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The CHAIRMAN. Had you concluded, Senator Baldwin?
Senator BALDWIN. Yes; thank you. Senator Kefauver?

Senator KEFAUVER. I do not have any questions, but I would like to make this observation: I know that Mr. Forrestal is anxious to get back into private life as soon as possible. It certainly has been a great thing for some of us on this committee who are somewhat bewildered by some of the complexities of our defense problems, to have had the sound counsel of a man of Mr. Forrestal's ability and knowledge of the subject, and I want to express the hope that he will lend us his advice and counsel in the years to come.

The CHAIRMAN. We will draft him whenever we want to, whether he wants to be or not.

Senator CHAPMAN. Mr. Chairman.
The CHAIRMAN. Senator Chapman.

Senator CHAPMAN. Mr. Secretary, am I correct in interpreting this proposal as being somewhat comparable to the translation from the Articles of Confederation, to the Constitution?

Secretary FORRESTAL. I think that is a very reasonable parallel. It is definitely a transition, but as you say, it is a second step in the evolution of an organization, the beginnings of which we have made, and reflects the changes found necessary

The CHAIRMAN. Gentlemen of the committee, I asked the Secretary to testify, and if the Secretaries of the Army, Navy, and Air Force want to be heard, we will be very glad to hear them.

Is it the committee's wish that we summons them anyhow, whether they want to come under their own volition? I can see no point in asking them to come here unless they really want to testify:

Senator BALDWIN. Do we not have this problem, which is the same problem we had before—of getting this bill passed in the Congress? Would we not be better off if these three branches had an opportunity to express their views and if out of this expression we could go to the floor of the Congress with a statement that the three branches of the service, asked independently by us as to their views, approved this particular measure.

The CHAIRMAN. Of course, if they want to testify, they may; if they don't want to testify, it stands to reason that they do approve, and in that event we can simply say, “Give us a letter saying you have no objection to the bill.”

My question is whether we want them to come up here or not, if they don't want to come.

I would like to have the expression of the committee on that. We want the Congress to feel that the thing has been completely wide open on this, and that they have not been completely shut off

Senator JOHNSON. I think we ought to ask them, if they don't want to appear, for a statement of their views on the bill.

The CHAIRMAN. I will ask Mr. Mudge to do that, or Mr. Tribby. We have been trying to get hold of President Hoover, and Mr. Eberstadt.

This is off the record.
(Discussion off the record.)

The CHAIRMAN. Are there any other witnesses the committee desires to hear other than those we have already mentioned ?

(No response.)

The CHAIRMAN. If there are no other ones, we will reserve the right, Mr. Secretary, to ask you to come back in event there is reason for coming otherwise, we are very glad to have had your statement this morning.

Beginning next Tuesday morning, I am going to try to meet in the afternoon in our room in the Capitol, so as to push this thing along and close it up, if I can.

Mr. Secretary, we are going to leave in 2 or 3 minutes, and would be glad to have you stay if you like. However, if you care to, you can leave now.

(Thereupon, the committee proceeded with the consideration of other matters.) (The following matter was submitted for the record :)

THE SECRETARY OF DEFENSE,

Washington, March 24, 1949. Hon. MILLARD E. TYDINGS, Chairman, Committee on Armed Services,

United States Senate. DEAR MR. CHAIRMAN: I shall supply you with a detailed memorandum on the dollar savings that have been effected to date under unification, in accordance with Senator Byrd's inquiry at this morning's session. However, without waiting for the preparation of such a memorandum, I wanted to send you the attached press release which bears directly on this subject, and which we have today issued for release to the press as of 7 p. m. this Saturday.

I am enclosing a sufficient number of copies for distribution to all members of the committee, and I would greatly appreciate having this press release incorporated in the record of this morning's hearing. Sincerely,

JAMES FORRESTAL.

[Hold for release 7 p. m. (Eastern Standard Time), Saturday, March 26, 1949]

NATIONAL MILITARY ESTABLISHMENT

OFFICE OF THE SECRETARY OF DEFENSE

Washington 25, D. C. ARMED FORCES SAVE MILLIONS BY CUTTING DUPLICATION AND OVERLAPPING Upward of $56,000,000 has been saved by the armed forces through reduction of overlapping and duplication in their facilities and services, Secretary of Defense James Forrestal announced today.

Mr. Forrestal said the four-hundred-odd economy projects in force or under study are aimed at improving efficiency and morale, a paramount factor in many

cases.

The Secretary's announcement is based on a periodic report from the Munitions Board, dated February 16, 1949, reflecting progress by the armed forces in carrying out economy and unification aspects of the National Security Act.

Up to the date of the latest report, the Munitions Board estimates minimum total savings at $56,517,421. The figure is derived only from those projects where some monetary appraisal has been possible.

The total figure is composed of $25,369,006 in savings which will be repeated annually and $31,148,415 in immediate or limited one-time economies.

The estimates are based on cumulative studies and reports of progress since passage of the National Security Act. At the end of 1948, the Munitions Board estimated savings roughly at $19,500,000 in annually recurring items and $15,000,000 in one-time cuts, a total of $34,500,000.

