official connection or obligation to the U.S. Army or its objectives. Mr. SIKES. Mr. Chairman, I rise in opposition to the amendment. (Mr, SIKES asked and was given per- mission to revise and extend his re- marks.) [Mr. SIKES addressed the Committee. His remarks will appear hereafter in the Appendix.] The CHAIRMAN. The question is on the amendment offered by the gentle- man from Ohio [Mr. VANIK]. The amendment was rejected. Mr, PRICE of Illinois. Mr. Chairman, I move to strike the requisite number of words. (Mr. PRICE of Illinois asked and was given permission to revise and extend his remarks.) Mr. PRICE of Illinois. Mr. Chairman, I wish to commend the Appropriations Committee for its forthright stand on nu- clear propulsion for naval warships. My responsibilities on the Joint Committee on Atomic Energy and the Armed Serv- ices Committee have given me an excel- lent opportunity to learn what new di- mensions nuclear propulsion gives to military warships. I believe that anyone who takes the time to study the facts will conclude that nuclear propulsion is in- dispensable to any Navy which is to be effective. Before I comment on some specifics on nuclear power in the bill before us, I want to express my satisfaction and state my agreement with the beautifully worded and succinct statement on "Studies and Analyses" in the Appropriations Commit- tee report on page 5. I can testify to the truth of the following excerpt from this section in the committee's report: There is some feeling that studies are re- sorted to as devices to procrastinate ex- pensively, thus deferring decision until the point in time may be reached when a decision is unnecessary because the original need has disappeared. I strongly support the committee's statement that we must curtail the pro- liferation of studies since so many studies are used as excuses for not taking re- sponsible action. I note with pleasure the House Appro- priations Commit'tee action discussed on page 47 of the committee report No. 349 to fund construction of one nuclear-pow- ered guided missile frigate-DLGN-in fiscal year 1968 and to fund advance pro- curement of another nuclear frigate in fiscal year 1968. The report states: The budget estimate proposes the amount of $166,600,000 for the construction of two conventionally-powered guided missile de- stroyers (DDG). These funds were denied in the authorization legislation and two nu- clear-powered guided missile destroyer lead- ers (DLGN) were substituted. The Commit- tee recommends the appropriation of funds for the construction of one additional DLGN and advance procurement of another DLGN at a total cost of $134,800,000. The bill has been reduced by the net difference of $31,- 800,000. The Committee will expect the De- partment to proceed with this construction and advance procurement and to request funds for the construction of the remaining authorized DLGN in the fiscal year 1969 ship- building program. Further, Public Law 90-22, the fiscal year 1968 defense authorization law which the President signed on June 5, 1967, requires that: The contracts for the construction of the two nuclear powered guided-missile frigates shall be entered into as soon as practicable unless the President fully advises the Con- gress that their construction is not in the national interest. With these clear statements of the will of Congress, it should be apparent to the Secretary of Defense that it is the man- date of Congress that the Navy have more nuclear-powered major fleet escorts for its nuclear aircraft carriers. Further, it should be clear to the Sec- retary of Defense that work on these nuclear-powered warships should pro- ceed immediately, using the $20 million appropriated by Congress last year in Public Law 89-687 for advance procure- ment for a fiscal year 1968 DLGN. The Defense Department has procrastinated long enough making ineffectual cost "studies" as an excuse for not proceeding with a course of action that is obvious to all here in Congress; an area which has been examined in depth and is supported by the five cognizant committees of Con- gress: The Joint Committee on Atomic Energy, the House and Senate Armed Services Committees, and the House and Senate Appropriations Committees have all concluded it is necessary and desir- able to build more nuclear-powered es- corts for our nucler aircraft carriers, ships that will be in our fleet into the 21st century. The Joint Committee on Atomic Energy, the House Armed Services Com- mittee, and the House Appropriations Committee have further concluded it would be wasteful to continue building nonnuclear escorts for our nuclear air- craft