DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1964

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72-00337R000500180019-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 70
• Document Creation Date: December 20, 2016
• Document Release Date: May 26, 2006
• Sequence Number: 19
• Publication Date: June 21, 1963
• Content Type: REPORT

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88TH CONGRESS t HOUSE OF REPRESENTATIVES J REPORT
st Session f No. 439
DEPARTMENT OF DEFENSE APPROPRIATION BILL, 1964
JUNE 21, 1963.?Committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
Mr. MAnoN, from the Committee on Appropriations, submitted the
following
REPORT
[To accompany H.R. 71791
The Committee on Appropriations submits the following report in
explanation of the accompanying bill making appropriations for the
Department of Defense for the fiscal year ending June 30, 1964.
APPROPRIATIONS AND ESTIMATES
The Committee considered estimates presented in the President's
Budget on January 17, 1963, and detailed in the Appendix thereto at
pages 245-296, 323-349 and 352-354. The accompanying bill em-
braces the appropriations for regular military functions of the Depart-
ment of Defense, other than military assistance, military construction,
military family housing, and civil defense, for fiscal year 1964. These
latter requirements will be provided for in subsequent appropriation
bills.
There follows a tabulation listing in summary form, the appropria-
tions for fiscal year 1963, the estimates for fiscal year 1964, and the
appropriations recommended by the Committee for 1964.
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Summary of appropriations
1,*
APPTIZIalalutetr, 1963
Budget estimates, I964
Reeemine1g.d m Nil
-----
Bill romparad %vita-
Appropriations, 1963
Budset estimates. 1964
Title I-Military Penionnel
$12, 992, 690, 000
$13, 235, 200, 000
$12, 848, 200,000
-$144, 490,000
-$387, 000,000
Title II-Operation and Maintenance
11, 688, 724, 500
11, 792, 237, 000
11, 678, 337, 000
-10, 387, 500
-113,900,000
Title 11I-Procurement
16,647, 110,000
16, 724, 800, 000
15, 676, 672,000
-970, 438, 000
-1, 048, 128,000
Title IV-Researeb, Development, Test,
and Evaluation
7, 0'21,558, 000
7, 262, 000, 000
6, 889, 000, 000
-132, 558, 000
-373,000,000
Total, Titles I, II, III, and IV
48, 350, 082, 500
49, 014, 237,000
47, 092, 209, 000
-1, 257, 873, 500
-1,922, 028, 000
Distribution of appropriations by organi-
zational component:
Army
11, 637, 874, 000
12, 579, 628, 000
12, 105, 763, 000
+467,889,000
-473,865,000
Navy
15, 176, 832, 000
14, 966, 300, 000
14, 369, 838, 000
-806, 994, 000
-596,462,000
Air Force
19, 482, 917, 000
19, 178, 400, 000
18, 365. 935, 000
-1, 116, 982, 000
-812,465,000
Defense Agencies
2,052, 459, 500
2,289, 909, 000
2,250, 673, 000
+198, 213, 500
-39, 236, 000
Total, Department of Defense
48, 350, 082, 500
49, 014, 237, 000
47, 092, 209, 000
-1,257,873, 500
-1,922,028, 000
ApproIlPFATtetTasoVERRIViReiMPIW
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SCOPE OF THE BILL
Hearings on the budget estimates of the Defense Department began
on January 21, 1963, with several special area and intelligence brief-
ings. The formal appearance of the Secretary of Defense began on
February 6th. Hearings continued virtually every working day until
May 20th. The Official Reporters to House Committees took a total
of 11,348 pages of transcript and the public record runs to six volumes
totalling 4,610 pages. The Committee this year heard the largest
number of Congressional and public witnesses, on the subject of De-
fense appropriations, to appear in several years.
This bill, as has been indicated, does not include funds for Military
Assistance, Military Construction, Military Family Housing, or Civil
Defense. These items will be provided for in subsequent appropri-
ation bills.
The Committee recommends in the accompanying bill appropria-
tions totalling 847,092,209,000 as against budget estimates of $49,-
014,237,000. The amount recommended is $1,922,028,000 below the
budget estimates, and $1,257,873,500 below the appropriations for
fiscal year 1963, including the Supplemental Appropriation Act, 1963.
It should be pointed out that $408,100,000 of the reductions from the
January budget estimates represent simply the deletion of those items
in procurement and ha research, development, test, and evaluation
corresponding to the reductions already effected by the Congress in
the Aircraft, Missiles and Naval Vessels Authorization Act (PL 88-
28). It should also be, noted that $247,000,000 of the reductions made
in Title I?Military Personnel represent the substitution of additional
transfers, from Stock and? Industrial Funds, for the appropriations
requested in the budget estimates. In addition, reductions of $78,-
600,000 have been made on the basis of availability in 1964 of monies
appropriated in 1963 which were not so reflected in the 1964 budget
estimates. In the procurement accounts, reductions totalling $49,-
000,000 have been made on the basis of underestimates of the receipts
from sales of assets not requiring replacement ad( other recoupments.
In addition, reductions based on overestimates,, greater economy and
efficiency, and other adjustments not affecting, , programs, total
$364,950,000. Thus the reductions in programs, rec9mniended by
C
the ommittee after careful review of the just ifiCaOans presented by
the Department of Defense, constitute a net ?pproximately
$774,000,000. Details of reductions made and the appropriations
recommended by the Committee appear under appropriate headings
throughout the report and in the tabulation of appropriation items
appearing at the conclusion of the report.
Although the appropriations recommended for , fiscal year 1964
total $1,257,873,500 below the appropriations enacted for 1963, it
should be pointed out that there have been functional transfers made
which result in certain amounts no longer appearing in this bill. The
most significant of these is the transfer of military family housing
expenses which will be considered in connection with the Military
Construction Appropriation Bill and reported at a later date. The
estimated requirement for 1964 for military family housing which
would be comparable to the appropriations made in the Department
of Defense Appropriation Act, 1963, is $484.4 million. In addition,
nearly $17 million appropriated in this bill in 1963 for transfer to the
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Coast Guard is budgeted in 1064 by that agency. Thus, in excess of
$500 million of the decrease represents, in fact, transfers of functions
to other bills.
MILITARY POSITION OF THE UNITED STATES
Despite variations from year to year, Defense appropriations have
been at a relatively high level for the last decade. Thishigh level of
expenditure has enabled the United States to maintain a position of
military superiority over any other power.
The accompanying bill will support programs which will promote
the security of the United States and assure the continuation of the
policy of military supremacy.
RELATIONSHIP TO AUTHORIZATION
As was pointed out previously, in enacting Public Law 88-28 Con-
gress made reductions totallin,,, $408,100,000 in the amounts author-
ized for appropriation for aircraft, missiles, and ships in both
procurement and research, development, test, and evaluation. Ad-
ditional reductions were made by the Committee in arriving at the
appropriations recommended in all amounts authorized for procure-
ment except missile procurement for the Marine Corps. With re-
spect to those research and development budget programs provided
for in the authorization bill, the Committee recommends further
reductions in connection with missile research and development for
both the Army and the Air Force. The specific reductions made are
referred to in connection with each appropriation account.
MANNED STRATEGIC AIRCRAFT
The Committee is not recommending in the accompanying bill addi-
tional appropriations for the RS-70 aircral t above the $155,800,000
which will remain available in the account. Congress appropriated, in
the Defense Appropriation Act, 1963, $362,600,000 for the RS-70,
$191,600,000 of which was above the budget estimate. The total thus
made available for the RS-70 by Congress, including appropriations
made in prior years, is now $1,751,300,000. In lieu of additional
appropriations for the RS-70, an amount of money has been earmarked
for either the DYNASOAR or Mach 3 aircraft programs.
In making this recommendation, the Committee has taken into
consideration a number of apparently unrelated circumstances. The
Secretary of Defense, in discussing the budget estimates in February,
tended to de-emphasize the importance and significance of the
DYNASOAR space vehicle. The Committee is aware of the delay
and difficulties in the first flight of a 13-70 prototype vehicle. There
is also new work being undertaken, by other agencies of the Govern-
ment, in connection with the development of a commercial supersonic
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transport aircraft in the Mach 3 range. Also, the Committee has
been advised of research underway leading to the development of
a supersonic low altitude craft designed to penetrate enemy air
defenses, and other research programs in the field of manned long-
range aircraft.
The language and funds recommended in the accompanying bill
will provide for the continuation of the DYNASOAR program should
that be the decision of the Secretary, or for application to Mach 3
aircraft development including, but not necessarily limited to, the
RS-70.
MAJOR MILITARY PROGRAMS
As was the ease last year, Defense programs proposed for the coming
fiscal year were presented to the Committee in terms of both the major
military missions which programs are to serve and in terms of the
usual annual budget request.
The Committee is presenting an analysis of major military missions
and a distribution of the President's budget estimate by major military
mission as was done last year.
In view of the multitude of items which would have to be allocated
or re-allocated as a result of the Committee action, the figures,
representing changes proposed by the Committee, appear separately
at the bottom of each of the tables. Reductions made as a result of
the authorizing legislation are included as financing decreases inas-
much as the program decrease has already been made by prior Con-
gressional action.
DEPARTMENT OF DEFENSE
Major military programs
[In millions of dollars]
Major military program
Fiscal year
1963 current
estimates
Fiscal year
1964 budget
estimates
1. Strategic Retaliatory Forces__
7,084
7,077
2. Continental Air and Missile Defense Forces
1,921
1,880
3. General Purpose Forces
17,916
18,827
4. Airlift/Sealift Forces
1,868
1,430
5. Reserve and Guard Forces
1,911
1,946
6. Research and Development__
5,380
5,829
7. General Support
12,501
13,382
Total Obligational Authority
48,052
10,370
Deduct: Financing adjustments
1,058
1,356
Add: Appropriation transfers_
467
Appropriation
48,110
49,014
Changes recommended by Appropriations Committee:
Financing decreases
1,148
Program decreases
774
New appropriations in accompanying bill
47,092
NorrE.?Detail may not add to totals due.to rounding.
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Distribution of President's fiscal year 1964 budget estimates for Titles I, Ii, III, and
IV?By major military program
an millions of doliarsj
Major military program
Title I
military
personnel
Title Il
operation
and main-
Immune
Title III
procure-
runt
Title IV
RD ,T.
& E.
Total
titles I,
II, III,
and IV
Strategic Retaliator7 Forces
1,189
1,037
4,287
581
7,077
Continental Air and Missile Defense
Forces
628
741
492
19
1,880
General Purpose Force
5,303
3,603
0,443
678
18,826
A irliftgleallft Forces
388
221
826
15
1,430
Reserve and Guard Forces
928
748
270
1,946
Research and Development
238
52
100
5,438
5,829
General Support
4.882
6,488
2,278
736
13,382
Total ObligatIonal Authority__
13, 535
11.702
17,873
7,370
80,370
Deduct: Financing Adjustments
?300
?948
?108
?1,358
New ObligatIonal Authority Re-
quested In the President's Budget
Estimates
13, 235
11.792
16,726
7, 262
49,014
?
?
Changes recommended by Appropriation
Committee:
Financing decrease
387
607
154
1,148
Program decrease.
114
441
219
774
New appropriations In aceompan -
Ing bill
12,848
11,878
15.677
6,889
47,092
Nrcrt.?Detjll may not add to totals due to rounding.
STRATEGIC RETA Tt MN FORCES
The strategic retaliatory forces are designed to carry out the long-
range strategic mission and to carry the burden of battle in it general
nuclear war. The forces proposed for the 1964 -1968 planning period
will continue to consist of a mix of maimed aircraft and submarine
and land-based missiles.
Tiw manned bomber force include.s about 700 B--52 and B-58 air-
craft which will be maintained iv the force through the planning period
as well Hs several hundred of the older B- 17's which will be phased
out of the force over the next few Years. The missile force, composed
of ATLAS, TITAN and MINUTENIAN intercontinental ballistic
missiles and POLARIS submarine-lannehed missiles, is expanding
rapidly as additional MINUTEMAN sites are declared operational
and the improved TITAN II missiles enter the inventory. Ok er
1,000 ICBM's and 35 POLARIS submarines carrying 560 missiles
have been funded to date, and this bill will further expand this force,
by providing an increased number of the improved MINUTEMAN
and six additonal POLARIS submarines which will complete the
presently planned 41 ship, 656 missile program_ Moreover, to ensure
that missiles can reasonably be expected to reach their targets, even
in the event an anti-missile system is deployed against- them, added
funds are provided for penetration aids. The bill also provides for
additional KC-135 tankers for refueling aircraft and for the
further improvement of the effectiveness and survivability of the
command and control system.
Under Committee questioning, key Defense Department officials
insisted that plans to concentrate future efforts on strategic missiles
do not mean an early end to the need for manned bombe's. For a
number of years, after the currently planned missile force becomes
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fully operational, bombers will still be useful in attacking certain
types of targets. However, because of their vulnerability on the
ground, as many as possible must be kept on 15-minute ground alert,
the warning time provided by the Ballistic Missile Early Warning
System. Furthermore, the increasing missile threat, particularly
from submarine-launched missiles which have very short flight times,
underscores the importance of an on-the-shelf airborne alert capability.
Moreover, it is clear that the Department is continuing to consider
seriously the development of future manned strategic systems. The
Committee feels that this is essential. The budget proposed use
of funds previously appropriated to proceed with the development
of the RS-70, as well as the key sensor components required, and
the Committee recommendation makes no change in the funds
available for these purposes.
Over and above work on the RS-70, possibilities of other more
advanced aircraft are also being carefully studied. One such system
involves the concept of a missile-launching plane which could be kept
airborne for an extended period of time, thereby reducing its time on
the ground where it would be vulnerable to missile attack.
Despite some differences over specifics of the program, it appears
that there is wide general agreement among Defense officials, both
military and civilian, that the Strategic Retaliatory Forces planned for
the period ahead are fully adequate to their mission and that further
increases would provide only marginal gains in capability in compari-
son with the cost. The strategic retaliatory program already provides
for a threefold increase in the number of alert nuclear weapons in the
force, compared with fiscal year 1961. Furthermore, since ample
capacity for manufacturing MINUTEMAN and POLARIS is assured
for some years to come, more could be added if needed. The strategic
forces supported by this bill will be adequate for their task, that is,
to deter war insofar as war can be deterred by military readiness and
power.
The cost of these forces in fiscal year 1964 is estimated at $7.1
billion, about $.9 billion less than the current year, reflecting com-
pletion of much of the costly deployment of the intercontinental
missiles, particularly ATLAS and TITAN.
CONTINENTAL AIR AND MISSILE DEFENSE FORCES
The continental air and missile defense forces include those weapons
systems, warning and communications networks and ancillary equip-
ment needed to 'detect, identify, track and destroy unfriendly forces
approaching the North American Continent.
Despite the fact that the weight of the strategic threat continues to
shift from manned bombers to ICBM's and submarine-launched
missiles, it seems clear that the anti-bomber defense system must be
maintained for as long as the Soviet maintains a significant bomber
force. Because an initial missile attack on the U.S. would disrupt
the present air defense system, the problem in this area is to reduce
its present vulnerability to a missile attack. To do so, requires a
manual backup to the SAGE control system, control centers at
selected prime radar sites, supplementary communications and power
facilities and a dispersal of the fighter interceptor forces. To reduce
further the vulnerability of SAGE, a semi-automatic Backup Inter-
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ceptor Control System is now being added. The fighter interceptor
force will be further dispersed during 1964 over a larger number of
bases.
The most urgent problem of continental defense continues to be the
lack of an effective active defense against ICBM's and submarine-
launched missiles. The bill provides funds for the continued testing
of NIKE-ZEUS, although it does not, nor did the budget, provide for
its operational deployment.. Funds are, however, included for the
priority development of a new, more advanced system, the NIKE-X,
which would combine a new. hifdi acceleration missile and a new,
large capacity radar.
The bill also provides for the development of techniques and certain
components of the equipment which would be needed for a space
satellite system for defense against an enemy satellite-based threat
should it ever materialize.
The cost of the continental air and missile defense forces in 1964 is
estimated at $1.9 billion, about the same as the current- fiscal year.
GENERAL PURPOSE FORCES
This is the largest of the major military programs, both in terms of
costs (requiring about $18.3 billion for fiscal year 1964 as compared
with $17.9 billion in 1963) and the numbers of military personnel
assigned (over 1.3 million). Included in this program are all the
combat units of the Marine Corps, virtually all of the Army and
Navy combat forces, and the tactical units of the Air Force.
The General Purpose Forces of all the Services have been greatly
strengthened during the past two years. This accounts for much of
the increase in appropriations over prior years. A series of actions
have been undertaken to expand and to equip non-nuclear forces so
they can fight effectively in the broad range of limited conflicts where
nuclear weapons may not be introduced. Particular emphasis has
been given to those forces that are specially trained and equipped
for counter-insurgency warfare.
The Departtnent's General Purpose Forces requirement studies
indicated that adequate stocks of modern weapons, equipment and
munitions are far more important at this particular time than more
military units. The lack of adequate, modern equipment- has repeat-
edly been criticized by this Committee. The correction of these
serious deficiencies apparently has been made one of the highest
priority goals. It is clear that, there is little point in supporting large
forces unless they are properly equipped and supplied to engage in
sustained military action.
The Army Special Forces have been tripled in size during the past
two years and a further expansion is planned for the coming year,
Those Navy. Marine Corps and Air Force units that are trained and
equipped to meet the threat of local or sub-limited wars have also been
strengthened and expanded and markedly greater attention is being
devoted to developing new equipment and techniques to aid these
forces and the forces of our allies in this kind of warfare.
The Navy General Purpose Forces supported by this bill will include
a total of 836 active ships and approximately 3,200 active naval
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aircraft, slightly more than the number planned for the end of the
current fiscal year.
A significant portioni of the Navy's General Purpose Forces are
trained and equipped to carry out the anti-submarine warfare (ASW)
mission. The detection, tracking and destruction of enemy sub-
marines continues to be a problem of growing concern to the United,
States. The funds provided in this bill will add substantially to
capabilities in this area, providing additional ships, aircraft and other
equipment designed for the ASW mission.
The bill includes substantial funds for the procurement of Navy
aircraft, missiles, combat consumables, and other equipment. As in
the case of the Army, the funds provided will raise the Navy's combat
stocks of consumables with attention concentrated on the requirements
of the active fleet and high readiness reserve ships and selected air
units. The details of the procurement programs will be discussed
later under Title III.
This bill will continue to support a 190,000-man Marine Corps,
constituting 3 division/air wing teams and supporting forces. In
addition, the Marine Corps will maintain within this force the nucleus
of a 4th division/air wing which could be brought rapidly to full
strength by calling up the Marine Reserves.
The equipment and readiness of the General Purpose Forces of the
Air Force, which include the tactical fighters, bombers, and recon-
naissance aircraft, the tactical missiles and the interceptor aircraft
deployed overseas, will be improved substantially with the funds
provided in this bill. The principal concern of the Committee in this
area has been the urgent need to build up adequate air support for
the Army ground forces so that they could engage, if needed, in a
sustained non-nuclear conflict. During the past two years, tactical
fighter strength has been sharply increased, with the number of wings
expanded from 16 to 21 and the procurement of the new, highly
effective F-4C aircraft.
With respect to non-nuclear ordnance and combat consumables,
about $350 million is recommended compared with about $300 million
in 1962 and 1963. These funds will provide the Air Force General
Purpose Forces with the bombs, rockets and ammunition needed
to give the Army ground forces the required tactical air support.
Additional discussion of force size, equipment programs, and main-
tenance requirements appears in the section on "Forces to be Sup-
ported?By Organization" and in connection with the individual
appropriation items.
AIRLIFT AND SEALIFT FORCES
A capability for quick reaction to crises in any part of the world is
provided in any one or a combination of three principal ways: by
permanently stationing sizable general purpose forces overseas; by
pre-positioning equipment and supplies in overseas areas; and by a
central reserve of general purpose forces at home combined with a
rapidly expanding airlift capacity, as well as it sizable sealift capacity,
capable of moving forces quickly to foreign trouble spots.
Providing adequate airlift to move military forces promptly to
distant trouble spots has been a major concern of this Committee for
H. Rept. 439, 83-1-----2
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OF DEFENSE APPROPRIATIONS, 1064
a number of years. In action on the 1961 budget request, for ex-
ample, Congress added no million above the budget for the procure-
ment of modern airlift aircraft and included these funds in a separate
appropriation titled "Airlift Aircraft," to ensure they were used only
for that purpose. In view of this concern, and as a result of it, there
has been a sizable expansion of airlift capacity over the past two years.
In addition to procuring a fleet of C-135 jet troop transports, the
C-130 cargo aircraft fleet has been sharply expanded and the develop-
ment of a new, highly efficient long-range, turbo-fan jet cargo air-
craft, the 0-141, undertaken. Airlift capacity has already been in-
creased by about. sixty percent as a result. of these actions and the
programs now underway or planned for the next. few years will, by the
end of the planning period, more than double this capacity again. The
funds included in this bill will support a major step in this planned
expansion through a further increase in the size of the C-130E fleet
and the first major procurement of the 0-141 transport.
