SPECIAL SUBCOMMITTEE ON INTELLIGENCE HEARING ON S. 2714

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CIA-RDP75B00380R000800020003-3
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December 4, 1973
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REGULATION
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Approved For Release 2002/01/10 : CIA-RDP75B0038pRQ00800020003-3 rte [II.A.S.C. No. 93-30] SPECIAL SUBCOMMITTEE ON INTELLIGENCE HEARIITG ON S. 2714 TO AMEND SECTION 291(b) OF THE CENTRAL INTELLIGENCE AGENCY RETIREMENT ACT OF 1964 FOR CERTAIN EMPLOYEES, RELATING TO COST-OF-LIVING INCREASES, AND TO INCREASE THE PAY AND ALLOWANCES OF CERTAIN OFFICERS OF THE ARMED FORCES WHOSE PAY AND ALLOWANCES ARE NOT SUB- JECT TO ADJUSTMENT TO REFLECT CHANGES IN THE CONSUMER PRICE INDEX IIOusE OF REPRESENTATIVES, COMMITTEE ON ARMED SERVICES, SPECIAL SUBCOMMITTEE ON INTELLIGENCE, 14 ashington, D.C., Tuesday, December 4, 1978. The subcommittee met, pursuant to notice, at 10:12 o'clock a.m., in room 2337, Rayburn House Office Building, IIon: Lucien N. Nedzi (chairman of the subcommittee) presiding. Mr. NEDZI. The subcommittee will come to order. - This morning we are meeting for the purpose of bolding a, heRring on S. 2714, which is .a bill to amend section 291(b) of the CIA Retirement Act of 1964 for certain employees. [S. 2714 and related documents follow:] IS. 2714, 93d Cong., 1st sess.] A BILL To amend section 291(b) of the Central Intelligence Agency Itetirenrent Act of 1964 for Certain Employees, relating to cost: of-living increases, and to increase the pay and allowances of certain officers of the Armed Forces whose pay and allowances are not subject to adjustment to reflect changes in the - Consumer Price Index Be it enacted by the Senate and House of Representatives of the United States of America in Congress aseinbled, That (a) section 291(b) of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees, as amended (78 Stat. 1043; 50 U.S.C. 403 note) is further amended- (1) by renumbering paragraphs (1), (2), and (3) as paragraphs (2), (3), and (4), respectively; and (2) by inserting the following new paragraph (1): "(1) An annuity (except a discontinued service benefit under section 234(a)) which- "(i) is'payable from the fund to a participant who retires, or to the widow or widower of a deceased participant; and "(ii) has a commencing date after the effective.dat:e of the then last pre- ceding annuity increase under section 291(a) ; shall not be less than the annuity which would have been payable if the com- mencing date of such annuity had been the effective date of the then last preceding annuity increase under section 291(a). In the administration of this paragraph, a participant or deceased participant shall be deemed, for the purposes of section 221(h), to have to his credit, on the effective date of the then last preceding an- nuity increase under section 291 (a), a number of days of unused sick leave equal to the number of days of unused sick leave to his credit on the date of his separa- tion from the Agency.". (b) The amendments made by sub:;ection (a) shall apply only with respect to annuities which commence on or after July 2, 1973. Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 SEc. 2. (a) Notwithstanding any other provision of law, effective on the date of enactment of this Act, the pay and allowances of members of the Armed Forces to whom this Act applies shall be increased to amounts equal to the amounts such pay and allowances would have been increased if the pay and allowances of such members had been increased, under section 1401a(b) of title 10, United States Code, by the same percentage rates, consecutively compounded, that the retired pay or retainer pay of members and former members of the Armed Forces en- titled to retired pay or retainer pay since October 1, 1967, has been increased, and such member shall, on and after the date of enactment of this Act, have his pay and allowances increased effective the same day and by the same percentage rate that the retired pay or retainer pay of members and former members of the Armed Forces is increased under such section 1401a(b). (b) This section applies to members of the Armed Forces entitled to pay and allowances under either of the following provisions of law: (1) The Act of June 26, 1948, chapter 677 (62 Stat. 1052). (2) The Act of September 18, 1950, chapter 952 (64 Stat. A224). (c) No amounts shall be paid, as the result of the enactment of this section, for any period prior to the date of enactment of this section. CENTRAL INTELLIGENCE AGENCY, Washington, D.C., November 5, 1973. Speaker of the House of Representatives, Washington, D.C. DEAR Mn. SPEAKER: This letter transmits for the consideration of the Congress a draft bill I to amend the Central Intelligence Agency Reitrement Act of 1964 for Certain Employees, as amended. The proposed legislation conforms the Central Intelligence Agency Rettrement Act to changes approved in Public Law 93-136 for the Civil Service retirement system by guaranteeing to a retiree or his survivor a minimum annuity equal to what would have been payable had the retiree been eligible for the most recent cost of living adjustment of annuity. The effective date of the proposed legislation is identical to that approved in Public Law 93-136. A number of key features in the Central Intelligence Agency Retirement Act, including the cost of living adjustment provision, are based upon Civil Service retirement provisions. Enactment of the proposed legislation will assure that the Central Intelligence Agency retirement system remains in line with the Civil Service system in this important area. We would appreciate early and favorable consideration of the proposed bill. The Office of Management and Budget has advised that there is no objection to presenting the proposed bill to the Congress from the standpoint of the Adminis- tration's program. Sincerely, GENERAL COUNSEL OF TIIE DEPARTMENT of DEFENSE, lion. F. EnwAIW IIEBERT, Washington, D.C., November 30, 1973. Chairman, Committee on Armed Services, House of Representatives, Washington, D.C. DEAR MR. CHAIRMAN: In accordance with your request, the provisions of section 2 of S. 2714, a bill "To amend section 291 (b) of the Central Intelligence Agency Retirement Act of 1964 for Certain Employees, relating to cost-of-living increases, and to increase the pay and allowances of certain officers of the Armed Forces whose pay and allowances are not subject to adjustment to reflect changes in the Consumer Price Index," have been reviewed. Under the bill, the monthly compensation being received by General Omar Bradley, United States Army, and General Carl Spaatz, United States Air Force-Retired, would be increased by approximately 39 percent. The percentage increase proposed equals the cumulative percentage increase in the retired pay of persons continuously on the retired rolls since October 1, 1967, which was the last time that the compensation being received by General Bradley and General Spaatz was increased. In addition, the bill would provide that in the future the pcrc be a G offic grey word the thei that the date Si in t pore by S Con1 beer SI corn of I T the rep( T Arir Doi: Dwi Ilea Geo T and The the half L For of I i. Spa whc as s I poir recd app pay allo for 1 195 195 in 1 yr5, t Spa the gen mom gray 201 app Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 percentage increases in retired pay authorized under 10, U.S.C., 1401a(b) would be applicable to the compensation payable to there officers. General Bradley and General Spaatz are the two survivors of a select group of officers for whom the Congress enacted special legislation in recognition of their great contributions to the allied victory in World War II. Initially these officers were authorized to continue to receive the same pay and allowances whether on the active list or on the retired list, as authorized for officers on the active list in the grade of general. However, Public Law 85-422, effective June 1, 1058, provided that thereafter, the category of officers in question would be entitled to receive the pay and allowances to which they were entitled on the day before the effective date of that Public Law. Since 1958, General Bradley and General Spaatz have received two increases in their compensation. Public Law 89-501 increased their compensation by 3.2 percent effective July 1, 1966; Public Law 90-207 increased their compensation by 4.5 percent, effective October 1, 1967. They have received no increase in their compensation since 1967. In the period from 1967 through July 1973 there have been cumulative increases in military retired pay of more than 39 percent. Section 2 of S. 2714 provides for appropriate