Although total monetary savings are incomplete, the report is significant, the Munitions Board told Secretary Forrestal, in that “it represents an encouraging and real indication of the very prodigious total effort made within a relatively short time to carry out the purpose of the National Security Act.”

Action on some of the projects started before passage of the act, with fresh impetus given by the new law. Others were undertaken later with the coordination of the Munitions Board's Committee on Facilities and Services,

The committee is continuing study of many additional projects, working in Washington through 30 subcommittees and panels and in the field through 9 area subcommittees. The latter make physical checks of every post and installation to determine what duplications or overlapping can be cut out.

Projects under way or still in the survey stage cover a wide range of subjects, including procurement, housing, communications, transportation, finance, food and medical services, cold storage, clothing and equipage, laundry services, postal systems, information and education, motion-picture entertainment, photographic services, cataloging, common terminology, attaché offices, graves registration, and heraldic design.

One of the more important actions, previously reported by Secretary Forrestal, is saving the Government more than $8,000,000 annually through the adoption of a uniform monetary clothing allowance plan in the military services.

Some of the unification actions directed by the Secretary are not fully appraised in the Munitions Board's current estimates of savings. These include unification of recruiting services and facilities now being worked out, a unified medical service, a unified cataloging system, single service procurement assignments, and transfer of all sea transport to the Navy.

(Attached are unification projects by general categories, followed by representa

tive specific projects and their locations.)

PROCUREMENT

Single service procurement assignments have been made covering nearly 90 groups of items. An interservice committee is conducting a study to find out if this system is resulting in greater efficiency and economy.

Arrangements have been made for any of the military departments to use the facilities of the others to inspect materials being purchased when economy can be effected.

The Armed Service Procurement Regulation is being prepared and issued jointly by the three services. When it is completed, the three services will be operating under uniform policies relating to procurement by formal advertising, procurement by negotiation, coordinated procurement, interdepartmental procurement, foreign purchases, contract forms and provisions, termination, patents, inventions and copyrights, bonds and insurance, taxes, labor, Government-furnished property, inspection, contract cost principles, and pricing.

Army and Air Force units established to coordinate procurement of surplus materials were combined with the Navy's Surplus Materials Procurement Section in February 1947. This joint activity receives lists of excess or surplus stocks from each department and coordinates acquisition by any of the departments without cost, except for transportation. Many millions of dollars have been saved.

The Air Force and Navy have arranged to exchange information about the percentage of profit charged, accounting practices, and other pricing and financial data about contractors with whom each does business. This enables the services to present a "unified. posịtion” to contractors dealing with both departments.

The Army now acts as the agent of the Air Force for acquisition and disposal of real estate and as contract construction agent for buildings and ground facilities. The Army procures, stores, and issues centrally procured engineer-type supplies and equipment for the Air Force. It also procures bulk stores, and issues common items of ordnance and chemical material for the Air Force.

AIRCRAFT PROCUREMENT

Competition among the departments for aircraft production has been eliminated by the Aircraft Committee set up by the Munitions Board. The committee plans for the availability of materials to meet current requirements and indicated emergency requirements. It also plans for all practicable economy in procure. ment and supply.

The aircraft procurement programs of the various departments are scheduled on a joint basis. From these programs requirements for materials, components, manpower, utilities, and facilities are computed and steps taken to assure their availabilities in peacetime. Their availability also is planned for emergency.

The committee assigns to one service or another the responsibility for procurement and industrial mobilization at particular aircraft plants, when such action is considered appropriate. It assigns single-service purchase responsibility for items of aeronautical matériel. It sets up standards for aeronautical equip

ment, materials, and processes. It establishes uniform aircraft supply and maintenance practices and procedures. This eventually will include the joint use, when appropriate, of aircraft and engine-overhaul facilities, on which a study is now under way.

COMMUNICATIONS

Consolidation and integration of joint telephone service in the Panama Canal Zone have been completed, increasing the efficiency and utility of the zone-wide system.

The Air Force has been allocated and is using one duplex communication channel between Washington and Balboa, C. Z., on the Navy multichannel radio circuit. An estimated $70,000 saving accrues to the Air Force.

The Army Signal Corps and the Air Force have leased jointly two commercial radio teletype channels between Washington and London at an approximate saving of $9,000 a month.

Consolidation of the Air Transport Service and the Naval Air Transport Service into Military Air Transport Service has initially resulted in an anticipated annual saving to Navy Maintenance, Bureau of Ships' appropriation, if $352,469 in communications costs.

Joint use of communication facilities among the services and cross-servicing of equipment have been undertaken, circuits have been rerouted or combined or eliminated, for economy and efficiency. For example, combining of teletype circuits in the Fourth Army Area has saved $35,043 annually.

In the field of radio communication, increased coordination of the several phases of electronic technical effort has resulted in a substantial monetary saving, not yet accurately estimated. Items upon which coordination has been increased are facsimile equipment, diversity receiving equipment, super highfrequency link equipment, harbor-security equipment, VHF direction finders, test equipment, television-training programs, radio-finder printing, security methods for facsimile, and high-power transmitters.