Despite these long needed improvements in airlift capability, in
view of the growing threat of covert aggression in Asia and elsewhere,
and the incipient chaos in many of the newly independent nations of
the world, efforts to expand and improve the ability to move adequate
forces, quickly, to a crisis area cannot be relaxed. The Department is
urged to continue to explore new and more effective techniques and
equipment to ensure that capabilities in this vital field will more
adequately match valid requirements.
With respect- to sealift, the bill will continue to support a large
fleet of special purpose cargo ships, maintained specifically to augment
the capabilities of the U.S. Merchant Marine. To further modernize
this fleet, another new "roll-on/roll-off" cargo ship is included.
The cost of the Airlift and Sealift Forces is estimated at $1,4
billion in 1964, about the same as the current fiscal year.
RESERVE AND NATIONAL GUARD FORCES
For the Reserve and National Guard Forces, the bill recommended
by the Committee will support a total of 1,074,987 personnel on paid
status at the end of fiscal year 1964, 56,560 more than estimated for
the end of the current year and 116,974 more than the end of fiscal
year 1962.
Although the Department of Defense has programmed a total
paid drill training strength of 300,000 and 400,000 for the end of fiscal
year 1963, for the Army Reierve and Army National Guard, respec-
tively, it does not appear likely that these levels can be achieved.
The funds provided in the bill will support those lower .strength
levels which the Department reports to be attainable. However, the
bill includes a provision that average strengths of 300,000 and 400,000
should be programmed. Such supplemental funds as are necessary
should be sought if this goal appears achievable.
The realignment of the Army's reserve components announced
last year is now complete. Moreover, in the course of the realign-
ment, all 23 National Guard and 6 Reserve divisions were reorganized
under the new ROAD concept. a reorganization which is also underway
in the regular Army. Since the realignment and the ROAD reorgan-
ization of the Reserve and Guard forces were both completed before
the beginning of the annukl summer training, the units that were
affected should be able to utilize the two weeks of active duty training
to attain rapidly a satisfactory level of readiness.
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RESEARCH AND DEVELOPMENT
This program includes the cost of all research and development
projects not yet approved for production and deployment and is
divided into five major categories: research; exploratory develop-
ments; advanced developments; engineering developments; and
management and support.
The 1964 program for "research" designed for the expansion of
knowledge in the basic sciences, will support work in such fields as
tropical medicine and oceanography. For "exploratory develop-
ments", i.e., studies and investigations directed to the solution of
specific military problems, funds are recommended for a wide variety
of projects such as remote area warfare, ballistic missile defense tech-
niques, vertical/short-take-off-and-landing (V/STOL) aircraft tech-
nology, nuclear detection and propellant chemistry. For "advanced
developments", i.e., the development of hardware for experimental
or operational testing, the bill would support such projects as a new
surveillance aircraft, the reoriented military communications satellite
system, the X-15 research aircraft and the Large Solid Booster for
the space programs.
In the area of "engineering developments", i.e., programs being
engineered for Service use but not yet approved for production and
deployment, the funds recommended will provide for work on such
projects as NIKE-ZEUS, NIKE-X, the RS-70, the LANCE missile
system, the new main battle tank, an advanced design ASW destroyer
escort, the TYPHON missile, the TRANSIT navigation satellite, the
Mobile Medium Range Ballistic Missile and the TITAN III stand-
ardized boost vehicle. In the case of "management and support"
the bill also provides for the support of the national missile ranges,
the Atlantic Undersea Test and Evaluation Center, the Armed'
Services Technical Information Center and a wide range of other
Defense Department operated R&D activities. Finally, the bill
provides, as in prior years, $150 million in appropriations and $150
million in transfer authority for the Emergency Fund.
The cost of the Research and Development Program in 1964 is
estimated at $5.8 billion compared with $5.4 billion for the current
fiscal year.
GENERAL SUPPORT
The General Support Program includes all costs not capable of
being directly or meaningfully allocated to the other major programs
and as such can be considered a grouping of residual activities or
programs. It includes such categories as individual training and
education, communications, logistics support, medical services, the
Defense Atomic Support Program, military retired pay, claims and
contingencies. These types of activities are discussed in connection
with the Committee's recommendations on specific appropriations.
The cost of the General Support Program in 1964 is estimated at
$13.4 billion compared with $12.5 billion for the current fiscal year.
FORCES TO BE SUPPORTED-BY ORGANIZATION
This section of the report outlines the military forces and programs
to be supported in terms of organizational component as contrasted
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with the preceding remarks which dealt with the budget proposal in
terms of major military programs.
Total active duty military personnel strength for the end of fiscal
year 1964 is planned at 2,695,000 -8,334 fewer than estimated for the
end of the current fiscal year and 110,987 fewer than actually achieved
at the end of fiscal year 1962. However, it should be noted that the
1962 strength figure includes the reserve component personnel recalled
during the Berlin crisis. The detail strength levels aro shown in the
following table:
Active duty military persannel strengths (excluding reimbursables)
Iln thousands!
Actual strength
Fiscal year 1963,
planned
Fiscal year 1961,
estimate
June 30,
1962
Dee, 31,
1062
Average
End
Average
End
Army:
Officers
115.6
107.2
110.2
1.10.4
110.7
112.1
Enlisted
9.48.4
842.2
863.9
867.8
855.2
861.1
Cadets, CS MA
1.8
2.4
2.4
1.8
2.4
1.8
Total, Army
1,066.7
951.8
076.4
980.0
968,3
975.0
Navy:
Cams
75.2
74.0
74.4
75.9
76.3
76.4
Enlisted .
886.0
583.4
Bea 7
583.8
587.1
588.9
Midshipmen, t '`,;A
4.1
4.0
4.0
4.1
3.9
4.0
Aviation Cadets
.7
.7
.6
.8
.6
.7
Total. 'Can,
606.0
662.1
661.7
664.4
667.9
670.0
Marine Cori:
Offieers_
16.2
18.9
la. 7
16.7
16.7
16.7
Enlisted
178.6
171.8
173.4
172.5
172.8
172.7
Aviation Cadet:, Al ARCA 1)S
.5
.5
.5
.5
.5
.6
Total, ?Inrine C,,rne
191.0
130.2
100.6
190.0
196.0
190.0
Air Force:
otticers
134.6
133.2
133.8
133.0
133.5
133.0
F.nlistcd
745.8
726.6
736.3
7 U. I
728.7
724.1
Cadets, 1 "BAIA
2.5
2.5
2.4
2.6
2.4
2.5
Aviation Cadet
.2
.3
.3
.3 ,
.3
Total, Air Force
883.3
862.5
872.6
888.9
585.0
860.0
'Iota], 'Department of defense:
0Mcers
342.2
331.5
334.8
336.0
337.2
338.3
Enlisted..
2,451.5
2,322.2
2,356.3
2,357.5
2,343.8
2,346.8
Ofiloer Ceadidates, Cadets :And Mid-
shipmen
12.2
11.9
10.2
9.8
10.2
9.9
Orand total
2,606.0
2, 6Gry. 7
2, 70L 3
2,703.3
2,691.1
2,695.0
NOTE.- Detail may not add to totals din to rounding.
DEPARTMENT OF THE ARMY
For the military functions (excluding civil defense, family hous-
ing, and military construction) of the Army, the budget proposes
$12,579,628,-000 in new appropriations and the transfer of $150,000,000
from the revolving funds in lieu of new appropriations. The Com-
mittee recorcunends appropriations of $12,105,763,000 and the trans-
fer of $190,000,000 from the revolving funds. The amount recom-
mended is $467,889,000 above the appropriations for fiscal year 1963
and $473,865,000 below the estimates for fiscal year 1964.
,aape 6101M0Inlitot,_
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 13
DEPARTMENT OF THE ARMY
"Appropriation summary comparison
[Millions of dollars]
Appropriation title
Appro-
priated,
1963
Budget
estimate,
1964
Recom-
mended in
bill, 1964
Bill compared with-
1963
Estimate,
1064
Military personnel
1 3, 662. 9
13, 885. 0
I 3, 785. 0
+122.1
-100.0
Reserve personnel
289.2
210.1
210:1
-29.1
National Guard personnel
261. 8
240. 3
240. 3
-21. 5
Operation and maintenance
3,452. 0
3,391. 2
3, 361. 0
-91. 6
-34. 2
Operation and maintenance, Army
National Guard
174. 4
176. 6
176. 6
+2. 2
National Board for the Promotion of
Rifle Practice
.0
. 5
. 5
-0. 1
Operation and maintenance, Alaska
Communication System
6.9
-6.9
Procurement of equipment and missiles_ _ .
2, 520.0
3,202. 0
2, 969. 1
+449. 1
-282.9
Research, development, test, and evalua-
tion
1,319.0
1,469. 9
1,363. 1
+43. 6
-106. 8
Total
11, 637. 9
12, 579. 6
12, 105. 8
+467.9
-473.9
In addition, transfers from working capital funds, as follows: 1963-$350 million; 1064 estimato-$150
million; recommended, 1964-8190 million.
NOTE.?Detail may not add to totals due to rounding.
Summary of major forces, fiscal years 1.962-64
Actual,
June 30, 1962
Planned
Juno 30, 1963
June 30, 1964
Divisions
'16
2 16
2 16
Armored Cavalry Regiments
5
4
4
Brigades
1
4
7
Battle Groups (Infantry)
9
6
Missile Commands
3
2
2
Special Forces Groups
4
6
6
Missile Battalions
Aircraft Inventory-Active
95q
1,084
913X
5,957
8414
6,444
Active Duty Military Personnel
1, 065, 718
980,000
975,000
Reserve Component Personnel (Drill Pay Status and 3-6
Months Trainees)
(622, 426)
(650, 000)
(700, 000)
Army National Guard
360,970
375,500
400,000
Army Reserve
261, 456
274,500
300, 000
I Excludes 2 National Guard Divisions in active status.
2 And, in addition, a provisional 17th division as a part of air mobility Lests.
Includes Reserve Components personnel called to active duty during the Berlin crisis.
4 The strength shown for end fiscal year 1963 is that which the Defense Department believes can actually
be attained. The authorized and programmed strengths for 1064 total 700,000, and the Bill includes lan-
guage to this effect.
1. The bill recommended by the Committee would provide funds
to support 16 divisions at the end of fiscal year 1964, the same as
planned for the end of the current fiscal year. In addition, for all
practical purposes a seventeenth division is provided as a part of a
temporary manpower increase of 15,000 in connection with testing of
Army air mobility concepts. The infantry battle groups will be
phased out in fiscal year 1964. The men and equipment released as
a result will be used to help increase the number of brigades which will
increase to seven by the end of 1964. The Special Forces, which
constitute the Army's primary counter-insurgency capability, have
already been increased in strength threefold in the last two years.
Six Special Forces groups will be maintained through fiscal year 1964.
?
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14 DEPARTMENT OF DEFENSE APPROPRIATIONS, ' 1964
Within the category of missile battalions, the number of air defense
missile battalions will decline as additional NIKE HERCULES sites
are transferred to the National Guard. There will also be a small
reduction in the number of surface-to-surface missile battalions as the
liquid-fueled REDSTONE and CORPORAL missiles are replaced by
the solid-fueled SERGEANT and PERSHING.
The active aircraft inventory of the Army will continue to rise
during fiscal year 1964 as large numbers of reconnaissance and utility
helicopters and other types of aircraft funded in prior years are
delivered to the forces. The Army will also continue to receive large
deliveries of small arms and ammunition, M-60 tanks, personnel
carriers, support vehicles, SERGEANT and PERSHING surface-to-
surface iiiissiies, ENTAC anti-tank missiles, and a wide variety of
other equipment and supplies.
2. Per4onne1.- -The. bill provides for an active Army strength of
975, 000 at the end of 1964 compared with 980,000 planned for the
end of the current fiscal year and 1,065,718 on duty at the end of
fiscal year 1962. It should be noted that the 1962 figure includes the
reserve component personnel called to active duty during the Berlin
crisis arel subsequently released. The 1963 figure includes a tem-
porary increase of 20,000 authorized primarily to reduce fluctuation
in the training load. The 1964 figure include.s an increase of 15.000
men to provide for testing or air mobility concepts. These two in-
creases have in effect provided for an additional division which, to-
gether with other units, while not fully combat ready, will be employed
in tests of new concepts of the mobility of Army troops.
For the Army National Guard, the budget estimates were predicated
on a paid drill training strength of 384,400 and for the Army Reserve a
paid drill strength of 281,000. As noted below in connection with
Title I?Military Personnel, the accompanying bill includes language
providing for average strengths of 400,000 and 300,000, respectively,
for these reserve components.
3. Procurement. ?The bill recommended by the Committee would
provide a substantial increase in the procurement of weapons And
equipment over the already much increased levels of the past two
years. These funds would provide about 1,400 aircraft, large numbers
of air defense and tactical missiles and a wide variety of other weapons,
equipment and supplies. The major items are discussed under
Title M.
DEPARTMENT OF TUE NAVY
For the military functions (excluding civil defense, family housing.
and military construction) of the Navy, the budget proposes 614.966,-
300,000 in new appropriations and the transfer of $120,000,000 from
the revolving funds in lieu of new appropriations. The Committee
recommends appropriations of $14,369,838,000 and the transfer of
$147,000,000 from the revolving funds. The amount recommended
is $806,994,000 below the appropriations for fiscal year 1963 and
8596,462,000 below the estimates for fiscal year 1964.
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DEPARTMENT OF THE NAVY
Appropriation summary comparison,
Millions of dollars]
Appropriation title
Appro-
priated,
1963
Budget
estimate,
1964
Recom-
mended in
bill. 1964
?
Bill compared with?
1963
Estimate,
1964
Military personnel, Navy
Military personnel, Marine Corps
Reserve personnel, Navy
Reserve personnel, Marine Corps_
Operation and maintenance, Navy
Operation and maintenance, Marino Corps_
Procurement of aircraft and missiles, Navy_
Shipbuilding and conversion, Navy
Other procurement, Navy
Procurement, Marine Corps
Research, development, test, and evalua-
tion, Navy
Total
1 2, 747. 4
667.9
85. 6
28. 1
2, 8M. 4
194.0
' 2 3,034. 7
3 2,919. 2
903.6
256.0
1,476. 0
1 2, 676. 0
678.6
92.3
28. 5
2, 934. 0
192.3
3, 066. 0
2,310. 0
1, 208. 0
207.7
1, 572.9
1 2,614. 0
678. 6
92. 3
28.5
2, 905. 0
191. 0
2, 877. 4
1,080. 1
1, 175. 2
202. 0
:., 525. 7
?133.4
+10. 7
+6. 7
+0.4
+40.6
?3.0
?157. 2
?839. 1
+271.6
?64. 0
+49. 8
?62. 0
?29.0
?1. 3
?188. 6
?229.9
?32. 8
?5. 7
?47.2
15, 176. 8
14, 966. 3
14, 369. 8
?807.0
?596.5
1 In addition, transfers from working capital funds, as follows: 1963?$25 million; 1964 estimate?$120
million; recommended, 1964?$147 million.
2 In addition, transfer of $165 million from "Aircraft and related procurement, Navy."
3 In addition, $20 million transfer from working capital fund.
NOTE.?Detail may not add to totals due to rounding.
Summary of major forces, fiscal years J962-64
Actua%,
June 30, 1962 1
Planned
June 30, 1963
June 30, 1964
Commissioned Ships in Fleet
r;900)
(859)
(872)
Warships
307
384
394
Other
503
475
478
Carrier Air Groups
30
28
28
Patrol and Warning Squadrons
53
35
35
Marino Divisions
3
3
3
Marine Air Wings
3
3
3
Aircraft Inventory?Active
0, 176
8,807
8,860
Active Duty Military Personnel
(856, 939)
(854, 413)
(860, 060)
Navy
665, 077
664,413
670, 000
Marine Corps.
191, 962
190,000
190,000
Reserve Components Personnel (Drill Pay and 3-6 Month
Trainees)
(151, 964)
(167, 500)
(171, 500)
Naval Reserve
111,280
122,000
126.000
Marine Corps Reserve
46,684
45, 500
45, 500
1 Includes ships, aircraft, and personnel called to active duty or retained on active duty because of the
Berlin crisis.
1. The bill recommended by the Committee will support an active
fleet of 872 ships at the end of fiscal year 1964 compared with 859
planned for the end of the current fiscal year and 900 at the end of
fiscal year 1962. It should be noted that the end fiscal year 1962
figure includes the Naval Reserve ships ordered to active status
during the Berlin crisis in the fall of 1961.
The combat capabilities of the fleet will be strengthened during
1964 by the delivery of a number of new ships funded in prior year
programs. These include, some six nuclear powered attack sub-
marines, six guided missile frigates and a number of destroyer-type
ships which will be commissioned. Nine more POLARIS sub-
submarines are expected to become deployable during 1964.
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The active aircraft inventory of the Navy and Marine Corps is
scheduled to rise slightly during fiscal year 1964 as additional A-4
and A-5 bombers, F-4 and F-8 fighters and other modern planes
join the active forces. Overall Navy, and Marine Corps capabilities
will be further enhanced by the delivery of substantial quantities of
weapons, modern bombs, ammunition, torpedoes, electronic and
communications equipment, air defense missiles, tactical missiles, etc.
2. Personnz1.-The bill provides for an active Navy strength of
670,000 at the end of fiscal year 1964 compared with 664,413 estimated
for the cud of the current fiscal year and 665,977 at the end of fiscal
year 1962. For the Marine Corps, the bill provides for a strength of
190,000 at the end of fiscal year 1964 compared with 190,000 estimated
for the end of the current fiscal year and 190.902 at the end of fiscal
year 1962.
For the Naval Reserve, the bill provides a paid drill training
strength of 126,000 at the end of fiscal year 1964 compared with
122,000 planned for the end of the current fiscal year and 111,280
at the end of fiscal year 1962. For the Marine Corps Reserve, the
bill provides a paid drill training strength of 45,500, the same as
planned for the end of the current fiscal year and 1,184 fewer that at
the end of fiscal year 1962.
3. Propurement.-The bill as recommended by the Committee will
provide for 32 new ships and 36 ship conversions. Funds are also
recommended to procure about. 600 aircraft. for the Navy and Marine
Corps. The details on these and other major items of procurement
are discussed under Title III of the report.
DEPARTMENT OF TIIE AIR FORCE
For the military functions (excluding civil defense, family housing,
and military construction) of the Air Force, the budget. proposed
$19,178,400,000 in new appropriations and the transfer of $30,000,000
from the revolving funds in lieu of new appropriations. The Com-
mittee recommends appropriations of $18,365,935,000 and the trans-
fer of 8210,000,000 from the revolving funds. The amount recom-
mended is $1,110,982,000 below the appropriations for fiscal year 1903
and 8812,465,000 below the estimates for fiscal year 1964.
DEPARTMENT OF THE AIR FORCE
Appropriation summary comparison
IMIllIons of dollars)
A ppropriation title
Appro..
priated.
1963
Budget ReCum-
estimate, I mended in
1964 hill, 1964
13111 compared with-
1963
Estimate,
1964
Military iie.rsoi .nel __
1 4, 167.7 '4,148.0 13,943.0
-234.7
-205.0
Re.wrve rwraomial
50.1 55.1 55.1
+5.0
National Ottani peraenni 1
53.0 58.3 58.3
+5.3
Operation and naintenams.
oporation and ,naintennm,e, Air National
(;nar4
4,444.0 4.385.0 : 4,341.0
144.4 222.7 t 222. 7
-67.0
+28.3
-44.0
A ircraft nrocur,mPat
3. 562. 4 3,559.0 1 a 328.9
-233. 5 -230.1
Missile procurement_
2,439.0 2,177.0 2,129.5
-329.2 -47. 5
t niter procurement
956.2 951.5 ; 871.3
-80.2
Research, deve.opment, teat, and evalua-
non
3.6321 3. 921. 8 3,416.1
-218.0 -305.7
T.nil
19, 482.9 19.178.4 I 18.365.0
-I. 117.a -812.5
in addition. transfer' (roan working capitol funds, as follows: 1963-Fin minion; 1964 ostlelote-330 mil.
Ilan; reoommentied, 1904-9210 million.
tic-yrs.-Detail may not add to totals due to roundinc.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 17
Summary of major forces, fiscal years 1962-64
Actual,
Juno 30,
1962 I
Planned
June 30, 1963
June 30, 1964
USAF Combat Wings (Including Missile Wings)
97
86
88
USAF Combat Support Flying Forces (Squadrons)
141
131
131
Aircraft Inventory?Active
16, 541
15, 455
15, 501
Active Duty Military Personnel
883, 330
868, 931
860, 000
Reserve Components Personnel (Drill Pay Status and 3-6
months Trainees)
(108, 763)
(133, 000)
(133, 000)
Air National Guard
10,319
72,000
72,000
Air Force Reserve
58,444
61,000
61,000
I Includes aircraft and personnel of the Reserve components on active duty as result of the Berlin crisis.
