sented nor considered by the House. The principal reasons for these additions are the Alaska earthquake, a tornado in the Midwest, certain work in connection with the relocation of natives in the Marshall Islands, and a number of items in the Navy program which were previously funded but the funds were diverted in fiscal year 1964, with congressional approval, to finance the Guantanamo water supply. Authorization for these line items is available and will be shown in the supporting details.

The Department of Defense request is based on a reanalysis of the program and the adjustments made by the House. We are accepting certain reductions to line item estimates and the deletion of line items which, in our judgment, can be deferred and be funded in future years without materially affecting our ability to carry out the program supported by the particular line item. The items and their estimates which we ask to be restored, however, are the types which in our considered judgment will materially improve our ability to carry out the missions supported by this construction.

Another serious reduction made by the House is the cut in the estimate not associated with any adjustments to the line items, but a lump sum reduction against the total program estimate. We have no basis to forecast, at this time, bids for the items supporting the program which may generate a savings in the magnitude of the House cut. As in the past, we hope that minor savings will be generated, but any such savings will be utilized to finance projects not previously approved by the Congress, only after our normal practice of requesting approval from the Appropriations Committees. Thus, the Congress through these committee approvals exercises control over the use of savings or surplus funds which may be generated throughout the course of a fiscal year.

With respect to House action on the family housing account, the Department of Defense is requesting the restoration of the funds for a project at Offutt Air Force Base in the amount of $5,022,500. A reexamination of the total family housing requirements at Offutt indicates that the 287 units authorized for construction are required and will provide housing for involuntarily separated families or for enlisted men's families now living in substandard conditions. Detailed explanations and justifications for all items the Department of Defense is requesting to be restored, and the impact their deletion will have on the mission supported by each line item, are discussed and explained in detail in the information furnished to your committee, the format of which has been agreed to by the committee's staff.

We most strongly recommend these restorations to the House-approved estimates and the additions to the program discussed above.

Enclosed is a summary of the various military construction appropriations and family housing indicating (1) budget estimates, (2) adjustments by the House due to authorization. (3) appropriation reduction, (4) approved by the House. (5) adjustments due to final authorization act, (6) restorations requested. (7) additions to the program requested, and (8) final revised estimate. Representatives of the military departments and defense agencies are available at the committee's convenience to discuss the Department of Defense request and provide whatever additional information the committee may desire. Sincerely,

PREPARED STATEMENT

CYRUS VANCE, Deputy.

General, you may proceed. You have a six-page statement here. Do you wish to read it or do you wish to put it in the record and then refer to it?

General SHULER. I would like to put it in the record, Mr. Chairman, and give you the salient facts in a short briefing.

Senator STENNIS. I wish you would.

(The statement referred to follows:)

STATEMENT OF MAJ. GEN. WILIAM R. SHULER. DIRECTOR OF INSTALLATIONS, DEPARTMENT OF THE ARMY, MILITARY CONSTRUCTION, ARMY

Mr. Chairman and members of the committee, I am Maj. Gen. William R. Shuler, Director of Installations, Office of the Deputy Chief of Staff for Logistics, Department of the Army.

It is my privilege to present to this committee the Army's fiscal year 1963 military construction budget request.

This year the Army requested $408 million in new appropriations in bill H.R. 11369. At that time the Congress had not finalized action on the Army's fiscal year 1965 authorization request. As approved by the House of Representatives, bill H.R. 11369 provides $301 million in new appropriations for fiscal year 195. After careful consideration of those items denied funding in whole or part by the House of Representatives, and dropping the items not authorized by the Congress, the Army requests restoration of $36.2 million of the $107 million House reduction so that authorized and required construction projects may be initiated in fiscal year 1965. Because the final authorization bill subse quently approved did not authorize $11.1 million of the projects funded in bill H.R. 11369, the net restoration requested is now reduced to $25.1 million. Therefore, the Army's current request for new appropriations totals $3212 million consisting of $284.1 million of new authorization items, $6.2 million of prior year's authorization items, and $36.9 million of continuing authoriza tion items. This includes an additional request of $1.045 million for construe tion at Kwajalein, in connection with NIKE X.

The program before you presents the Army's most urgent construction needs and has been coordinated with the Army programs related to personnel, materiel, and research and development. These construction requirements are in consonance with the fiscal year 1964–69 force structure and financial program as approved by the Secretary of Defense. During the development of the fiscal year 1965 program emphasis was given to those projects which

(a) Meet requirements generated by the expansion of existing missions. (b) Replace existing temporary inadequate facilities.

Nearly one-quarter of the Army's physical plant is comprised of World War II temporary structures. These facilities were hastily constructed more than 20 years ago for rapid mobilization for World War II using criteria. designs and materials for a life expectancy of 5 years.

