COMMERCIAL AIRLIFT

Mr. FORD. In fiscal 1960, your commercial airlift cost was $64 million.

General FRIEDMAN. That is right, sir.

Mr. FORD. You anticipate in fiscal year 1961, $75 million?
General FRIEDMAN. That is right, sir.

Mr. FORD. In fiscal year 1960, the $64 million was against a floor of $85 million?

General FRIEDMAN. That is right, sir.

Mr. FORD. And in fiscal year 1961, the $75 million is against a floor of $80 million?

General FRIEDMAN. Yes, sir.

Mr. FLOOD. Will the gentleman yield?

Mr. FORD. Yes, sir.

Mr. FLOOD. On this procurement it is for airlift of all categories? General FRIEDMAN. Yes.

Mr. FLOOD. Is this going to attempt to meet the New Frontier concept of airlift, which is even behind mine? Is this going to satisfy me and President Kennedy or is this what you were talking about for the last 5 years? Is this what you have been talking about for 5 years, or what I am talking about now, and for the last 5 years?

General FRIEDMAN. Well, sir

Mr. FLOOD. Is this my kind of airlift or your kind?

General FRIEDMAN. It is your kind. This is procurement of commercial airlift in satisfaction of DOD user requirements.

Mr. FLOOD. Does this permit you to contract with Swiss Airline to bring dependents from Germany like you did last week with a Swiss Airline contract-not a private contract now?

General FRIEDMAN. No, sir, that was not a Government contract. The Swiss Air contract was a private contract undertaken by the individuals themselves.

Mr. FLOOD. I found that in the New York Times. I thought it was a private contract, but I was not sure.

General FRIEDMAN. It was not Government-sponsored.

Mr. FORD. On the top of page 19 you talk about the Secretary of Defense reimbursing the Post Office Department for commercial airlift of military airmail overseas. Is this the first time that this program has been handled through MATS?

General FRIEDMAN. Yes, sir, as a reimbursement through MATS and, as I point out here, even though that amounted to $25.4 millio more of commercial airlift, we did not include it against the floo since at the time the Congress established the floor, it did not includ this particular category of lift. Actually, then, the amount of con tract airlift procured on a factual basis would be $75 million plu the $25.4 million, or $100,400,000.

Mr. FORD. Is the new administration going to recommend agains or in opposition to this limitation on commercial airlift?

General FRIEDMAN. That is difficult for me to say. The curren budget, of course, requests that the floor in section 531 not be co tinued in force.

Mr. FORD. As far as you know, there is no change?

General FRIEDMAN. As far as I know, there is no change. I wou base that on the fact that the question has never arisen and I am su if it had, I would have been involved.

STOCK FUND

Mr. FORD. I am disturbed by this apparent new attitude in reference to the stock fund as you mention on page 19 and page 20. Are we becoming disenchanted with stock fund operations? Is this the first breakaway from what we have been working on so hard for so long?

General FRIEDMAN. No, sir; I do not believe that is the case. In these particular instances we actually determined that administratively it was providing no advantage but rather a disadvantage and I just think this is a recognition on the part of the Department of Defense that stock funds do have their place and that it just cannot be made applicable across the board, and this was no "battle." We made the presentation and there was ready acquiescence to the plan.

Mr. FORD. Does the Navy feel the same way about these items as far as their stock funds are concerned?

General FRIEDMAN. Sir, I frankly cannot answer that. I do not know what their position is in the clothing and medical-dental area. Mr. FORD. It is my forecast, which may be inaccurate, that this is just the beginning of the expiration of stock fund operations.

General FRIEDMAN. Well, sir, and of course I do not mean this to sidestep the forecast, but there is a great deal of emphasis going to the single manager concept.

RECORD OF RECOUPMENTS

Mr. FORD. On page 27 you discuss recoupments. It has been gone into but I think it might be helpful for the record if we could have a listing by fiscal years of the recoupments which have been made, going back how many years?

General FRIEDMAN. We have it from 1954. We will put in there what we estimated and what the actual was.

