With regard to a planned increase in the enrollment of the third year of ROTC, they withheld $500,000. It was considered too late in the scholastic year for this program objective to be achieved. There was also an increase in several items which were excluded from the President's estimate, but for which the Congress provided funds. This amounted to $8 million, and included special tours and annual 2-week training periods and an increase in the number of days training of authorized mobilization designee officers. Special tours amounted to $1.9 million, individual reinforcements training, $5.8 million, and mobilization designee training, $300,000-for a total of $8 million. Altogether, this amounts to the $14.4 million, which has been withheld up to the present time by the Bureau of the Budget. Mr. FORD. It is not anticipated between now and the end of the fiscal year this will be released? General DUFF. In the financial plan under which the Army is now operating, sir, this is programed as an amount which will not be obligated, and therefore would revert to the Treasury at the end of this fiscal year. General SCHEWE. Regarding the moneys appropriated for training of additional individual reinforcements, Department of the Army representatives are meeting with the Assistant Secretary of the Department of Defense for Manpower this afternoon, and we feel that portion which has been previously withheld will be approved by OSD although I do not want to make a premature judgment on it, sir. Mr. FORD. How much is involved in that item? General DUFF. These amounts are still under consideration. NATIONAL GUARD PERSONNEL, ARMY For the "National Guard personnel, Army," appropriation, the Congress provided $230 million; this total included $31.7 million for support of an Army National Guard paid-drill strength of 400,000, which was an increase of 40,000 over the strength recommended in the President's budget, and a 34,000 increase in the number of 6month trainees-from 28,000 to 62,000. The entire amount provided by the Congress for this appropriation has been made available and is, therefore, the amount shown in the fiscal year 1961 column of the fiscal year 1962 budget. OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD For the "Operation and maintenance, Army National Guard," appropriation, the Congress appropriated $162 million in fiscal year 1961, which included $5 million for the additional logistical support necessary to maintain the Army National Guard strength at 400,000 and for an increase of 531 man-years in the technician program. The difference of $4 million between the amount appropriated and the amount appearing in the fiscal year 1961 column of the fiscal year 1962 budget is attributable to the civilian pay raise. Mr. MAHON. When did we provide this pay raise? General DUFF. That was provided by public law and was effective on the 1st of July of this fiscal year. Mr. MAHON. July 1960? General DUFF. July 1960, the beginning of this fiscal year, Mr. Chairman. With the exception of the $14 million referred to in the "Reserve personnel, Army," appropriation, it is expected that the funds made available by the Congress for the Reserve Forces appropriations will be fully obligated in fiscal year 1961, and the programs supported will be accomplished generally as intended. However, Army Reserve individual reinforcements will not be given refresher training in the number originally programed. OPERATION AND MAINTENANCE, ARMY For the "Operation and maintenance, Army," appropriation, the Congress appropriated $3,120 million for fiscal year 1961; this was a net increase of $8 million over the President's budget request. This net amount resulted from an increase of $38.5 million to meet the increased cost of maintaining the Army Reserve and the Army National Guard at 700,000 paid-drill strength and reductions totaling $30.5 million related to travel costs, departmental administration, communications, aviation fuel costs, mission support type flying, the number of aeronautically rated officers, motor vehicle hire, maintenance of dependent housing and dependents' education. The $76 million difference between the amount appropriated by the Congress and the amount appearing in the fiscal year 1961 column of the fiscal year 1962 budget is related to an increase of $67.8 million for the civilian pay raise and $12 million for deutsche mark support furnished by the Berlin magistrate, and a decrease of $4 million which was the amount transferred to the General Services Administration for records center activities at St. Louis and Kansas City, Mo. The supplemental request for this appropriation includes the $67.8 million for the civilian pay raise I referred to and $20.7 million related to increased operational readiness costs, extension of single managerships and for support of the additional 2,500 man-years Active Army strength to which I also referred. The $20.7 million is not included in the fiscal year 1961 column of the fiscal year 1962 budget and appears, therefore, as a below-the-line entry on chart 1. PROCUREMENT OF EQUIPMENT AND MISSILES, ARMY For the appropriation "Procurement of equipment and missiles, Army," in fiscal year 1961, the Congress provided $1,682 million. This amount included $158 million added to the President's budget request by the Congress for an increase in Army modernization. The decrease of $45 million reflected in the direct obligation program in the fiscal year 1961 column of the fiscal year 1962 budget is an amount which has been programed by the Department of Defense as an asset for financing the proposed fiscal year 1962 program. USE OF CONGRESSIONAL ADD-ON Mr. MAHON. Why was this money not used for Army modernization? We have been convinced that the Army is woefully behind in its program of modernization. How can you explain why this $45 million is not used for current fiscal year, but is used as a credit and applied to the forthcoming fiscal year? General DUFF. This was a policy decision made by higher authority. The Army felt very strongly it needed the full additional amount appropriated by the Congress and repeatedly requested this amount be made available. This represents a policy decision, sir, to use this amount of the add-on of $158 million as an asset against the current appropriation request. Mr. SIKES. At what level? Whose decision are you discussing? General DUFF. A decision, as far as the Department of the Army is concerned, by the Secretary of Defense. Mr. SIKES. May we have inserted at this point in the record a table to show specifically what happened to the additional funds provided by the Congress for Army modernization? You will recall there were in addition to a direct