1. The bill recommended by the Committee would provide funds
to support an Air Force of 88 combat wings and 131 combat support
flying squadrons at the end of fiscal year 1964. It should be noted
that the decline in the number of combat wings during fiscal year
1963 primarily reflects the return to inactive status of the reserve com-
ponent units called to active duty during the Berlin crisis. Similarly,
the decrease in the number of combat support squadrons during that
period reflects the return of the reserve components' air transport
squadrons to inactive status.
During fiscal year 1964, the B-52 and B-58 forces will be maintained
at their present strengths of 14 wings and 2 wings, respectively. The
B-47 medium bombers will continue to be phased out of the active
forces. However, the ICBM forces will continue to grow. In the
case of TITAN, all 12 squadrons will be in place by the end of the
current calendar year. Also, the number of operationally ready
MINUTEMAN ICBM's will increase rapidly. The Air Force will
continue to maintain half of its strategic bomber force on fifteen-
minute ground alert. With respect to airborne alert, the Committee
recommends continuation of Section 512(b) of the current Act which
authorizes the Secretary of Defense, upon Presidential determination,
to provide for the cost of such an alert as an excepted expense.
During fiscal year 1964, the third BMEWS radar site will reach
operational status, thereby providing a greater certainty of warning
of surprise attack for our alert strategic retaliatory forces. With
respect to defense against manned bombers, work on a semi-automatic
backup system to SAGE and the program for dispersal of interceptor
forces will be continued.
The capability of the tactical air forces will be substantially in-
creased during fiscal year 1964 as sizable numbers of high performance
aircraft such as the 1?-40 and F-105 are delivered. Similarly, there
will be an increase in capabilities of the air refueling fleet as additional
KC-135 jet tankers procured in prior years enter the active inventory.
The airlift fleet will benefit from continuing deliveries of 0-130
aircraft.
Arresting the downward trend of the past several years, the active
aircraft inventory of the Air Force will actually experience a modest
rise of about 50 aircraft during fiscal year 1964.
2. Personnel.?The bill provides for an active Air Force strength
of 860,000 on June 30, 1964 compared with 368,931 on June 30,
1063 and 883,330 on June 30, 1962.
H. Rept. 439, 88-1 3
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t
18 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
The paid drill training strength of the Air National Guard on
June 30, 1961 is estimated at 72,000 compared with 72,000 planned for
June 30, 1963 and 50,319 on June 30, 1962. The paid (bill training
strength of the Air Force Reserve on June 30, 1964 is eAinnited at
61,000 compared with 61,000 planned for June 30, 1963 and 58,444
on June 30, 1962.
3. Procurement.----The bill recommended by the Committee would
provide about 900 aircraft for the Air Force compared with 918 air-
craft in fiscal year 1963 and 756 aircraft in fiscal year 1962.
DEFENSE AGENCIES
For the various activities grouped under "Defense Agencies", the
President's Budget proposes $2,289,900,000 in new appropriations for
military functions. The Committee recommends appropriations of
$2,250,673,000, $198,213,500 above the appropriations for fiscal year
1963 and $31,236,000 below the estimate for fiscal year 1964.
DEFENSE AGENCIES
Appropriation summary comparison
[mations of dollars]
Appropriat ton title
A ppro-
priated,
1963
Budget
estimate,
1964
Recom-
mended in
1)111,1964
Bill compared with -
1963
Estimate,
1964
Retired pay
% 1,029.0
1,163.0
1,143.0
+114.0
-20.0
Operation and maintenance, Defense
Agencies
351.0
461.4
446.0
+87.0
-5.4
Claims
'190
19.0
19.0
Contingent:le:
MO
15.0
18.0
Court of Military Anneals
.5
.5
.5
Procurement, Defense Agencies
30.0
43.6
43.2
+7.2
-.4
Research. de'', elopment , test, and evalua-
tion. Defenie Agencies
444.0
447.4
434.0
-10.0
-13.4
Emergency Fund
'110.0
'150.0
*150.0
Total
2,052.5
2,289.9
2,250.7
+198.2
-89.2
Not to excaed $3,309.000 may he transferred from Retired pay to Claims.
'In additkin? $150 million to be derived 1.y transfer from other approprla Lions available for obligation in
he respective decal year.
Ncrrs.-Detall may not add to totals dun to rounding.
? One of the major areas of program increase in the Defense Agencies
category is military retired pay, where the average number of retirees
is expected to rise about 51,000 over the level of the current fiscal
year. Operations and maintenance costs increase because of both
the civilian pay increase enacted last year and the expanding activities
of the Defense Supply Agency which obviously will require more funds.
UNEXPENDED AND UNOBLIGATED BALANCES
Inasmuch as most readily available data on unexpended and un-
obligated balances in the Department of Defense include funds not
related to the pending bill, the Committee is at this point inserting
tabulations showing totals and amounts pertaining to the appropria-
tions in the pending bill covering a nine year period.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 19
Although the unobligated balances anticipated at the end of fiscal
year 1963 are not as low as were projected in the budget last year, it is
gratifying to note that over the period of years tighter control has
seemingly been exercised with the result that unobligated balances
are on a downward trend.
With respect to unexpended balances, the large appropriations made
for fiscal years 1962 and 1963, and recommended for fiscal year 1964
(that is large in relationship to appropriations for earlier fiscal years)
result in the downward trend in unexpended balances being tem-
porarily halted. It should be borne in mind that substantial amounts
appropriated in fiscal years 1962 and 1963 represent full funding for
procurements of expensive items with long delivery schedules with
the result that unexpended balances naturally would tend to be larger.
Unobligated balances, fiscal years 1956-64
[Millions of dollars]
Fiscal year
Total
unobligated
balance
Pertaining to
appropriations
in the bill
At end of?
Fiscal year 1956
Fiscal year 1957
12,380
10,889
11, 478
10, 103
Fiscal year 1958
7, 904
6,690
Fiscal year 1959
7, 518
6,626
Fiscal year 1960_
8, 638
7,734
Fiscal year 1961
7, 167
6,483
Fiscal year 1962
7, 120
6,684
Fiscal year 1961 1
6, 765
6, 199
Fiscal year 1964 1
6,333
5, 742
1 Estimates based upon data in 1964 Budget Document.
Unexpended balances, fiscal years 1956-64
[Millions of dollars]
Fiscal year
Total cash
unexpended
balance
Pertaining
to appropria.
tibns in the
bill 1
At end of?
Fiscal year 1956
38,490
35, 713
Fiscal year 1957_
34,680
31, 955
Fiscal year 1958
32,086
29,044
Fiscal year 1959
31,635
29, 139
Fiscal year 1960
30,660
28,415
Fiscal year 1961
28,606
26,888
Fiscal year 1962
28,607
27, 161
Fiscal year 1968 2
30.358
28, 670
Fiscal year 1964 2
81,538
29,835 ?
1 Includes balances of Department of Defense revolving and management funds.
2 Estimates based upon data in 1904 Budget Document.
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TITLE I
MILITARY PERSONNEL
EsTmATEs AND APPROPRIATIONS SUMMARY
Budget estimates for this Title of the bill totalled $13,235,200,000
and recommended additional transfers from revolving funds of
$300,000,000. The Committee recommends appropriations of
$12,848,200,000 and transfers from revolving funds of $547,000,000.
The amounts recommended are $387,000,000 below the budget
estimates for appropriation and an increase of 8247,000,000 in transfers
from revolving funds. The additional transfer recommended offsets
the appropriation redurtion to the extent that the practical effect
on budget estimates is a reduction of $140,000,000.
The appropriations reeommended in the accompanying bill do not
include any amounts- for payments which will become necessary should
the pending military personnel pay increase legislation be enacted.
Again, as was the Case last year, the Committee recommends
continuation of the authority contained in Section 512(c) which
provides for an increase in the number of military personnel on active
duty beyond the number for which funds ara appropriated should it
become necessary, in the opinion of the President, to do so.
Details of personnel strengths to be supported appear in the table
on page 12 of this report.
VALIDITY OF MILITARY PERSONNEL ESTIMATES
The Committee has, for many years, been assured that the Military
Personnel Appropriation estimates are, to a large extent, exercises in
arithmetical eomputation based on fairly firm cost factors with respect
to nay, allowances, cost of food, cost of clothing, and so forth.
he t.lommittee ascertained that, in many cases, costs not antici-
pated tit the time of budget presentation had been absorbed. 'In
other cases, substantial amounts of money had been transferred from
the account through the Emergency Fund to other appropriation
accounts. For example, the Department of the Army a year ago
anticipated a deficiency in the amount of approximately $213,500,000
based upon costa in connection with the Berlin crisis. As of February
28, 196i, the Military Personnel, Army, appropriation had been able
to absorb $2ll3.006,000 of the 'Berlin costs amid had kt small unoblizated
balance. Again in fiscal ear 1963, as of February 28th, the Military
Personnel, Army, appropriation had been able to absorb $55,400,000
in east-I not anticipated at time of budget presentation, and it is
problematical whether or not an additional $83,100,000, representing
further costs related to the Berlin crisis, may be absorbed.
A somewhat similar sit nation exists with respect to Military Per-
sonnel, Navy, appnipriations where, in fiscal 1062, $39.464,000 was
transferred to the Emergency Fund, unexpected costs of $9,000,000
had been a' sorbed Rad yet an unoblige ted ladance remained. In
"0
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fiscal year 1963, to February 28th, the appropriation for the Navy
had absorbed unanticipated costs totalling $32,507,000.
A similar situation exists in connection with appiopriations for Mili-
tary Personnel for the Air Force. In the fiscal year 1962, $21,180,000
was transferred to the Emergency Fund, $10,750,000 representing
costs of the Berlin crisis were absorbed, and an I. nobligated balance
remained. Again, as of February 28, 1963, the Air Force appropria-
tion had been able to absorb $32,421,000 in costs not anticipated at
the time of the budget presentation.
It is, of course, desirable for a prudent manager to be able to report
that he has absorbed unexpected costs out of available resources.
The absorption of costs is something which the Committee is usually
gratified to see, particularly with respect to civilian pay increase costs
and other matters pertaining to normal operation and maintenance
situations. In the case of military personnel, however, the Com-
mittee strives to provide such money as is necessary to maintain
military strength in terms of manpower. It u not the intent of
the Committee to make available dollars in large amounts for un-
anticipated crises or contingencies. The language of the appropria-
tion bill contains in Section 512(c) authority to incur deficiencies in
military personnel accounts under certain circumstances. The lan-
guage of the bill also contains, at Section 536, authority to transfer
up to $200,000,000 to maintain military readiness. The broad, gen-
eral authority thus granted for possible contingencies should be
sufficient.
PROFICIENCY PAY
Testimony indicates that the effectiveness of proficiency pay is
being questioned by the Secretary of Defense and that studies are
underway to determine the need for, and desirability of, this form of
pay. The Committee notes, in connection with its consideration of
military personnel estimates, that as of December 31, 1962, out of a
total of nearly 249,000 persons drawing proficiency pay, slightly over
18,000 were in the non-critical skills area. It is generally accepted
that proficiency pay was made available particularly for inducement
to persons especially qualified in such highly specialized areas as
electronics and other similarly specialized areas of endeavor.
It would appear that the non-critical skills include a great number of
persons in the administrative and clerical fields, in general service
categories, and other fields seemingly unrelated to technical specialty.
At the minimum rate of payment, presently $30.00 per month, 18,000
non-critical skills payments represent a cost of nearly $6,500,000
annually to the taxpayers. It is not too soon to study the merits,
benefits, and application of proficiency pay.
REENLISTMENT ALLOWANCES
In connection with the matter of overestimating, the Committee
notes with interest the amounts proposed for reenlistment allowances
in the various services as compared with the facts which appear in
connection with the study on control of military personnel appro-
priations.
For example, in the fiscal year 1960, the Army budgeted for reenlist-
ment allowances for 70,800 persons. Actual reenlistments were
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63,700. In fiscal year 1961, the situation was drastically reversed.
The budget estimate proposed 72,800 reenlistments, the Office of the
Secretary of Defense funded the Army for 80,600. The actual num-
ber of reenlistments was 88,300. In the case of Air Force, the 1961
budget proposed 102,700 reenlistinents. The actual number achieved
was 73,759i There seems little relation between the number provided
for in the appropriation acts, the number funded for by the Office of
the Secretary of Defense, and the actual number of reenlistments
obtained.
CONTROL OF 'MILITARY PERSONNEL APPROPRIATIONS
The situations just cited indicate a considerable lack of elementary
and basicinformation with respect to military personnel appropriation
dollar requirements. The program proposed as a result of the study
of control of military personnel appropriations apparently contem-
plates extensive use of electronic data processing equipment and the
resultant, additional costs of equipment purchase or,rental, operation
and maintenance. Testimony, in fact, indicated that there would be
a substantial increase in cost, perhaps $2 or $3 million, simply for the
data processing equipment. The need for improvement is recognized;
however, the Ooranuttoe feels that improvement can be accomplished
within resources available to the Department.
It ESEUVE COMPONENTS OF THE A.RMY
The budget estimates submitted in January proposed programs for
the Ariny Reserve and the Army National Guard of less than the
700,000 which the C'ottittatee has, for many years, recommended. In
the language of the apprvpriations recommended for 1964, the Com-
mittee is providing that these two components be programmed to
maintain an average strength of a total of 700,000.
Inasmuch as testimony indicates that these components probably
will not reach their proposed goals in fiscal year 1963, funds above the
bud,get estimates have not been provided. However, the Committee
would he pleased to have both the Reserve and the National Guard
make every effort to reach the strengths required to maintain a total
average of 700.000. Testimony indicated that should this goal be
reached, the submittal of a supplemental estimate would be considered
to cover such additional costs as may, at that. time, appear necessary.
MILITARY PERSONNEL, ARMY
Appropriation, 1963
83,
662,
900,
000
Estimate, 1964
3,
885,
000,
000
Recommended in the bill
3,
785,
000,
000
Reduction
100,
000,
000
The amount recommended by the Committee proposes a reduction
of $60,000,000 because of overestimates as discussed above. In
addition, transfers from Stock and Industrial Funds are recommended
at $125,000,000 and $65,000,000, respectively, instead of $100,000,000
and $50,000,000 as proposed in the budget, thus resulting in a further
decrease of $40,000,000 in the amount of the appropriation.
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MILITARY PERSONNEL, NAVY
Appropriation, 1963
$2,
747,
400,
000
Estimate, 1964
2,
676,
000,
000
Recommended in the bill
2,
614,
000,
000
Reduction
62,
000,
000
A reduction in the appropriation is recommended, in the amount of
$35,000,000, because of overly optimistic estimates, and a further
reduction of $27,000,000 is made by virtue of increasing the proposed
transfers from Stock and Industrial Funds. The budget proposed
transfers of $30,000,000 and $90,000,000 from the respective funds,
and the Committee recommends transfers of $37,000,000 and
$110,000,000.
MILITARY PERSONNEL, MARINE CORPS
Appropriation, 1963
, $667,
900,
000
Estimate, 1964
678,
600,
000
Recommended in the bill
678,
600,
000
Reduction
The Committee recommends appropriation of the amount of the
budget estimate for Military Personnel, Marine Corps. No Stock
Or Industrial Fund transfers were proposed or are suggested. In the
case of this account, representing a substantially gmaller number of
personnel than the other Services, there does not appear evidence of
i
serious overestimations of costs n prior. years.
MILITARY PERSONNEL, AIR FORCE
Appropriation, 1963
$4,
167,
690,
000
Estimate, 1964
, 4,
148,
000,
000
Recommended in the bill
3,
943,
000,
000
Reduction
205,
000,
000
The Committee recommends a reduction of $25,000,000 in the
estimates based on apparent overestimates in prior ybars. In addi-
tion, a reduction of $180,000,000 is recommended based on increasing
the amount to be transferred from Stock and Industrial Funds. The
budget proposed the transfer of $20,000,000 from the Defense Stock
Fund, whereas the Committee recommends transfers of $175,000,000
from the Air Force Stock Fund and the Defense Stock Fund. The
budget estimate for transfer from the Air Force Industrial Fund was
$10,000,000, and the Committee recommendation is for a transfer of
$35,000,000.
RESERVE PERSONNEL, ARMY
Appropriation, 1963
$239,
200,
000
Estimate, 1964
210,
100,
000
Recommended in the bill
210,
100,
000
Reduction
For this and the following appropriation accounts involving Reserve
components of the military services, the Committee recommends
appropriations in the same amounts as the budget estimates. De-
scription of numbers of personnel provided appears in a preceding
section of the report under the heading "Forces to be Supported-By
Organization."
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RESERVE PERSONNEL, NAVY
Appropriation, 1083
Estimate, 1961
Recommended in the bill
Reduction
$85,
92,
92,
600,
300,
300,
000
000
000
RESERVE PERSONNEL, MARINE CORPS
Appropriation, 1963
$28,
100,
000
Estimate, 1964
28,
500,
000
Recommended in the bill
28,
500,
000
Reduction
RESERVE PERSONNEL, AIR FORCE
Appropriation, 1963
$50,
100,
000
Estimate, 1964
55,
100,
000
Recommended in the bill
55,
100,
000
Reduction
NATIONAL GUARD PERSONNEL, ARMY
Appropriation, 1963 $261,
800,
000
Estimate, 196
240,
300,
000
Recommended in time bill
240,
300,
000
Reduction
NATIONAL GUARD PERSONNEL, AIR FORCE
Appropriation, 1983
853,
000,
000
Estimate, 1964
58,
300,
000
Recommended in the bill
58,
300,
000
Reduction
RETIRED PAY, DEFENSE
Appropriation, 1963
$1, 029,
000,
000
Estimate, 1964
1, 163,
000,
000
Recommended in he bill
1, 143,
000,
000
Reduction_
20,
000,
000
Testimony indicated that at least $12,000,000 of the appropria-
tion for 1963 would not be required to meet the needs of retired pay.
In addition, the Supplemental Appropriation Act, 1963, provides
authority to transfer up to $3,300,000 from this account to the
appropriation "Claims, Defense." These facts, together with an
analysis of the unobligated balances over a period of years, lead the
Committee to recommend a reduction of $20,000,000 in the appropria-
tion for Retired pay. The Committee recognizes that payments
under this heading are mandatory and, further, that should the pend-
ing Military Pay Increase Bill be enacted, some additional funds will
obviously be required. However, there is ample evidence that appro-
priations in prior years have been a trifle too generous.
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TITLE II
OPERATION AND MAINTENANCE
ESTIMATES AND APPROPRIATIONS SUMMIRY
Estimates for the operation and maintenance of our military forces
total $11,792,237,000 for fiscal year 1964. The Committee recom-
mends appropriations totalling $11,678,337,000. This is a reduction
of $113,900,000 below the budget estimates, and is $10,387,500 below
the appropriations for fiscal year 1963.
APPROPRIATION COVERAGE
Operation and maintenance appropriations are directly related to
the size, readiness, and deployment of the forces, and the tempo of
military operations; to the inventories of weapons and supporting
equipment and systems; and to the number and type of military
functions to be supported. The availability of these funds also
determines the degree of care afforded military personnel and their
dependents.
In fiscal year 1964 these funds will support throughout the year an
average of 2,691,100 military personnel and their supporting equip-
ment. In the broadest sense, these funds will Finance the operating
and support requirements of 16 active Army divisions plus an addi-
tional 15,000 Army personnel in provisional units associated with
tests of air assault concepts, 872 active ships, 3 Marine Corps combat
divisions, and an active aircraft inventory of approximately 30,800.
In addition, the operation and maintenance accounts cover expenses
of supporting reserve components with a drill pay strength of over 1
million men, their training facilities, and their equipment. The
following chart lists some of the major operational factors affecting
operation and maintenance costs, and also illustrates the extent and
magnitude of the support base required to maintain these forces.
25
H. Rept. 439, 88-1--4
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-0 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
Fiscal year focal year Fiscal year
1962 19433 1964 1
Active aircraft !avant orY, June 30
31,491 30.219 30.805
Army
6, 644 5, 9:7 6,444
Navy._
Mr Fore,
9,170 8,807 8,860
Ill, 541 15, 436 15.301
-
Flying hours (0. & M. only) (thousands)._
... _
? 11,202 11,081 11,721
Army (Iranding' Reserve and Guard)
1,606 / 1,711 1,941
Navy tincludins Reserve)
3,716 3,614 3,831
Air Fore, (me ring Reserve and Guard)
6,860 5.745 5.949
Active ships. haw 30
900 859 872
Steaming hams (thousands)
2,183 2,032 2.172
Active duly military personnel, June
,
2,805. 987 2.703,348 2,695.000
Army
1.066,718 080,000 975,000
Navy
655.977 684.412 670, 000
Marine Corps.