and timely adjustments in the compensation to which these distinguished officers are entitled. The Department of Defense strongly supports this proposal and urges its early enactment. The Office of strongly and Budget advises that, from the standpoint of the Administration's program, there is no objection to the presentation of this :report for the consideration of the Committee. Sincerely, L. Niim mnuiixun, Acting General Counsel. The following named officers were permanent appointees as General of the Army, and Fleet Admiral under the Act of March 23, 1946 (60 Stat. 59). Douglas MacArthur Ernest J. King Dwight D. Eisenhower Chester W. Nimitz Henry II. Arnold William Halsey George C. Marshall William D. Leahy That Act provided that such officers would be entitled to receive the same pay and allowance in retirement that they were entitled to receive on active duty. The Act of December 14, 1944 provided that officers in the grade of General of the Army or Fleet Admiral were entitled to the base pay of a rear admiral (upper half) plus a $5,000 per year personal money allowance. Under the Act of June 28, 1948 officers of the Regular Army or Regular Air Force appointed in the permanent grade of General of the Army under the. Act of March 23, 1946 were exempted from mandatory retirement because of age. Under authority of the Act of June 26, 1948 General Bradley and General Spaatz were appointed to the permanent grade of general and were authorized whether on active duty or in retirement, to receive the same pay and allowances as was authorized for officers on active duty in the grade of general. Under authority of the Act of September 18, 1950 General Bradley was ap- pointed to the permanent grade of General of the Army and was authorized to receive the same pay and allowances and other benefits authorized for officers appointed to that grade under authority of the Act of March 23, 1946. (Base pay and allowances of rear admiral (upper half) plus $5,000 personal money allowance whether on active duty or in retirement and exemption from retirement for age.) Under the authority of Act of June 28, 1948 and the Act of September 18, 1950, General Bradley continued on the active list of the Army and until June 1, 1958 received the base pay and quarters and subsistence allowances of an officer in the grade of rear admiral (upper half) and a personal money allowance of $5,000 annually. Under the authority of the Act of June 26, 1948 and until June 1, 1958, General Spaatz who retired in 1948 continued to receive in retirement the base pay, and the quarters and subsistence allowance authorized for an officer in the grade of general (pay and allowances for officer in pay grade 0-8) plus a $2,200 personal money allowance. Beginning on April 1, 1955 General Spaatz, as an officer in grade of general, received an additional $200 per month under the authority of 201(e) of the Career Compensation Act of 1949 as added by Public Law 84-20, approved March 31, 1955. Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 Under the provisions of Section 7(a) of Public Law 85-422, approved May 20, 1058, the pay and allowances being received by officers in the category of General Bradley and General Spaatz were "frozen" at the amounts being received on May 31, 1958. Under specific authority contained in Section 302 of Public Law 89-501 (effec- tive July 1, 1966) and Section 5 of Public Law 90-207 (effective October 1, 1967) increases of 3.2 percent and 4.5 percent were authorized for officers in these categories. No increases have been authorized for such officers since that date. Under S. 2714, General Bradley and General Spaatz will be entitled to an increase in their pay equal to the percentage increases in retired pay authorized for persons on the military retired rolls since October 1, 1967. Those increases are as follows: Apr. 1, 1968------------------------------------------------------- 3.9 Feb. 1, 1969------------------------------------------------------ 4.0 Nov. 1, 1969 ------------------------------------------------------ .5.3 Aug. 1, 1970------------------------------------------------------- 5.6 June 1, 1.971----------------------------------------------- ------- 4.5 July 1,1972------------------------------------------------------ 4.8 July 1, 1973------------------------------------------------------ 6.1 hereafter these officers will be entitled to an automatic increase in their pay at the same time and of the same percent as persons on the military retired rolls. Compensation being received by General Bradley, Spaatz: Bradley: I Basic pay------------------------------------------------- $1, 160. 84 Personal money allowance_________________________________ 449.35 Subsistence------------------------------------------------ 51.63 Quarters allowance----------------------------------------- 184.41 Total-------------------------------------------------- 1,546.23 Spaatz:2 Basic pay------------------------------------------------- 1,376.:12 Personal money allowance---------------------------------- 197.71 Subsistence----------------------------------------------- 51.63 Quarters allowance- --- ----------------------------------- 184. 41 Total --------------------------------------?------------- 1,810.27 1 General Bradley is receiving the basic pay, and the quarters and subsistence allowance authorized for an officer in pay grado 0-8, tinder the law in effect on May 31, 1958, increased by 3.2% in 1066 aad 4.5;x, in 1967, plus an annual personal lu(laey allowance, which originally was $5,000 but was also increased by 3.2%ht1:916and4.5%in 1167. 2 General Spaatz is receiving the basin pay, and the quarters and subsistence allowance authorized for an officer in. the grade of general under the law in effect on May 31, 1068, increased by 3.2% in 1966 and 4.19% in 1067. plus the annual personal money allowance authorized for an officer in the grade of genes at on Way 31, 1058 (62,200) increased by 3.2% In 1966 and 4.570 in 1067. Mr. NEDZI. We have as our first witness, Mr. Robert Wattles, Acting Deputy Director for Management and Services, of the Central Intelligence Agency, Mr. Wattles, you have a statement you would like to make? Mr. WATTLES. I do, sir. Mr. NEDZi. Please proceed. STATEMENT OF ROBERT WATTLES, ACTING DEPUTY DIRECTOR FOR MANAGEMENT AND SERVICES, CENTRAL INTELLIGENCE AGENCY Mr. WATTLES. Mr. Chairman, I appreciate this opportunity to appear before your subcommittee to discuss S. 2714, which amends the Central Intelligence Agency Retirement Act of 1964 for certain employees. In 1963, this committee approved a separate retirement system for those of our people who are engaged in overseas operations and certain. types of employe two-thin Since Retirem, has favo cable ell which pr Public provision or survi% 11ad the increase. effective the increl Under vision, lad effective the mere, burden or The cht over a mf without sl receiving: Or It Stirvi~ increase rc even thou higher bas, system wil benefits sit Act. Public I. of-living; in on or after the CIA R died in ser receive an, without a c flay I a on Jainlary planned to December increase. Peaked r( CIA Retire: adininistrat under the C requirement with little n The costs gence Agee( Fund will b report to th employees n more motley Approved For Release 2002/01/1.0 : CIA-RDP75B00380R000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 5 i,)loved May 20, egory of General I -hug received on k%W- 89-501 (et,ec- ictober 1, 1967) uificets in these ito. 5e entitled to an ,z t,- authorized for increases are as 3.9 4.0 5.3 5.6 4.5 ------ 4.8 ------- 6.1 ise in their pay at 5- retired rolls. 5.1. 63 184. 41 1, 376.52 1 97 7 . . 1 r-_____ 51.63 1.84.41 ------ 1,810.27 dloivance authorized for 11. 