FAMILY HOUSING AND RESERVE PROGRAM

Major General SHULER. No, except for family housing and the Guard and Reserve program.

Senator SALTONSTALL. General Shuler, Senator Hayden will conduct the hearings at 2:30, and I shall try to be here. This is the family housing and Reserves?

Major General SHULER. Yes, sir.

Senator SALTONSTALL. Approximately how long do you think it would take you?

Major General SHULER. I would think family housing could be done in an hour, sir, and the National Guard and Reserve in much shorter time. I would say an hour and a half at the outside for both of them.

DEFENSE FUNDS REQUIREMENT

Senator SALTONSTALL. Now, let us see, General, the total defense requirement is $40,141,000. How much of that is the Army? Major General SHULER. I think it is $20 million, sir, approximately, a little over $20 million. It is about $20 million or $22 million, sir. Senator SALTONSTALL. You were reduced by the House by $16,036,000, is that correct, for construction?

Major General SHULER. That is plus the $4 million-odd cut they made in general through the program. It really amounts to $20 million.

Mr. Chairman, I would like to insert in the record our reclama for this item.

The general cut of $4,390,000 imposes a particular hardship because of the inability to absorb the reduction without the elimination of needed items. At the present time, all known savings in the prior year's appropriations bills have been reprogramed to finance section 103 emergency projects now before the Appropriations Committees or soon to be submitted to them for necessary approval. These projects are: NIKE-X facilities, Kwajalein, $4,900,000; dehumidified storage, Europe, $822,000; both recently submitted to your committee for approval, and NIKE-X facilities, White Sands Missile Range, $1 million in process of preparation for submittal. The latter project was delayed awaiting additional section 103 authorization included in the fiscal year 1964 authorization bill signed on November 7, 1963.

The appropriation request contains no funds to finance the section 103 authorization ($12,500,000) included in the authorization bill to cover urgent and unforeseen requirements that cannot await normal programing cycles without endangering the national security.

In the past, these unforeseen requirements have been funded from savings from regular programs. However, in response to the wishes of Congress current cost estimates have drawn closer to the actual bids of contractors. There is now less margin in current cost estimates to meet the many unkown factors inherent in estimating construction costs, with little or no savings to finance

the urgent unforeseen requirements that develop each year. The imposition of a general appropriation cut on top of the requirement to finance this $121⁄2 million emergency authorization without an appropriation therefor creates a financial burden which cannot be absorbed in the 1964 MCA program without eliminating construction changes urgently required for the Army to fulfill its mission on a minimum basis. It is urgently requested that this $4,390,000 be restored.

HOUSE REPORT STATEMENT (P. 3)

"The reduction include *** $4,390,000 as a result of the previously mentioned recoupment of prior year funds and savings in the construction of the authorized program."

Senator SALTONSTALL. All right, sir, this hearing is recessed until 2:30.

Thank you.

(Whereupon, at 12:15 p.m. the subcommittee adjourned to reconvene at 2:30 p.m. of the same day.)

(AFTERNOON SESSION, 2:30 P.M., WEDNESDAY, NOVEMBER 20, 1963)

(The subcommittee reconvened at 2:30 p.m., Hon. Carl Hayden, chairman of the full committee, presiding.)

Chairman HAYDEN. The committee will be in order.

DEPARTMENT OF THE ARMY

MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

STATEMENT OF MAJ. GEN. W. R. SHULER, DIRECTOR OF INSTALLATIONS, ODCSLOG; MAJ. GEN. W. P. WILSON, CHIEF, NATIONAL GUARD BUREAU; H. T. La CROSSE, DEPUTY DIRECTOR OF ARMY BUDGET, OFFICE, COMPTROLLER OF THE ARMY

STATEMENT OF GENERAL SHULER

Major General SHULER. Mr. Chairman, I request permission, sir, to file my statement for the record which has to do with the Army's request for military construction funds for the National Guard and the Army Reserve and to just brief the committee on my opening

statement.

Chairman HAYDEN. All right. Your statement will be inserted in the record at this point and you may proceed.

(The statement referred to follows:)

STATEMENT BY MAJ. GEN. W. R. SHULER, OFFICE OF THE DEPUTY CHIEF of Staff FOR LOGISTICS, ON MILITARY CONSTRUCTION, ARMY NATIONAL GUARD, AND MILITARY CONSTRUCTION, ARMY RESERVE

Mr. Chairman and members of the committee, I will present to the committee, at this time, the Army's fiscal year 1964 requests for the appropriations "Military construction, Army National Guard" and "Military construction, Army Reserve." With me now are representatives of the Army National Guard and the Army Reserve to present the requirements for National Guard armory and nonarmory facilities and Reserve centers.

Beginning with the fiscal year 1963 program, the authorization for Reserve components reverted to the consultation type of authorization utilized prior to fiscal year 1959. Accordingly, there are no specific geographical line items included in the authorization request to the Armed Services Committees. There fore, the projects shown in the justification books previously furnished to the committee have not been individually authorized by the Congress, inasmuch as

the authorization is expressed only in terms of total dollars for the major projects for the respective Reserve components. The fiscal year 1964 funding represented in these books are a tentative listing of those projects currently being advanced in planning, and includes the most likely projects to be authorized under the consultation procedure. To the extent that factors may develop to warrant changes as permitted by this type of authorization, some of the listed projects may be deferred and other comparable projects substituted.