190,962 190, 000 190,000
Air Fora'
883.330 Mg, 931 860.000
Student load:
Army:
Service schools
87.809
32,321
37,937
civilian institutions
4.435
4.632
4.881
MllitarY Academy
2.400
2,400
2,400
Navy:
Service schools
32,605
37,212
39.414
Civilian institutions
1,122
1,275
1,820
Naval Academy
3,864)
3.974
3.905
Marine Corps: Service schools
8,062
9,087
9,367
Air Force:
Service schools
42.026
39.490
37,271
Civilian ins! itutions (input)
1,812
1.639
1.200
Air Force Academy
2,200
2,400
2,400
Supply depot,
139
134
134
Army..
36
83
32
Navy.
37
as
35
Marine Corps
2
2
2
Air Force
10
10
10
Defense Supply A amwy
2
5
3
Hospitals_
240
236
235
Army
87
88
87
Navy
23
23
23
Air Force
128
123
123
Patient loads. .3rv5ee facilities
81,707
81,060
31,981
Army
i3028
12,385
12,855
Navy
10,013
30,109
10,232
Air Force
8.668
8,873
8,894
Reserve personnel in drill-pay status, June 30
158% 153
930,500
969,900
Army National Guard
380, 970
373.500
384,400
Army Reserve
261.458
274,800
231.000
Naval Rescrve
111,280
122,000
126,000
arine Corps Reser ?e
46,684
45,890
45.500
Air National Guard
50,319
72,000
72,000
Air Force neserve
38.444
81,010
61,009
Active major installations
665
688
656
Army
203
201
197
Navy
236
288
288
Air Force
174
174
ies
Defense Supply Agency
2
8
a
1 Does not reflect committee action.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 27
INCREASING NEED FOR ECONOMY
The challenge to maintain operating and maintenance costs at an
absolute minimum is becoming more severe each year. We must have
an adequate defense force, and it logically follows that funds must be
made available for the operation and maintenance of this force.
However, testimony received in the hearings by the Committee this
year contained several examples of the variou3 unavoidable factors
that are causing marked increases in these costs. Some of these are:
(1) Classified pay increases: The major portion of salaries and
personnel benefits for civilian employees of the Department of
Defense are paid from this appropriation. Although there are
approximately 24,000 less direct hire employees budgeted for
1964 than were employed in fiscal year 1962, personnel costs will
be about $47 million greater in 1964 than in fiscal year 1962.
(2) The overall cost per flying hour of new aircraft in the Navy
is 20 to 68 percent more than that of the old aircraft being phased
down. Likewise, airframe rework costs of these new aircraft are
from 30 to 73 percent greater than for comparable older models.
(3) A conventionally armed World War II destroyer requires
a crew of 248 men whereas a new DLG guided missile frigate
requires 384 men. 'Another comparison of these two ships shows
that the annual cost of consumable supplies and equipage for the
old ship is $79,000 per year compared to $342,000 per year for the
new DLG guided missile frigate.
To offset these unavoidable cost increases to the greatest possible
extent, it is imperative that concerted effort be made to eliminate
unnecessary expenses Each year the Department of Defense
acquires additional automatic data processing equipment to perform
an increasing portion of the multitude of routine administrative
tasks necessarily associated with the operation of the Department.
Despite the reduction in civilian personnel which has been achieved
since 1962, the Committee is not convinced that there has been a
proportionate reduction in clerical help in those areas for which the
automatic data processing equipment has been obtained.
While there has been significant improvement in administrative
management during the past few years that has resulted in sizable
savings in administrative operations, the Committee would like to
see a greater use of contract-review auditors, internal auditors, and
other management specialists to eliminate unnecessary work, obtain
more favorable prices for the Government in the maintenance con-
tracting area, and develop more realistic work measurement factors
to evaluate the work production of various offices engaged in routine
administrative work.
With increased attention in these areas, it Could be expected that
some of the flagrant examples of waste discovered annually by the
General Accounting Office could be avoided.
OVERSEAS DEPENDENTS EDUCATION PROGRAM
The Overseas Dependents Education Program has been the subject
of extensive consideration during the past two years by the Com-
mittee, the Department of Defense, and individuals whose primary
interests lie in the education field.
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28 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
The Committee's principal interest in this connection is the develop-
ment. of :Ln efficient and economical education program for overseas
dependents.
According to the report issued by the survey commit tee appointed
by the Deputy Assistant Secretary of Defense for Education to eval-
uate overseas dependents schools. there is some question as to the
adequacy of the current education program in these. schools.
The ( 'ornmittee on Appropriations ordered a thorough survey of the
administration of the overseas education program. In its report, the
Investigative Staff disclosed numerous practices which clearly indicate
that this pro,zrain must receive immediate and vigorous attention if
it is to operate efficiently and economically. Sonic of the exceptions
taken in the report are:
(1) Luck of uniformity among the services as to items being charged
to the per-pupil limitation.
(2) The per-pupil limitation as presently administered is neither
meaningful nor effective in the budgeting, funding, or expending pro-
cedures under the program,
(3) Major variances existed among the services in the:
(a) Budgeting, funding, and accounting procedures.
(In Determination of average membership.
(c, Charges for tuition-fee schools and correspondence courses.
(d) Operation of summer schools.
(r) Determination of tuition rates for attendance of non-DoD
pupils at DoD schools.
(I) Determination of per-pnpil costs.
(g) Utilization of tuition receipts, and the effect on the per-
pupil limitation.
The funding of this program on the basis of a per-pupil limitation
has certain shortcomings. However, much of the difficulty experi-
enced in the. administration of this program CEM he attributed to a
lack of uniform and adequate administration coupled with inadequate
surveillance by the Oflice of the Secretary of Defense and the three
services.
During the hearings this year, the Committee was informed of
numerous actions that had been inaugurated by the Department of
Defense to improve the operation of the overseas dependents schools.
The. Committee will watch with interest the results obtained by these
actions, especially with regard to the inflated headquarters staffs
discussed in the hearings.
If a satisfactory plan of administration cannot be developed under
the present method of funding this program, the Committee will con-
sider alternative funding proposals presented by the Department.
ALASKA COMMUNICATION SYSTEM
Beginning with the 1963 fiscal year, the funding and operation of the
Alaska Communication System was transferred from the Army to
the Air Force. There is much to be said in favor of this transfer
in promoting economies and efficiency in the operation of the com-
munication system in Alaska. For this reason, the Committee does
not object to the transfer of this operation.
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As has been the case in previous years, legislation has again been
recommended to the 88th Congress that would authorize the sale of
the Alaska Communication System. Pending the enactment of this
legislation, there will, of course, be no action by the Air Force to
dispose by sale of any portion of the communication system. In the
meantime, it is the expressed wish of this Committee that the identity
of the Alaska Communication System not be lost. In other words, it
will continue to be carried as a separate project in the Air Force budget
justifications so that the Committee can easily ascertain the cost of its
operations and readily identify receipts to the Treasury from this
activity.
It is noted that the proposed legislation would permit the sale of
any part or all of the Alaskan Communication System. In testimony
given in hearings before this Committee, it was readily admitted that
some portions of the system would not be very desirable to commercial
companies because of the limited income that would be derived there-
from. In the event legislation is enacted which would authorize the
sale of the communication system, the Committee will be most
interested in how this disposition is handled. It certainly will look
with disfavor on any action by. the Air Force to sell the more lucrative
segments of the system without giving due consideration to the
investment of the Government in the entire system. In other words,
the prices received for the sale of the more lucrative sections of this
system should compensate, to the maximum extent possible, any
fihancial loss the Government might experien3e on portions of the
system it is not able to sell.
OPERATION AND MAINTENANCE, ARMY
Appropriation, 1963
$3,
452,
552,
000
Estimate, 1964
3,
395,
200,
000
Recommended in the bilL
3,
361,
000,
000
Reduction
34,
200,
000
The Committee recommends the appropriation of $3,361,000,000
for the operation and maintenance of the Army. This is a reduction
of $34,200,000 below the 1964 budget estimate. Some of the larger
amounts included in t. Ltis reduction are as follows:
$5,000,000 Maintenance of Non-Combat Vehicles: In its report on
the maintenance of non-combat vehicles, the General Accounting
Office indicated that the Army could reduce its annual costs in
this area by $11 million if it adopted various administrative
controls, and limited maintenance repairs to a practical minimum.
When questioned on this in the hearings, the Army stated some
improvements in this area had been made, but not nearly to the
extent indicated possible by the General Accounting Office. The
Committee feels that $5,000,000 is a conservative reduction
that can be achieved if the Army will fully ',Inplement the recom-
mendations of the General Accounting Office.
$4,300,000 Overseas Dependents Education: It was admitted by
the Army in the hearings that it had overestimated the number
of students in the overseas education program by 15,000.
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$2,826,000 Mapping and Geodesy: 339.3 million was appropriated
for this activity in 1903. The budget request for 1964 is $52.8
million. While this is important work, it, would appear doubtful
that. a 33 percent increase in funds in 1961 could be utilized wisely
and efficiently, especially since $6.6 million of the increase is for
mapping. Mapping requires skilled technicians and it is not
readily apparent how the Army would obtain the additional
skilled technicians needed to do this work sufficiently early in the
year to make full use of the additional funds requested.
$1,500,000 Field Exercises: An additional $10 million has been
budgeted in 1964 over the $59.7 million available in 1963. Testi-
mony developed during the hearings indicated the Army was
having difficulty obtaining maneuver rights for its Field Exercises.
At the time of the hearings $1,864,000 of the 1963 funds had not,
been programmed.
In addition to the above reductions, a review of the justifications
based on testimony given in the hearings resulted in numerous minor
reductions amounting to $20,574,000, similar to the examples listed
below:
3500,000 NATO Status of Forces Support: $4,000,000 was re-
quested in the 1904 budget estimate. 1964 is the first year this
agreement will be in effect and there is no accurate basis for this
est ii oat e.
3250,000 $250,000 was requested for 250 scale models of the M-14
rifle at a cost of $1,000 per model. While there may be some advan-
tages to having an enlarged model of the M 14 rifle for training
purposes, the cost of the model exceeds the value that could be
obtained in lieu of using the actual rifle for training purposes.
$538,000 Real Estate Administration: $9,038,000 was budgeted for
this activity in 1904 compared to the $7,924 ,2S4 actually expended
in fiscal year 1962. During the hearings, rather vague responses
were made to Committee questioning on the administration of
this work.
OPERATION AND MAINTENANCE, NAVY
Appropriation, 1963
Estimate, 1964 $2, 864, 414, 000
2, 934, 000, 000
'ItecommendeA in the bill 2, 905, 000, 000
Reduction 29, 000, GOO
' The bill, as recommended by the Committee, provides for a decrease
of $29,000,000 below the 1964 budget estimate.
The total reduction recommended by the Committee consists of
numerous decreases, most of which involve minor amounts, distributed
through all of the budget activities. The following items are some
examples of the reductions which have been made:
83,000,000 Surface Missiles and Equipment Rework: $12,139,000
was appropriated for this activity in 1911%; $22,580,000 has been
budgeted for 1964. Even with the reduction which has been
made by the. Committee, there will be a $9.1 million increase over
the $10.4 million expended in 1962. While there can he no doubt
that fund requirements for this activity are increasing rapidly as
additional missiles become operational, the increase in funds
budgeted for 1964, when compared to the increase in funds which
was made available in 1963, greatly exceeds the proportionate
increase in missile inventory.
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$1,000,000 Logistic Support Programs: Actual expenditures for this
activity in 1962 were $26.3 million; a total of $32.5 million is pro-
grammed for 1963. The budget request of $34.1 million for 1964
is an increase of $1 6 million over 1963. In a program expanding
as rapidly as this, the Committee feels a reduction of about 2%
percent in the budget request will not impede the progress of
necessary work, but on the contrary should result in a more
objective application of available funds.
$500,000 Inspection and Supporting Programs: Fund requirements
for this activity have increased from $41.1 million in 1962, to
$45.5 million in 1903, with $46.8 million being requested in 1964.
The $1.3 million increase in 1964 is attributed to additional costs
resulting from the pay act increase. It is the opinion of the
Committee that $500,000 of these increased costs could be
absorbed.
$500,000 General Use Forms: The 1964 budget request of $5,350,000
is an increase of $760,000 over the funds available in the 1963
appropriation. It is a well established fact that considerable
waste occurs in the stocking and distribution of general use forms.
This reduction is made to encourage more economical utilization
of this material.
$500,000 Commissary Stores: The 1964 budget request is $877,000
over the $4.6 million available for this activity in 1963. Justifica-
tion furnished the Committee was not sufficiently adequate to
warrant approval of the total increase requested.
$300,000 Departmental Administration?Personnel Compensation:
An increase of $376,000 is budgeted for 1964, primarily because of
the pay increase. However, the costs for this activity have con-
tinued to increase, over the years. Testimony in the hearings
indicated that automatic data processing equipment is being used
increasingly to handle greater and greater portions of the routine
clerical work. It is the feeling of the Committee that most of
the pay increase costs for this activity should be absorbed.
$300,000 Technical Publications: There is a $395,000 increase
budgeted in 1964 over the $5.6 million available in 1963. $5.6
million a year for technical publications is a sizable expenditure.
While there is an unquestionable need for publications of this
type, the very extent to which they are used makes it mandatory
that more economical means be found for their production.
$500,000 Deepfreeze Operation: Notwithstanding this reduction,
$12.7 million will still be available in 1964 to fund the Navy's
share of responsibility in this Antarctic Project. Continued
reports received by the Committee of waste and mismanagement
in this operation indicate the necessity for limiting appropriated
funds in order to encourage greater economy in this undertaking.
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As a result of action taken by the House in connection with the
appropriations for State, Justice, Commerce, Judiciary, and Related
Agencies (Kn. 70(33), the Navy will be expected to absorb the costs of
funding the operation of the six ocean weather stations on the same
basis as it did in 1963.
It will be noted that although the Committee has reduced the 1964
budget request of the Navy, it has not reduced the minimum of
$134,500,000 which shall be available for the maintenance of real
property facilities.
In the course of the hearings, it was quite evident that material
reductions had been made in the 1964 funds budgeted for the mainte-
mince of real property facilities at. Navy installations. The funds
budgeted for 1964 are at about the same. level as was provided in 1962.
In view of the increased cost of operations for all other activities, it is
readily evident that there has been a rather serious cutback in mainte-
nance funds. During the hearings, it was testified that much of this
maintenance was merely being deferred until future years. It goes
without saying, that the longer necessary maintenance work is deferred,
the more expensive it becomes to accomplish. In view of what ap-
pears to be a rather severe reduction in maintenance funds, it is the
opinion of the Committee that additional funding to the greatest ex-
tent possible should be applied by the Navy to the maintenance of
real property facilities during ,the 1964 fiscal year.
OPERATION AND MAINTENANCE, MARINE CORPS
Appropriation, 1963
8194,
000, GOO
Estimate, 1964
192,
300,
000
Recommended in the bill
191,
000,
000
Reduction
1,
300,
000
The bill, as recommended by the Committee, provides for a decrease
of $1,300,000 below the 1964 budget estimate. It is the opinion of
the Committee that with more attention being given to possible
economies, the program of the Marine Corps for the 1964 fiscal year
can be achieved at the lower funding level.
OPERATION AND MAINTENANCE, AIR FORCE
Appropriation, 1963
$4,
407,
977,
000
Estimate, 1964
4,
385,
000,
000
Recommended in the bill
4,
341,
000,
000
Reduction
44,
000,
000
The bill, as recommended by the Committee, provides for a decrease
of $44,000,000 below the 1964 budget estimate.
The reduction in funds includes the following decreases:
$10,000,000 Maintenance of Non-Combat Vehicles: The General
Accounting Office, in its report on the maintenance cost of non-
combat vehicles in the Air Force, indicated that an annual savings
of $55 million could be achieved by the Air Force if certain un-
economical practices and mismanagement were eliminated. In
the course of the hearings, witnesses for the Air Force testified
on various corrective actions that had been taken to date. Not-
withstanding, it is the opinion of the Committee that if this
matter is further pursued in line with the General Accounting
Office recommendations, an additional reduction of $10,000,000
can readily be achieved.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 'JO
$1,000,000 Command Administration: There i3 an increase of $3
m ljon requested over the $117 million appropriated in 1963.
Tis reduction is made with the view of promoting greater
economy in the operations of the command administration.
In addition to the foregoing, there were niunereus minor reductions
made- in practically all budget activities. Some examples of these
reductions are as follows:
$213,000 Training Film Production: Approximately $500,000 per
year has been expended for the past several years for training
film production. While these films serve a very useful purpose,
it would appear that a sufficient library of the films would have
been accumulated by this time so that only a relatively few
training films on new weapons and so forth would be necessary.
$300,000 Alaska Communication System: An increase of $394,000
is budgeted in 1964 to cover the cost of the pay increase. How-
ever, there was apparently no consideration given to the savings
which should accrue as a result of the installation of toll dialing
exchanges for which funds were included in the 1963 budget, and
which the Army indicated would result in the reduction of 16
telephone operators. In addition, the transfer of this system
to the Air Force should result in some savings in overhead costs.
$100,000 Community Relations: A reduction of $100,000 below the
$215,000 budgeted for Community Relations, the purpose of
which was said in the hearings to be, "* * acquaint the public
with the mission and the problems of the Air Force and give
them an insight as to what their taxes are being spent for."
OPERATION AND MAINTENANCE, DEFENSE AGENCIES
Appropriation, 1963
$358,
987,
400
Estimate, 1964
451,
400,
000
Recommended in the bill
446,
000,
000
Reduction
5,
400,
000
The recommended appropriation reflects a decrease of $5,400,000
below the 1964 budget estimate.
The reduction recommended by the Committee includes numerous
decreases intended to promote greater efficiency and economy in the
operations of the agencies funded under this section of the bill.
Some examples of the items included in the reduction are as follows:
$3,000,000 Funds budgeted for the Defense Supply Agency increase
from $178,673,000 in 1963 to $253,410,000 in 1964. The Com-
mittee is favorably impressed with reports it has received to date
on the accomplishments of the Defense Supply Agency. How-
ever, in the report last year it was stated, 'The Committee
believes that this new agency represents a forward step in manage-
ment. However, it should not be permitted to grow too rapidly.
Every effort must be made to guard against empire building, and
bigness for bigness sake." The Committee still holds this
opinion and is making this reduction to assure the orderly and
practical growth of this agency.
H. Rept. 439, 88-1?S
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34 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
$300,000 Seeretar,y's Office: For 1963, a saving of 74 man years based
on a delay in filling positions was budgeted in connection with
14f/6 positions. For 1961, the saving of only 28 man years was
budgeted for this reason in connection with 1414 positions. It
is aident that, sufficient consideration has not been given to the
usual delay in filling positions for the 1964 fiscal year,
$150,000 Armed Forces Information and Education: In the 1964
budget estimate, there is an increase of $171,000 for expenses
other than personal compensation. Included in this amount are
increases of $97,000 for other services, and $64,000 f,n,r_supplies
1171(i material. Annual costs for this activity are about $5 million
The Committee has received indications that the activities Of this
organization are not as efficient and economical as they could or
should be, and it is taking this means to impress those responsible
for the administration of this program with the necessity for
getting a greater return for each dollar expended.
OPERATION AND MAINTENANCE, ARMY 'NATIONAL
GUARD
Appropriation, 1963
8174,
400,
000
Estimate, 1964
176,
600,
000
Recommended in the bill
176,
600,
000
Reduction
The Committee recommends an appropriation of $176,600,000, the
amount of the budget estimate.
OPERATION AND MAINTENANCE, AIR NATIONAL
GUARD
Appropriation, 1963
8194,
400,
000
Estimate, 1964_
222,
700,
000
Recommended in the bill
222,
700,
000
Reduction
The Committee recommends an appropriation of $222,700,000, the
amount of the budget estimate.
NATIONAL, BOARD FOR THE PROMOTION OF RIFLE
PRACTICE, ARMY
Appropriation. 1963
8622,
000
Estimate, 1964_
528
000
Recommended in the bill
528:
000
Reduction
The Committee recommends
amount of the budget estimate.
CLAIMS,
an appropriation of $528,000, the
DEFENSE
Appropriation, 1983 '819, 000, 000
Estimate, 1964_ 19, GOO, 000
Recommended in the bill 19, 000, 000
Reduction
i in addition, not to emceed $a_,300,000 way he transferred front the appropriation for ',Retired Pay
I /Heine, FISCA1 Year 1963 (P.!..66-23)."
The Committee recommends an appropriation of $1 0,0 00,0 0 0, the
amount of the budget estimate.
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CONTINGENCIES, DEFENSE
Appropriation, 1963
$15,
000,
000
Estimate, 1964
15,
000,
000
Recommended in the bill
15,
000,
000
Reduction
The Committee recommends an appropriation of $15,000,000, the
amount of the budget estimate.
COURT OF MILITARY APPEALS, DEFENSE
Appropriation, 1963
$472,
100
Estimate, 1964
599,
000
Recommended in the bill
509,
000
Reduction
The bill includes $509,000, the amount of the budget estimate for
the Court. The $36,900 increase above the appropriation for 1963
is primarily to provide for increased personnel costs resulting from the
pay act increase.