carriers, It is even worse to con- tinue to delay building nuclear escorts while the question is "studied" more; while our Navy is becoming obsolete before our very eyes. At the conclusion of my remarks I would like to include a brief statement made by Senator PASTORE, chairman of the Joint Committee on Atomic Energy, and one made by the gentleman from California, Congressman CHET HOLIFIELD, vice chairman of the Committee, last Saturday on the lesson we should learn from the latest crisis in the Middle East. I believe both of these gentlemen make some very important points. It is my pleasure to note that the bill before us reflects this lesson. I want to congratulate the distin- guished members of the House Appro- priations Committee and especially the distinguished chairman for their clear stand on this issue. The statements referred to follow: SENATOR PASTORE STRONGLY URGES NAVY To "Go NUCLEAR"-SAYS MIDDLE EAST CRISIS SHOWS NAVY'S ACHILLES HEEL The recent crisis in the Middle East, with the resulting interruption of oil supplies and the closing of the Suez Canal, clearly illus- trates the importance of using nuclear pro- pulsion for all capital warships of the United States Navy, it was pointed out today by Sen- ator John O. Pastore, Chairman of the Joint Committee on Atomic Energy. Senator Pastore, who is noted for his strong support of a nuclear Navy, stressed the im- portance of supporting the recent Congres- sional action of changing two conventionally powered major fleet escort ships requested by the Department of Defense to nuclear pow- ered ships. Senator Pastore said: "The recent announcement by the Secre- tary of Defense for an emergency plan to provide petroleum products for our military forces in Southeast Asia, which will require doubling the number of oil tankers for the long trip around the Cape of Good Hope, reemphasizes the critical importance of re- ducing the Navy's dependence on fuel oil. It is with no intention of criticizing past decisions by the Secretary, but rather with the hope that we may move forward in the best interests of the national defense of the United States, that I recommend the Defense Department join with the Congress to insure that all future capital vessels of the United States Navy will be nuclear propelled." Senator Pastore continued: "With this in mind, the Defense Depart- ment should carry out the Congressional de- cision that the two major fleet escorts the Department of Defense needs and asked for this year will be nuclear powered." Senator Pastore emphasized that he and other members of the Joint Committee on Atomic Energy have repeatedly recommended nuclear power for all capital warships. "The evidence based on detailed studies and analyses made by the Joint Committee overwhelmingly supports the need for a nu- clear Navy-Let us eliminate this Achilles' heel now." MIDDLE EAST CRISIS EMPHASIZES NEED FOR Nu- CLEAR SURFACE NAVY (Statement by Congressman CHET HOLIFTELD, vice chairman, Joint Committee on Atomic Energy) We all know about the crisis in the Mid- dle East and of the efforts by our Govern- ment and others to permanently end the fighting. I wonder how many of us have thought about some of the side aspects of this crisis. Two specific events come to my mind. One is the closing of the Suez Canal, and the second is the stoppage of oil from the Middle East to the United States and other Western nations. While only a small fraction of our domes- tic oil consumption comes from the Middle East, news reports indicate that more than half the petroleum products used in Viet- nam have been coming from Persian Gulf sources. While the United States has suffi- cient petroleum resources to supply the needs of our armed forces, we are now faced with having to transport fuel from the United States to Southeast Asia without use of the Suez Canal as a shortcut. Diverting tankers around the Cape of Good Hope can add sev- eral weeks to a tanker's voyage. On June 7 the Secretary of Defense an- nounced he was invoking an emergency plan to provide petroleum products for our forces in Southeast Asia without being dependent on the Middle East. This involves doubling the size of the fleet of tankers which have been used to supply our Southeast Asian forces. Doesn't this sound like a good case for our Navy having nuclear power in our major surface warships; our aircraft carriers and their escorts? This year again Congress has had to take the lead in trying to modernize our Navy. Congress changed two non-nuclear major fleet escorts (DDG's) requested by the Sec- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H 7110 