3.2% in 1966 and 4.5% 7A was also increased by allowanco authorized for by 3.2% its 1006 and 4.6% reds of gouoral on May 31, Robert Wattles, os of the Central 'RTY DIRECTOR INTELLIGENCE ? opportunity to t, which amends 1964 for certain enlen.t system for I Lions and certain types of unique or hazardous duty. About one-third of our staff employees are covered by the CIA Retirement Act and the .remaining two-thirds are covered by the Civil Service Retirement System. Since the CIA Retirement Act was based upon the Civil Service Retirement Act in most major respects, this committee over the years has favorably reported legislation which conforms our act to appli- cable changes in the civil service system, including the provision which provides for cost-of-living adjustments of annldities. Public Law 93-136, just enacted, amended the cost-of-living provision of the civil service retirement system to guarantee retirees or survivors an annuity no less than what would have been paid had the individual been eligible to receive the last cost-of-living increase. Previously, one had to be on the retirement rolls before the effective date of a cost-of-living increase in order to be eligible for the increase. Under the old civil. service provision and the current CIA pro- vision, large numbers of employees retired immediately prior to the effective datc of a cost-of-living increase in order to be eligible for the increase. These peaked retirements created an administrative burden and upset, work requirements. The change in the civil service law should spread out retirements over a more normal period since an employee can remain on duty without suffering a reduction in the amount of annuity lie will be receiving. The change also corrects an anomaly whereby an employee or a survivor who goes on to the retirement rolls after a cost-el-living increase receives a smaller annuity than an employee retiring sooner, even though the former annuity is calculated with more service it higher base salary. Agency employees who are under the civil service system will benefit from Public Law 93-136. We feel that the same benefits should be extended to employees under the CIA Retirement Act. Public Law 93-136 was made retroactive to include the last cost- of-living increase effective July 1, 1973, and covers all those who retire on or after July 2. Since July 1, 1973, 24 employees have retired under the CIA Retirement Act and the survivors of seven employees who died in service have been added to the retirement rolls. None may receive any benefits from the July 1, 1973, cost-of-living increase without a change in the law. May I also add that there will be another cost-of-living increase on January 1, 1974. Those employees under the Agency system who planned to retire in early 1974 must now retire no later than December 31, 1973, to receive the benefit of the January 1, 1974, increase. Peaked retirements prompted by cost-of-living increases under the CIA Retirement Act do not impose upon. the Agency the same heavy administrative burden experienced by the Civil Service Commission under the Civil Service retirement system. However, projected work requirements are affected and personnel adjustments must be made with little notice. S. 2714 should ameliorate all of these problems. The costs of this legislation will be borne out of the Central Intelli- gence Agency Retirement and Disability Fund. The impact on the Fund will be relatively minor. The Civil Service Commission in its report to the Post Office and Civil Service Committees noted that employees may delay their retirement for a few months and pay more money into the retirement fund. On the other hand, to the extent Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 . Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 that they receive some benefit from the last cost-of-living increase, more money is paid out of the fund. Taking into account the last cost-of-living increase of July 1, 1973, 6.1 percent, and the expected increase on January 1, 1974, figured now to be 5.5 percent., it is esti- mated, that the increase in the CIA Retirement Act's unfunded lia- bility would be about $135,000. It, is hoped that the committee will give favorable consideration to S. 2714 as soon as possible in view of the impending cost-of-living increase due on January 1, 1974. If this bill is enacted, not only wilt retirees and employees under the CIA Retirement Act receive the same benefits now afforded to CIA retirees and employees under the Civil Service System, but retirement planning will no longer be subject to the extraneous consideration of eligibility for a cost-of-living adjustment, as now exists under current law. Thank you, Mr. Chairman. I will be glad to answer any questions. Mr. NEDZI. Thank you, Mr. Wattles. The Chair has one question. Could you tell us why this provision was placed in the law in the first place? Mr. WATTLES. The provision now in the Civil Service law, sir? Mr. NEDZI. The provision now in the CIA retirement law and for- merly in the Civil Service law? I understand that provision was -clianged. Mr. WATTLES. It was not originally in either of the two laws. Mr. NEDZI. It was changed in Public Law 93-136? b'Ir. WATTLES. It was originally not in either of the two laws and it was placed in the Civil Service law because the Commission found it was the experience of all agencies in Government covered under the Civil Service system that, in anticipation cf a cost-of-living increase in annuity, there were great lumps of employees leaving abruptly. For example, if there was one announced for the 1st of March, February would see large numbers of employees leaving at once, leaving in anticipation of enjoying the increase in the cost of annuity which that cost-of-living formula then provided. The Civil.Service Commission and the administration sought. to relieve that peak and valley pattern of retirements by the revision which permitted a retiree to reach back, as it were, and enjoy no less than the benefit he would have received had he retired prior to the cost-of-living adjustment. What we are asking today is merely that the CIA Act be brought into essential conformance with that Civil Service provision. Mr. NEDZI. Mr. Bray, any questions? Mr. BRAY. This is merely making the change that is already niade in the general Civil Service retirement law? Mr. TATTLES. That is right, sir. hlr. BIIAY. Thank you. Mr. NEDZI. Mr. Price? Mr. MELVIN PRICE. Mr. Wattles, this custom of the cost-of-living increase attached to the pension has been a custom now for the past half a dozen years or more. Up until this time, has any effort been made to bring the legislation up like this to get action on it? lIr. WATTLES. The change made in the Civil Service law I believe was effective only last Spring. AI. MELVIN PRICE. Just Mast spring. I remember that. Mr. WATTLES. Up until that time, the Civil Service law and our own Retirement Act were similar in that the retirements al.l were prospective with regard to the next cost-of-living increase. But as I was Saying, this gc pattern. It was the that out by granti worse than it woul, previous COL. Mr. MELVIN PR a considerable disa Mr. WATTLES. j' Mr. MELVIN Pr have been? Mr. WATTLES. rl Mr. MELVIN PR Mr. NEDZI. Any Mr. WATTLES. I October 24, 1973, Mr. MELVIN P: people who had to after this date? Mr. WATTLES. MVlr. SLATINSIIEIi Could.you state with any advanta retirees? In other ing amendment an or not there is any tage over civil ser' Mr. WATTLES. Mr. NEDZI. Tlu Mr. WATTLES. ' Mr. NEDZI. Ow ant Director, Cot Manpower and Ri Mr. Spence, I t bill, which relates Mr..SPENCE. Y Mr. NEDZI. Yo Mr. SPENCE. Y Mr. NEDZI. Yo STATEMENT OF I SATION ADMIN DEFENSE Mr. SPENCE. 1 appreciate the of behalf of the Del, 2 of S. 2714. The purpose of increase in the c, Bradley, U.S. A retired, based on pensation was la increases in that the same percent retired rolls. Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 J_, y increase, lilt the last !IV expected it is csti- ifunded lia- deration to ost-of-living .ot only will receive the under the 'r be subject ost-of-living questions. ie question, e law in the sir? law and for- ?ovision was ,vo laws. laws and it ;ion found it d under the ing increase ;abruptly. dt of March, lag at once, of annuity Civil Service iaat peak and tted a retiree efit he would 1justmeut. t be brought v isioii. lready made cost-of-living v for the past iy effort been on it? law I believe t. law and our wilts all were 'use. But as I 7 was saying, this generate;l these peaks and valleys in the retirement pattern. It was time Civil Service Commission's desire to try to smooth. that out by granting, under this formula, an annuity which was no worse than it would have been had the individual retired prior to the previous COL. Mr. MELVIN PRICE. Yes, but the CIA retiree certainly has been at a considerable disadvantage with respect to the Civil Service retiree. Mr. WATTLES. We W0111(11 c. Mr. MELVIN PRICE. They have been; since the past spring they have been? Mr. WATTLES. That is right. Mr. MELVIN PRICE. Thank you. Mr. NEDZI. Any more questions? Mr. WATTLES. I am reminded the civil service change is effective October 24, 1973, which reaches back to the July COL increase. Mr. MELVIN PRICE. It turned out to be quite an injustice for people who had to retire. Some of yours were in the first 3 or 4 months after this date? Mr. WATTLES. That is right. Mr. SLATINSIEK. One question, if I may, Mr. Chairman Could you state for the record whether this provides your retirees with any advantage of any kind over that provided civil service retirees? In other words, you indicated earlier that this is a conform- ing amendment and, for the record, I would like to ascertain whether or not there is anything in here that would give