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TITLE HI
PROCUREMENT
ESTIMATES AND APPROPRIATION SUMMARY
The budget estimates for the procurement appropriations total
$16,724,800,000. The program supporting these estimates was re-
duced by $314,300,000 by enactment of Public Law 88-28 authoriz-
ing the procurement of aircraft, missiles, and naval vessels. The
Committee recommends appropriations totalling $15,676,672,000, a
reduction of $1,048,128,000 below the estimates and a reduction of
$733,828,000 below the amount authorized. The amount recom-
mended is $970,438,000 below the amount appropriated for fiscal
year 196.
GENERAL STATEMENT
The reductions made by the Committee fall into three general
caLegorie:-. Tlie first of these, mentioned above, include those made to
conform the recommended appropriations to the action of Congress
in the authorization process. These reductions, totalling $314,300,000,
are allocated as set forth in the following tabulation:
Army:
Procurement of Equipment and missiles, Army:
Aircraft;
$18,
500,
000
NI issiles
15,
000,
000
Navy:
Procurement of Aircraft and missiles, Navy:
Aircraft.20,
000,
000
Shipbuilding and conversion, Navy:
Ships,
150,
400,
000
Air Force:
Aircraft procurement, Air Force:
AireralL
110,
400,
000
The next category of reductions is that of specific line item reduc-
tions recommended by the Committee totalling $575,478,550 in the
various Service procurement accounts. In summary, the effect on
each procurement appropriation is shown in the following tabulation:
Procurement of Equipment and Missiles, Army
$169,
415,
350
Procurement of Aircraft and Missiles, Navy
139,
490,
000
Shipbuilding and Conversion, Navy
58,
500,
000
Other Procurement, Navy
20,
898,
200
Procurement, Marine Corp.'
3,
700,
000
Aircraft Procurement, Air Force
86,
075,
000
Missile Procurement, Air Force
26,
000,
000
Other Procurement, Air Force
71.
400,
000
The reductions summarized above are the result of the Committee's
examination of many hundreds of line items in the various procure-
ment programs. The detail supporting these reductions is discussed
in connection with each of the individual appropriation items involved.
38
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Three of the larger items are mentioned lucre as illustrative of the
types of reductions made. For example, funds requested for the Navy
EA6A aircraft have been disallowed. This aircraft is still in the
test and development stage and has not yet been approved for pro-
curement by the Secretary of Defense.
The Committee has denied the request of the Army for the
MAULER surface-to-air missile system and related test equipment
in the total amount of $96,300,000. This weapon system is still in the
early test stages and is reported to be encountering development
problems with resultant slippage in scheduled operational dates.
The Committee has effected a reduction, in the amount of
$47,500,000, below the budget estimates for electronics and telecom-
munications systems and related equipment programs not associated
with specific aircraft and missiles. The hearings indicated clearly
that no phase of procurement management is more in need of con-
centrated analysis, review and improvement than this area involving
electronics and telecommunications systems. The timely preparation
of adequate plans and specifications, in research and development
and early production contracts, is sorely needed so as to permit
responsible competitive procurements early in the procurement
cycle of this type of equipment. The prevailing attitude on the part
of too many responsible officials seems to be to wait until well into the
production cycle before obtaining adequate plans and specifications
for competitive procurement. It is expected that subsequent budget
estimates will reflect marked improvement in this area.
In addition to these specific reductions, the Committee has made
an overall reduction of one percent in all procurement appropriations.
This reduction is recommended for the purpose of holding down costs
of defense procurement contracts and to encourage continued use of
improved contractual methods and procedures with yet greater effort
toward responsible competitive procurement. The reductions recom-
mended for this purpose total $158,349,450.
PROCUREMENT OF EQUIPMNT ANI) MISSILES, ARMY
Appropriation, 1963_
$2,
520,
000,
000
Estimate, 1964
3,
202,
000,
000
Recommended in the bill
2,
969,
094,
000
Reduc Lion
232,
906,
000
This appropriatio provides for the procurement of all major
equipment for the Army including long lead time items such as air-
craft and guided missiles, as well as weapons, ammunition, vehicles,
repair parts and necessary supporting equipment. The Committee
recommends an appropriation of $2,969,094,000, a reduction of
$232,906,000 below the budget estimates and $449,094,000 above the
appropriations for fiscal year 1963.
As mentioned previously, the principal reduction in this appropria-
tion is the denial of the request for initial procurement funds for the
MAULER surface-to-air missile system and related multi-system test,
equipment. The budget estimates contain $96,300,000 for these
programs. This is a complex weapon system which is still in the
research and development stage. At the time of the Committee hear-
ings this program was not only encountering developmental problems,
but there had been considerable slippage in the planned operational
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
dates. Tho only firings of the missile had been with test vehicles and
the actual capability of the weapon system had not been demonstrated.
The multi-system test equipment is keyed to two other missile sys-
tems in addition to the MAULER. 'These are the SHILLELAGH
system which is not yet actually in the research stage, but is still
undergoing engineering development, and the LANCE missile system
which is in the early research and development stage. Certainly cost,
estimates and procurement plans and specifications for missile systems
and test, equipment, in these categories cannot be regarded as firm.
The Committee feels that maxiniwn effort should be placed on the
research and development concerned with these programs and pro-
curement funds included in subsequent fiscal years programs if the
development of the systems is successful. It, is realized that the
MAULER weapons system does purport to meet a so-called vacuum
in the Army surface-to-air missile requirements. As such, if suffi-
cient breakthroughs occur in the development cycle and realistic pro-
curement plans and specifications can be developed, the Committee
has no objection to the utilization of emergency funds available to the
Secretary of Defense for initiating procurement actions. It. will be
expected, however, that the appropriations and legislative committees
concerned will be informed prior to such utilization of emergency
funds. One of the major problems in missile procurement, which has
resulted in unnecessary costs, is the awarding of production contracts
based on inadequate plans and specifications and before the missile
has been adequately developed. The appropriation of procurement
fwids in the magnitude requested, based on the stage of development
at- this time, could only serve to encourage such wasteful practices.
The Committee has denied the request or $2,800,000 for fixed-wing
primary trainer itireraft. kind $3,900,000 for instrument trainer heli-
copters pending the results of a study by the Secretary of Defense,
the Army and the Navy, as to fixed-wing training requirements
including belie' pt or instrument training. This study was ordered
during the time of the Committee hearings, primarily as a result of
testimony developed therein. In this same category, the Committee
has denied the request of $4,600,000 for similar aircraft requirements
for the Navy. In addition to these actions affecting aircraft,, time
program for the procurement of LT11-113/0 IROQUOIS helicopters is
reduced by $3,197,350.
The procurement program for aircraft spare parts is reduced by the
amount of $3,338,000 and the similar program for procurement, of
spare parts for the various Army missiles is reduced in the amount of
$2,230,000. The Committee must point out to the Army procure-
ment and supply personnel the necessity to maintain realistic procure-
ment and -aipply management procedures in managing the inventory
of aircraft and missile spare parts, in order to avoid a costly build-up
of excess parts. Present. inventories in these areas alreaciy total in
excess of $600,000,000. Costly errors made by the other services in
the build-up of requirements in these fields must be avoided by the
Army in its expanded aircraft and missile activities.
Funds were requested in the amount of $34,500,000 for the con-
tinued procurement of three-quarter ion trucks. This particular
vehicle has been procured on a sole source basis by the Army since
?
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1953. A new Atehicle to replace this truck is presently under develop-
ment and is scheduled for competitive procurement in future fiscal
years. The Committee .fails to see the requirement for the continued
sole source procurement of this vehicle in the amount programmed
by. the Army and accordingly has approved only $17,250,000. Em-
phasis should be placed 'on development of the follow-on vehicle with
competitive procurement at the earliest practicable date. The exist-
ing inventory of three-quarter-ton trucks, together with the vehicles
made available from. funds in this bill, will be adequate to meet the re-
quirements of the Army until the new item is ready for procurement.
A large portion of the Army request of $74;300,000 for industrial
facilities relates to the procurement of additional machine tools. The
present Army inventory of machine tools is $921.9 million. A more
careful study should be made of the utilization of this existing inven-
tory together with proper comparisons between,. the efficiencies of the
new tools and the increased costs. Steps should be taken to examine
the feasibility of having the contractors involved absorb more of the
costs of these machine tools and industrial facilities. A reduction of
$7,300,000 is made in this "Drogram.
Funds were requested in tile amount of $64,500,000 for production
engineering measures representing various programs and activities in
production methods, engineering techniques, and the like. The Com-
mittee notes that the program has increased in size from $45,400,000
in 1962 to the present estimate of $64,500,000. More intensive re-
views should be made of the requirements for these various activities
and of the management of the many phases of this program. A
reduction of $6,500,000 is made.
In addition to the $29,990,650 reduction based on the previously
mentioned one-percent reduction in all procurement appropriations,
additional funds can be recovered from the sale of existing assets
not requiring replacement in kind. These so-called free assets can
then be applied to thin procurement program. The budget estimates
contemplate deriving $49,514,000 from this source. It is believed
that an additional $14,000,000 can be gained from this area and the
request for new appropriations is reduced in this amount. Reduction
in the amount of $12,600,000 is made in the program for procurement
of communications and electronic equipment.
The funds approved by the Committee place continued emphasis
on increasing and modernizing the firepower capability of the Army,
including aviation and missile activities. Primary emphasis is given
to meeting critical shortages of essential combat equipment with addi-
tional emphasis placed on modification of equipment which will pro-
vide a significant increase in capability and will be less costly than
obtaining the capability through the procurement of a new item.
Provision is made for continued procurement of surface-to-air mis-
siles,. both in support of the air defense missions assigned to the Army
and in support of troops in the field, including the HAWK and NIKE-
IIERCULES missile systems.
The surface-to-surface missile program continues procurement .of
tactical missiles to be used in support of Army ground troops, including
the PERSHING and SERGEANT systems and the improved
HONEST JOHN and LITTLE JOHN rockets. Anti-tank missiles
with en improved armor defeating capability will continue to be
procured.
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Funds are provided to improve the mobility of Army troops both
in the air and on the ground with special attention being given to
increased aerial mobility required to meet the Army's rapidly expand-
ing need for battlefield surveillance, troop movement, and rapid
logistical support for combat operations. Included in this_ program
are funds for the CARIBOU transport aircraft, the CHINOOK
transport- helicopter, and the IROQUOIS tactical helicopter as well as
the MOHAWK aircraft and light observation helicopters required for
increased battlefield surveillance. Ground mobility is stressed with
continued procurement of the M 113 armored personnel carrier, the
M-60 tank, the T-114 reconnaissance carrier, and various other
tactical vehicles.
PROCUREMENT OF AIRCRAFT AND MISSILES, NAVY
Appropriation, 1963 _
Estimate, 19GL.
Recommended in the bill
Reduction .
S3,
3,
2,
034,
006,
877,
188,
060 ,
000,
415,
555,
000
000
000
000
This appropriationyrovides funds for the purchase of airertift, mis-
sdesand relateil. equipment. in support of Naval and Marine Corps
missions. The Commit tee recommends $2,877,445,000, a reduction of
$188,555,000 below the budget estimates and $157,215,000 below the
appropriations for fiscal year 1 i63.
As stated previously, the Committee has denied the request for
funds for the procurement of the EA6A INTRUDER aircraft. This
plane is still awaiting further testing and the Secretary of Defense
has not given approval to proceed with its imieurement. Testimony
before the Committee dischised that the Department of Defense is
still studying proposed changes in this program and the feasibility
and adequacy of this aircraft LO (10 the job for which i it is contemplated.
Pending further developments in the research cycle of this complex
weapons system, a firm decision by responsible officials in the Depart-
ment of Defense ILS to the requirement for this aircraft, and an un-
qualified approval to proceed with the precurement of production
type aircraft, the Committee has no choice but to deny this request
for funds.
The original program contemplated for the A5C VIGILANTE
aircraft. has been drastically reduced and t he t raining base curtailed by
the Navy and the Department of Defense. En view of these facts,
the request for on additional ground trainer in the amount. of $5,000,-
000 is denied. Thp nerd is questionable and should be thoroughly
re-examined.
The budget amount for the RF413 PHANTOM aircraft is reduced
in the amount of $7,700,000. This aircraft, which is a reconnaissance
version of the PHANTOM fighter, is still in the developmental
stage and problems are being encountered with the complex elec-
tronics systems. For n similar reason, the Committee has reduced
the request for funds for the F,2A HAWKEYE aircraft by $17,-
000,000. This program is also encountering developmental problems
and testing and development on electronic and avionic systems
for this complex aircraft are still proceeding. The Committee has
taken action in these instances to slow down the actual procure-
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ApprovAKAIftlia8p 311g/RNORiAttwraphgRsoq0eR00054:p180019-5
ment programs to allow for the development of more firm specifica-
tions prior to proceeding with large scale procurement.
The amount of $1,000,000 has been deleted from the program for
the S2E TRACKER aircraft, primarily to reduce the increase re-
quested for procurement of spare parts.
The request of $4,600,000 for the procurement of the U-8F fixed
wing trainer aircraft is denied. As previously mentioned, the Secre-
tary of Defense has initiated a restudy of this requirement and similar
requirements of the Army. The request for $11,700,000 for the,
initial procurement of the T-2B trainer aircraft is denied. This
is to be a replacement for existing trainer aircraft and first flight
of the aircraft is not scheduled until the fall of 1964. The pro-
curement should be delayed until fiscal year 1965 to provide a larger
and more realistic initial procurement package which should result
in lower unit costs.
The Committee fails to see the requirement for the procurement
of the TC-4B GULFSTREAM aircraft for use as a navigational
trainer at this time and the request is denied. The Navy is presently
using aircraft on loan from the Air Force for this purpose and this
policy can be continued without detriment to ether service. Mean-
while, the Secretary of Defense and the responsible military services
are expected to continue their study of the requirements for navi-
gational trainer and mission support type aircraft with the view
of procuring the minimum number of types of aircraft to meet these
requirements.
A reduction of $2,800,000 is recommended in the program for air-
craft component improvements. A more thorough review of the
requirements for these improvements is necessary including requiring
the commercial contractors, who benefit through commercial sales of
these products, to pay a larger share of the program cost.
A large portion of the Navy request of $20,600,000 for aircraft
industrial facilities and $12,200,000 for missile industrial facilities
relate to the procurement of additional machine tools. The ,present
Navy inventory of machine tools is $811.9 million. A careful study
should be made of the utilization of this existing inventory and more
proper comparisons made between the efficiencies of the new tools
and their increased cost. Steps should also be taken to examine the
feasibility of having the contractors involved absorb more of the cost of
these machine tools and industrial facilities. Reductions of $10,-
000,000 for aircraft industrial facilities and $2,200,000 for missile indus-
trial facilities are recommended. The amount of $2,000,000 has been
deleted from the funds requested for other aircraft production charges
which includes the procurement of miscellaneous items of equipment,
various production testing programs and some transportation costs.
The TYPHON surface-to-air missile system is encountering develop-
mental problems and there has been slippage in the program. The
funds approved by the Committee for this missile system will provide
support for the proposed NORTON SOUND conversion to test the
missile as well as long lead time special handling equipment. The
reduction of $1,290,000 will hold back actual missile procurement
until the research and development cycle is further and more satisfac-
torily advanced.
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"IA Owit
Approval For Ralportielaf47/9i3/nAcIA-11[4:k7caspiai3aR optmo 180019-5
In addition to the $29,065,000 reduction resulting from the previ-
ously mentioned one percent reduction in all procurement appropria-
tions, it is expected that additional funds can be recovered in recoup-
men ts front outstanding procurement contracts and programs.
Funds recovered in this manner can be dried to the procurement
program in lieu of new approprintions. te budget estimates con-
template the recovery of $30,000,000. Based on experience in pre-
vious years, the Committee feels that an additional $5,000,000 can
be recovered and a reduction in this amount is !lade in the total
aparopriation request.
The funds approved by the Committee will continue to strengthen
Naval and Marine aviation with additional modern aircraft, guided
missiles and essential supporting equipment. In the attack aircraft
category, funds are provided for continued procurement of the A4E
light attack SKYHAWK, the A6A medium attack INTRUDER and
the latest version of the A5C VIGILANTE. The fighter aircraft
procurement program includes the F-4B PHANTOM II, which is
considered to be the most advanced air superiority fighter in the world.
In the field of anti-submarine warfare, procurement of the P-3A
ORION, the S-2E TRACKER aircraft and the SFI3A SEA KING
helicopter are continued. All of these aircraft have significant
improvements over their predecessors in speed, range and in their
capability to detect, classify and destroy enemy submarines. Funds
are also provided for continued procurement of early warning aircraft
and helicopters including a new heavy helicopter in support of the
essential operational role of the Marine Corps.
The missile procurement portion of this appropriation item provides
funds for the further procurement of POLARIS ballistic missiles and
continued procurement of TERRIER, TARTAR and TALOS surface-
to-air missiles, SPARROW and SIDEWINDER air-to-air and
BULLPUP air-to-surface missiles, as well as continuation of the pro-
curement of the relatively new SHRIKE air-to-ground missile. In
the area of anti-submarine warfare, funds are provided for procure-
ment of the DASH drone helicopter and the sub-surface fired
SUBROC
SHIPBUILDING AND CONVERSION, NAVY
Approprietion, 1963
82,
919,
200,
000
Estimate, 1964
2,
310,
000,
000
Recommended in the bill
2,
080,
080,
000
Reduction
229,
911,
000
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Approved For Release 2007/03/02 : CIA-RDP72-00337R000500180019-5
DEPAVeMENT OF DEFENSE APPROPRIATIONS, 1064 43
This appropriation provides funds for the shipbuilding and con-
version program of the Navy as well as for procurement of certain
essential long lead time items for the fiscal year 1965 program. The
Committee recommends the appropriation of $2,080,089,000, a
reduction of $229,91'1,000 below the budget estimates and $839,111,000
below the amount appropriated for fiscal year 1963. A complete list
of the new ships and conversions included in the program follows:
New Construction:
Fleet Ballistic Missile Submarine (SSB(N))
6
Submarine Tender (AS(FBM))
1
Attack submarines (SS(N))
6
Amphibious transport dock (LPO)
3
Destroyer escort (IDE)
10
Motor gunboats (PGM)
2
Surveying ship (AGS)
1
Destroyer tender (AD)
1
Combat stores shap (AFS)
1
Cargo ship, roll-on/roll-off (T?LSV)
1
Subtotal
32
Service and landing craft
203
Total
235
Conversions:
FBM))
Cargo ship (AK (FBM))
1
Destroyer (DDFRAM)
19
Destroyer (DDG)
5
Destroyer (DDG?DL2)
2
Mine countermeasures support ship (MCS)
1
Oiler (AO Jumbo)
3
Ammunition ships (FAST)
3
Communications relay ship (AGMR)
1
Floating dry dock (ARD?FBM)
1
Total
36
The construction period for new naval vessels extends over several
years. The budget estimates in support of these ships are based on
full funding of the cost of the vessel and include allowances for in-
creased labor and material costs and certain growth factors aimed at
providing the most modern of equipment and engineering techniques
available. Based on the most recent experiences of the Navy with
respect to labor and materiel costs, the Committee feels that a reduc-
tion of $17,000,000 can be made in this area of the appropriation
request.
Reductions include $21,011,000 as a result of the previously men-
tioned one percent reduction in all procurement appropriations and
$11,000,000 requested for the proposed installation of the SEA
MAULER surface-to-air missile system on certain destroyer type
vessels. As the Committee pointed out earlier, in the discussion of
the Army procurement request, the MAULER weapon systems are
still in the early developmental stage and are not yet ready for actual
procurement. If the development of this weapon is successful, it
can be installed in these ships during their construction period and
financed either from funds available for technological growth or in
subsequent years appropriations.
The Committee has approved $20,500,000 for the construction of
an additional roll-on/roll-off cargo and vehicle ship, a reduction of
$1,500,000 below the budget estimates of $22,000,000.
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Approved For Release 2007/03/02 : CIA-RDP72-00337R000500180019-5
Al*
44 liEPARTMENT OF DEFLNS1.; APPROPRIATIONS, 1964
FittniS were requested in the amount of $29.000,000 for the con-
struction of a new LST type vessel (tank landing ship). The Com-
mittee notes with approval the desire of the Navy to initiate construe-
till in this essential class of ships. The proposed new design for this
vessel is described by Navy ofileials as representing a significant
break with the designs of the past. Design difficulties have been
encountered and actual design is fur from complete. This ship is not
scheduled for contract award until late in fiscal year 1964. Despite
the Committee's belief in the requirement for this ship, it can not
approve the request for funds based on admittedly incomplete and
inadequate plans and specifications. The request of $29,000,000 is
denied. The Navy is expected to proceed with the design of this ship
and, if successful, to include the request for construction funds in the
fiscal year 1965 program. This can be done with little, if any, loss
of time in making this ship available to the Fleet.