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE June 13, 1967 retary of Defense to nuclear powered frigates (DLGN's). The Suez crisis in 1958 should have shown us the danger to our vital military supply lines overseas. We should have seen the "handwriting. on the wall." But apparently we didn't learn from this experience. That "writing" clearly showed that the United States should go to nuclear propulsion for its major surface ships. Yet that "writing" has to this very day been continuously ignored by the Department of Defense by asking for conventional escorts rather than nuclear escorts. This week, with the closing of the Suez canal, the same "writing" has again appeared on the wall. How many n;ore times will the Department of Defense permit this warning to remain unheeded? Will the Secretary of Defense now carry out the clear mandate of Congress, or will it take a national catastro- phe-when it is too late--for him to change his mind? The CHAIRMAN. The Clerk will read. The Clerk read as follows: SEC. 641. This Act may be cited as the "De- partrnent of Defense Appropriation Act, 1968". AMENDMENT man of the committee has done in pre- senting all of the arguments in favor of this expenditure that we have here. It is staggering to the imagination to realize that this Congress for 150 years struggled over the appropriation in total of an amount of money that we have disposed of here this afternoon in 3 or 4 hours. It makes you wonder whether these early Congresses were actually living up to their responsibilities. What I have done in this amendment I think all of you are quite aware of. I put a restriction on the expenditure of this money to 95 percent of the amount in the budget estimate. The committee has already reduced the amount of the bill by approximately 2 percent, so what we are actually talking about here is a curtailment of about an additional 3 percent of the deferral of the expendi- ture of this money. You may ask as to where this can be cut. Mr. Chairman, I have a number of suggestions which I would like to offer which I feel are valid. Mr. Chairman, it is my opinion that beyond the shadow of a doubt, we could cut an additional $2 billion, which is approximately what we are talking about, off this bill in any number of dif- ferent ways. One way I would suggest would be for example that we cease the bombing of North Vietnam. Now, Mr. Chairman, I would not be at all surprised but what the Department of Defense will recommend this step be taken in the near future. But, neverthe- less, I think it would be appropriate for CALIFORNIA Mr. BROWN of California. Mr. Chair- man, I offer an amendment. The Clerk read as follows: Amendment offered by Mr. BROWN of California: On page 44, immediately follow- ing line 23, insert a new section as follows: "SEc. 642. Money appropriated in this Act shall be available for expenditure in the fis- cal year ending June 30, 1968, only to the extent: that expenditure thereof shall not result in total aggregate net expenditures of all agencies provided for herein beyond 95 per centum of the total aggregate net ex- penditures estimated therefor in the budget for 19138 (H. Doc. 15)." (M:r. BROWN of California asked and was given permission to revise and extend his remarks.) Mr. BROWN of California. Mr. Chair- man, I have some trepidation about usurping the role of one of the more distinguished members of the minority in offering this amendment, but I do so because I think it is time we recognized that our responsibilities for economy in Government extend not only to the civilian agencies but to the heretofore sacred cow of the Defense Department. I would like to pay tribute to the distin- guished chairman of the Committee on Appropriations for the work he has done here this afternoon. I very much regret that I did not observe or was not present for all of the debate here, because I am sure that there would have been pointed out the epic-making nature of this leg- islation. Mr. Chairman, we have before us an appropriation bill which is the largest appropriation bill in the history of this country except for possibly one year dur- ing World War II. The chairman of this committee has lucidly presented the arguments for the expenditure of a sum of money equal to the total revenues of the entire United States from the date of its inception up to approximately World War ]:I. The amount of money repre- sented by this bill is equivalent to the total gross national product of approxi- mately one-third of the human race. I think we have failed to recognize the significance and the importance of this the Congress to exercise its responsibility in dealing with this