your people an advan- tage over civil service retirees? Mr. WATTLES. Not in and of itself, sir. Mr. NEDZI. Thank you very much, Mr. Wattles. Mr. WATTLES. Thank you, Mr. Chairman. Mr. NEDZI. Our next witness is NIr. Leroy J. Spence, who is Assist- ant Director, Compensation Administration, Office of Defense for Manpower and Reserve Affairs. Mr. Spence, I understand, will address himself to section 2 of the bill, which relates to Generals Bradley and Spaatz. Mr. SPENCE. Yes, sir. Mr. NEDZI. You have a statement you wish to make? Mr. SPENCE. Yes, Sir, I do. Mr. NEDZI. You may proceed. STATEMENT OF LEROY J. SPENCE, ASSISTANT DIRECTOR, COMPEN. SATION ADMINISTRATION, OFFICE OF ASSISTANT SECRETARY OF DEFENSE Mr. SPENCE. Mr. Chairman and members of the committee, I appreciate the opportunity of appearing before the committee on behalf of the Department of Defense to testify in support of section 2 of S. 2714. The purpose of this section is twofold. First, it will authorize an increase in the compensation now being received by Gen. Omar Bradley, U.S. Army, and Gen. Carl Spaatz, U.S. Air Force, retired, based on the increase in the cost of living since their com- pensation was last adjusted; second, it will provide for automatic increases in that compensation in the future at the same time and by the same percentage as is authorized for military personnel on the retired rolls. Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 This section will authorize, effective from the date of enactment of the legi:;latiorn, an increase of approximately 39 percent in the com- pensation being received by these distinguished officers. This would be the first increase they have received since October 1, 1967. In the period from October 1, 1967 through July 1, 1973, persons who were on the military retired rolls have received cumulative increases in retired pay of over 39 percent. This legislation will authorize an im- mediate increase in the compensation of these officers equal to the increases received by persons on the retired rolls during that period, and will authorize future increases in their compensation under the same conditions as are applicable to retired military personnel. GeneralBradley and General Spaatz are the two living lnenibers of it select group of officers for whom Congress enacted special laws regarding their retirement-t.ype compensation and their status in recognition of their great contribution to the Allied victory in World War II. Those laws authorized these officers to continue to receive, whether still on. the active list or in retirement:, the pay and allowances authorized for officers of their grade in the active service. Until 1958, whenever the pay and allowances for officers, on the active list were increased, the compensation payable to this select group of officers was similarly increased. However, the 1955 Military Pay Act, which embodied a major structural revision of the military compensation system, specifically provided that thereafter the officiers in question would continue to receive the same pay and allowances to which they were entitled before that Act was enacted. Since that time, these officers have received two increases in their compensation: a 3.2 percent increase effective from July 1, 1966, and a 4.5 percent increase effective October 1, 1967. With the rapid increase the cost of living since 1967, there has been it major reducion in the purchasing; power of the compensation being received by these officers. It is the view of the Department of Defense that in simple justice to these distinguished officers, they should receive at least the same adjustment in their compensation as is authorized for persons on the military retired rolls. Section 2 of S. 2714 authorizes an initial percentage adjustment for these officers equal to the percentage increases in retired pay for persons on the retired rolls since 1967. Iii addition, the bill will authorize future increases in that compensation whenever military retired pay is increased. These increases will, in our judgment, provide for these officers in it, fair and equitable manner. General Bradley's compensation will initially increase from $1,846.23 monthly to $2,577.58. General Spaatz's compensation will initially increase from $1,81.0.27 monthly to $2,527.39. Any additional costs resulting from this legislation will be absorbed in the retired pay appropriation. In conclusion, Mr. Chairman, the Department strongly favors this increase in compensation for General Bradley and General Spaatz. If you have any questions, sir, I will be happy to try to answer them. Mr. NED%r. Thank you, Mr. Spence. When was this special law concerning Generals Bradley and Spaatz passed? Mr. SPENL"E. The original law under which Generals Bradley and Spaatz was initially appointed was in 1948. General Bradley was later benefite and bey, hower, War II. Mr. T Mr. S Mr. T receive Mr. receive, allow-ant in 1955, 4r. T+ Mr. S Mr. S. was not allowanc Mr. S: Mr. Si were riot active di Mr. Si Mr. N only : inc: retirerrier Mr. Si specific i 3.2 and 4 Mr. N. Mr.. Si the cater people on in retired For "exs pay ?ind c er?il S~aa Mr. Ni were equr officers re Mr. Si' increases than the Mr. Nr are receiv general we Mr. Srr Actii a11) equivalent general, so Mr. NE Mr. Sri, in their eit Mr. ME 25-363 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 blulctmelnt of i in the com- a liis would be ;1967. In the ens Who were increases in I1olize an inl- equal to the, that period, eon under the 'son lei. xg. 1nelnbers of special laws heir status in yt.ory in World Lila to receive, i11d. allowances c. Until 1.958, a;t,ive. list were cup of officers ay Act, which j, cotn.pensatioll }ers in question to which they i.reases in their a1y 1, 1966, and here has been a eensation being simple justice to lleast the same persons on the e adjustment for 4 pay for persons it will authorize itary retired pay )rovide e for these 'e from $1,810.27 will be absorbed `r?ongly favors this general Spaatz. 1' to answer them. alley and Spaatz 'ends Bradley and 13radl.ey was later benefited by a special law which gave hint the same rights, privileges and benefits as had been accorded the five-star officers, General Eisen- hower, MacArthur, and six other officers who served during World War II. Mr. NEDZI. Was General Spaatz accorded the same privilege? Mr. SPENCE. No, sir; he was not. Mr. NEI DZI. And that law provided that they were to continue to receive their active duty pay? Mr. SpENCE. That is right, sir. They were entitled. to continue to receive, whether on active duty or in retirement, the same pay and allowances that they were then receiving. This practice was terminated in 1958, in the 1958 Military Pay Act. Mr. NEDZI. With respect to Generals Bradley and Spaatz? Mr. SPENCE. Yes, sir, and all others who were similarly situated. Mr. SLATINSIILK. For purposes of clarifying the record, the practice was not terminated in that they continue to receive the pay and allowances, but they were frozen at that level? Mr. SPENCE. That is right. That is much better stated. Mr. SLATINSItEK. So pay and allowances were continued, but they w re' not subject then to increases when there was it change in the active duty pay structure? Mr. SPENCE. That is right. Mr. NEDZt. So that' since 1958, if l understand this, situation, the only' ~ increases which both ' the generals received were increases in retirement pay?' - . Mr. SPENCE 'The increases that they received, Mr. Chairman; were specific increases, specifically authorized by law in 1966 and 1967, 3.2 and 4.5 percent: . .1 I I 1. 1. Mr. NEDZI. For them alone or for all retirees? Mx SimiccE. This was applicable only to this category of officers, the category?in which Generals Spaatz end Bradley were iti:?'The people on the retired rolls were covered by the automatic adjustments in retired pay based upon, increases in the cost of living. For example, since 1967 there have beers seven increases in retired pay, and during that period. of 'time neither General' Bradley nor Gen- eral Spaatz received any increase in their pay Mr. NEnzI. But prior to that-tire those two percentage increases were equal to, were less than or were more than the pay which retired officers received? Mr: SPENCE. 