Recent budget levels have not provided an adequate level of replacement for operational, maintenance, and administrative facilities. It is the desire of the Department of the Army, under the 5-year force structure and financial program concept, to establish an approved level of effort for these type facilities commensurate with the presently approved level of effort for troop housing and supporting facilities which, if approved by the Congress, will be completed within a programing period of approximately 10 years. Unless this is realized structural failure of these old temporary buildings may become so acute as to require an exhorbitant funding level in some future one or two fundite periods. Although this year's funding request provides for an increased replas ment rate, it is apparent that an additional increase will be required in future year programs.

As a general introduction of this program, I will discuss it by the function and mission groupings that are used within the Department of Defense for all programing.

The first category is Continental Air and Missile Defense Forces for which our appropriations request is $0.6 million. We propose to continue our program of improvements to the NIKE-HERCULES system to increase tactical effective

ness.

The second grouping, general purpose forces, for which we request $60.0 million. provides for construction which supports our combat units and their direct support elements either deployed oversea or stationed within the United States. Major items include aviation support facilities, additional training and maneuver area for the STRAC divisions at Forts Riley and Carso troop housing complexes at Forts Hood and Carson, and unit facilities and improvements to our logistical posture in Korea. I would like to emphasize the importance of the troop housing complexes.

A large part of the temporary mobilization-type facilities requiring replace ment consists of borracks, messhalls, and associated troop supporting buildings The Army believes that the continued replacement of these inadequate structures by regimental size increments is the most economical, efficient, and satisfactory answer to our urgent need for facilities to support the soldier whether he is at division station or in training at one of our large training centers.

Our third category, airlift and sealift forces, contains a small request of $12 million to enable the Army to relocate activities from Fort Mason to Oakland Army Terminal in keeping with the Department of Defense's program to increase efficiency and reduce costs through consolidation wherever feasible.

The next grouping is research and development for which we request $41.0 million. The major portion, $30.6 million, is to provide facilities supporting test and evaluation of the NIKE X missile system upon which a decision concerning future deployment of the antimissile system will be based. Also included in this grouping are projects for a clinical research building at Edgewood Arsenal and range instrumentation facilities at White Sands Missile Range.

Our last grouping, for which we request $224.4 million, is for general support, the broad base for our training, supply, maintenance, medical services, headquarters, communications network, and Army Security Agency requirements. Since many of our Army bases and facilities necessarily have highly diversified support missions, this grouping includes requirements at the greatest number of stations. This category also includes the funding of our planning and design, minor construction, and access roads requirements.

We are requesting $20.6 million for construction at the U.S. Military Academy $18.7 million of this supports the recently authorized increase in the strength of the Corps of Cadets. This category also includes: Troop housing complexes for recruit training units at Forts Dix, Gordon, Jackson, and Leonard Wood; replacement of two deteriorated, inadequate old hospitals, Letterman General Hospital and Fort Huachuca Hospital: and replacement of old academie facilities for the Army War College at Carlisle Barracks, Pa.

I would like now to review the status of previous funding grauted by the Congress. By efforts directed toward completion of final design and early award of contracts, we have reduced our committed but unobligated funds carried over into the new fiscal year to an estimated $131 million in fiscal year 1965. A carryover of this amount is reasonable for a program of this magnitude, operated on a full-funding basis. Our latest estimates indicate that the $256 million estimated balance brought forward into fiscal year 1965 as shown in the President's budget is about 10 percent low. At this time it appears that $284 million unobligated balance to be brought forward is a more realistic figure. It should be noted that this figure includes $153 million in reimbursable work, primarily for the National Aeronautics and Space Administration. A large portion of the increase in estimated unobligated balance results from unexpected delays in finalization of criteria for highly technical communications projects and siting of ammunition storage facilities overseas. We have also experienced delays in obligations resulting from directed reviews of construction programs in oversea areas affected by the international balance-of-payments situation. These delays in obligations are all temporary in nature and do not alter the requirement for the funds for the purpose originally approved by the Congress.

We anticipate no savings available for application to the new appropriations request items. During fiscal year 1964 to date we have reprogramed $11.3 million from savings and canceled projects primarily to support increased research and development effort for NIKE X. This includes the $1 million construction project urgently required to permit timely continuation of NIKE X research and development, which could be accomplished only by deferring lower priority projects associated with NIKE X. We have under evaluation additional urgent projects which should not be deferred to the fiscal year 1966 program. Mr. Chairman, this concludes my summary of the fiscal year 1965 military construction. Army appropriations request. The detailed project justifications supporting this request are contained in four books, including one which is solely for classified justifications and one which has been specially prepared to present those items which have been authorized in earlier fiscal years' programs, general authorization items, those items denied funding by the House of Representatives which the Army requests be restored to the program and reprograming items. Copies have been furnished to the committee.