The funds approved by the Committee provide for a shipbuildinc,e?
and conversion program to continue support of our world-wide nava'
commitments to insure the use of the seas to advance the in
of this country aml the free world, as well as to insure our freedom of
movement over the oceans under any and all conditions, and in time of
war to deny the use of these seas to an enemy. The program includes
six additional Fleet Ballistic Missile submarines to bring the total
of presently planned POLARIS submarines to forty-one. These
sul?narines are the improved versions of the LAFAYETTE class.
Additional logistic support vessels for the POLARIS submarines are
II Is() provided.
The fiscal year 1964 shipbuilding program continues the Elect
rehabilitation and modification program aimed at modernizing existing
anti-submarine warfare type vessels and equipping them with the
latest, equipment and weapons available. In addition, funds are
provided for signifieant increases in destroyer-type vessels and for the
construction of nuclear powered attack submarine:3. Essential ships
in support of Marine amphibious and vertical envelopment .operations
are provided, as are ships in support of other logistical and technical
requirements.
OTHER PROCITREM.ENT, NAVY
Appropriation, 1963_ $903, 600, 000
Estimate. 1964.. 1, 208, 000, 000
Recommended in the hilt------- -------------1, 175, 231, 000
Reduction -------------------------------------32, 769, GOO
This appropriation represents a consolidation of Naval procurement,
requirements other titan ships, aircraft and guided missiles and
includes capital, collateral and electronics equipment as well as
ordnance items. The Committee recommends $1,175,231,000, a
reduction of $32,769,000 below the budget estimates and $271,631,000
above the appropriations for fiscal year 1963.
The one percent, reduction in all procurement appropriations
amounts to $11,870,800 in this appropriation item. In addition, the
Committee has made a reduction of $17,000,000 in the request for
electronics and telecommunications equipment, including command
support equipment, as discussed previously in this report.
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Approved For Release 2007/03/02 : CIA-RDP72-00337R000500180019-5
NARY
Not
DEPARTMENT OF DEFENSE APPROPRIATIONS, 1064
45
Funds were requested to support an increase of 214 vehicles in the
inventory of passenger carrying motor vehicles. The present inven-
tory level appears to be sufficient and the $278,200 requested for this
increase is denied. Other reductions made by the Committee include
$500,000 in the request for mobile equipment in support of ship opera-
tions, $720,000 for production facilities for weapons and support
equipment and $2,400,000 for aircraft support shop equipment. The
latter two items relate chiefly to the procurement of machine tools and
shop equipment. As has been pointed out in discussions of similar
type reductions made in other appropriations, a more careful study
should be made of the increased cost of this equipment compared to
purported operational savings, as well as better utilization of. existing
inventories.
The funds approved by the Committee provide for continued
equipping and support of operational naval force3, including moderni-
zation of their capabilities and replacement of worn-out equipment now
in use and those items expended through normal usage. The program
approved continues procurement of equipment to enhance the
capability to land and launch Marine Corps aircraft from short
airfields for tactical support and provides the initial increment of a
procurement program to outfit a Fourth Marine Air Wing with air-
craft support equipment sufficient for rapid mobilization.
Funds are provided f Or the most modern anti-submarine ordnance
available including the first large scale procurements of a new sonobuoy
and a new anti-submarine torpedo. Funds are, made available to
increase the level of procurement of conventional ordnance to con-
tinue a steady improvement in the combat readiness position of the
Navy in the inventory of non-nuclear weapons needed for conventional
type warfare.
PROCUREMENT, MARINE CORPS
Appropriation, 1963
$256,
000,
000
Estimate, 1964
207,
700,
000
Recommended in the bill
201,
960,
000
Reduction
5,
740,
000
This appropriation provides funds for the procurement of ordnance,
ammunition, missiles, vehicles, radios, and other major equipment in
support of the Marine Corps in their traditional role as a major ele-
ment of the nation's force in readiness to meet any type of conflict.
The Committee recommends $201,960,000 for this appropriation, a
reduction of $5,740,000 below the budget estimates and $54,040,000
below the amount appropriated in fiscal year 1963.
The reduction made by the Committee includes $2,040,000 based
on the previously mentioned one percent reduction in all procurement
appropriations and $3,700,000 for the procurement of digital data com-
puters. The Commandant of the Marine Corps has determined that
this item of communications equipment is not ready for procurement
and the Marines now desire to take a closer look at its probable value
to them based on its present state of development.
The funds approved will be used for three general purposes, the
replacement of equipment and ammunition worn-out or consumed
during training, the replacement of obsolete items of equipment with
modern equipment of improved capability, and a continued buildup
of reserves of equipment and ammunition required for support of coin-
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Approved For Release 2007/03/02 : CIA-RDP72-00337R000500180019-5
ern. "ow
46 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1904
bat operations during the opening months of a conflict. Highlights
of the more important areas of procurement include funds for ammu-
nition in continued support of the 7.62-millimetar small arms weapons
as well as additional funds to continue the equipment of the Marines
with these weapons; completion of the planned procurement of HAWK
missile systems and continued procurement of the Marine tactical data
system required for air defense and control of air support. Procure-
ment of improved tank and artillery ammunition is provided to
improve the stock position of the Marines in these essential categories.
AIRCRAFT PROCUREMENT, AIR FORCE
Appropriation, 1963
$3,
562,
400,
000
Estimate, 196-1
3,
559,
000,
000
Recommended in the bill_
3,
328,
900,
000
Reduction
230,
100,
000
This appropriation provides funds for the procurement of aircraft,
associated ground equipment, spare parts and other miscellaneous
items directly related to the procurement of aircraft. The Committee
has approved $3,328,900,000, a reduction of $230,100,000 below the
budget estimates and $233,500,000 below the appropriations for
fiscal year 194;3.
In addition to the reduction of $33,625,000 based on the one per-
cent reduction in all procurement appropriations, it is anticipated
that an additional $10,000,000 ean be recovered from the recoupment
of funds frum prior year programs and outstanding contracts.
The Committee has reduced the funds requested for continued
procurement of the C-14.1 jet turbo fan engine transport aircraft in
the amount of $25,000,000 including a reduction $10,000,000 for
spare parts procurement and $15,000,000 to insure a stronger review
of the costs of development of this aircraft and proper cost sharing
by the contractor, who could profit from the commercial potential
of the aircraft. This plane is still within the research and develop-
ment cycle and, although development has proceeded smoothly to
date, first liighl k not scheduled until late in this calendar year.
The funds requested for the TM(' aircraft, the reconnaissance
version of the PHANTOM 11 attack aircraft, are reduced in the
amount of $25,000,000, including $5,000,000 in the program for the
procurement of spare parts. This aircraft is still in the research
and development cycle and is encountering developmental problems
especially in the electronics systems. The reduction will serve to
slow down the procurement process pending development of firmer
designs and specifications.
A reduction of $16,175,000 is recommended in the funds for the
procurement of 11C-130E aircraft in support of the air rescue service
of the Air Force. The amount provided in the approved program
is sufficient to allow some necessary modernization in this category
of Air Force activities pending a needed study looking toward more
realistic and definitive requirements in this area. Reliance should
continue to he placed on the utilization of existing aircraft.
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Approved For Release 2007/03/02 : CIA-RDP72-00337R000500180019-5
DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 47
The Committee has approved $27,100,000 for the procurement of
aircraft to provide logistics support for ballistic missile sites, a reduc-
tion of $3,000,000 below the budget estimates. The provision of
logistics support to widely scattered missile sites is admittedly a
problem facing the Air Force. This program is in the embryonic
stage and little operational data is available.. With. its varied require-
ments, unless proper controls are maintained from the beginning, it
is apt to increase in a far too costly manner. Steps must be taken
to maintain a tight control over procurements and operations in this
area until more experience is available. The reduction will serve to
hold down the procurement of missile site Support aircraft until
more reliable requirements based on more extensive operational data
is available. The Committee will expect appropr4tte Air Force pro-
curement and operational officials to give diligent attention to this
area of logistics management.
A reduction similar to that made in the Navy program for the
improvement of aircraft components has been made in the similar
program of the Air Force and totals $4,200,000. As has been stated
previously, in many instances this work benefits the commercial sales
of the contractors involved. A more vigorous effort should be made
to have them pay a larger share of the cost. A more definitive study
of the actual requirements in this area is also in order.
A significant portion of the request of $27,000,000 for aircraft
industrial facilities relates to the procurement of additional machine
tools. The present Air Force inventory of machine tools is $857.9
million. A more careful study should be made of the utilization of
this inventory and more proper comparisons made between the bene-
fits purported to result from the purchase of these tools and facilities
and the obviously increased costs of these procurements. Steps
should also be taken to examine the feasibility of the contractors
involved absorbing more of the costs of these machine tools and indus-
trial facilities. A reduction of $2,700,000 is made in this program.
The funds approved continue support of the essential operational
programs of the Air Force with particular emphasis toward_ increasing
the support of tactical forces. This latter program includes the con-
tinued substantial procurement of the F4C tactical fighter aircraft.,
This is the 'Air Force version of the PHANTOM II tactical fighter.
The Committee notes with approval the significant savings in procure-
ment and logistic support for the F4 series of aircraft by both the Air
Force and the Navy as a result of their common use of this series of
aircraft. This procurement will strengthen the capability of the
Air Force in its support of ground troops. The airlift program con-
tgmplates continued procurement of 0130E aircraft and the previously
mentioned C141 transport. Provision is also made for the final
procurement of the KC135 jet tanker in support of the Strategic
Air Command and its essential tanker missions. In addition to the
procurement of combat and airlift aircraft, funds are provided for the
continued procurement of new trainer aircraft, for the modernization
of the training fleet, and helicopters in support of the many opera-
tional and logistic support requirements of the Air Force.
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Approved ForMelease 2007/03/02 : CIA-RDP72-00337M00500180019-5
48 DEPARTMENT OF DEFENSE APPROPRIATIOgS, 194
MISSILE PROCUREMENT, AIR FORCE
Appropriathia, 1963
52,
459,
000,
000
Estimate, 1964_
2,
177,
000,
000
Recommended in the bill
2,
129,
490,
000
Reduction_
47,
510,
000
This appropriation provides funds for missile procurement for the
Air Force including the various ballistic missiles. The Committee
recommends $2,129,490,000. a reduction of $47,510,000 below the
budget estimates and $329,510,000 below the funds appropriated for
fiscal year 1963.
In addition to a reduction of $21,510,000, representing the one
percent, reduction in all procurement appropriations, a reduction
of $10,000,000 is made in the total appropriation in the belief that
additional funds can be derived from the sale of assets in the present
inventory not requiring replacement in kind and reeoupments from
outstanding programs and contracts.
Testimony before the Committee disclosed that $15,000,000 of the
funds appropriated in prior years for ballistic missile general support
were still in a deferred status. The requirements for which these
funds w ere appropriated are no longer considered iirm. This is typical
of the clialiging nature of the missile program. The Conniiittee
believes that, additional funds will be recovered from similar program
changes in the future and that such funds can then be applied to the
remainder of the approved program. The request for appropriations
for missile procurement is reduced in the amount of $15,000,000.
The amount of $11,000,000 is approved for missile industrial facili-
ties, a reduction of $1,000,000 below the budget estimates. As has
been previously mentioned in discussing industrial facilities and the
procurement, a machine tools, the Committee feels that more diligent
management is called for in this area, including better utilization of
the existing inventory, a more thorough analysis of the requirements
for new tools and facilities and better utilization of present industrial
facilities, both public and private, available to the military services.
The funds approved continue active support of the intercontinental
ballistic missile program and provide for the completion of the ATLAS
program, except, for training missiles and modification funds which
might be required in future years. Continued procurement of the
TITAN II missile system is provided. This missile provides the
largest payload capability of any ballistic missile and has greatly
improved reaction time. Funds are also provided for the continued
procurement of the MINUTEMAN three-stage solid propellent
missile.
Funds are also included to finance procurement of air-to-surface and
air-to-air missiles and target drones. Procurement of the operational
BULLPUP missiles and trainers are continued. This weapon is used
by Air Force, Navy and Marine Corps aircraft, in their close support
roles, for destruction of selected ground targets. Procurement of the
SHRIKE missile system to be used against ground radar installations
by Air Force and Navy tactical fighters is also included in this pro-
gram. Programs for other missiles include continued procurement of
FALCON and SPARROW air-to-air missiles and up-dating modifica-
tions for the HOUND DOG air-to-surface missile.
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DEPARI*ENT OF DEFENSE APPROPRIATIONS, 19W 49
OTHER PROCUREMENT, AIR FORCE
Appropriation, 1963
$956,
250,
000
Estimate, 1964
951,
500,
000
Recommended in the bill
871,
299,
000
Reduction
80,
201,
000
This appropriation contains funds for the major procurement
requirements of the Air :Force other than missiles and aircraft, includ-
ing electronics and other communication programs as well as those
required to support various aircraft and missile forces and essential
organizational and base support equipment. The Committee recom-
mends $871,299,000, a reduction of $80,201,000 below the budget
estimates and $84,951,000 less than the appropriations for fiscal
year 1963.
The one percent reduction in all procurement appropriations
amounts to $8,801,000 for this appropriation. An additional $10,-
000,000 can be recovered from the sale of existing assets not requiring
replacement in kind and from recoupments of funds on outstandin
contracts and programs. The budget estimates contemplate
recovery of $54,800,000 from these sources. At the time of the Com-
mittee hearings, the amount of approximately $21,400,000 of prior
years' appropriations was still being withheld from apportionment to
the Air Force due to lack of justification for the requirements for
these funds. This is typical of the changing nature of this program.
The Committee believes that additional funds will be recovered from
similar changes in the future and that such funds can then be applied
to the remainder of the approved program. A reduction in the amount
of $4,000,000 is made in the appropriation request.
The budget estimates include $32,200,000 for the MMB-1 fuse.
Testimony before the Committee shows that this development pro-
gram has been cancelled and that the Air Force does not now plan to
procure the item. The appropriation requested is reduced in this
amount.
As mentioned previously, reductions are made in the program for
procurement of electronics and telecommunications equipment.
These reductions total $18,500,000 and include a reduction of $500,000
in the request for industrial facilities, including the purchase of addi-
tional machine tools. As has been emphasized in previous paragraphs,
the Committee feels that better management is called for in this pro-
gram. The amount of $2,000,000 of this reduction is assigned to the
request of $50,600,000 for modifications to the various electronics and
telecommunications systems. A more realistic screening and review
of modifications proposed to be made to these complex and costly
systems is in order, with primary emphasis required on comparing
the increased cost of these modifications with the purported increases
in operational efficiency. Emphasis should also be placed on holding
down procurement of spare parts and more active reviews made of
the requirements in this area.
The Committee has approved $85,500,000 for the procurement of
various types of vehicular equipment, a reduction of $4,000,000 in the
budget estimates. It will allow for necessary modernization of the
equipment to prevent costly maintenance requirements, but will hold
down the anticipated buildup in spare parts and provide a program
more in line with that found to be sulficien 5 in prior years. The
approved program contemplates no increase in the inventory of pas-
senger carrying motor vehicles.
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50 DEPARTMENT OF DEFENSE APPII OFR IATIO., A, 1964
Reductions of $700,000 are made in base maintenance equipment
contemplated for maintenance and repair shop use and $2,000,000
in the requested program of $50,400,000 for supplies and materials.
PROCUREMENT, DEFENSE AGENCIES
Appropriation, 1963
$36,
000,
000
Estimate, 1964
43,
600,
000
Recommended in the bill
43,
164,
000
Reduction
430,
000
The Committee recommends the appropriation of $43,164,000 under
this heading, a reduction of $436,000 below the budget estimate.
This appropriation provides for the procurement of capital equip-
ment for the Defense Communications Agency and other Defense-
wide agencies. The amount of the reduction imposed by the Com-
mittee is the one percent general reduction previously referred to.
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Nike
TITLE IV
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION
ESTIMATES AND APPROPRIATIONS SUMMARY
The Committee recommends the appropriaCon of $6,889,000,000
for Research, Development, Test, and Evaluation. The recommended
amount is $373,000,000 Tess than the budget request of $7,262,000,000
and $132,558,000 less than the $7,021,558,000 appropriated for fiscal
year 1963. The comparable amount appropriated for fiscal year
1962 was approximately $6,300,000,000, including funds then Carried in
procurement accounts for test and evaluation. The various deereases
proposed will be discussed as a part of the ,explanation of the action
recommended on the individual appropriation accounts in this Title
of the bill.
GENERAL REDTJCTION
The Committee recoMmends that a general reduction be made in
the amount of 3 percent of the funds remaining after the,Specific
amounts recommended for deletion by the. Committee have been
subtracted, in all accounts in this Title of the bill, '6-:&'efit for the
Emergency Fund. The total general reduction recomtnencled is
$208,400,000, distributed as follows: Army, $42,159,000; Navy,
$47,187,000; Air Force, $105,654,000; and 'Defense Agencies,
$13,400,000.
The appropriations for Research, Development, Test, and Evalua-
tion are presented in the Budget in eight categories.' The categories
are: (I) Military Sciences; (2) Aircraft and Related Equipment; (3)
Missiles and Related Equipment; (4) Military Astronautics and Re-
lated Equipment; (5) Ships and Small Craft and Related Equipment;
(6) Ordnance, Combat Vehicles, and Related Equipment; (7) Other
Equipment; and (,8) Programwide Management and Support.
Appropriations made for three of these categories must be authorized
annually. They are categories 2, 3, and 5 relating to aircraft, missiles
and ships. In authorizing the appropriations for fiscal year 1964,
the authorizing legislation provided for a 3 percent reduction in the
Budget requests for each of these three categories, a total reduction of
$93,800,000. In addition thereto, the Committee recommends that
a similar 3 percent reduction be applied to the remaining five cate-
gories?Military Sciences, Astronautics, Ordnance, Other Equip-
ment, and Programwide Management and Support.
The Committee feels that the reductions recommended will not
cause the elimination of any needed research and development pro-
grams. Savings can be achieved by the elimination of low priority
programs, the curtailment of programs offering only marginal benefits,
'potter personnel utilization, more competitive contracting procedures
as provided by the program definition procedure, better coordination
of research and development activities between the Department of
51
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52 t. ,FARTMENT OF DEFENSE APPROPRIATION, 1 9 0 4
Defense and the other departments and agencies of the Federal
Government, utilization of commercially developed equipment wher-
ever possible, use of concurrent research, development and procure-
ment of weapon systems and equipment only in the most urgently
required programs, closer scrutiny of contractors' cost estimates, and
the closing of unproductive or duplicative facilities.
Estimates of costs for research, development, test, and evaluation
are probably more difficult to make accurately than are estimates for
any other military program. By definition, research and development
programs delve into the unknown. Unperceived factors result in
miscomputa.tions. Promising programs run into difficulties and fail
and are terminated or incur slippages in meeting objectives within
estimated periods of time; and other programs, such as the POLARIS
A-1 program, are more successful than anticipated and are accelerated
so that more funds are required in a shorter tune period. The margin
of error in estimating the costs involved in an approximately $7 billion
research and development, program is such that the overall estimate
can be little more than a funding ceiling. The reprogramming of
funds requested by the Department of Defense in Research, Develop-
ment, Test, and t valuation exceeds that required in other accounts
primarily because of the uncertainties inherent in this field. The
Emergency Fund, for which the Committee again recommends the
appropriation of $150,000,000 in addition to transfer authority of an
additional $150,000,000, is provided primarily because of the uncer-
tainties of the estimating of costs in research and development and
provides a quickly available source of funds if a technological break-
through in a promising program indicates that such funds are required.
OVERHEAD COST OF RESEARCH GRANTS
Section 538 of the accompanying bill provides that none of the
fends appropriated in the bill shall be used to pay any recipient of
a grant for the conduct of a research project an amount. for indirect
expenses in connection with such project in excess of 25 per centum
of the direet costs. This provision was carried in the Defense Appro-
priation Act for 1963 at 20 percent. The Budget. requested that the
provision be deleted. After hearing testimony from the Director
of Research and Engineering end witnesses from the military services,
the Committee has decided that the limitation last year did not impair
the research program of the Department of Defense and that a veiling
on such (warhead costs is in the best interest of the Government.
It was testified that the Army had not obtained the concurrence
of the educationsl institutions in the placing of research grants with
a 20 percent limitation on indirect costs in 57 instances, approximately
25 percent of the Army's grant program. In all of these instances,
a contract for the performance of the sante work was let with the same
iustitution. The Navy, which has only a small grant program, had
on vrants refused. The Air Force had 12 grant proposals refused
because of the lim it at and awarded 501 other grants, thus the
percentage of grants rejected, as compared with tlie total awarded
by ihe Air Force, was less than 3 percent.
The Departnieet of Defense grans program is reported to the
Congress On a calendar year basis. In calendar year 191;1, the grant
program for the whole Department of Defense was 191 grants costing
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 53
a total of $25,898,000. The program for calendar year 1962 was
963 grants costing a total of $35,105,355. Calendar year 1962
included one-half of fiscal year 1963 when the 20 percent limitation
on indirect costs applied. The effect of the provision did not prevent
an almost $10 million increase in the grant program in 1962 as com-
pared with the prior calendar year.
