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ADVENT, an instantaneous repeater communications satellite system; for TRANSIT, the navigation satellite; and for MIDAS and SAMOS early warning and reconnaissance satellites. Funds will also be provided for the BLUE SCOUT program for use in connection with space probes, and for Project SAINT-a system for the inspection of unidentified satellites.

A wide variety of other projects will also be supported, including airborne assault vehicles, biological and chemical warfare, strategic and tactical control and communications systems, and fleet air defense.

Fundamental research will be continued at a somewhat higher level than that achieved in earlier years. Extensive work in electronics, materials research, oceanography, and other basic and general applied research will be undertaken in 1962.

Twelve million dollars is included in the 1961 supplemental request for "Research, development, test, and evaluation, Army" to meet the cost of the civilian pay raise.

MILITARY CONSTRUCTION

The military construction estimates are not included in the bill now before this subcommittee, but to complete this résumé of the 1962 military functions budget it should be noted that a total of $1,159 million is planned for obligation for this purpose in 1962. This is $168 million less than the amount planned for 1961 and $191 million less than 1960.

The 1962 budget provides for the construction of additional TITAN and MINUTEMAN bases; facilities to support the POLARIS submarine fleet; test facilities for the NIKE-ZEUS anti-missile-missile development program; ground support facilities for the military space projects, including MIDAS and SAMOS; and improvements in the existing physical plant.

STOCK FUNDS

Included in the total new obligational availability figure is $150 million in transfers from the stock funds of the Department of Defense in lieu of new appropriations. This is considerably smaller than the amounts transferred in previous years-$366 million in 1961 and $430 million in 1960. As we have pointed out in the past, the time may come when the Department of Defense may actually have to request new appropriations for the stock funds. There is a limit to how far inventory levels can be drawn down and yet accomplish properly the job that has to be done.

SUMMARY OF THE FISCAL YEAR 1962 BUDGET BY ORGANIZATIONAL COMPONENT

In terms of organizational components, the $41,990 million of new obligational availability for the military functions of the Department of Defense will provide:

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The table marked "Attachment H" provides a comparison of new obligational authority, direct obligations, and expenditures by service, for the 3 fiscal years, 1960 through 1962.

Since this will be my last official contact with the committee, I want to take this opportunity to express my appreciation for the fine guidance and assistance Which this committee and its staff have extended to me during my term of office. It has been a pleasure to work with you. May I congratulate the chairman and the other members of your committee on the excellent work which you are doing to insure that America continues to have an impregnable defense and economic stablity second to none.

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NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES, FISCAL YEAR 1962 President's budget estimates compared with initial service submissions and planning objectives

[Millions of dollars]

Department of the Army:

Department of the Navy:

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Department of the Air Force:

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1 Less than $500,000.

of $8,500,000.

? Subsequent to the initial submission, Navy submitted an amendment in the amount

Includes $22,000,000 to cover funding of the Defense Communications Agency. In the President's budget, this item is included in Army appropriations.

Offee of the Secretary of Defense.

A budget

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Retired pay, Department of Defense.

895

895

Proposed for later transmission: Retired pay, Department of Defense....

31

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Promotion of rifle practice, Army.

1

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Operation and maintenance, Alaska Communication System, Army.

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Salaries and expenses, Secretary of Defense..

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Contingencies, Department of Defense.

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Claims, Department of Defense.

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Salaries and expenses, Court of Military Appeals, Department of Defense.
Operation and maintenance, Olympic winter games, Department of
Defense...

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Research, development, test, and evaluation, Air Force.

1,506

1,267

Emergency fund, Department of Defense..........

Salaries and expenses, Advanced Research Projects Agency, Department of Defense..

2,499

1,637

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Total, title IV, research, development, test, and evaluation...

5,924

4,349

See footnotes at end of table, p. 13.

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Military construction, Advanced Research Projects Agency, Department of Defense.

Military construction, foreign countries, Department of Defense.
Olympic winter games, Department of Defense...

Total, military construction.

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Revolving funds: Acquisition, rehabilitation, and rental of Wherry Act housing, Department of Defense....

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Funding for Defense Communications Agency not identified by appropriation title...

Subtotal, new obligational availability excluding Defense Communications Agency funding.

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Funding distributed to Army appropriations for operation and maintenance; research, development, test, and evaluation; and military construction.

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