For the Army Reserve, the proposed $6 million funding plan consists of $4.5 million in new appropriations and $1.5 million in unallocated carryover of funds from fiscal year 1963. For the Army National Guard, the $6 million proposed fiscal year 1964 funding plan consists of $3.5 million in new appropriations and $2.5 million in unallocated carryover of funds. These appropriations, when combined with carryover funds available from fiscal year 1963, will make funds available for obligation totaling $11.6 million for the Army Reserve and $11.7 million for the Army National Guard. There will still be a planned carryover of funds into fiscal year 1965 of $2.6 million for the Army Reserve and $2.9 million for the National Guard as shown in the President's budget. These levels we believe are a reasonable carryover to preserve programing continuity.

The Army estimates that the remaining requirement to be programed after fiscal year 1963 will be 315 Reserve centers out of the total present requirement estimated at 1,287 (which includes leased and donated facilities).

For the Army National Guard there is an estimated requirement for 285 armories and 327 modifications of existing armories to be programed after fiscal year 1963 out of the total present requirement estimated at 2,732 armories. when the construction program is completed. We will continue to exploit all possible joint use of National Guard and Reserve assets, as well as joint use with other Navy and Air Force Reserve units.

This concludes my statement, Mr. Chairman. Maj. Gen. W. P. Wilson, the Chief of the National Guard Bureau, and Maj. Gen. W. J. Sutton, Chief of Army Reserve, are present to discuss their respective programs.

FUNDS FOR ARMY RESERVE FOR PLANNING

Major General SHULER. With the Army Reserve, sir, the proposed $6-million funding plan consists of $4.5 million in new appropriations and $1.5 million in unallocated carryover of funds from fiscal year 1963. For the Army National Guard, the $6-million proposed fiscal year 1964 funding plan consists of $3.5 million in new appropriations and $2.5 million in unallocated carryover of funds. These appropriations, when combined with carryover funds available from fiscal year 1963, will make funds available for obligation totaling $11.6 million for the Army Reserve and $11.7 million for the Army National Guard. There will still be a planned carryover of funds into fiscal year 1965 of $2.6 million for the Army Reserve and $2.9 million for the National Guard as shown in the President's budget. These levels we believe are a reasonable carryover to preserve programing continuity.

Chairman HAYDEN. How does it compare with last year?

Major General SHULER. $11 million last year for the National Guard.

HOUSE ALLOWANCE

Senator SALTONSTALL. General, am I correct in saying that the Reserve facilities are exactly as they were authorized had the House put in the full amount?

Major General SHULER. That is correct.

NATIONAL GUARD AUTHORIZATION

Senator SALTONSTALL. And the National Guard has authorized one additional a month?

Major General WILSON. Senator, these additional funds were added to the authorization of the National Guard making a total of $7.5 million versus the $3.6 million in the original authorization, sir.

Senator SALTONSTALL. So it increased the original authorization by $3.5 million?

Major General WILSON. $4 million.

Senator SALTONSTALL. For what purpose?

INCREASE FOR ARMORIES

Major General WILSON. For additional armories and we felt and the Congress felt this was necessary to make a good program for fiscal year 1964, sir.

Senator SALTONSTALL. Last year's program, fiscal year 1963, had a total of $11 million authorized for that program. It is not quite the same level as it was, but we feel that the $7.5-million authorization that was given to us by the Senate and the House, as is presently in the authorization bill, is a satisfactory program for fiscal year 1964.

Might I respect fully say, Mr. Chairman, we went through this pretty thoroughly and carefully in the authorization stage and it is my understanding from these two gentlemen that the authorization state of the National Guard has been increased by $4 million, which the House has put through.

Chairman HAYDEN. Yes.
General Wilson.

STATEMENT OF GENERAL WILSON

Major General WILSON. I have a statement, Mr. Chairman, which I would also like to submit for the record, if I might.

Chairman HAYDEN. Yes; and it will be inserted in the record at this point.

(The statement referred to follows:)

STATEMENT BY MAJ. GEN. WINSTON P. WILSON, CHIEF NATIONAL GUARD BUREAU, ON MILITARY CONSTRUCTION, ARMY NATIONAL GUARD

Mr. Chairman and members of the committee, I welcome this opportunity to appear before your committee and present the fiscal year 1964 budget appropriation request of $3.5 million for military construction, Army National Guard. I have five charts which will illustrate the progress to date and future requirements, by project and dollars, for armories and other facilities.

Chart No. 1. Total armory facilities

As shown by the left bar, the total armory requirement to house the units. of the Army National Guard is 2,732. Of this total 2,067 shown by the center bar were completed prior to fiscal year 1963. Of these, 729 are State-constructed armories which continue to be adequate, and 1,338 constructed with Federal participation. The remaining requirement for construction and alterations in fiscal year 1963, and forward, of 665 armories, is shown by the bar on the right. The figures in the above statement, as shown on the charts, were used in this year's presentation before the House committee and represent the results of a 1359 reorganization study, adjusted each year since that date by actual contract awards. Subsequent to our appearance before the House committee, and to the reorganization to ROAD, a new 1963 study has been completed reflecting changed requirements due to deterioration of old State-owned facilities, changed reporting procedures by the States, and a complete reanalysis of all State requirements. This new study is still being processed within the Army staff and other staff agencies.

The left bar on this next chart shows the remaining requirement of 665 armory projects, which, as of July 1, 1962, required construction of some type to adequately house the units of the Army National Guard. The center bar shows that 330 projects of this remaining requirement are alterations, expansions, or conversions to existing armories. The right bar shows that 335 complete new armories are required to replace interim or inadequate facilities provided by the States. The hachured areas shown at the top of the center and right bars indicate the actual construction of 53 armory projects in fiscal year 1963, 3 of which were alterations, as shown at the top of the center bar, and 50 were new armories as shown at the top of the right bar. There were 75 projects planned for fiscal year 1963. The obligational target was $12.7 million for armory projects; however, the actual obligations amounted to only $8.1 million.