PEOPLE

A quality Army starts with quality soldiers supported by strong families, and I am happy to report that we have made great progress. As the chart below shows, Active Component accessions of high school diploma graduates (HSDG) have increased significantly since 1980, as have Reserve Component HSDG accessions. Category IV accessions remain at low levels; in fact, these are historical lows for the Active Component. These increases in quality reflect the support provided by this committee and the attention you have given to the recruiting and retaining of top-notch people in the Army.

At the same time that quality has increased in the Active Army, rates of indiscipline have decreased. Drug offenses, AWOL, crimes against property,

and violent crime are down significantly, as shown on this chart.

DISCIPLINE IN THE ARMY

Moreover, with your support, we have made great strides towards providing a solid quality of life for our people and their families. The chart below shows that substantial resources have been programmed for, and invested in, quality of life and family programs. The FY87 resources will continue to improve living and working conditions and will meet a diverse set of needs, ranging from family housing to child development to maintenance and repair shops to soldier and family services.

This effort is worth every dollar that we invest. Recently, while visiting REFORGER units in Europe, I saw that our commitment to soldiers and their families has paid off significantly in terms of their increased commitment to a more ready Army. They see the very meaningful accomplishments that the Army has made to improve their quality of life, and their own resolve increases. Thus, the better soldiers and their families feel about the Army, the better is Army readiness.

Let me share with you a letter that makes this point. It is from a young paratrooper whom doctors saved from death after a parachute accident: Life's difficulties are always cropping up, but in

the Army, people make up for the things that go wrong.
There is always someone who will help in the Army. When
the doctors thought I would never make it, my unit never
gave up.

They stayed behind me and behind my wife and my family
the whole way.
Words cannot express my thanks and the
thanks of my wife for the care that my company commander,
first sergeant, and my Army buddies showed during the
most difficult time in our lives.

my

And that's what the Army is all about, taking care of each other. I appreciate what the Army is doing for families. And, you know what? I'm proud to be a soldier.

We need your continued support to attract and retain quality people. Our young people are "seed corn" for the future. We cannot afford to lose them. Also, we cannot afford to lose our more senior NCOs--the "backbone" of our Army--as we did several years ago, because that loss means a loss of leadership and experience that takes years to recover.

I remain convinced that diminished support for quality of life programs, including the important educational benefits for Active and Reserve Component soldiers, will jeopardize the volunteer force concept, increase turbulence, and lower combat readiness.

As a final point on people, let me request your assistance to fix a retirement funds issue from last year. The FY86 Department of Defense Authorization Bill directed the Department to submit legislation to achieve a 2.9 billion dollar savings by changing the military retirement system for new personnel entering the service, and those funds were cut from the services' budgets. The Department submitted two alternative retirement system proposals, but legislation has not been enacted. In the meantime, service members are entering the service under the present retirement system which requires a restoration of the funds.

We have received temporary relief by the Congress a transfer of 2.9 billion dollars from prior year balances, while Congress considers legislative changes to the retirement system. If Congress does not lift the cap on obligations, or change the retirement law, the services would have to reduce their forces by over 330,000 Active and 176,000 Reserve personnel. For the Army, that means a devastating reduction of 120,000 Active and 112,000 Reserve Component soldiers.

MODERNIZATION

Quality people deserve quality equipment particularly when we may be outnumbered by potential enemies. A key improvement to our military capability is modern equipment for Active and Reserve forces. Modernization means both enhanced readiness and sustainability. New equipment gives us a better capability on the battlefield and better operationally ready rates. This chart illustrates the types of equipment and modern munitions the Congress has authorized us to procure through FY86, and it also depicts an aggregate measure of how much the force will have improved by replacing older items with state-of-the-art equipment and munitions.

We

This equipment modernizes units and as the chart below shows, an extensive amount of unit modernization occurs over the next five years. have made great progress, but we will have modernized only the Active "heavy division" force and their affiliated "round-out" units by the early 1990s. Much more remains to be done.

59-248 0-86--3

Below, you see the significant growth in the amount of equipment distributed to the Reserve Components in the last several years. They are getting "product improved," older equipment from the Active Army as well as new equipment. The chart also shows how we have increased the personnel strength of the Reserve Components. New equipment and training for mobilization and deployment, require the support of full-time personnel. The chart shows the resultant growth in full-time support (AGRS and technicians). FOR THE ARNG AND USAR.

Another way of showing growth in capabilities for the Total Army is the "Measuring Improved Capabilities of Army Forces (MICAF)" study. MICAF quantifies capability improvements in Army divisions, separate brigades, and armored cavalry regiments in relation to the threat capabilities likely to be faced. In this sense, it is the most realistic evaluation of capabilities available to us. As the chart shows, since 1980, the capability of our major combat units in relation to the threat has increased almost 40 percent. Projected increases are shown for FY87 and 89.

The Total Army's modernization strategy is based on the concept of a "high-low" mix in capability for its equipment, as shown below. The Army cannot afford to modernize across the board, all at once. Rather, it must continue infusing reasonable quantities of the most modern equipment, as the threat requires and technology permits, while "product improving" older equipment. On the high side, we are building forces around proven and reliable new equipment such as the Abrams tank, the Bradley Fighting Vehicle, the Apache attack helicopter, and the Black Hawk utility helicopter. low side, we are "product improving" older equipment, such as the M60 tank, the M-113, and the Cobra and Huey helicopters, to prolong their service lives and extend their capabilities. These weapons systems still have a place on the battlefield and also reduce equipment shortages and fill war reserve stocks. Such a cost-effective approach allows us to keep pace with the threat, technological advances, and sustainability requirements.

On the