legislation in such a way as to put a little pressure upon the Department of Defense to take this step. Further, Mr. Chairman, I would sug- gest that we could save, perhaps, one- half billion dollars by deferring the ex- penditure for the purpose of obtaining information, the expenditure' which is contained in this bill, for the antiballistic missile system, a system which all of us ing quite a bit of money in military aid. The gentleman from Iowa pointed out the fact that most of this money is wasted. It is my opinion that we used up quite a bit of our Defense appropriation money in the weapons which we gave or sold to Lebanon, to Jordan, and to some of these other Arab countries in the last few weeks. I am not sure that this con- tributed to our security or to their security. The CHAIRMAN. The question is on the amendment offered by the gentleman from California [Mr. BROWN]. The amendment was rejected. Mr. MAHON. Mr. Chairman, I move that the Committee do now rise and re- port the bill back to the House with sun- dry amendments, with the recommenda- tion that the amendments be agreed to and that the bill as amended do pass. The motion was agreed to. Accordingly the Committee rose; and the Speaker having resumed the chair, Mr. ROSTENKOWSKI, Chairman of the Committee of the Whole House on the State of the Union, reported that that Committee, having had under considera- tion the bill (H.R. 10738) making ap- propriations for the Department of De- fense for the fiscal year ending June 30, 1968, and for other purposes, had di- rected him to report the bill back to the House with sundry amendments, with the recommendation that the amend- ments be agreed to and that the bill, as amended, do pass. Mr. MAHON. Mr. Speaker, I move the previous question on the bill and all amendments thereto to final passage. The previous question was ordered. The SPEAKER. Is a separate vote de- manded on any amendment? If not, the Chair will put them en gros. The amendments were agreed to. The SPEAKER. The question is on the engrossment and third reading of the bill. The bill was ordered to be engrossed and read a third time, and was read the know from many talks on this floor, is MOTION TO RECOMMIT merely going to involve this Nation in Mr. BROWN of California. Mr. the expenditure of another $30 billion Speaker, I offer a motion to recommit. or $40 billion, with no net increase in the The SPEAKER. Is the gentleman op- security of the country, posed to the bill? Mr. GERALD R. FORD. Mr. Chair- Mr. BROWN of California. I am, Mr. man, will the gentleman yield? Speaker. Mr. BROWN of California. Yes, I shall The SPEAKER. The Clerk will report be happy to yield to the gentleman from Michigan. the motion to recommit. . Mr. GERALD R. FORD. I do not re- The Clerk read as follows: call-and will the gentleman refresh my Mr. BROWN of California moves to recom- memory-how many times the gentle- mit the bill. H.R. 10738 to the Committee on man has voted for the so-called Bow on Appropriations with instruction to that amendment, or an amendment compara- committee to report it back forthwith with ble to that, this year or last year. m thefollowing ediately following line 23, in ertt a new sec- Mr. BROWN of California. Every time tion as follows: it has been offered to a Defense bill. "SEC. 642. Money appropriated in this Act Mr. GERALD R. FORD. Mr. Chair- shall be available for expenditure in the man, if the gentleman will yield further, fiscal year ending June 30, 1968, only to the the gentleman has never voted for it as extent that expenditure thereof shall not result in total aggregate net expenditures of a reduction in expenditures for any civil- all agencies provided for herein beyond 95 ian agency? per centum of the total aggregate net ex- Mr. BROWN of California. Not to my penditures estimated therefor in the budget knowledge. for 1968 (H. Doe. 15)." May I suggest also another area which Mr. MAI-ION. Mr. Speaker, I move the was hinted at by the distinguished gen- previous question on the motion to re- tleman from Iowa [Mr. GROSS], who commit. Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 a Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 June 13, 1967 CONGRESSIONAL RECORD - HOUSE The previous question was ordered. McFall Poage Snyder The SPEAKER Th uesti i th McMillan Poff Springer . e q on s on e Macdonald Pollock Stafford motion to recommit. , Mass. Pool Staggers ' The. question was taken; and the MacGregor Price, Ill. Stanton Speaker announced that the noes ap- Machen Price, Tex. Steed peared to have it. Madden Mahon Pryor Pucinski Steiger, Ariz. Steiger, Wis. Mr. BROWN of California. Mr. Speak- Mailliard Purcell Stephens er, on that I demand the yeas and nays. Marsh Quie Stratton The yeas and nays were refused. Martin Calif. Mathias Quillen Railsback Stubblefield Stuckey So the motion to recommit was re- , Mathias, Md. Randall Sullivan jected. Matsunaga Rarick Taft The SPEAKER. The question is on the May Rees Talcott passage of the bill. Mayne Meeds Reid, Ill. Reid, N.Y. Taylor Teague, Calif. Mr. MAHON. Mr. Speaker, on that I Meskill Reifel Teague, Tex. demand the yeas and nays Michel Reinecke Tenzer . Miller, Calif. Reuss Thompson, Ga. The yeas and nays were ordered. Miller, Ohio Rhodes, Ariz. Thomson, Wis. The question was taken; and there Mills Minish Rhodes, Pa. Riegle Tiernan Tuck were-yeas 407, nays 1, not voting 25, as Mink Rvers Tunney follows: Minshall Roberts Udall [Roll No. 135] Mize Robison Ullman Monagan Rodino Utt YEAS---407 Montgomery Rogers, Colo. Van Deerlin Abbitt Cowger Hagan Moore Rogers, Fla. Vander Jagt Abernethy Cramer Haley Moorhead Ronan Vanik Adair Culver Hall Morgan Rooney, Pa. Vigorito Adams Cunningham Halleck Morris, N. Mex. Rosenthal Waggonner Addabbo Curtis Halpern Morse, Mass. Rostenkowski Waldie Albert Daddario Hamilton Morton Roth Walker Ill. Anderson Daniels Hammer- Mosher Roudebush Wampler , Anderson Ga. Davis schmidt Moss Roush Watkins , Tenn , Wis Davis Hanley Multer Roybal Watson . Ala. Andrews . , Dawson Hanna Murphy, Ill. Rumsfeld Watts , Andrews de Is Garza Hansen Idaho Murphy, N.Y. Ruppe Whalen , N. Dak. Delaney , Hansen, Wash. Myers Ryan Whalley Annunzio Dellenback Hardy Natcher St Germain White Ashbrook Denney Harrison Nedzi Sandman Whitener Ashley Dent Harsha Nelsen Satterfield Whitten Ashmore Derwinski Harvey Nichols Saylor - Wiggins Aspinall Devine Hathaway Nix ' Schadeberg Williams, Pa. Baring Dickinson Hawkins Hara, Ill. O ' Scherle Wilson, Bob Barrett Dggs Hays O Hara, Mich. ' Scheuer Wilson, Bates Dole ##iiebert Konski O Schneebeif Charles H. Belcher Donohue Hechler W. Va. Olsen ' Schweiker Winn Bell Dorn , Heckler Mass. O Neal, Ga. Schwengel Wolff Bennett Dowdy , Helstoski O'Neill, Mass. Scott Wright Berry Downing Henderson Ottinger Selden Wyatt Betts Dulski Hicks Passman Shipley Wydler Bevill Duncan Holifield Patten Shriver Wylie Biester Dwyer Holland Pepper Sikes Wyman Bingham Eckhardt Howard Perkins Sisk Yates Blackburn Edmondson Hull Pettis Skubitz Zablocki Blanton Edwards, Ala. Hungate Philbin Slack ith C lif S Zion Zwach Blatnik Edwards, Calif. Hunt Pickle P k m , a . I th Boggs Edwards La. Hutchinson i e owa Smi , Boland , Eilberg Ichord Pirnie Smith, Okla. Bolling Erlenborn Irwin NAYS-1 Bolton Esch Jacobs Bow Eshleman Jarman Brown, Calif. Brademas Evans, Colo. Joelson J h l f NOT VOTING-25 Branco Bray Everett Evins Tenn. o nson, Ca . i Johnson, Pa. Arends Herlong Smith, N.Y. Brinkley , Fallon Jonas Ayres Horton Thompson, N.J. Brock Farbstein Jones, Ala. Battin Hosmer Widnall Brooks Fascell Jones, Mo. Conyers Kelly Williams, Miss. Broomfield Felghan Jones, N.C. Corman Patman Willis Brotzman Findley Karsten Dengell Pelly Young Brown, Mich. Fino Karth Dow Resnick Younger Brown, Ohio Fisher Kastenmeier Fuqua Rooney, N.Y. Broyhill, N.C. Flood Kazen Gubser St. Onge Broyhill, Va. Buchanan Flynt Fole Kee Keith So the bill was passed. Burke, Fla. y Ford, Gerald R. King, Calif. The Clerk announced the following Burke, Mass. Ford, King, N.Y. pairs. Burleson Burton, Calif. William D. Kirwan Fountain Kleppe Mr. St. Onge with Mr. Hosmer. Burton, Utah Fraser Kluczynski Mr. Dingell with Mr. Horton. Bush Frelinghuysen Kornegay Mr. Thompson of New Jersey with Mr. Wid- Button FTr~i,ecle, Kupferman n nall. Byrne, Pa. , Pa. Kuykendall Fulto Mr. Dow with Mr. Gubser. Byrnes,. Wis. Fulton, Tenn. Kyl Williams of Mississippi with Mr. Ayres. Mr C~be1X Cahill Galiflanakis Kyros GJlagher Laird . Mrs. Kelly with Mr. Battin. . _ Carey Gardner Landrum Mr. Rooney of New York with Mr. Arends. Carer.. Ga,rmatz Langen Mr. Fuqua with Mr. Younger. Cases Gathings Latta Mr. Herlong with Mr. Pelly. Cederberg Gettys Leggett Mr. Patman with Mr. Smith of New York. Celler Giaimo Lennon Willis. Corman with Mr Mr Chamberlain Clancy Gibbons Lipscomb Gilbert Lloyd . . Mr. Resnick with Mr. Conyers. Clark La Gonzalez Long Clausen, , . Goodell Long, Md. The result of the vote was announced Don. H. Goodling Lukens as above recorded. A motion to recon- Clawson, Del Gray McCarthy sider was laid on the table. Cleveland Green, Oreg. McCiory Cohelan Collier Green, Pa. McClure Griffiths McCulloch Colmer Gross McDade GENERAL LEAVE TO EXTEND Conable Grover McDonald Conte , Gude Mich. Mr. MAHON. Mr. Speaker, I ask Corbett Gurney McEwen unanimous consent