'Between 1958' "and 1967, these officers received two increases that I mentioned,' 3:2 and 4`.5, which were considerably less than the increases applicable to persons their on the retired-rolls. Mr. NEOZi. Now, if you take the present pay which both generals are receiving, is it equal'to or less than, or more than what a retired general would receive today? Mr. SPENCE. It is less than 'a retired general .would receive today. Actually the retired pay that they are receiving is approximately equivalent to the retired pay currently being received by a brigadier general, somewhere in that neighborhood. It is about $1,800 a niontil. Mr. NEDZI. How old- are Generals Bradley and Spaats? Mr. SpENCE. Sir, I do not know specifically, but I believe they are in their eighties. Mr. ME, LVIN PRICE. Bradley is 84, I would say, in that area. 25-363-73----2 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 10 . [Note: General Bradley was born Feb. 12, 1593. General Spaatz was born Juno 28, 1891.] Mr. NEDZI. With this percentage increase, would this bring these generals up to what retired generals are receiving today or would it place them in a higher-paid category or lower-paid cate ory? Mr. SPENCE. For an officer in pay grade 0-10 who has been retired for several years, his retired pay currently is about $2,800 a month, as compared to the $2,500 a month that these gentlemen would be authorized under this legislation. So it would continue to be less than for those people who were currently being retired, those now on the retired rolls who are in the grade of general. Mr. NEDZI. Do we have any flag officers at this level. who have re- tired prior to 1958? Mr. SPENCE. Yes, sir. We have officers in pay grade 0-10, which is the closest comparable rank that we have to what General Bradley has. We do have those people on the retired rolls. Mr. NEDZI. How does their retirement pay compare to Generals Bradley and Spaatz? Mr. SPENCE. In the case of those individuals, I believe their retired pay is somewhat less. I can give you an approximation in a moment. An individual receiving retired pay, who retired prior to 1958, who had served as chief of staff, his retired pay prior to last July would have been $2,103 a month, and increase that by 6 percent which would be somewhere around $2,200 to $2,300 a month. That will be further increased January 1 by 5.5 percent. That increase, of course, would also apply in the case of Generals Bradley and Spaatz, assuming this legislation is enacted. Mr. NEDZI. Mr. Bray, do you have any questions? . Mr. BRAY. I do not quite understand this. I remember very well the Pay Act of 1958 which. stopped the recomputation. Now they retired previous to that time, did they not? Mr. SPENCE. Yes, sir. Mr. BRAY. Here it says. they received a 3.2 percent. increase effective July 1, 1966, 4.5 percent increase effective October 1, 1967. What was that? Was that not just the regular military pay increase at that percentage? That was 1966 and 1967. That was the pay increase, is that. right? Mr. SPENCE. Those were special increases specifically authorized for individuals who were in the category Generals Bradley and Spaatz were in. It was not the same increases in pay applicable to persons on active duty or in retirement, no, sir. Mr. BRAY. How come it was not applicable to them, because they were eligible for recomputation as had been the custom up until 1958? Mr. SLATINSHEK. May I interrupt there? Mr. BRAY. Yes. I cannot quite understand this. Mr. SLATINSHEK. In the 1958 act, these people were singled out. They were, in a sense, in a limbo status; they were not on active duty but not in retirement in a very technical sense. So there was special provision made in the 1958 act with reference to these people. Sub- sequently, when we (lid institute increases for retired pay, unless we specifically mentioned these people, it did not apply to them. In subsequent laws we (lid mention them and did provide these percentage increases that they have received. .'Mr. BRAY. r that? Mr. SLATIN these people b, it part of the re Mr. BRAY. received all the Mr. SLATINE they received cally exempt fI policy adopted Mr. BRAY. 7 all this hassle I us involved in Mr. SLATINr committee on I Mr. NEDZI. was establish a Mr. SLATINS Mr. NEDZI. generals here. Mr. SPENCE.. Mr. NEDZI. two pay categ( clone has to be Mr. BRAY. T is not starting ; Mr. SPENCE. Mr. MELVIN it was enacted. Mr. BRAY. N general who ret Mr. ME, LVIN Mr. BRAY. I times we starter Mr. NEDZI. A Mr. Slatiushe Mr. Melvin I Mr. Fisher? Mr. Spence, ] the record as to Mr. SPENCE. time? Mr. NEDZI. 1 for the record, is Mr. SPENCE. man. Mr. NEDZI. I 1VIr. MELVIN gress of their ro Mr. NEDZI. I be useful to hav, to the House. w Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 11 bclleral Spaatz his bring these i cv or would it lte.gory? has been retired 82,800 It month, ;men would be ; to be less than bse now oil tile el who have re- which is heneral Bradley ire to Generals lye their retired =1 in a moment. 'r to 1958, who b'st July would percent which }l. That will be case, of course, pa?it , assuming ph stopped the ,time, did they acrease effective 1967. What was nerease at that pay Increase, is laity authorized slley and Spaatz sle to persons on n, because they ctstorn up until 'ere singled out. t on active duty ;sere was special se people. Sub- pay, unless we o them. provide these -%"Mr. BRAY. These two special bills applied and we never (lid it after that? Mr. SLATINSIIEK. The cost-of-living formula does not apply to these people because they are so-called Special Act officers, not really a part of the retired group. Mr. BRAY. I thought they remained as active duty officers and received all the increases active duty officers did. Mr. SLATINSHEK. In a very technical sense you are correct, because they received basic pay and allowances. However, they were specifi- cally exempt from these subsequent changes in the act, because of the policy adopted by the Congress in the 1958 Pay Act. Mr. BRAY. The reason I am raising this question here is because of all this hassle we had over recomputation. You say this is not getting us involved in this. Mr. SLATINsl-ILKK. This is not inconsistent with the position of . the committee on that question. Mr. NEDzI. If I understand this correctly, what we in effect did was establish a third category of pay. Mr. SLATINSHEIZ. Precisely. Mr. NEDZI. There were active, retired, and then we had these generals here. Mr. SPENCE. That is right. Mr. NEDZI. As a result, any provisions that applied to the other two pay categories (lid not apply to these Inen. So that everything done has to be especially for these individuals? Mr. BRAY. These are the only two officers this could apply to. This is not starting a precedent? Mr. SPENCE. No, sir. Mr. MELVIN PRICE. It applied to all five-star generals at the time it was enacted. Mr. BRAY. Not a five-star general. It would not apply to a five-star general who retired today. Mr. MELVIN PRICE. We singled them out by name. Mr. BRAY. I say this is not starting a precedent. I remember a few times we started something and it seemed like agood idea at the tinge. Mr. NEDZI. Any further questions, Mr. Bray? Mr. Slatinshek? Mr. Melvin Price? Mr. Fisher? Mr. Spence, I have one further request, and that is it statement for the record as to the reasons for this special treatment of these officers. Mr. SPENCE. Do you wish me to give you an oral statement at this time? Mr. NEnzi. You may give an oral statement or you may submit it for the record, if you prefer. Mr. SPENCE. I would prefer to submit it for the record, Mr. Chair- man. Mr. NEDZI. Fine. Mr. MELVIN PRICE. Actually, it is acknowledgment of the Con- gress of their role in the war. Mr. NEDZI. I understand that, Mr. Price. But I thought it would be useful to have it in the record so that when this matter is presented to the House. we will have this before us. We do have a tremendous Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 12 number of new Members, as you know, who are not at all familiar with this whole situation. Mr. MELVIN PRICE. Who do not read history. Mr. NEDZI. I think it would contribute if we had that in the record so that it is available to us. Mr. SPENCE. I would be happy to do so. [The following information was received for the record:] Following the allied victory in World War II Congress recognized in a special way through legislative enactment the contribution to that victory made by thirteen men who because of their unique and outstanding qualities rose to highest positions of command and leadership in the armed forces. In the words of the Committee on Armed Services in its report on the bill which later became Public Law 79-333: The success of the awned forces of this Nation is largely due to the out- standing organizational abilities, vision, and strategical concepts of the officers involved ii1 this bill. From them stemmed the dynamic force which insured the proper training, equipping, and deployment of the strongest Army and Navy the world has ever known. They contributed greatly to the formulation and execution of the stretegy that caused the annihilation of our enemies. Your committee believes it is entirely appropriate that these officers be per- mitted to continue to