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on such aircraft, if required by their duties to participate in such flights, may also be credited with a day of exposure to hostile fire.

(b) Duration of hostile-fire criteria.-The individual is entitled to hostilefire pay for each month during which he is entitled to receive basic pay and meets any one of the criteria set for in subparagraph (a) above, for:

(1) A period of not less than 6 days of the month, not necessarily consecutive; or

(2) For 1 or more days during the month included within a period of not less than 6 consecutive days beginning in the preceding month, if there was no entitlement to hostile fire pay for the preceding month.

4. Additional eligibility

Notwithstanding the conditions in paragraph 3, above, an individual is entitled to hostile-fire pay for any month in which he is entitled to basic pay and in which he was killed, injured, or wounded by hostile fire, explosion of a hostile mine, or any other hostile action. If the member dies, hostile-fire pay will be prorated through the date of death. The account of any individual who is hospitalized for the treatment of an injury or wound received by hostile action will be credited with hostile-fire pay during the 3 calendar months following the month in which he was injured or wounded, or until hospitalization is terminated, whichever is earlier.

5. Units eligible

(a) Fleet aircraft squadrons operating in those areas designated as entitlement areas by the Secretary of Defense are considered eligible units and are so designated in accordance with reference (b). Individual members must establish entitlement by meeting the eligibility requirement in paragraphs 2, 3, and 4, above, as applicable, prior to receiving this special pay.

(b) Fleet ships and craft operating within 100 miles of the coastline of areas designated as entitlement areas by the Secretary of Defense are considered eligible units and are so designated in accordance with reference (b). Individual members of such units must establish entitlement by meeting the eligibility requirements in paragraphs 2, 3, and 4, above, as applicable, prior to receiving this special pay.

(c) Other fleet aircraft squadrons, ships, craft, and units that may be engaged in armed conflict will be nominated as eligible units by Commander in Chief, U.S. Pacific Fleet, and eligibility notices will be issued when such nominations are approved. Unit eligibility recommendations for any units not included in subparagraphs (a) and (b) above, will be made to Commander in Chief, U.S. Pacific Fleet, via cognizant operational commanders.

6. Determination of entitlement

(a) The commanding officer, or his authorized representative, will determine which members are qualified for hostile-fire pay. The examples cited in NavCompt Manual 044116 for combat pay entitlement are likewise applicable to hostile-fire pay entitlement.

(b) The commanding officer of members serving with a combat unit at the time of the designation will make determination from available personnel records as to whether they meet the prescribed service requirements. In the cases of members who may be entitled to hostile-fire pay by reason of duty with a combat unit and who are not serving with such unit at the time the designations are published, the current commanding officer will make the determination, based on available personnel records, if the evidence is sufficient. In cases where the necessary personnel records are not available upon which to base a determination of fact, claims will be submitted in accordance with subparagraph (c) below. (c) Former members now separated should be advised to make claim on "Claim for Combat Pay" (DD Form 667) making necessary changes on the form, which will be forwarded to the Chief of Naval Personnel or Commandant of the Marine Corps (Code CDB) for a determination of the periods of duty performed subject to hostile fire. The claim will then be transmitted, in the case of Navy personnel, to the Navy Finance Center, Cleveland, Ohio, or, in the case of Marine Corps personnel, to Marine Corps Disbursing Office, Washington, D.C., for settlement.

7. Substantiation

Credit of hostile-fire pay (HFP) will be substantiated by a military pay order (DD Form 114). Blanket pay record orders may be prepared when a number of individuals are entitled to hostile-fire pay for the same period. The

order should reference this instruction if a unit within the provisions of subparagraphs 5(a) or 5(b) above, is involved, or should reference the combat unit designation authority if another unit is involved, and should list the dates members were assigned and on duty with the combat unit. The applicable dates will be indicated for members killed, injured, wounded, or hospitalized. Hostile-fire pay is subject to income tax withholding but not to FICA deduction.