SUPPLY

Under agreement with the Army, the Navy has assumed responsibility for furnishing repair parts for certain designated models of internal combustion engines. Unestimated savings have resulted from centralized procurement, stock control, joint utilization, and elimination of duplication.

The Army and Navy have joined various other Government agencies in an agreement to interchange repair parts, lists of models or items stocked by common manufacturers, and cross-reference data. Unestimated saving has resulted from elimination of duplication, centralized procurement, stock control, and joint utilization.

Establishment of the Armed Services Petroleum Purchasing Agency has permitted coordinated purchase of petroleum products and consolidation of armed forces' requirements.

Fifth Army headquarters reports that the Air Force is supplying quartermaster and medical supplies to 22 Army installations. No records as to savings are available.

TRANSPORTATION

Use of Army vessels and Army charter vessels for lifting intercoastal naval cargo from August 1947 through June 1948 saved $918,215, according to Navy estimates.

Use by the Navy of Army rail tank cars from November 1947 through June 1918 saved $150,000, according to Navy estimates.

Merging of NATS and ATC into MATS eliminated duplication and overlapping among the military air transport trunk routes, but complete estimates of the saving are not available.

Various arrangements have been made throughout the country for cross-servicing of automobiles and joint use of shops for auto field maintenance. For example, the Army is maintaining 510 Navy and Marine Corps vehicles in the Fifth Army area, including Wisconsin, Michigan, Illinois, Missouri, Iowa, Minnesota, North Dakota, South Dakota, Nebraska, Kansas, Colorado, and Wyoming.

While petroleum distribution responsibility has been shifted to the Armed Service Petroleum Purchasing Agency, responsibility for transporting military

89469—493

bulk petroleum remains with the Navy. Saving resulting from having this work under one authority is substantial but has not been accurately estimated.

In the last year, Navy vessels carried 16,197 Army and Air Force personnel, and Army vessels carried 4,163 Navy personnel. The Army arranges transportation of Naval and Air Force patients in Army hospital cars. Upon request from the Navy or Air Force, the Army supplies troop kitchen cars for movements of personnel. By mutual agreement, the tank-car movement of all liquid properties of the National Military Establishment and the Atomic Energy Commission is handled by the Army.

MEDICAL

The Cooper Committee currently is under instructions to work toward a unified medical service for all the armed forces. The Hawley Board virtually has completed its study of duplications and overlapping in the medical and hospital services of the three military departments.

Various arrangements already have been worked out for hospitalizing patients of one department in facilities maintained by another.

The Air Force is using the Army's general-hospital system for definitive medical care that cannot be provided by Air Force station hospitals. In several instances, Army general hospitals are furnishing station-hospital care to nearby Air Force bases. On Guam the Navy extends hospitalization as needed to both the Air Force and the Army.

A compilation of joint diagnostic nomenclature and list of surgical operations has recently been approved. This standardization is helpful when a patient is transferred for treatment from a facility of one service to that of another.

A joint technical medical bulletin on neuropsychiatric nomenclature has been standardized by the Army and Navy and is in the process of publication.

TRAINING

Unifications in the field of training are estimated to have produced an annual saving n excess of $2,000,000.

The information schools of the armed forces have been combined at Carlisle Barracks, Pa., under Army administration at an estimated annual saving of $101,076.

Many training facilities maintained by one department are now being used by personnel of other departments. As examples, Air Force enlisted men are authorized to attend the Navy Photographers Mates School at Pensacola, Fla., and Navy and Air Force personnel receive training at the Chemical Corps School, Army Chemical Center, Md.

Preparation of a new recognition pictorial manual is a joint effort. Various other training facilities and devices are being developed by common effort or are available for common use. Training films are exchanged among the services. The Organized Reserves have been given authority to use various Army, Air Force, and Navy facilities.

The Navy Special Services Center, Sands Point, N. Y., and the Air Force Matériel Command, Wright-Patterson Field, Dayton, Ohio, are cooperating in the development and procurement of special devices of common use to both services. A typical example is the link celestial navigational trainer for polar navigation training.

The Air Force currently maintains 92 ROTC units in schools which also have Army ROTC units. At a majority of the schools the Air Force and the Army operate the program as a single corps under the command of one officer, jointly sharing installations, facilities, equipment, and supplies.

JOINT USE

Agreements for joint use of building space, camps, posts, ranges, shops, and other facilities by two or more departments or by the National Guard or other civilian componen's have ellected a one-time saving estimated at $3,319,000 and an annual saving of $62,800.

Navy ship-repair facilities at Subic, P. I., are being used jointly with the Army, avoiding the necessity of constructing a separate ship-repair facility for the Army. Tho saving is estimated by the Navy at $3,000,000.

The telephone system on Guam is operated jointly for common use. The existing island power system is operated by the Navy for the joint use of all three services. The Navy has undertaken emergency repair and overhaul of Army vessels at Guam. No estimate of the saving is available.

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