Colonel BOYLAN. On page 4 you will find the materiel portion here divided into its contents. You will note the impact of the aircraft program in the materiel area. (The chart referred to is as follows:) Colonel BOYLAN. Again, for the material area, where we get our materiel. The chart shows the division of the total between that secured from United States production, from service stocks, from offshore procurement. Next, chart No. 6 is an analysis of the program in terms of obligation performance. Our 1950 through 1953 program again, $4,811.4 million. Our obligations incurred on April 30, $3,945.7 million. Unobligated on April 30, $865 million. Our estimated performance in May and June, $599 million. An estimated unobligated balance on June 30, $265.8 million. (The table referred to is as follows:) DEPARTMENT OF THE AIR FORCE Chart 7 is a more detailed analysis of the obligations picture. By project category, it has the same data as chart 6. On chart 8 we have broken the estimated unobligated balance of $265.8 million into its components. Reserved for engineering modifications, $36.2 million. Changes in aircraft in production, other materiel in production, a reserve of $36.2 million. Obligations in process, work that the Air Materiel Command has underway now, but will not obligate by June 30, a total of $174.8 million. Program savings for Air Force, $54.8 million. (The tables referred to are as follows:) DEPARTMENT OF THE AIR FORCE MDAP, fiscal years 1950-53-Status of programed funds MDAP-Analysis of fiscal year 1950–53 unobligated balances estimated June 30, 1953 [Millions of dollars] Estimated unobligated June 30, 1953 Reserved for engineering modifications__ Requirements not yet in obligation stage Savings_ Approved programs $265.8 36.2 174.8 0.0 54.8 Mr. HALABY. Could you give a little detail on that? Colonel BOYLAN. As background, our initial program submission for fiscal 1953 was in the magnitude of $1,545 billion. The Air Force program approved and funded was in the magnitude of $1,200 million. In mid-April, the Air Force consolidated its fiscal year programs, these four blocks Mr. Halaby mentioned, into a consolidation. At that time and in the area of our fiscal 1953 program, we effected a rather careful screening, a detailed analysis of program changes, cancellations, deletions, changes in quantity, and have realized in the fiscal 1953 program, $54.8 million. That money includes, for example, in title III in Indochina certain aircraft, which the French did not require in the time period of the fiscal 1953 program. In other words, in calendar 1954 and very early in calendar 1955. Now, we know that they will not require those aircraft unless a sudden outburst of air warfare raises their attrition. In other words, they have not lost, in the past calendar year, the aircraft we expected them to lose. There was a savings of $5 million in the NATO area for vehicles, mainly special purpose vehicles, provided with air squadrons. Again, in title I, $4.4 million for ammunition. In title I again, approximately $8 million in transportation and depot operations. Mr. HALABY. If we turn now to the Army breakdown, Colonel Corbett of the Department of the Army will give a picture of the Army obligations. STATEMENT OF COL. J. B. CORBETT, UNITED STATES ARMY Colonel CORBETT. Mr. Chairman, we would like to give you a quick sketch of what we have done with the money. Of the total amount of money, $8.265 million, the Army has programed approximately 95 percent of that for materiel and 5 percent of it for accessorial, administration, and training. Of the amount for materiel, about 31 percent is for tank and combat vehicles, 27 percent for ammunition, 14.5 percent for motor transport vehicles, and 9.5 percent for weapons, and 7.9 percent for electronics. All others, including engineers, 4.9 per cent. Of this total materiel, which is 7.9 billion worth, the sources of that materiel are: 34.4 percent of it comes from service stocks. 16.7 percent of it comes from offshore procurement. 48.9 percent of it will come from procurement in the zone of the interior in the continental units. Colonel CORBETT. The status of our program at the present time is 8.265 billion. Obligations as of April 30, $7.3 billion. The unobligated balance as of April 30, is $951 million. Estimated obligations for May and June, $692 million. Our estimated unobligated balance as of June 30 is $258.6 million. (The chart referred to is as follows:) DEPT. of the ARMY- FY 50-53 MDAP Colonel CORBETT. In addition to these amounts that I have shown here, there has been submitted to the Department of Defense, and the Director for Mutual Security additional programs to the amount of $126 million. These programs have not been approved as yet. The funds have not been allocated to the Department of the Army. Therefore, they are not included in the approved program total. I broke down in the next chart the same information as to status of the obligations by project category. The amounts at the end, as you will see, come out the same. $258 million unobligated, and the additional program of $126 million. I would like to give a short analysis of the $258 million unobligated as of June 30, for which I have another chart. In this amount we have reserved none of these moneys for engineering modifications. We have included in our expected obligations during July to September 1953 zero amount. We have firm requirements that are not yet in the obligation stage for $119.1 million. We have a savings of $138.5 million. (The table referred to is as follows:) DEPARTMENT OF THE ARMY MDAP, fiscal years 1950–53-Status of programed funds [Actual and estimated, in millions of dollars] |