hold the grades in which they have served. Light of those individuals had attained during World War II the 5 star rank which has traditionally been. reserved for those wartime commanders who demon- strated to an outstanding degree the ability to command the combat forces in wartime. Those individuals were: Army George C. Marshall Douglas MacArthur Dwight D. Eisenhower Air Force Henry II. Arnold Navy William D. Leahy Ernest J. King In addition, five other officers; who during World War II had attained the:grade of general or admiral and had served in positions of high command and resp.onsi- hility, and in those positions had made outstanding contributions to, the success of the armed forces, were similarly recognized by special legislation. They were : Omar N. Bradley R. A. Spruance Coast G2iard Russell R. Wacsche The legislative recognition afforded these officers consisted in making perma- nent the' grade in which they had served cjhring'World War II and in authorizing them to continue to -receive, whether: in the active service or in retirement, the pay and allowances authorized- for their grade. Asa further mark of recognition General Bradley was in 1950, by special Act of Congress, appointed to the perma- nent grade of General of the Army, with the same rights.and benefits as.ivere authorized for the eight original appointees in that grade. General Bradley and General Spaatz are the .only surviving members of that select group of officers. These distinguished officers have received but 2 increases in their compensation since 1958; 3.2% in 1966 and 4.5% in 1967. From October 1, 1967 to July 1, 1973, persons on the military retired rolls have received cumulative increases in their retired pay totalling in excess of 39%.. Neither General Bradley nor General Spaatz have received any increases in their compensation during that period. S. 2714 will authorize an immediate increase in their compensation of approxi- mately 39%, and will authorize future increases in their compensation at the same time and in the same percentage as persons on the military retired rolls. G Cha in A ofIie brut Si ann T ntor ever cons Patt Gen hint Brae Nor and T; the. Arm In and apps 13( for Jolly the rnov Miss who G Dist 01 prop recd- In t com' G, tion to fi, servi gone Al Dak Lori the orde and G 1929 Scho folio Colh and June heca Febr G< mono 15, 1 whit 28th pe-rsc he w Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 all familiar 1 the record sd in a special ory made by .ose to highest ,ft, on the bill ;e to the out- 1 of the officers sshich insured r,st Army and e formulation our enemies. dicers be per- w 5 star rank who demon- nbat forces' in e.ined the grade I and responsi- to the success tn. They ;were: balling perma- in authorizing retirement, the of recognition I to the perma- enefits. as were embers of that r compensation to July 1, 1073, creases in. their 'y nor General .hat period. .ion of approxi- ansation at the retired rolls. 13 GENERAL OF THE ARMY OMAR NELSON BRADLEY, USA General of the Army Omar Nelson Bradley completed two successive terms as Chairman of the Joint Chiefs of Staff on August 15, 1.953. That office was created in August 1949 and General Bradley was its first chairman. It is the Ili ghost military office presently attainable by any officer of the Armed Services. General Bradley brought to that office a, unique background of military and civilian experience. Successively in World War II, he commanded first a division, then a corps, an army, and finally a group of ar.i.mes. This last command, the 12th United States Army Group in Europe, numbered more than 1,300,000 combat troops and was the largest body of American soldiers ever to serve under one field commander. The 12th Army Group, at its peak, consisted of four armies-General Courtney Ilodge's First, General George Patton's Third, Lieutenant General William Simpson's Ninth and Lieutenant General Leonard Gerow's Fifteenth. Except for his original divisional assignment-a pre-combat training job given him as a result of his experience as Commandant of the Infantry School-General Bradley won his wartime advancement on the battlefield. A Corps commander in North Africa and later in Sicily, he took an Army across the Normandy beaches and ended the war in Germany in command of an Army Group. Three weeks after V-B Day, General Bradley was drafted to become head of the Veterans Administration during the critical postwar demobilization of our Armed Forces. In February 1948, General Bradley became Chief of Staff of the Army. A year and a half later he was appointed Chairman, Joint Chiefs of Staff, and was re- appointed in August 1951. Born in Clark, Missouri, February 12, 180:3, General Bradley was named Omar for an editor friend of the family and Nelson for the local doctor. His parents, John Smith Bradley and Sarah Elizabeth (nee Hubbard) Bradley, remained in the Clark-Higbee area, until the father's death in 1908 when he and his mother moved to Moberly, Missouri. General Bradley married Mary Quayle of Moberly, Missouri, December 28, 1916. They have one daughter, Elizabeth Bradley Dorsey, who lives in Washigton, 1).C. (Married Esther Dorm, Buller, September 12, 1966) General Bradley was appointed to the U.S. Military Academy from the Second District of Missouri in 1911. lie graduated 44th in the Class of 1915. Of his class, General Bradley was the first to become a brigadier general. Ills promotion came in February 1941. when he was a. lieutenant colonel, and at the recommendation of General Marshall became Commandant of the Infantry School. In this post, he set up the Infantry Officer Candidate program that eventually commissioned more than 45,000 combat leaders before the end of World War II. General Bradley's commissioning as a second lieutenant of infantry on gradua- tion from West Point June 12, 1915, was followed on July 1, 1916, by promotion to first lieutenant. Ile rose to the temporary rank of major in World War I while serving with the 14th Infantry Regiment, but reverted to captain in 1.920 in the general postwar reduction of the Army. After World War I, General Bradley was assigned to ROTC duty at South Dakota State College, and then was ordered to a four-year tour in 1920 as instruc- tor in mathematics at the U.S.-Military Academy. In 1925, he graduated from the Advanced Course at The Infantry School, Fort Benning, Georgia, and was ordered to duty in Hawaii. In 1927 and 1928 he was in charge of National Guard and Reserve Affairs for the Hawaiian Islands. General Bradley graduated from the Command and General Staff School in 1029, and then was assigned as instructor in tactics and weapons at the Infantry School. Assignment to the Army War College, from which he graduated in 1934, followed his four-year tour at Fort Benning. After graduation from the War College he was assigned to the U.S. Military Academy as an instructor in tactics and later became plans and training officer of the Academy. He served there until June 1938 when he reported to Washington for General Staff duty. In 1939, he became Assistant Secretary of the General Staff and served in this capacity until February 1941 when, as a brigadier general, he was sent to Fort Benning. General Bradley was given his own division-the 82nd Infantry-within two months after Pearl Ilarbor. His promotion to Major General came on February 15, 1942. Four months later, in June 1942, he was transferred from the 82nd- which was soon to he designated the 82nd Airborne Division-to command the 28th Infantry Division at Camp Livingston, Louisiana. Early in 1943, General Bradley was selected. by General Eisenhower as his personal representative in the field in North Africa. Then on April. 