1972 PROGRAM This request for fiscal year 1972 is for $12.3 million. This includes funds for undertakings involving the operation and maintenance of medical facilities in the United Arab Republic and other Navy facilities in the United Arab Republic and other Navy facilities in Morocco, the purchase of furniture for family housing quarters in Europe and the Far East from Yugoslavia and India, medical research in India, Morocco, United Arab Republic, and Yugoslavia; and some construction projects in the United Arab Republic and Morocco. Proposed authorization legislation has been submitted for the research and construction items. This completes my general statement. I will attempt to answer any questions the committee may have concerning this program. CONSTRUCTION Chairman ELLENDER. The total amount you are asking for is $12.3 million. How much of that is for construction? Mr. BRAZIER. It was $3,839,000. RESEARCH Chairman ELLENDER. In the case of research, who does the research? Is that to pay foreigners to do research in the host countries? Mr. BRAZIER. Yes, sir, that is basically for the pay of foreign researchers. They are foreign nationals who are employed in a supporting role. Chairman ELLENDER. I don't recall the amount but we have in Egypt a substantial number of pounds. To what extent could you make use of these pounds? Those are Egyptian pounds to be used under an agreement that was previously entered into between us and Egypt. Mr. BRAZIER. We are requesting the authority to purchase 2,330,000 Egyptian pounds. Chairman ELLENDER. From whom? Mr. BRAZIER. They are owned by the U.S. Treasury, to be used for this particular program. Chairman ELLENDER. Whose hands are they in now? They are our property. Mr. BRAZIER. We are going to buy them from the Treasury. They are in the Treasury's hands, and the Defense Department will buy them from the Treasury and then expend them in Egypt. Chairman ELLENDER. As I recall, under a contract entered into between us and Egypt that generated these funds, there are provisions in some of the contracts that the money must be spent within the host country. Mr. BRAZIER. Yes, sir. Chairman ELLENDER. How do you handle that? Mr. GLENN. We are required to adhere to the agreements that have been made under Public Law 480 or whatever other authority there might be. Chairman ELLENDER. I recall raising the question when the Suez Canal was opened. Mr. Nasser was demanding cash of us and although we had a large amount of his own currency, we couldn't use it. Of course, that was written into the agreement. UNITED STATES-INDIA ANTICIPATED AGREEMENT TRUST FUND FOR SPECIAL SCHOOLS Are you familiar with the contracts that will be entered into between us and India, in establishing a trust fund for special schools in India? Mr. BRAZIER. No, sir; the State Department is responsible, and we don't have anything to do with that. 1972 PROGRAM COUNTRIES Chairman ELLENDER. The countries in which we have excess currencies, and for which you are asking the $12 million, are India, Morocco, United Arab Republic, and Yugoslavia? Mr. BRAZIER. That is correct, sir. Chairman ELLENDER. Are those the only countries in that area where we have excess currencies? Mr. BRAZIER. These are the only countries where we have excess currency, where the Defense Department has a project that we feel is worthy of financing. Chairman ELLENDER. That money must be spent within the host country. Mr. BRAZIER. That is right, sir. MOROCCAN PROJECTS Chairman ELLENDER. For what do you expect to use this $6 million in Morocco? Mr. BRAZIER. These are Navy projects. Let me ask my Navy representative to describe them. Mr. COHEN. There are several projects, Mr. Chairman. There is a repair and maintenance project at Kenitra for $960,000, there is another repair and maintenance project at Sidi Yahia and Bouknadel for $733,000, and repairs to the runways at Kenitra for $480,000. Chairman ELLENDER. Did we build that runway? Mr. COHEN. No; it is one that we maintain for the Moroccans. Mr. COHEN. Yes; this is at the training command at Kenitra. Mr. COHEN. We use it only occasionally for our own flying time, but it is used for the training of the Moroccan military, and that is one of the reasons we are in Morocco, to train the Moroccan military. Mr. BRAZIER. [Deleted.] Mr. COHEN. To go on, Mr. Chairman, there is $3,148.000 for construction projects in Morocco. [Deleted.] [Colloquy deleted.] ISRAELI PROJECTS Senator YOUNG. I notice you don't mention Israel. We have sizable expenditures there. Don't we hold some of their currencies? Mr. COHEN. Yes, sir; we do. For the past 2 years an Office of Management and Budget bulletin has stated that no Israel projects will be submitted under the special foreign currency program. Senator YOUNG. We just hold their currency? Mr. COHEN. We do use it. We have in the past repaired aircraft and made other procurements utilizing Israeli pounds. But under this program, at least during the past 2 years, we have been precluded from submitting new projects. ARABIAN PROJECTS Senator YOUNG. Apparently it is mostly with the Arabs. SUBCOMMITTEE RECESS Chairman ELLENDER. If there are no further questions, we thank you very much, gentlemen. We will recess until 10 o'clock tomorrow morning. (Whereupon, at 11:45 a.m., Wednesday, April 28, the subcommittee was recessed, to reconvene at 10 a.m. Thursday, April 29.) DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 1972 THURSDAY, APRIL 29, 1971 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.O. The subcommittee met at 10 a.m., in room S-126, the Capitol, Hon. Allen J. Ellender (chairman) presiding. Present: Senators Ellender and Young. DEPARTMENT OF DEFENSE DEFENSE SUPPLY AGENCY STATEMENT OF LT. GEN. EARL C. HEDLUND, USAF, DIRECTOR ACCOMPANIED BY: MELVIN H. BAKER, COMPTROLLER JAMES R. JONES, SR., CHIEF, OPERATIONS BUDGET DIVISION, PROGRAM AND FINANCING FOR DEFENSE AGENCIES Chairman ELLENDER. The subcommittee will please come to order. At this point in the record there will appear program and financing information for the Defense agencies. This information covers several appropriations: "Operation and maintenance, Defense agencies"; "Procurement, Defense agencies"; "Research, development, test, and evaluation, Defense agencies"; and the "Emergency fund, Defense." They will appear in that order. (551) |