that all Members H 7111 who have spoken on the Department of Defense appropriation bill today may have permission to revise and extend their remarks in the body of the RECORD and include pertinent additional mate- rial. The SPEAKER. Is there objection to the request of the gentleman from Texas? There was no objection. Mr. MAHON. Mr. Speaker, I also ask unanimous consent that all Members of the House may have 5 legislative days in which to revise and extend their re- marks on the bill just passed and to in- clude extraneous matter. The SPEAKER. Is there objection to the request of the gentleman from Texas? There was no objection. (Mr. PATMAN asked and was given permission to extend his remarks at this point in the RECORD and to include extra- neous matter.) [Mr. PATMAN'S remarks will appear hereafter in the Appendix.] (Mr. PATMAN asked and was given permission to extend his remarks at this point in the RECORD and to include extra- neous matter.) [Mr. PATMAN'S remarks will appear hereafter in the Appendix.] ADMINISTRATION BILL FOR ESTAB- LISHMENT OF A SYSTEM OF FED- ERAL SAVINGS BANKS INTRO- DUCED BY BANKING AND CUR- RENCY CHAIRMAN WRIGHT PAT- MAN' (Mr. PATMAN asked and was given permission to extend his remarks at this point in the RECORD and to include extra- neous matter.) Mr. PATMAN. Mr. Speaker, President Johnson, in his Economic Report sub- mitted to the Congress last January, rec- ommended that Congress enact legisla- tion providing for Federal charters for mutual savings banks, "to enlarge and strengthen our system of thrift institu- tions." In making this recommendation, the President referred to his previous re- quest for such legislation contained in his 1966 Economic Report, but not acted upon by the 89th Congress. Yesterday I introduced this legislation for myself, the gentleman from New York [Mr. MULTER], the gentleman from Pennsylvania [ Mr. BARRETT], the gentleman from Pennsyl- vania [Mr. MOORHEAD], the gentleman from Rhode Island [Mr. ST GERMAIN], the gentleman from Texas [Mr. GONZA- LEZ], the gentleman from New Jersey [Mr. MINISH], and the gentleman from New York [Mr. BINGHAM]. Hearings were held last year on similar bills, but no ac- tion was taken by the full committee. The present bill is very similar to the previous bills, but incorporates provisions reflect- ing the enactment of the Financial Insti- tutions Supervisory Act of 1966. Mr. Speaker, I insert at this point in the RECORD a section-by-section analysis of the administration's new bill to au- thorize the establishment of Federal sav- Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 H ;7112 Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8 CONGRESSIONAL RECORD - HOUSE - June 13, 1967 Ings banks, followed by the text of the proposed legislation: - SECTION-BY-SECTION ANALYSIS OF A BILL TO AUTHORIZE THE ESTABLISHMENT OF FEDERAL SAVINGS BANKS Section 1. Short title. The unnumbered first section states the short title, "Federal Savings Bank Act." TITLE I. FEDERAL SAVINGS BANKS Chapter I. General provisions Section 11. Definitions and rules of con- struction. Section 11, the first section of title I, contains certain definitions and general rules. The term "mutual thrift institution" would mean a Federal savings bank, a Fed- eral savings and loan association, or a State- chartered mutual savings bank, mutual sav- ings and loan association, mutual building and loan association, cooperative bank, or mutual homestead association. In turn, "thrift institution" would mean a mutual thrift institution, a guaranty savings bank, a stock savings and loan association, or a stock building and loan association, and "financial institution" would mean a thrift institution, a commercial bank, or an insur- ance company. By a special definitional pro- vision in this section, the term "financial institutions acting in a fiduciary capacity" as used in sections 53 and 54 would include a credit union, whether or not acting In a fiduciary capacity. "State" would mean any State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, and any ter- ritory or possession of the United States, The term "merger transaction" would mean any transaction between or among any two institutions, at least one of which is a Fed- eral. savings bank, which will result in a merger or consolidation or pursuant to which any of such institutions, otherwise than in the ordinary course of business, acquires any assets of, or assumes liability to pay any de- posits made in or share accounts of, or simi- lar liabilities of, another of such institutions. As used in relation to a merger transaction, "resulting bank" or "resulting institution" would