The research grant program remains a very small part of the research
program of the Department or Defense. Out of the $554,000,000
budgeted in fiscal year 1964 for conducting research for which a grant
might be used by the Department of Defense, it is estimated that only
$30,100,000 will probably be utilized for research grants. Section
538 applies only to research grants and has no effect on the contract
research or in-house research programs of the Defense Department.
CONTRACTS FOR TECHNICAL AND MANAGEMENT SERVICES
The Committee does not recommend a reduction in the request for
contracts with non-profit corporations and other organizations which
furnish technical and managerial services to the Department of
Defense. Last year, the Congress made a reduction of $5,000,000 in
the $166,039,000 requested by the Air Force for such activities. In
fiscal year 1962, the Congress made a specific reduction in the funds
spent with one such corporation.
This year, the Committee held a detailed hearing on a reprogram-
ming request of the Air Force to exceed the $161,039,000 provided for
this type of contract. Since the programs involved in the repro-
gramming were primarily the intercontinental ballistic missile pro-
grams, which the Committee has no desire to impede in any way, the
request to raise the amount from $161,039,000 to $182,792,000 was
approved. The comparable amount requested for fiscal year 1964
is $182,022,000. It is believed that the Air Force is making a deter-
mined effort to manage the programs in such a way that this amount
will be sufficient.
The Committee feels that its close scrutiny of these appropriation
requests has resulted in savings to the taxpayers and better manage-
ment of the research and development programs of the Air Force.
Although the Committee is approving the amounts requested for
fiscal year 1964, less the 3 percent general reduction as it could apply
to these amounts, the Committee is not relaxing its efforts to control
expenditures in this field. The Committee expects the Air Force to
live within the amounts provided and will continue to review these
programs very carefully.
Although the Air Force is far more active in placing such contracts
than the other two Services are, substantial amounts are spent by all
three Services in what the National Science Foundation has defined
as Federal Contract Research Centers. Information submitted by the
Department of Defense indicates that the Department of the Army
budgeted $16,340,000 for obligations with Federal Contract Research
Centers for fiscal year 1964, including those managed by profit
organizations, those managed by educational institutions, and those
managed by other non-profit organizations. The Department of the
Navy expects to obligate $85,514,000 in fiscal year 1964 for similar
activities while the Air Force plans to obligate $192,316,000 and
the Office of the Secretary of Defense plans to obligate $10,425,000.
This would include the activities under development support and
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54 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
other activities. The Department of Defense should prepare careful
and detailed justifications for the funds requested for Federal Con-
tract Research Centers for FY 1965 for presentation to the Committee
in connection with the hearings next year. Any reprogramming of
the amounte justified to the Committee for fiscal year 1964, except
adjustments made by the Congress, should be considered by the
Department of Defense to be items of special interest to the Coin-
mittee.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,
ARMY
Appropriat on, 1963
$1, 319,
500,
000
Estimate, 1964:
1, 469,
900,
000
Recommended
the bill
I, 363,
141.
000
Reduction
106,
759,
000
The Committee recommends the appropriation of $1,363,141,000
for Research, Development, Test, and Evaluation, Army. This is
$106,759,000 less than the fiscal year 1964 budget estimate of
$1,469,900,000. The amount recommended in the bill is $43,641,000
more than the fiscal rear 1963 appropriation of $1.319,500,000. The
amount appropriated for fiscal year 1962 was $1,203,200,000.
GENERAL REDUCTION
The Committee recommends a reduction in the amount of
$42,159,000 Which is a reduction of 3 percent of the amount remain-
ing after funds for specific programs recommended for deletion were
subtracted. Of this amount, $19,700,000 was deleted by the author-
izing legislation, Public Law 58 28. An additional $22,459,000
declension is recommended by the Committee to be applied to the
areas of this account concerning programs other than aircraft and
missiles.
DEFENSE COMMUNICATIONS SATELLITE PROGRAM
In the fiscal year 1963 Defense Appropriation Act, the Congress
provided $95,000,000 for the ADVENT Communications Satellite
Program. This program was funded and managed by the Army.
The progmm failed in its objectives and was very properly terminated
by the Department of Defense. Upon termination of the ADVENT
program, the Secretary of Defense requested Unit the Committee
approve the reprogramming of $72,900,000 of the $95,000,000 appro-
priated for ADVENT, and which would not be used for ADVENT,
to the Defense Communications Satellite Program. In the hearing
held on the reprogramming request, it was developed that the Depart-
ment of Defense would probably only obligate $13,300,000 of the
requested $72,900,000 in fiscal year 1963. Accordingly, the Com-
mittee approved the reprogramming of $13,300,000 and requested
that the Secretary of Defense place the remaining amount, $59,-
600,000, in reserve in order that a like amount might be deducted
from the 1964 budget request. The Committee recommends the
deletion of $59,600,000 from the fiscal year 1964 budget request for
this account, and the application of the $59,600,000 of fiscal year 1963
funds which have been reserved to the fiscal year 1964 Army RDT and
E progyam.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
55
The obligational authority recommended in this bill for the Defense
Communications Satellite Program is in the area of $70,000,000. The
Committee feels that this is a completely adequate amount for the
development effort on a communications satellite in fiscal year 1964.
The program is currently in the program definition stage. The Com-
mittee urges that the Department of Defense approach this program
with caution. The waste which resulted from the ill-fated ADVENT
program should not be repeated. The Committee feels that when a
synchronous orbit satellite system is developed, it will be much superior
to the medium altitude random orbit system currently proposed by
the department. The random orbit system may be more easily
achieved, although this is not certain, but the Committee feels that
the deployment of a random orbit system, if a synchronous orbit
system might not be too far behind, Would not be wise. Since the De-
partment of Defense has considerable redundancy in its communica-
tions Systems at the present time and is developing quite a few addi-
tional systems, the development of a communications satellite does
not seem to be sufficiently urgent that all due caution should not be
exercised in insuring that before a system is deployed it is properly
developed.
LANCE MISSILE SYSTEM
The Committee recommends a reduction of $5,000,000 in the amount
requested for the development of the LANCE missile system. The
FY 1964 request for the LANCE missile is classified information. The
LANCE will be a division support missile and was formerly known as
Missile B. The LANCE missile will be developed by the Ling-Temco-
Vought Company of Dallas, Texas. The Department of the Army
directed the contractor to develop the missile in Warren, Michigan,
rather than in Dallas, Texas. In the hearings which the Committee
held on this program, Army witnesses contended that the additional
cost, which was estimated by the Army to be $11,000,000, of develop-
ing the missile in Warren, Michigan, rather than Dallas, Texas, would
be offset by savings from the utilization of the Army industrial facility
in Warren, Michigan. The evidence submitted did not entirely con-
vince the Committee that this would be true, and the $5,000,000 reduc-
tion recommended reflects the Committee's intention that the cost of
the LANCE missile development not exceed the amount for which it
could be developed in Dallas, Texas.
ARMY PROGRAM HIGHLIGHTS
The Committee has not assigned ,the 3 percent general reduction to
specific programs, so, except for the items requiring authorization, the
amounts referred to in the following discussion of the major categories
and programs are approximate. The bill, as recommended, provides
approximately the amount provided in fiscal year 1963 for the Military
Sciences program of the Army, which includes both basic and applied
research. Approximately the same amount as was made available
last year, $79,748,000, is recommended for Aircraft and Related
Equipment. The Army is making significant new plans in this area
since the recent study by the Army Tactical Mobility Requirements
Board, known as the Howze Board, made its recommendations of
increased emphasis on Army air mobility. Funds are provided for
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56 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1064
development, of vertical take-off aircraft, studies of the heavy-lift
helicopter, development of a weapons helicopter, aircraft suppressive
fire systems, development of the CARIBOU it aircraft, and other
aviation developments which will contribute to the accomplishment
of the Army's mission of winning the land battle.
The appropriation of $554,301,000, more than $100,000,000 above
the $452,223,000 provided in the last fiscal year, is recommended for
Missiles and Related Equipment. Over one-half of this amount is
for the anti-intercontinental ballistic missile effort. This program is
newly reoriented. The NIKE-ZEUS development program is being
phased down and is being replaced to a large extent by the NIKE-X
program. The Army requested $88,955,000 in fiscal year 1964 for the
NIK E-ZEUS program, and the much larger sum of approximately
$245,000,000 for the new NIKE-X. The NIKE-X program involves
the use of a new, shorter range missile called the SPRINT as the
primary battery and the use of the older NIKE-ZELTS missile for
longer range intercepts. The NIKE-X will use a new radar which
will be the basic element. of a more simple set of ground electronics
than that conceived of in the NIKE-ZEUS program.
Other Army missile development programs are the SERGEANT,
which is in the final stages of R & D testing; the PERSHING, which
will soon undergo service test firing; the MAULER, anti-aircraft
missile mounted on a self-propelled carriage, and the REDEYE
shoulder-fired anti-aircraft guided missile.
The allocation to the Army in the astronautics field is less than
one-half of the $50,796,000 provided in the last fiscal year due to the
reorientation of the communications satellite program and the removal
of that program from Army management.
The Committee recommends a slight increase in the prior year
funding of $166,244,000 for development of Ordnance, Combat Vehi-
cles, and Related Equipment for the Army, and an approximately
$40,000,000 increase in the 1963 allocation of $272,538,000 for the
"Other Equipment." category. Some of the significant programs in
these areas are the Special l'urpose Individual Weapon which may
replace the current M-14 rifle, the chemical-biological effort for which
approximately $110,000,000 is provided, and various communications,
combat surveillance and combat support programs.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,
NAVY
Appropriation, 1963
$1,
475,
958,
000
Estimate, 1964
1,
572,
900,
000
Recommended in the bill
1,
525,
713,
000
Reduction_
47,
187,
000
The Committee recommends the appropriation of $1,525,713,000
for Research, Development, Test., and Evaluation, Navy, for fiscal
year 1944. The appropriation of this sum will provide $47,187,000
less than the $1,572,900,000 requested in the budget. The fiscal
year 1963 appropriation was $1,475,958,000, thus the recommended
fiscal year 1964 approprial ion is $49,755,000 more than the amount
appropriated for fiscal year 1963. The fiscal year 1962 appropriation
was $1,301,470,000.
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DEPARTMENT OF DEFENSE APPROPRIATIC NS, 1964 a
GENERAL REDUCTION
The entire amount of the reduction, $47,187,000, is a part of the
general 3 percent reduction suggested by the committee in all RDT4rE
appropriation requests. Of this amount, $32,600,000 is attributable
to the retrenchment made by the authorizing legislation in the
categories Aircraft and Related Equipment, Missiles and Related
Equipment, and Ships and Small Craft and Related Equipment.
The additional $14,587,000 decrescence represents the application of
the 3 percent general reduction to the remaining categories of this
appropriation account.
NAVY PROGRAM HIGHLIGHTS
Since the Committee has not assigned the 3 percent overall reduction
to specific programs and calls upon the Department of Defense to
apply the reduction in such a way that the best possible program is
attained, the amounts referred to in the following discussion are
approximate, except for the amounts requiring authorization. The
$176,321,000 recommended provides for an increaSe of approximately
$10,000,000 in the Military Sciences category. Most of the Military
Sciences funds will be spent on physical sciences, material sciences,
electronic sciences, and engineering mechanics.
The Committee's recommendation provides $198,083,000, approxi-
mately $60,000,000 more than the amount allocated last year, for
research on Aircraft and Related Equipment. Included in this
category are the Navy's part of the TFX program, the development
of a new carrier-on-board delivery aircraft which is a modification
of an existing early warning aircraft, the F-4B equipment improve-
ment program, and the development of a regenerative turbo-prop
engine.
The $572,433,000 provided for missiles is about $133,000,000 less
than the amount allocated to missile development in fiscal year 1963.
Once again the greatest share of the missile funds is budgeted for the
Fleet Ballistic Missile System, POLARIS. Development will con-
tinue on the A-3 POLARIS missile which will have a 2,500 mile
range, an increase of 1,000 miles in range as compared with the A-2
POLARIS missile. Other missile programs are the development of a
long-range, air-to-air guided missile system for the new TFX aircraft;
continued development work on missile systems already in the fleet
such as the TERRIER, TARTAR, and TALOS development of the
SUBROC submarine-launched rocket missile; and development of the
newly reoriented TYPHON weapon system which is designed to give
the fleet a defense against the estimated aircraft and missile threat of
the 1970 time period. Support of the Pacific Missile Range is in-
cluded in the missiles and related equipment category and includes
costs of civilian salaries, station maintenance, and operations costs at
various facilities of the Pacific Missile Range. It is estimated that
there will be 179 different projects supported. at the Pacific Missile
Range during fiscal year 1964.
The approximate sure of $40,000,000 provided for the Navy for
astronautics research is about $8,000,000 less than the amount
provided last year. Efforts will continue on the TRANSIT navi-
gation satellite system; the SPASUR satellite detection system' and
various studies and analyses in astronautics will be carried out.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
The $264,208,000 provided for research and development on ships,
both surface and submarine, is about $75,000,000 more than the
amount allocated to this activity in the last fiscal year. Work
will continue on the Navy tactical data system, on new sonars, and on
communication systems. The advanced design of a new ASW ship
with minimum ship size and personnel requirements, and with maxi-
mum cost effectiveness, will be undertaken. Work will continue on
the development of various hydrofoil craft. Other activities funded
under this category include nuclear propulsion plant development,
shipboard surveillance and navigation efforts, and exploratory and
development effort in improved techniques, materials, equipments,
and concepts related to ships, submarines and boats.
About $125,000,000 is provided for Ordnance, Combat Vehicles, and
Related Equipment. This is about $35,000,000 more than was pro-
vided in this category in fiscal year 1963. Major programs under
development are the ASROC surface-launched, anti-submarine
weapon system; and the Ml-46 and EX-10 torpedoes; as well as
various developments in conventional ordnance equipment such as
now 5-inch and 8-inch lightweight guns.
The Ccaumittee recommends the appropriation of $61,560,000 for
the development of items included in "Other Equipment." This
amount compares with the $55,846,000 provided in fiscal year 1963.
The major portion of the Marine Corps research and development
program is included in this category. An example of items in the
Marine Corps program is the short airfield for tactical support which
will provide an airfield which can be laid down in a short period of
time in remote areas of the world.
The approximately $70,000,000 provided for Progratnwide Man-
agement and Support is nearly the same amount /111008 ted in fiscal
year 1963. This will provide fun ds to meet costs at Navy laboratories,
including maintenance and operations, procurement of scientific
improvements
of
and engineering equipment, and repair and
of the Navy's laboratories.
RESEARCH. DEVELOPMENT, TEST, AND EVALUATION,
AIR FORCE
Appropriation, 1963
$3,
632,
100, GOO
Estirnati., 1904
3,
621,
800,
000
Recommended in the bill
3,
416,
146,
000
Reduction
205,
654,
600
The Committee recommends the appropriation of $3,416,146,000
for Research. Development, Test, and Evaluation, Air Force, for
fiscal year 1964. This is a recommended decrease or $205,054,000
less than the budget request of 83,621,800,000, and is a decrease of
$215,954,000 less than the $3,632,100,000 appropriated for fiscal year
1963. The appropriation for fiscal year 1962 was $2,403,260,000 and,
in addition, approximately $1,100,000,000 was provided in 1962 in
the procurement accounts for activities now carried in RDT&E.
GENERAL REDUCTION
The Committee recommends a general reduction in the amount of
$105,654,000 in RDT&E, Air Force. This is 3 percent of the amount
requested less the recommended deletion of $100,000,000 for the
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 11364
MMRBM program. Of the $105,654,000 reduction, $41,500,000
was deleted from the aircraft and missile, accoun ts by the authorizing
legislation. The remaining $64,154,000 is the recommended reduc-
tion in the Military Sciences, Astronautics, Ordnance, Other Equip-
ment, and Programwide Management and Support categories.
MOBILE MID-RANGE BALLISTIC MISSILE
The Committee recommends that a reduction of $100,000,000 be
made in the $143,100,000 requested for the Mobile Mid-Range Ballis-
tic Missile program. The fiscal year 1963 budget included a request
for $100,000,000 for the development of the MM REM. The .Congress
reduced that amount by $20,000,000, appropriating $80,000,000.
The obligations for the MMRBM for fiscal year 1963 will be $25,800,-
000. The remaining 855,000,000 will be, or has been, reprogrammed
to other projects including $25,000,000 to the stellar inertial guidance
system program which is the guidance system to be used in the
MMRBM as well as in other programs.
The program definition phase of the MMRBM development pro-
gram is scheduled to be completed this month. Until the program
definition phase is completed and has been analyzed, no basis for a
firm cost estimate for fiscal year 1964 is available. Testimony indi-
cated, and the Committee believes, that if the $143,100,000 requested
for the MMRBM were to be appropriated, efforts would be made to
reprogram much of the money to other functions.
In the report which accompanied the Defense Appropriation Bill
for fiscal year 1963 (House Report 1607), the Committee pointed out
that the deployment of a MMRBM in foreign countries would require
international negotiations, that no negotiations had been started,
and that the Committee felt that such negotiations should not be
delayed until after a weapon system is developed. This year's
testimony reveals that no negotiations have been undertaken for the
deployment of this missile in the intervening year. In view of the
many problems involved in the deployment of nuclear weapons in
other countries, it would seem wise to have a, firm agreement with
certain countries before spending the hundreds of millions of dollars
required for the development of this new missile system.
Other missile systems in the military inventory, or soon to be in
the inventory, and tactical fighter-bomber airuaft now in the inven-
tory and under development, could fulfill much of the mission for
which the MMRBM is designed. The Army's PERSHING missile
has been successfully developed and will soon undergo service testing.
The PERSHING has a 400 mile range and cross-country mobility.
The MMRBM is supposed to be a tactical missile, but its range is
anticipated to be 2,000 miles, five hundred miles more than the range
H
of the strategic TOR, and JUPITER missiles. The 400 mile range
of the PERSHING appears to be quite adequate for most tactical,
as compared with strategic, operations.
The POLARIS missile has been successfully developed and tested
and can be deployed either in a land-based version or a sea-based
version on ships or in submarines. Much discussion among the
NATO countries has been centered around the inclusion of surface
ship-based POLARIS missiles as the NATO nuclear deterrent.
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60 DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
As conceived, the MMRBM would be mounted on truck trailers
and driven through the roadways of Western Europe. The political
problems which could be occasioned by having a vehicle carrying
missile with a live nuclear warhead through the roadways of Western
Europe might be very considerable, and certainly would be greater
than problems encountered when nuclear weapons are maintained
inside closely guarded areas.
The new, very complicated, and probably pacing component of
the MM RBM is the stellar inertial guidance system. This system is
budgeted separately from the MMI4BM. The recommended Com-
mittee reduction in no way will affect the funding of the development
of this guidance system.
The Committee calls on the Department of Defense to study very
carefully the concept of and the requirement for the Mobile Mid-Range
Ballistic Missile. It would seem unwise to develop a MMRBNI
unless it can be conclusively established that it will add a capability
to our national defense that could not be otherwise attained. The
Committee has retained $43.100.000 in the appropriation account
for development of an MMR.BM if the Department of Defense, after
its careful review, decides that the weapon is needed and it's develop-
ment and deployment arc practical.
DYNASOAR AND MACH 3 AIRCRAFT PROGRAMS
The Committee recommends that language be included in the
appropriation bill making $125,000,000 of the funds available for
obligation in the RDT and E, Air Force, account available only for
the DYNASOAR or Mach 3 aircraft programs.
The Budget requests $93,000,000 of new obligational authority for
DYNASOAR and in addition, $27,000,000 of the amount provided
in fiscal year 1963 is. estimated to be unobligated at the end of that
fiscal year and carried forward into fiscal year 1964. The $98,000,000
new obligational authority, plus the $27,000,000 carryover, equal the
$125,000,000 recommended. The Committee has strongly supported
the DYNASOAR program in the past and continues to feel that the
DYNASOAR program offers a unique and valuable contribution to
the Nation's space program and to the national defense. The DYNA-
SOAR is a manned experimental research spacecraft which is designed
to explore problems related to re-entry from orbit and a manned
maneuverable re-entry. Knowledge gained from the DYNASO.AR
program will apply to numerous projects which require data on high
temperature structures and the DYNASOAR vehicle itself niay
offer real military operational opportunities as an orbiting vehicle in
advanced configurations.
Nevertheless, if the Department of Defense feels that the GEMINI
program or some other program supersedes DYNASOAR or makes
the DYNASOAR program obsolete, the Committee, has made pro-
vision in the language of the bill for the $125,000,000, which is budgeted
for DYNASOAR;to be applied to Mach 3 aircraft. The language
which was included in the Appropriation Act last year made. the
DYNASOAR money available only for the DYNASOAR. If the
language suggested by the Committee becomes law, the funds appro-
priated for DYNASOAR may be reprogrammed only for Mach 3.