15, 1943, he was given command of the II Corps. It was the 11 Corps that smashed through Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 units of the Afrika Korps in Northern Tunisia to reduce Hill 609, take Bizerte and with the British 1st and 8th Armies end the war in Africa. The day after the collapse of the enemy in Tunisia, General Bradley was on route to Algiers to help plan the invasion of Sicily, and on July 10, 1943, in- vaded Sicily with his II Corps. In the summer of 1943, General Bradley was selected to command the First U.S. Army in the Normandy Invasion. His release from command of II Corps then in Sicily was arranged during the last week in August and effected on September 7th. After conferences in Washington, Bradley arrived in the United Kingdom in October. On the 20th of that month he opened the headquarters of the First U.S. Army in Bristol. On October 16, General Bradley was given additional duties as Commanding General, 1st U.S. Army Group which later was to become the 12th Army Group. On June 6, 1944, General Bradley landed in France with his First Army to break the Atlantic Wall. On July 26, the First Army smashed through the German lines at St. Lo and opened the way through Avranches for the speedy liberation of France. On August 1, he divided the American divisions into two Armies, the First Army and Third Army, and committed General Patton's Third Army through the breached enemy wall. Ile relinquished the First Army to General Hodges and assumed command of the U.S. 12th Army Group, which eventually comprised the combat forces of the First, Third, Ninth and Fifteenth American Armies. In the spring of 1945, after his American armies had smashed the German winter attacks and broken down the Siegfried Line to push on to the Rhine, Gen- eral Bradley was given his fourth star. On August 15, 1945, General Bradley became Administrator of Veterans Affairs. Ile relinquished this post on December 1, 1947, in order to familiarize himself with Army problems before taking on new ditties as Chief of Staff. On February 7, 1948, General Bradley became Chief of Staff, United States Army, succeeding General of the Army 'Dwight D. Eisenhower. General Bradley was sworn in as the first Chairman of the Joint Chiefs of Staff in the Department of Defense August 16, 1949, and on August 16, 1951, was re- appointed for a two-year term. He was nominated by President Truman for promotion to General of the Army September 18, 1950; was confirmed by the Senate September 20, and was ap- pointed to that rank effective September 22, 1950, making him the fourth five- star Army general officer. At the first meeting of the 12 Atlantic Pact nations in Washington on October 5, 1949, General Bradley was appointed the first Chairman of the Military Com- mittee of the North Atlantic Treaty Organization consisting of the military chiefs of staff of the 12 American and European countries then united in the North Atlantic Treaty for mutual defense. The number has since grown to 15. At the termination of his office as Chairman in 1950, he continued until August 1953 as United States Representative to the Military Committee (NATO) and United States Representative to the Standing Group of the Military Committee con- sisting of representatives of the United States, United Kingdom and France. In these assignments he exercised great responsibility in the coordination of the military efforts of the free world. General Bradley's decorations include the Distinguished Service Medal with three Oak Leaf Clusters, Distinguished Service Medal of the U.S. Navy, the Silver Star, the Legion of Merit with one Oak Leaf Cluster, Bronze Star Medal, Mexican Border Service Medal, World War I Victory Medal, American Defense Service Medal, American Campaign Medal, European-African-Middle Eastern Campaign Medal with one Bronze Arrowhead and 7 Battle Stars, World War II Victory Medal, Army of Occupation Medal with Clasp for Germany, and Combat Infantryman Badge. He also has the following foreign decorations: Grand Cross-Order of the Crown with Palm, and Croix do Guerre (Belgium); Knight Commander of the Bath (British Empire) ; Order of the White Lion Star for Victory, 1st Class; and Military War Cross of 1939 (Czechoslovakia); Grand Cross of the Legion of Honor, and Croix do Guerre with Palm (France) ; Grand Cross of the Royal Greek Order- of George I; Grand Cross of Couronne de Chene, and Croix de Guerre (Luxembourg) ; Grand Cross of the Order of Ouissan Alaoutio Cherifien, Degree of Grand Officer (Morocco); Knight of the Grand Cross, Order of Orange-Nassau (Nether- lands); Commander's Gross with Star, and appointed a Chevalier of the Order of Polonia, l testituta (Poland) ; Order of Kutuzov, 1st Degree; and Order of Suvarov, 1st Degree (Russia); Order of Military Merit, Degree of Grand Officer (Brazil); Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Order of Genet of the Military General Brt AcadeIny, Bar Military Scient University of J of Law;, May University, Dc June 1947; No Southern Colic versity, Doctor June 1948; Ut University, Dc June 1949; Hai of Laws, June January 1950; Juno, 1950; Pen: 1951; Cambridz University of P of Military Sole Long Island Ur General Brat captain (perma revereted to tb, July 1, 1920. 11 was promoted t Went) June 26, major general June 2, 1.943; general (permar to general (porn to General of ti: Curl Spaatz v was appointed I tinted June 12, 1 with the Twenf from October 4, the Aviation Sc In Juno, 191( served with the Punitive Exped 1916, in May, P in the same mgr General Span command of th served in the Ar month at the B: temporary prom her, 1918, as put leader. He was planes, and rece fornia and Texrt Western Departi on February 27, As it major, C 1920, to Februa November, 1921 at Ellington Fief 24, 1924. Ile wa. Virginia, in Junc at Washington, Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 icy was en 1943, in- 1 the First f TI Corps ffected on ,he United ters of the additional to become t Army to ie German aeration of cniies, the rird Army o General entually American German iitie, Gen- n Affairs. itself with ed States f~ of Staff 1, was re- Hie Army l was ap- !irth five- )ctober 5, try Com- ary chiefs he North 5. At the A. 1953 as d United ttee con- i:uice. In It of the :sal with ~tvy, the Medal, Defense Eastern 1 War lI Combat .e Crown he Bath 11ili.tary nor, and Order of tabourg) Grand (Nether- Order of )uvarov, (Brazil); Order of General San Martin, Degree of Grand Officer (Argentina); Grand Cross of the Miiltary Order of Itlay. General Bradley has been awarded the following degrees: U.S. Military Academy, Bachelor of Science, June 1.915; St. John's University, Doctor of Military Science, November 1946; Drury College, Doctor of Laws, March 1946; University of Missouri, Doctor of Laws, June 1946; University of Illinois, Doctor of Laws, May 1947; Harvard University, Doctor of Law, June 1947; New York University, Doctor of Laws, June 1947; Dartmouth College, Doctor of Laws, June 1947; Northwestern University, Doctor of Laws, June 1947; Birminghamn- Southern College, Doctor of Humane, Letters, November 1947; Princeton Uni- versity, Doctor of Laws, June 1948; University of Wisconsin, Doctor of Law, June 1048; University of California, Doctor of Laws, June' 1948; Columbia University, Doctor of Laws, June 1949; Lafayette College, Doctor of Science, June 1949; Hamilton College, Doctor of Law, June 1949; Trinity College, Doctor of Laws, June 1949; Renasalaer Polytechnic Institute, Doctor of Engineering, January 1950; Agricultural and Mechanical College of Texas, Doctor of Laws, June 1950; Pennsylvania Military College, Doctor of International Law, February 1951; Cambridge University (England), Doctor of International Law, June 1951; University of Pittsburgh, Doctor of Law, June 1951: Norwich University, Doctor of Military Science, June 1952; University of Akron, Doctor of Laws, June 1956; Long Island University, Doctor of Humane Letters, May 1967. PROMOTIONS General Bradley was promoted to first liettenant (permanent) July- 1, 1916; to captain (permanent) May 15, 1917; to major (temoprary) June 17, 1918. He revereted to the rank of captain January 22, 1920, and was promoted to major July 1, 1920. Ile again reverted to the rank of captain November 4, 1922, and was promoted to major (permanent) June 25, 1924; to lieutenant colonel (perma- nent) June 26, 1936; to brigadier general (temporary) February 20, .1941; to major general (temporary) February 15, 1942; to lieutenant general (temporary) Juno 2, 1943; to brigadier general (permanent) September 1, 1943; to major general (permanent) September 8, 1944; to general (temporary) M'rrch 12, 1945; to general (permanent) January 31, 1949, with date of rank from March 12, 1945; to General of the Army September 22, 1950. GEN. CARL SPAATZ, USAF, RETIRED Carl Spaatz was born June 28, 1891, in Boyertown, Pennsylvania. In 1010, he was appointed to the United States Military Academy from which he was grad- uated June 12, 1914, and commissioned a second lieutenant of Infantry. IIe served with the Twenty-Fifth United States Infantry at Schofield Barracks, Hawaii, from October 4, 1914, to October 13, 1915, when he was detailed as a student in the Aviation School at San Diego, California, until May 15, 1916. In June, 1916, General Spaatz was assigned at Columbus, Now Mexico, and served with the First Aero Squadron under General John J. Pershing in the Punitive Expedition into Mexico. lie was promoted to first lieutenant July 1, 1916, in May, 1917 joined the Third Aero Squadron in San Antonio, Texas, and in the same month was promoted to captain. General Spaatz went to France with the American Expeditionary Forces in command of the Thirty-First Aero Squadron and, after November 15, 1917, served in the American Aviation School at Issoudun continuously, except for one month at the British Front, until August 30, 1918. In this period, he received a temporary promotion to major. He joined the Second Pursuit Group in Septem- ber, 1918, as pursuit pilot in the Thirteenth Squadron, and was promoted to flight leader. He was officially credited with shooting down three German Fokker planes, and received the Distinguished Service Cross. In 1919 he served in Cali- fornia and Texas and became Assistant Department Air Service Officer for the Western Department in July, 1919. Ile reverted to his permanent rank of captain on February 27, 1920, but was promoted to major on July 1, 1920. As a major, General Spaatz commanded Kelly Field, Texas, from October 5, 1920, to February, 1921, served as Air Officer of the Eighth Corps Area until November, 1921, and was commanding officer of the First Pursuit Group, first at Ellington Field, Texas, and later at Selfridge Field, Michigan, until September 24, 1924. Ile was graduated from the Air Corps Tactical School, Langley Field, Virginia, in June, 1925, and then served in the Office of the Chief of Air Corps at Washington, D.C. Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 General Spaatz commanded the Army plan "Question Mark" in its refueling endurance flight over Los Angeles and vicinity January 1-7, 1929, keeping the plane aloft a record total of 1150 hours, 50 minutes and 15 seconds, and was awarded the Distill guished Flying Cross. From Nlay 1, 1929, to October 29, 1931, General Spaatz commanded the Seventh Bombardment Group at Rockwell Field, California, and the First Bombardment Wing at March Field, California, until June 10, 1933. He then served in the Office of the Chief of Air Corps and became chief of the Training and Operations Division. In August, 1935, he enrolled in the Command and General Staff School at Fort Leavenworth, Kansas, and while there was promoted to lieutenant colonel. He was graduated in June, 1930, and then served at Langley Field, until January, 1939, when he returned to the Office of the Chief of Air Corps at Washington as assistant executive officer. General Spaatz in November, 1939, received a temporary promotion to colonel, and during the Battle of Britain in 1940, spent sevreal weeks in England as u special military observer. In August, 1940, he was assigned in the Office of the Chief of Air Corps, and two months later was appointed assistant to the Chief of Air Corps, with the temporary rank of brigadier general. He became chief of the Plans Division of the Air Corps in November, 1940, and the following July was maimed Chief of the Air Staff at AAF headquarters. A few weeks after Pearl Harbor, in January, 1942, General Spaatz was assigned as Chief of the AAF Combat Command at Washington and promoted to the temporary rank of major general. In May, 1942, became commander of the Eighth Air Force, transferring to the European theater of operations in that capacity in July, 1942, to prepare for the American bombing of Germany. His accomplish- ruents with the Eighth in its formative days as a strategic bombing unit earned him an award of the Legion of .]NIerit. On July 7, he was appointed commanding general of the U.S. Army Air Forces in the European theater in addition to his duties as commander of the Eighth. His promotion to the permanent rank of colonel was made on September 17, 19=112. On December 1, 1942, General Spaatz became commanding general of the Twelfth Air Force in North Africa. In February, 1043, he assumed command of the Northwest African Air Force, which lie organized. Ile received a temporary promotion to lieutenant general March 12, 1943. After Rommcl's Afrika Korps had been driven out, of North Africa and the in- vasion of Italy was launched, General Spaatz became deputy commander of the Mediterranean Allied Air Forces, including the 12th Air Force in Africa and the 15th Air Force and the. Royal Air Force in Italy. Ile returned to England in January, 1944, to command the U.S. Strategic Air Forces in Europe, which It,, headed throughout the pre-invasion period and the ensuing campaign which culminated with the utter defeat of Germany. his service in Africa won an award of the Distinguished Service Medal, and the accomplishments of his Strategic Air Forces in 1944 earned for him the Robert J. Collier Trophy for that year, awarded annually to the American making the outstanding contribution to aviation. General Spaatz received a temporary promotion to general on March 11, 1945, and was assigned to Air Force headquarters in Washington in June, 1945. The following month he assumed command of the U.S. Strategic Air Forces in the Pacific, with headquarters on Guam. There lie supervised the final strategic bomb- ing of Japan by the B-29, including the two atomic bomb missions. Ile was present at all three signings of unconditional surrender by the enemy, at Rhein-, at Berlin, and at Tokyo. In October, 1945, General Spaatz returned to AAF headquarters, and the same month President Truman nominated him- for promotion to the permanent rank of major general in the Regular Army. In February, 1946, lie was nominated to become commander of the Army Air Forces. In September, 1947, he was ap- pointed by President Truman as the first Chief of Staff of the now United States Air Force. General Spaatz retired with the rank of General on June 30, 1948. General Spaatz has been awarded the Distinguished Service Cross, Distin- guished Service Medal with two Oak Leaf Clusters, Legion of Merit, Distinguished Flying Cross, and Bronze Star Medal. Ile also has the Mexican Interior Campaign ribbon, the World War I ribbon with three bronze battle stars, the pre-Pearl harbor ribbon with one star, the European theater ribbon with six stars, the Pacific theater ribbon, the American theater ribbon, and the World War II Victory ribbon. IIis foreign honors include a Grand O1Gcier of the French Legion of Honor, the French Croix de Guerre with Palma, a Grand Commander of the British Empire, Russia's Second Order of Suvorov and Poland's Polonia Resti.tuta, Commander's Cross with Star. Mr. SLATINSI situation very v category of offici has, been very rt of Congress to n headaches that 1 And, frankly, tl a few years ob-, problem. Mr. SPJINCE. it Ir. IIOGAN. Chairman; that Would you, factor here. Mr. SPENCE. For a full ye these officers w be absorbed wit Mr. Nit;nr.I. you, Mr. Spent Mr. MELVIN bill and instruc full committee. Mr. NEDZI. motion of Mr. and the subcoin [Voting in ft voting against; The commit 10 o'clock. [Whereupon, at 10 a.m., We Approved For Release 2002/01/10 : CIA-RDP75B00380R000800020003-3 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3 17 Him, the ?ded the a ltell and siera l to yg h,y -Air much, f the ,ef of d the r \t?itS ,ned the ghth it %- in 11- P rued his stk of f the lrl of Koury he. in- 3f the d the 0(1 111 ch he Which %vard tegic year, run to 1945, L The n the polllb- e was #tcims same rank ted to s ap- States )i tin- liished tpnign -Pearl the v 11 ar II Legion 4).1 tile tituta, Mr. SLATINSHEK. I would like to say that you summarized the situation very well, indicating that we in effect created a third pay category of officers. As a consequence, the Department since that time has been very reluctant to support any effort suggested by Members of Congress to make a special situation for new officers because of the headaches that this situation has caused the Congress since that time. And, frankly, these people are attriting out of this category and in a a few years obviously there will be none and we will not have that problem. 1\/Ir. SPENCE. That is right. Mr. IIOGAN. One point I would like to make for the record, Mr. Chairman; that is the cost factor in this. Would you, Mr. Spence, make a statement concerning the cost factor here. Mr. SPENCE. Yes, sir. For a full year the cost of this legislation with respect to each of these officers would be about $8,700 and those additional costs can be absorbed within the normal retired pay appropriation.. Mr. NEDZI. If there are no further questions, we want to thank you, Mr. Spence, for your testimony. Mr. MELVIN PRICE. I move the approval of both sections of the bill and instruct the chairman to report the entire bill. S. 2714 to the full committee. Mr. NEDZi. A quorum being present, the committee has heard the motion of Mr. Price and without objection, the motion is agreed to and the subcommittee will report the bill to the full committee. [Voting in favor: Mr. Nedzi, Mr. Bray, Mr. Price, Mr. Fisher. voting against; none.] The committee will stand adjourned until next Wednesday at 10 o'clock. [Whereupon, at 10:40 a.m., the committee adjourned, to reconvene at 10 a.m., Wednesday, December 12, 1973.1 Approved For Release 2002/01/10 : CIA-RDP75B0038OR000800020003-3