refer to a bank or other 'institution (whether or not newly chartered in connec- tion with the transaction) which, after its consummation, and as a result thereof, car- ries on the business or any part thereof there- tofore carried on by one or more parties to the transaction. Section 12. Rules and regulations. Section 12 authorizes the Federal Home Loan Bank Board to make rules and regulations, in- cluding definitions of terms in title I. Section 13. Examination. This section pro- vides for general and special examinations by the Federal Home Loan Bank Board or Federal savings banks, and also provides that the Board may render to any bank or officer or director thereof such advice and comment as it may deem appropriate with respect to the bank's affairs. Section 14. Reports. Section 14 provides that the Board may require periodic and other reports and information from Federal savings banks. Section 15. Accounts and accounting. The Board would be authorized by section 15 to prescribe, by regulation or order, accounts and accounting systems and practices for Federal savings banks. Section 16. Right to amend. The right to alter, amend, or repeal title I would be re- served by section 16. Chapter 2. Establishment and voluntary liquidation. Section 21. Information to be stated In charter. This section makes provision for the contents of charters for Federal savings banks. Section 22. Issuance of charter for new bank. A charter for a new Federal savings bank could be issued by the Board on the written.. application (in such form as the Board may prescribe) of not less than 5 ap- plicants and upon the making of specified determinations by the Board, including a de- termination that there has been placed in trust or escrow for an initial reserve such amount, not less than $50,000, in cash or se- curities approved by the Board as the Board may require, in consideration of transferable certificates to be issued by the bank in such form, on such terms, and bearing such inter- est or other return as the Board may approve. Section 23. Issuance of charter for a con- verted bank. Subsection (a) of this section would authorize the Board to issue a charter for a converted Federal savings bank on writ- ten application (in form prescribed by the Board) of the converting institution and determination by the Board among other things that (1) the converting institution is a mutual thrift institution and (2), if the converting institution is a Federal sav- ings and loan association, the conversion has been favored by vote of two-thirds of the directors and two-thirds of the votes entitled to be cast by members. To such extent as the Board might approve by order, and subject to such prohibitions, restrictions, and limitations as it might pre- scribe by regulation or written advice, a con- verted bank could retain and service the accounts, departments, and assets of the converting institution. Subsection (b) of the section provides that the Board shall not issue a charter under subsection (a) unless it determines that, taking into consideration the quality of the converting institution's assets, its reserves and surplus, its expense ratios, and such other factors as the Board may deem appro- priate, and making appropriate allowances for differences among types of financial in- stitutions, the converting institution's his- tory has been of a character "commensurate with the superior standards of performnace expected of a Federal savings bank". Section 24. Conversion of Federal savings banks into other institutions. Under subsec- tion (a) of section 24 the Board, on written application of a Federal savings bank, could permit it to convert into, any other type of mutual thrift institution, on a determina- tion by the Board that (1) two-thirds of the directors have voted in favor of the proposed conversion, (2) the requirements of section 45 have been met, (3) the conversion will not be in contravention of State law, and (4) upon and after conversion the institu- tion will be an insured institution of the Federal Savings Insurance Corporation (i.e., the Federal Savings and Loan Insurance Corporation, whose name would be changed to Federal Savings Insurance Corporation by section 201) or an insured bank of the Federal Deposit Insurance Corporation. Subsection (b) of the section provides that no Institution into which a Federal sav- ings bank has been converted may, within ten years after the conversion, convert into any type of institution other than a mutual thrift institution which is either a bank in- sured by the Federal Deposit Insurance Corporation or an institution insured by the