Mr. FORD. I think it would be helpful just to show what the record is in that regard.

Comparison of recoupments reflected in President's budgets as compared to actual recoupments "Aircraft procurement” appropriation

$150,000,000 anticipated as result of congressional action.

Fiscal year 1959 and prior" Aircraft, missiles, and related procurement" appropriation.

Included $423,000,000 from fiscal year 1960 "Aircraft procurement" appropriation applied to finance

bal year 1961 amount of $866,000,000.

Excludes $119,000,000 to be recouped in last half fiscal year 1961.

AIRLIFT MODERNIZATION

Mr. FORD. I have read and reread the airlift modernization portions of your statement, General Friedman. I am sure it sets out accurately and it certainly does in detail, what the program was, what was anticipated, and what may be done. I hope, however, as we go into the other parts of the Air Force budget, that we can have it laid out a bit more diagrammatically than we have here.

General FRIEDMAN. We have a very good chart that I could not read fast enough this morning that I think will clarify, make that very clear, and we can insert that in the record at this time or later if you wish. It is the entire airlift account. It shows exactly where the funds came from. I would suggest, Mr. Ford, that we place that in the record at this time.

Mr. FORD. I would so move, Mr. Chairman, that we do include it because you have devoted quite a bit of your comments to this particular problem.

Mr. SIKES. It will be done.

(The chart referred to follows:)

PROCUREMENT OF C-140 AIRCRAFT

Mr. FORD. I am inquisitive about the $12 million for six C-140 airWhat are they?

craft.

General FRIEDMAN. The six C-140 aircraft are intended for assignment to the special air mission fleet at Washington Airport.

Mr. FORD. Let's be completely frank and honest. Is this to replace the six that the White House has available?

General FRIEDMAN. No. This is to replace the C-131's. We have got some aircraft over there that, in my opinion, border on getting rather dangerous to fly around and extremely expensive to maintain.

Mr. FORD. We have reason to believe that the Air Force wants to get rid of their short-range special air mission aircraft and perhaps for good reason. Are they going to get rid of them and to substitute these for that purpose?

General FRIEDMAN. These are really short-range aircraft, Mr. Ford. What we would like to do is to procure additional 707/DC-8 types for the long-range oversea type mission. Now, that type of aircraft is uneconomical for use for the short-haul type of operation. Therefore, the C-140 is what we would hope to put into the fleet as being more economical. Also, as I indicated, some of the aircraft we have in the SAM fleet, particularly considering the usage given them, are a very old vintage, and should be replaced.

Mr. FLOOD. Who would use them?

Give me the names of 25 people who would use them.

General FRIEDMAN. I would start right at the highest and go to the lowest of our national leaders. That is what the special air mission fleet is for.

Mr. FORD. How much different is a C-140 from what we now have, the short-range 707?

General FRIEDMAN. It is a shorter range jet aircraft. That would be the principal difference.

Mr. FORD. And speed?

General FRIEDMAN. And speed.

Mr. FORD. Is it faster than the 707's we have there?

General FRIEDMAN. The 707 is a long-range higher speed aircraft Mr. FORD. But the 707's we have now, which we bought 3 year ago

General FRIEDMAN. Three or four.

Mr. FORD. Are relatively short-range compared to the 707's that ar flying the international routes today?

General FRIEDMAN. Relatively speaking; that is correct.

Mr. FORD. I know the Air Force wants to get some new long-rang jets for the same purpose so they do not have to stop halfway acros the Atlantic or halfway across the Pacific. What are these how d the C-140's compare with those aircraft?

General FRIEDMAN. I do not have that handy.

Mr. PRITCHETT. I can give you a general description. The C-14 is a comparatively short-range jet aircraft which will replace in th SAM fleet the C-131, which is the propeller-driven aircraft. By con parison with the 707's or the VC-137's, we call them, the C-140 prob ably has a range of less than half of the VC-137. It is designed reall to take the bulk of the short-hop lift in SAM which averages, I b lieve, something around 1,500 miles.