8. Pay record entry

Separate credit entries are required for each month of entitlement to hostilefire pay, except when a member is hospitalized for injury or wound, in which case the credit entry will be kept open for the entire period of entitlement (3 months or until hospitalization terminated, whichever date is earlier). An entry will be made in item 40 of pay records renewed on January 1 and July 1 showing the periods for which HFP was credited on the old pay records.

9. Reports

Reporting requirements are outlined in reference (c) and are effective as of January 1, 1964.

10. Effective date

For determining entitlement, this instruction shall be effective as of January 1, 1964.

B. A. CLAREY, Deputy.

After issuance of the commander in chief's instruction, it developed that significant differences in interpretation as to entitlement existed both between commanding officers charged with the determination and between higher afloat command levels exercising supervisory control over the program. As a result, Commander 7th Fleet requested Commander in Chief, Pacific Fleet, for definitive clarification. On the basis of that clarification, Commander 7th Fleet advised his subordinate commanders that he considered some of the payments of hostilefire pay which he had reviewed as being made in error.

Subsequently, Commander in Chief, Pacific Fleet, in a dispatch to commander 7th Fleet on December 6, 1964, suspended the authority of commanding officers to make determinations of entitlement to hostile-fire pay. He directed the submission to him at the end of each month of a list of the units considered entitled to hostile-fire pay with supporting justification and advised that no further payments would be made until authorized by Commander in Chief, Pacific Fleet.

The circumstances and actions taken, as outlined above, were reported to the Secretary of the Navy, Chief of Naval Operations, and unified commanders. The Secretary of the Navy then directed that the Navy Inspector General should investigate and report his findings and recommendations. That investigation is presently in progress. Since December 6, 1964, determinations of entitlement to hostile-fire pay have been made by the Commander in Chief, Pacific Fleet.

Mr. ANDREWS. What is the hostile-fire pay?

Admiral SEMMES. $55 a month.

Mr. ANDREWS. The Army has the same type pay?
Admiral SEMMES. Yes.

Mr. ANDREWs. And the same amount?

Admiral SEMMES. Yes, sir.

RESERVE PERSONNEL CATEGORY D

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Mr. ANDREWS. Since we are considering the appropriations for "Military Personnel, Navy," and "Reserve Personnel, Navy," together we should insert at the appropriate place in the record pages 6, 7, 9, and 30 of the justifications for "Reserve Personnel, Navy." Now we have just one or two questions on this matter.

I note that although you budgeted for 8,000 category D officers annual tours in fiscal year 1964, the actual number as shown is 7,568. What is the status of the category D group at this time?

Admiral SEMMES. Through December 31, 1964, 3,384 category D tours for Reserve officers were performed. Full utilization of the re

maining 4,616 authorized tours for this group is planned during the third and fourth quarters of the fiscal year.

RESERVE AIR INTELLIGENCE COURSE

Mr. ANDREWS. A new school tour appears at page 12 of the justifications as an item in 1965 but it was not in the 1965 justifications. What is the 15-day Air Intelligence course?

Admiral SEMMES. The 15-day Air Intelligence course provides for up-to-date training to assure currency of procedures in advanced radar, counterinsurgency, and automatic data processing.

CHANGE IN COSTING OF RESERVE OFFICERS ON ACTIVE DUTY

Mr. ANDREWS. What is the basis for changing the costs of Naval Reserve officers on active duty at headquarters from the "Military Personnel, Navy," appropriation to the "Reserve Personnel, Navy," appropriations for those officers who participate in the preparation and administration of the policies and regulations affecting the Reserves? What does this mean with respect to the promotional opportunities for those men, and is this the policy now being followed by the other services for the same categories of individuals?

Admiral SEMMES. The basis for changing the costs of Naval Reserve officers on active duty at headquarters, who participate in the preparation and administration of policies and regulations affecting the Reserves, from the appropriation "Military Personnel, Navy," to the appropriation "Reserve Personnel, Navy" is the alinement of funding with function. As provided by 10 U.S.C. 678 such officers' promotional opportunities are not diminished but enhanced. This policy is now being followed by all the military services.