Federal Savings Insurance Corporation, re- gardless of whether the later conversion took place directly or through any intermediate conversions. Enforcement of this prohibition would be by the Federal Home Loan Bank Board in the ease of an institution having a status as an insured institution of the Federal Savings Insurance Corporation and by the Board of Directors of the Federal Deposit Insurance Corporation in the case of an in- stitution having a status as an insured bank of that corporation. On a determination that a violation had taken place, the relevant board, by order issued not later than two years after any such violation, could ter- minate such status without notice, hearing, or other action. For the purposes of this subsection and subsection (a) of section 26, the terms "conversion" and "convert" would be defined as applying to mergers, consolida- tions, assumptions of liabilities, and reor- ganizations, as well as conversions. Section 25. Voluntary liquidation. A Fed- eral savings bank could not voluntarily go into liquidation or otherwise wind up its affairs except in accordance with an order of the Board issued under section 25. Upon application by such a bank, the Board could permit it to carry out a plan of voluntary liquidation upon a determination by the Board that (1) two-thirds of the bank's di- rectors have voted in favor of the proposed plan, (2) the requirements of section 45 have been met, (3) there is no longer a need in the community for the bank, or there is not a reasonable expectation that Its continued operation will be financially sound and suc- cessful, and (4) the plan is fair and equi- table and in conformity with the require- ments of section 26. Section 26. Distribution of assets upon liquidation. Subsection (a) of section 26 pro- vides that on liquidation of a Federal sav- ings bank under section 25, or liquidation of any institution while subject to the pro- hibition in subsection (b) of section 24, the net assets after the satisfaction or provision for satisfaction, in accordance with such rules and regulations as the Board may prescribe, of all proper claims and demands against the institution, including those of depositors or shareholders, shall be distributed to the Federal Savings Insurance Corporation. In the case of institutions subject to subsection (b) of section 24, the claims of depositors or shareholders are to be limited to amounts that would have been withdrawable by them in the absence of any conversion (as defined in said subsection) while the institution was so subject. The object of this provision is to deter conversions of Federal savings banks to non- mutual operation and to deter unneeded voluntary liquidation of Federal savings banks. Under section 24 Federal savings banks are prohibited from converting directly at one step into any other type of institution except a mutual thrift institution insured by the Federal Savings Insurance Corpora- tion or the Federal Deposit Insurance Corpo- ration. Section 26 is designed to deter, to the extent of its provisions, the conversion of a Federal savings bank indirectly or by succes- sive steps into an institution other than such an insured mutual thrift institution. Subsection (b) of section 26 provides that on liquidation of a Federal savings bank otherwise than pursuant to section 25 the net assets remaining after the satisfaction or provision for the satisfaction, in accord- ance with such rules and regulations as the Board may prescribe, of all proper claims and demands against the bank, including those of depositors, shall be distributed to thedepositors in accordance with such rules and regulations as the Board may prescribe. Section 27. Authority of Board. This sec- tion authorizes the Board to make rules and regulations for reorganization, liquidation, and dissolution, merger transactions, and conservatorships and receiverships, and to provide by regulation or otherwise for exer- cise during conservatorship or receivership of functions by depositors, directors, officers, or bodies which may select directors. Chapter 3. Branching and merger Section 31. Branches. Under section 31 a Federal savings bank could establish a branch or branches with the approval of the Board, upon a determination by the Board that (1) there is a reasonable expectation of the branch's financial success based on the need for such a facility in the locality, the bank's capitalization, financial history, and quality of management, and such other factors as the Board deems appropriate, (2) its operation may foster competition and Approved For Release 2004/03/11 : CIA-RDP69B00369R000100180198-8