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DEPARTIVIE NT OF DEFENSE APPROPRIATION
aircraft. This authority might be used by the Department of Defense
if a decision is made to accelerate the RS-70 program in such a way
that additional funds are required, or if cost overruns due to the
slippage in the first flight of a B-70 creates a requirement for addi-
tional funding, or if the Department has an unforeseen requirement
for funds in any other potential Mach 3 aircraft program. No space
vehicle should be construed to be a Mach 3 aircraft.
AIR FORCE PROGRAM HIGHLIGHTS
The Committee has not assigned its recommended 3 percent reduc-
tion to specific programs. The Department of Defense should assign
the reduction in such a way that the best possible program is under-
taken. Because the reduction has not been allocated by the
Committee, the amounts referred to in the following summary are
approximate, except for those items requiring authorization.
?The Committee recommends the allocation of approximately
$125,000,000, about the same amount as was available last year to
the Air Force, for Military Sciences. This category includes the
basic research program of the Air Force, contract support from RAND
and ANSER, in-house laboratory independent research, and the grant
and contract programs with the colleges and universities.
Approximately 8395,000,000 will be available for obligation in
fiscal year 1964 for aircraft and related development as compared
with the $471,000,000 available in fiscal year 1963. The major
programs funded in this category are the rIFX (F-111), for which
$232,700,000 is requested, and which will be utilized by both the
Navy ,and the Air Force but is currently funded primarily by the
Air Force, the final phases of the C-141A transport aircraft develop-
ment program, continuation of the RS-70 program, the vertical
take-off and landing aircraft development program, and, in addition,
various aircraft component development programs.
The Air Force will have approximately $940,000,000 available for
obligation for missile development in fiscal year 1964 as compared with
$1,288,000,000 in fiscal year 1963. The liquid propelled ATLAS and
TITAN missiles, which are phasing out of the development stage are
funded at a much lower level than in previous years. The MINUTE-
MAN solid propellant ICBM remains the most heavily funded Air
Force missile program. Approximately $320,000,000 will be applied
to the MINUTEMAN program in fiscal year 1964. The Advanced
Ballistic Re-entry Systems program is funded at approximately $212,-
000,000. This program attempts to develop re-entry vehicles forbal-
listic missiles which will be better able to penetrate enemy, defenses.
The Atlantic Missile Range is funded in this category in the amount
of approximately $200,000,000. As a result of funds provided since
fiscal year 1961, the Atlantic Missile Range has been extended to the
point where it is now a highly instrumented Range all the way to the
Indian Ocean. Although not funded as heavily as in fiscal years 1961,
1962, and 1963, the improvement of Range instrumentation and the
expansion and modernization of the whole Range will continue in
fiscal year 1964.
The Air Force will have slightly less than $1,200,000,000 available
for obligation for military astronautics in fiscal year 1964, or about
$55,000,000 more than was available for obligation in fiscal year 1963.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
The DYNASOAR program remains the only Air Force manned space
vehicle program. Die TITAN Ill space booster is heavily funded
in fiscal year 1961. Other space programs include space power de-
velopments, ion engine tests, advanced space technology, the large
solid booster program, space communications, and space-based early
warning.
For 'Other Equipment," the Air Force will have about $510,000,000
available for, obligation in fiscal year 1964 as compared with
$477,000,000 in fiscal year 1963. Included in this category are such
programs as the Strategic Air Command and Control Systern, the
Post Attack Command and Control System, biological and chemical
warfare developments, conventional munition developments, and
penetration aids for tactical fighters. The Air Force will have
approximately $370,000,000 available for obligation for Program-
wide Management and Support as compared with approximately
$340,000,000 available in fiscal year 1963. This categcay supports
the facilities and installations of the Air Force, including those operated
by the Air Force and those operated by contractors. The Air Force
Systems Command, the Aeronautical Systems Division, the Electronics
Systems Division, the Ballistic Systems Division, the Space Systems
Division, the Air Force Missile Development Center, the Air Force
Special Weapons Center, the Air Proving Ground Center, and the
Arnold Engineering Development Center have funds budgeted in
this category.
RESEARCH, DEVELOPMENT, TEST, AND EVALUATION,
DEFENSE AGENCIES
Appropriation, 1963
$444,
000,
000
Estimate, 1964
447,
400,
000
Recommended in the bill
434,
000,
000
Reduction
13,
400,
000
The Committee recommends the appropriation of $434,000,000
for Research, Development, Test, and Evaluation, Defense Agencies.
The amount recommended is $13,400,000 less than the $447,400,000
requested and $10,000,000 less than the $444,000,000 appropriated
for fiscal year 1963. The recommended reduction results from the
application of the 3 percent general reduction made in RDT&E
appropriations to this account.
This appropriation account carries funds for the Advanced Research
Projects Agency, the Weapons Systems Evaluation Group, the
Defense Communications Agency, and certain classified projects.
The largest single allocation within the account is the more than
$270,000,000 for the Advanced Research Projects Agency. Of that
amount, approximately $125,000,000 is for ballistic missile defense
studies.
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964 b3
EMERGENCY FUND, DEFENSE
Appropriation, 1963
$150,
000,
000
Estimate, 1964
150,
000,
000
Recommended in the bill
150,
000,
000
Reduction
The Committee recommends the appropriation of $150,000,000 for
the Emergency Fund and provision of an additional $150,000,000 of
transfer authority under the Emergency Fund. This is the same
amount both for the appropriation and for the transfer authority as
was carried in the Defense Appropriation Act .last year. The provi-
sion of the Emergency Fund enables the Department of Defense to
expeditiously exploit technological breakthroughs in any of the re-
search, development, test, and evaluation programs of any of the
military departments.
The Committee is displeased with the management of the Emer-
gency Fund in the past year and considered reducing the amount
recommended for this purpose. Such a recommendation is not made
only because the Committee feels that its reductions in other areas of
research, development, test, and evaluation are sufficient, and because
the Committee has been a strong advocate of the Emergency Fund
concept since it was initiated.
The Committee believes that the Emergency Fund has been resorted
to in too many instances when no scientific or technical breakthrough
was involved. It seems that the Emergency Fund has been con-
sidered by some as a general purpose fund from which to finance low
priority or unbudgeted programs. In fiscal year 1962, all of the
$150,000,000 appropriated, with the exception of $14,000, was
utilized. The Emergency. Fund was used to finance such programs
as the P-1127 aircraft which is a British VTOL development program
in which all three Services are participating, the mobile MINUTE-
MAN which had no breakthroughs and was terminated, air defense
systems in Europe and other programs which do not seem to meet the
criteria which the Committee believes should be met when the
Emergency Fund is used.
The Committee refused a fiscal year 1963 reprogramming request
involving the use of Emergency Funds to procure six heavy-lift
helicopters which the Army wanted to study. The helicopters were
available off-the-shelf items involving absolutely no scientific break-
throughs by any stretch of the imagination. The Committee believes
that the Emergency Fund can be of benefit in the efficient manage-
ment of our defense research and development programs, but calls on
the Department of Defense to carefully follow the criteria which it
has set out for the use of these funds. Further abuses could lead to
a decrease in the amount of the Emergency Fund or possibly its
elimination;
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TITLE V
GENERAL PROVISIONS
This Title of the bill contains the various general provisions affecting
the Defease Department which have, by and large, appeared in
Defense Appropriation Acts over the several previous years. :Many
of these provisions make reference to specific objects of expense
applicable to each of the several Services and which would otherwise
have to. he repeated in the individual appropriation items. Many of
the sectiotts constitute limitations which in turn would otherwise have
to be repeated in the several appropriation items. Several of the
sections m effect authorize what has been the practice in the Defense
Department over a period of years. Items or Sections which differ
from the eurrent Act, or appear for the first time, are noted below.
Section 50C: The Committee recommends a limitation of $285, as
proposed by the Budget, on the cost per pupil of overseas dependents
education. This item has been discussed previously in connection
with Title II----Operation and Maintenance.
Section 507: A new item, (j), appears in this Section which provides,
for the expenses of apprehension and delivery of deserters, etc.,
language which heretofore appeared in each of the separate appropria-
tions for Military Personnel.
Section 511: Although there is no change in the language of this
Section from that which has appeared for several years, the Committee
took note. of a controversy which has developed concerning its mean-
ing. The Committee has reviewed a report of the Comptroller General
on the use of proceeds from scrap, salvage and so forth, and the
related correspondence with (he Department of Defense. The report
states, in effect, that the Air Force improperly used proceeds from
the sale of scrap, salvage and surplus property to finance projects
for the construction, improvement and modification of redistribution
and marketing facilities at twelve of its installations. There is no
question but that the Air Force exceeded its authority under Section
511 of the Appropriation Act in some of these cases.
The Commit tee feels that this Section, which it has included in the
Act since 1959, was correctly interpreted by the Department of
Defense and has accomplished a most useful purpose. The Com-
mittee believes that, with the exceptions that have been noted, it was
proper to finance the acquisition of the transitory shelters from the
proceeds of surplus property sales and calls attention to that portion
of Section 511 which was intended to provide for such expenditures
from Operation and maintenance funds.
The Office of the Secretary of Defense plans to expand this program
to the Army and the Navy, and the Committee expects that proper
utilization of the authority of Section 511 by the Army and the Nary
will generate adilitional property reutilization as well as disposal.
64
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DEPARTMENT OF DEFENSE APPROPRIATIONS, 1964
Section 514: A technical change has been made in this Section
inasmuch as the cited law has now been codified.
Section 517. The Committee recommends retention of this Section
which prohibits the funds in this Act being made available for training
in the legal profession or for the payment of tuition for training in
such profession. This Section has been carried for a number of
years and was recommended for deletion largely at the insistence of
one Service.
The Committee is cOncerned that there is such seeming disparity
between the Services in the matter of attraction, enrollment, and
retention of professional personnel. Although the issue in connection
with this Section relates only to the training of lawyers, it was found
that a somewhat similar situation prevails with respect to members
of the Nurse Corps of the different Services. It would appear that
some serious study should be given to problems of acquiring and
retaining professional personnel on a Defense-wide basis before solu-
tions are sought which would, in effect, be piecemeal and benefit one
Service only.
Section 531: This Section, which limits funds available for the hire
of motor vehicles, indicated 111 the budget estimates a requirement for
$11,900,000. In line with reductions made in Title TT of the bill, the
amount recommended has been reduced to $11,800,000.
Section 538: This Seetion repeats what had been Section 540 of the
1963 Appropriation Act with the exception that the limitation on
indirect expenses on a research grant is recommended to be 25 percent
in lieu of the 20 percent in the current Appropriation Act.
Section 539: This Section provides for continuation of the so-called
35-65 division of work in the field of ship repair, alteration, and con-
version, as between privately owned shipyards and naval shipyards.
The Committee expects the Department of the Navy, despite the
change in language, to abide by the distribution of funds for ship
repair, alteration, and conversion on a 35-65 basis as is being done
in the current fiscal year. The Section, in the form of a ceiling, is
worded so as to permit accommodation of those emergency situations
which were contemplated by the proviso in the current year's appro-
priation language.
LIMITATIONS AND LEGISLATIVE PROVISIONS
The following limitations and legislative provisions not heretofore
carried in connection with any appropriation bill are recommended:
On page 20, beginning on line 17, in connection with "Aircraft and
Related Equipment, Navy": ?
Appropriations available to the Department of Defense for
"Aircraft, and Related Procurement, Navy," shall not be
available for obligation after June 30, 1963.
On page 22, beginning on line 7, in connection with "Research,
Development, Test, and Evaluation, Air Force,":
Provided, That of the funds available for obligation in this
appropriation account $125,000,000 shall be available only for
the Dynasoar or Mach 3 aircraft programs.
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On page 43, beginning on line 8, in connection with "General
Provisions":
Section 589. Of the funds made available in this Act for
repair, alteration, and conversion of naval vessels, not to exceed
$852,752,400 shall be available for such repair, alteration, and
conversion in privately owned shipyards.
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COMPARATIVE STATEMENT OF THE APPROPRIATIONS FOR FISCAL YEAR 1963, AND THE ESTIMATES AND
AMOUNTS RECOMMENDED IN THE BILL FOR FISCAL YEAR 1964
TITLE I-MILITARY PERSONNEL
Item
Appropriations, 1963
(to date)
Budget estimates, 1961
Recommended in bill,
1964
Bill compared with-
Appropriations, 1963
Budget estimates, 1964
Military Personnel, Army
1$3,
662,
900,
000
5 $3,
885,
000,
000
8 $3,
785,
000.
000
+$122, 100,
000
-$100,
000,
000
Military Personnel, Navy
2 2,
747,
400,
000
6 2,
676,
000,
000
9 2,
614,
000,
000
-133, 400,
000
-62,
000,
000
Military Personnel, Marine Corps
667,
900,
000
678,
600,
000
678,
600,
000
+10, 700,
000
Military Personnel, Air Force
3 4,
167,
690,
000
7 4,
148,
000,
000
183,
943,
000,
000
-224, 690,
000
-205,
000,
000
Reserve Personnel, Army
239,
200,
000
210,
100,
000
210,
100,
000
-29, 100,
000
Reserve Personnel, Navy
85,
600,
000
92,
300,
000
92,
300,
000
+6, 700,
000
Reserve Personnel, Marine Corps
28,
100,
000
28,
500,
000
28,
500,
000
+400,
000
Reserve Personnel, Air Force
50,
100,
000
55,
100,
000
55,
100,
000
+5, 000,
000
National Guard Personnel, Army
261,
800,
000
240,
300,
000
240,
300,
000
-21, 500,
000
National Guard Personnel, Air Force
53,
000,
000
58,
300,
000
58,
300,
000
+5, 300,
000
Retired Pay, Defense
Total, Title I-Military personnel.. _
4 1,
029,
000,
000
1,
163,
000,
000
1,
143,
000,
000
+ 114, 000,
000
-20,
000,
000
12,
992,
690,
000
13,
235,
200,
000
12,
848,
200,
000
-144, 490,
000
-387,
000,
000
1 In addition, $350,000,000 to be derived by transfer.
2 In addition, $25,000,000 to be derived by transfer.
3 In addition, $70,000,000 to be derived by transfer.
4 Of which not to exceed $3,300,000 may be transferred to "Claims,
Defense" (the Supplemental Appropriation Act, 1963).
6 In addition, $150,000,000 to be derived by transfer.
6 In addition, $120,000,000 to be derived by transfer.
7 In addition, $30,000,000 to be derived by transfer.
8 In addition, $190,000,000 to be derived by transfer.
9 In addition, $147,000,000 to be derived by transfer.
10 In addition, $210,000,000 to be derived by transfer.
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OF DEFENSE APPROPRIATIONS, .198
Cra
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(Atnparative statement cf the appropriations ,for fi'ea.1 year pit,v, and the estimates arid amounts recommended in the bill
for _fiscal year 1964----,t !on tin ued cr)
00
TITLE II-OPERATION AND MAINTENANCE
Item
A)proxittat 1903
iladget estimates, 1964
Rerewmfra U
rt In H
MR tempered-
Apple:4:6%436641903
&Wet eitimates, 1004
Dperation and maintenance, Army
$3, 452, 552, 000
$3, ns, 200, 000
'
$3, 381, 000,000
-$91 552. 000
-- $34, 200, 000
'Operation and maintenance Navy
2,864 414, 000
2,934
, 1105, GOO, 000
-1.40, 586, 000
-29, 000, 000
11'
1poration and maintenance, Marine Corps_
191, 000, 000
' 192, 300, 000
191, 000, 000
-3, 000, 000
-I, 300, 000
Marine Corps Stock Fund .:
(')
Operation and maintenanee, Air For
pperertiiin and rnailitemene.e, Defense Agen-
ciesi
t 4peration and maintenance, Army Na-
tional Collard.
4, 407, 977, 000
358, 987, 400
171, 4011, 000
4, 385, 000, 000
451,100, 000
170, 600, 000
4, 341, 000, 000
116, 000, 000
1741, 000, 000
.- 60, 977, 000
-1-87, 012, 600
-1- 2, 200, 000
- 44, 000, 000
--5, 400, 000
11ircratilin and in Air National
(Itiard
191, 4110, 04/0
222, 700,04)0
222, 700, 000
-1- 28, :100,1400
N ational Board for the Promotion of Itille
Practice, Army
operation and maintenance, Alaska Com-
munication System, Army
622, MO
8, 900, 000
528, 000
(3)
528, 000
-94.000
-6, 900, 000
Claims, Defense
' 19, 000, 000
19. 000, 000
19, 000, 000
i1oritingencies, Defense
IS, 000, 000
15, 000, 000
15,000, 000
... ..... ...
.... _ ?,........ _ _
Court of Military Appeals, Defense
472, 100
509, 000
509, 000
+36, 900
Total, Title 11-Operation and
.
maintenance
1; 088, 724, 600
11, 792, 237, 000
11, 678, 337, 000
-10, 387, 500
-- 113, 900, 000
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1 Language providing transfer of $15,000,000 from Navy Stock Fund.
2 Operation of Alaska Communication System was transferred to the Air Force. Funds are included in the 1964 column for "Opera-
tion and maintenance, Air Force".
3 In
Law 88-25).addition, not to exceed $3,300,000 may be transferred from the appropriation for "Retired pay, Defense," fiscal year 1963 (Public
TITLE III-PROCUREMENT
Title
Appropriations, 1963
(to datej
Budget estimates, 1964
Recommended in bill,
1964
Bill compared with-
Appropriations, 1963
Budget estimates, 1964
Procurement of equipment and missiles,
Army
$2,
520,
000,
000
53,
202,
000,
000
$2,
969,
094,
000
+$449,
094,
000
-5232,
906.
000
Procurement of aircraft and missiles, Navy_
I 3, 034,
660,
000
3,
066,
000,
000
2,
877,
445,
000
-157,
215,
000
- 188,
555,
000
Shipbuilding and conversion, Navy
2 2,
919,
200,
000
2,310,
000,
000
2,080,
089,
000
-839,
111,000
-229,
911,
000
Other procurement, Navy
903,
600,
000
1,
208,
000,
000
1,
175,
231,
000
+271,
631,
000
-32,
769,
000
Aircraft and related procurement, Navy_
(3)
(3)
Procurement, Marine Corps
256,
000,
000
207,
700,
000
201,
960,
000
-54,
040,
000
-5,
740,
000
Aircraft procurement, Air Force
3,
562,
400,
000
3,
559,
000,
000
3,
328,
900,
000
-233,
500,
000
-230,
100,
000
Missile procurement, Air Force
2,
459,
000,
000
2,
177,
000,
000
2,
129,
490,
000
-329,
510,
000
-47,
510,
000
Other procurement, Air Force
956,
250,
000
951,
500,
000
871,
299,
000
-84,
951,
000
-80,
201,
000
Procurement, Defense Agencies
36,
000,
000
43,
600,
000
43,
164,
000
+7,
164,
000
-436,
000
Total, Title III-Procurement
16,
647,
110,000
16,
724,
800,
000
15,
676,
672,
000
-970,438,000
-1, 048, 128,
000
1 In addition, transfer of $165,000,000 from "Aircraft and related procurement, Navy".
2 In addition, $20,000,000 to be derived by transfer.
3 Language terminating account.
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Comparative statement of the appropriation$ for Ave& year 1963, and the estimateR and amounts recommeruled in the bill
for fiscal year 1964-Continued
TITLE IV-RESEANCII, DEVELOPMENT, TEST, AND EVALUATION
Title
Appropriations, 1963
(to data)
Ito,t&Lt oetimatee, 1961
Recommended In 6114
1904
Research, development, test, and evalua-
tion, Army
$1, 319,
500,000
I, 469,
900, 000
$1,
363,
141,
000
Research, N development) test, and evalua-
tion, avy
I, 475,
958,
000
I, 572,
904.000
1,
525,
713,
000
Research, development, test, and evalua-
tion, Air Force
3, 632,
100,
000
3, 621,
800, 000
3,
416,
146,
000
Research, development, test, and evalua-
tion, Defense Agencies
444,
000,
000
447,
400,000
434,
009,000
Emergeney Fund, Defense.
1 150,
000,
000
1150,
000, 000
1
150,
000,
000
Total, Title IV-Research, develop-
ment, test, and evaluation
7,021,
558,
000
7, 262,
000, 000
6,
889,
000,
000
Total, Titles I, II, III, and IV
48, 350,
082,
500
49, 014,
237, 000
47,
092,
209,
000
Bill compared With-
_Appropriations, 1963
Budget estimates, 1961
l-$43, 641, 000
+ 49, 755, 000
--215,954,000
-10,000,000
-$106, 759, 000
-47, 187,000
-205, 654, 000
-13, 400,000
-132, 558:000
-373, 000, 000
-1,257,873,500
-1,922, 028,000
'In addition, $150,000,000 to be derived by transfer from other appropriations available for obligation in the respective fiscal year,
and authority to transfer an additional $200,000,000 under certain conditions-see section 536.
Approved For Release 2007/03/02 : CIA-RDP72-00337R000500180019-5
T OF DEFENSE APPROPRIATIONS, 1964