Mr. ANDREWS. Thank you, gentlemen.

The committee will stand in recess until Monday morning at 10 o'clock.

MONDAY, FEBRUARY 15, 1965. Mr. MAHON. The committee will come to order. I am going to ask Mr. Lipscomb to proceed for a time with his questions.

UNIFORM RATION LAW PROPOSALS

Mr. LIPSCOMB. General Moore, last Friday I believe there was a statement requested for the record on the delay in the uniform ration law. Do you have that statement for us today?

General MOORE. Yes, sir; I have a statement. It is short. I might read it:

Proposed uniform ration legislation was developed, reviewed by the services and the Bureau of the Budget. On July 31, 1963, the Secretary of the Army, on behalf of the Department of Defense, transmitted draft legislation to the Congress. In March 1964, legislation was introduced as H.R. 10313. Later, it was determined that the committee would defer consideration at that time.

The Department of Defense is now performing a detailed review of all factors involved in obtaining uniformity in military food service.

I also have some stages in that study which I think I need not read. I will put that in the record.

(The information referred to follows:)

In the initial stages of development, there was some delay in determining the best method of establishing a uniform ration. The Army wanted broad authority vested in the Secretary of Defense to prescribe the components of the ration. The Navy and Air Force wanted a specific listing of components in the law, with the authority vested in the Secretary of each Department to establish policies and procedures as to the issuance of the ration. These differences had to be reconciled.

Additional delays were encountered in reconciling differences between the Department of Defense and the Bureau of the Budget. The principal points of difference were:

(1) Whether the components of the ration should be listed in the law or whether the Secretary of Defense should be vested with discretion to prescribe the ration.

(2) Whether operational rations, e.g., in flight, should be issued free to officers and civilians.

(3) Prices of rations sold to officers and civilians.

(4) Cost of the legislation. There was an inconsistency in the cost determinations requiring some reevaluation.

These points of difference required a considerable period of time to resolve, contributing significantly to the length of time required for submission of the draft ration legislation in July of 1963.

SUPERIOR QUALITY OF NAVY RATION

Mr. LIPSCOMB. Admiral Crumpacker, could you answer generally about the superior quality of Navy rations?

Admiral CRUMPACKER. Primarily, this superiority lies in the use of more grade B beef than the other services use. Our costs, on the other hand, are greater for several reasons. We buy bread rather than bake it. We use boneless beef rather than carcass beef. This is a necessity for us because of the large number of small messes the Navy operates in comparison with the other services.

Mr. LIPSCOMB. I believe it was in the testimony on Friday that the Marine Corps is using grade C beef and the Navy is using grade B. Would your answer apply as well to the Marine Corps then?

Admiral CRUMPACKER. Both services allow local option here. With us, local option works out to about 70 percent use of grade B and 30 percent grade C.

General Simpson probably should answer for the Marine Corps. Admiral BENNETT. May I interject one thing?

I think there is some confusion in the legislative authority for rations. Both the Navy and the Marine Corps operate under the same ration law, which is an act of March 2, 1933. The Army and the Air Force, on the other hand, operate under an Executive order of November 23, 1932, Executive Order No. 5952.

The difference in the rations between the Navy and Marine Corps stems basically from this local option under that law.

Admiral CRUMPACKER. And several other things.

Admiral BENNETT. And the size of the messes. There is a legislative difference between the Navy and the Marine Corps on the one hand and the Army and Air Force on the other. It is to this difference that the uniform ration law is addressed, sir.

MONDAY, FEBRUARY 15, 1965.

MILITARY PERSONNEL, MARINE CORPS

WITNESSES

BRIG. GEN. ORMOND R. SIMPSON, U.S. MARINE CORPS, ASSISTANT CHIEF OF STAFF, G-1, HEADQUARTERS, U.S. MARINE CORPS REAR ADM. F. G. BENNETT, U.S. NAVY, ASSISTANT COMPTROLLER, DIRECTOR OF BUDGET AND REPORTS

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