I will be pleased to either answer questions the committee may have, or to see that the answer is provided·

STATEMENT OF GENERAL SHULER

General SHULER. This year the Army requested $408 million in appropriations in bill H.R. 11369. At that time the Congress had not finalized action on the Army's fiscal year 1965 authorization request. As approved by the House of Representatives, bill H.R. 11369 provides $301 million in new appropriations for fiscal year 1965.

ARMY RESTORATION REQUEST

After careful consideration of those items denied funding in whole or part by the House of Representatives, and dropping the items not authorized by the Congress, the Army requests restoration of $362 million of the $107 million House reduction so that authorized and required construction projects may be initiated in fiscal year 1965.

BREAKDOWN OF CURRENT REQUEST

Because the final authorization bill subsequently approved did not authorize $11.1 million of the projects funded in bill H.R. 11369, the net restoration requested is now reduced to $25.1 million. Therefore, the Army's current request for new appropriations totals $327.2 million consisting of $284.1 million of new authorization items, $6.2 million of prior years' authorization items, and $36.9 million of continuing authorization items; that is, planning, minor construction, and access roads.

This includes an additional request of $1.045 million for construction at Kwajalein in connection with NIKE X. This will be the subject of one of the reprograming actions, sir. The Secretary of Defense wrote a letter to this committee dated April 23, 1964, on this matter.

AMOUNT FOR PROGRAMING

We anticipate no savings available for application to the new appropriations request items. During fiscal year 1964 to date, we have reprogramed $11.3 million from savings and canceled projects primarily to support increased research and development effort for NIKE X.

This includes the $1 million construction project urgently required to permit timely continuation of NIKE X research and development which could be accomplished only by deferring lower priority projects associated with NIKE X. We have under evaluation additional urgent projects which should not be deferred to the fiscal 1966 program. The detailed project justifications supporting this request are contained in four books, including one which is solely for classified justifications and one which has been specially prepared at the request of this committee to present those items which have been authorized in earlier fiscal years programs, the general authorization items, and those items denied funding by the House of Representatives which the Army requests be restored to the program, and the reprograming

items.

We have furnished copies of these to the committee. I refer, Mr. Chairman, to the special justification data that the committee requested. The first three pages in that book line the program out in the order of appearance throughout the large justification books.

You will see on the left, sir, the page number in the appropriation backup books, and you will also see the page number for this book on the right. This takes up in order the reclama items, the prior authorization items, and finally the reprograming items.

I would propose, sir, if it is all right with the chairman and the committee to follow this order because it does go in order through the book.

2

UNFUNDED AND CONTINUING ANTHORIZATIONS

Senator SALTONSTALL. Mr. Chairman, may I ask a procedural question there? At the bottom of your front page, General, you mention $6.2 million of prior years' authorization items and $36.9 million of continuing authorization items. From our point of view here we have authorized those before. Ordinarily, aren't those included in the appropriation bill without further justification?

General SHULER. No, sir. In the instance of the $6.2 million these are items authorized last year by the Congress but not funded on the appropriations side. In the case of the $36.9 million, these are authorizations that go on year after year in the authorizing law. sir, and which have to come to the Appropriations Committees for monies to carry out our program for the year in these categories.

Senator SALTONSTALL. Do you justify the latter as individual items? General SHULER. No, sir. They are composed of access roads, our planning and design money, and our minor construction. In the case of minor construction we won't know what the items are because they are unknown unforeseen urgent items that come up later during the year. I will be glad to go into that when we come to it in whatever detail is required, sir.

Senator SALTONSTALL. Thank you.

NO ANTICIPATED SAVINGS

Senator STENNIS. I have just one or two questions about your statement, General. At the top of page 6, the first sentence states, "We anticipate no savings available for application to the new appropriations request items."

That is a new paragraph, but I judge it is referring back to what you have been saying about some delays and so forth. Are you talking about new items appropriated in this bill or in past ones?

General SHULER. We are talking, sir, about the fact that we have no savings that we generated that could be applied to our new appropriation request.

Senator STENNIS. No carryover?

General SHULER. It is all committed, sir. In other words, it is carried over committed against projects that we have presently under construction or it will be needed to award contracts that we haven't awarded yet.

TEMPORARY SAVINGS

Senator STENNIS. In your statement, did you give us the figures that you temporarily saved during the year from canceled projects or from projects where you got a better bid than anticipated?

General SHULER. This would be the $11.3 million that I said was going to be needed to fund our section 103 reprograming actions, which will be presented a little later.

Senator STENNIS. Section 103. Is that all NIKE X?

General SHULER. Practically all of it is NIKE X. There are some others which we will define when we come to them.

Senator STENNIS. Now you propose to go through these in the order you have indicated. As I read your book here, though, you have prior authorizations and general authorizations and the reclama. General SHULER. Yes, sir.