appropriation two other items that can be spelled out in the record for which it was anticipated money would be available for Army modernization. I would like to know what happened to those funds also. General DUFF. I believe such a table has been made in the prepared statement forwarded to the committee by Mr. Lincoln for insertion in the record. There is a tabulation, sir, which I believe covers this question completely for all three departments. Mr. SIKES. Since we are now discussing the matter, I would like to have the statement shown here. General DUFF. Yes, sir. (The table requested follows:) The subcommittee of the Committee on Appropriations, House of Representatives, added $37.2 million of new obligational authority to the President's budget. This amount was increased by $121.1 million in joint conference for a total of $158.3 million. The breakdown of $158.3 million congressional add-on in fiscal year 1961 for Army modernization is as follows: (b) Items planned for procurement with the $113.3 million are: New rifle using NATO round.. NATO round for new rifle and machinegun.. Main battle tank..... Ammunition for new main battle tank. New 90-millimeter recoilless rifle... New shoulder-fired grenade launcher.. thousand rounds. 120,000 200, 000 165 New armored personnel carrier. Now control for main battle tank to improve capability. NIKE-HERCULES missiles. 300 1, 005 450 Mr. FORD. General Duff, is there still a pending request for the utilization, or the obligation, of this $45 million, and if so, what is the status of it? General DUFF. There is no request pending at the present moment on which there has not been a decision by the Office of the Secretary of Defense. Mr. FORD. In other words, the Army is not as of now pressing for the release of this obligational authority? General DUFF. Sir, the Army has submitted a number of requests for the release of these funds. The most current request has been given a decision that these funds, as of this moment, will be held as proposed in the President's budget document as an asset against our fiscal year 1962 program. Mr. SIKES. You say the Army has exhausted the resources which are open for securing this money? General DUFF. That is correct, Mr. Chairman. The Army has taken repeated action and it feels it is not appropriate for the Army to again present the request at this particular moment. Mr. MAHON. The decision has been made? General DUFF. The decision has been made. Mr. MAHON. We will go into that with others. Thank you. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY General DUFF. For "Research, development, test, and evaluation, Army," the Congress appropriated $1,041 million, which was the amount requested in the President's budget for fiscal year 1961. The $118 million increase between the amount appropriated and the amount included in the fiscal year 1961 column of the fiscal year 1962 budget provides for the following activities: $12 million for civilian pay increases included in the supplemental request; obligation of $40 million of the $42 million for Project Advent transferred from the Advanced Research Project Agency; and obligation of $66 million in fiscal year 1960 carryover funds. The category "Other" shown on the chart includes the two appropriations "Operation and maintenance, Alaska communication system," and "Promotion of rifle practice." The $8 million total of these appropriations is all programed to be used this fiscal year. TRAVEL LIMITATIONS Before leaving the discussion of the fiscal year 1961 budget, I would like to briefly mention the fiscal year 1961 travel limitations imposed by the Congress. The President stated in his budget message that the fiscal year 1961 dollar limitation on travel established by Congress for the Defense Department is not sufficient to cover all essential travel costs of military and civilian personnel. He recommended that this limitation for the Defense Department be increased, and that no limitation be imposed for fiscal year 1962. Appropriation directors who follow me will discuss the problems faced by the Army in attempting to adhere to and administer the present travel limitations. FISCAL YEAR 1962 BUDGET I will now discuss the amounts requested for the various appropriations in the fiscal year 1962 President's budget. For reference purposes, I have prepared chart No. 2 showing comparative direct obligations for each appropriation for fiscal years 1960, 1961, and the budget year 1962. The fiscal year 1962 budget totals $10,340 million, exclusive of construction, and is a net increase of $216 million over the planned fiscal year 1961 obligations of $10,124 million. (The information referred to follows:) Mr. SIKES. Does this include the 10-percent cut in the National Guard and Reserves? General DUFF. The fiscal year 1962 request, Mr. Sikes? Mr. SIKES. Yes. General DUFF. Yes. This will support a paid drill strength as far as the 1962 request is concerned of 630,000 men. COST OF INCREASING RESERVE COMPONENT PAID DRILL STRENGTH Mr. SIKES. Do you have at your fingertips the amount of money which would be required if the 10-percent cut on the Reserve components were not inflicted? I would like the record to show it, if it is now available. General DUFF. Mr. Sikes, in the preparation of this budget, as contained in the statement which the former Comptroller of Defense, Mr. Lincoln, has made available for inclusion in the record there is a discussion Mr. SIKES. It would be adequate for our purposes if you would simply give us the amount here so your statement will show that additional information. General DUFF. Yes. It is estimated for the support of the Reserve forces at a 700,000 pay drill strength, the total amount required for fiscal year 1962 would be an additional $187.1 million. Mr. SIKES. Thank you. Mr. FORD. Is that just for military pay, or is that O. & M., all inclusive? General DUFF. Mr. Ford, this is all inclusive. This is in all categories; and by appropriations, sir, it would amount to $33 million in the "National Guard personnel, Army" account; $22 million in the "Reserve personnel, Army," account; $4.6 million, "Operation and maintenance, Army National Guard"; $38.5 million in the "Operation and maintenance, Army," appropriation, and $20 million in the "Procurement of equipment and missiles" appropriation. In addition, $69 million is required to provide a balanced program in fiscal year 1962 and would be distributed to the following appropriations: "National Guard personnel, Army," $1 million; "Reserve personnel, Army," $18 million; "Operation and maintenance, Army National Guard," $9 million; "Operation and maintenance, Army," $15 million; "Military construction, Army Reserve," $14 |