trucks, trailers, jeeps, and other tactical vehicles; amphibious vehicles; the third major procurement of DAVY CROCKETT-a nuclear-capable rocket for frontline troops; several hundred pieces of a new family of self-propelled artillery having greater range and mobility than current types; a substantial quantity of the new 7.62-millimeter NATO-standard rifles and machineguns; and almost $300 million worth of ammunition of all kinds. Obligations for electronic and communications equipment, other than that incorporated in complete aircraft, missiles, and ships, will total almost $1.2 billion in 1962-down $50 million from 1961 but $60 million above 1960. Army and Navy procurement of tactical electronic_and communications equipment will be at about the level of the past 2 years. Procurement of Air Force command and control communications equipment associated with the ballistic missile systems is increasing this year. However, overall Air Force electronics procurement will be less than in 1961 since the SAGE air defense control system, the distant early warning (DEW) line, and BMEWS, etc., will be substantially completed with 1961 and prior-year funds. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION The 1962 budget shows a total of about $4.4 billion planned for obligation under the title of "Research, Development, Test, and Evaluation." This figure compares with about $4.7 billion for 1961 and $4 billion for 1960. Expenditures for this purpose, however, will continue to rise-from about $3.7 billion in 1960 to $4.1 billion in 1961 and to nearly $4.4 billion in 1962. A few major development projects nearing completion of their test and evaluation phase, mainly certain aircraft and ballistic missiles, remain in the "Procurement" appropriations where they are identified as separate budget activities. Adding the amounts for these items to the amounts previously mentioned, total obligations for research, development, test, and evaluation activities aggregate about $5.7 billion in 1962 compared with $6.3 billion in 1961 and $5.5 billion in 1960. The somewhat lower level of obligations for fiscal year 1962 results from a wide variety of factors. Aircraft development-in line with the declining emphasis on manned aircraft-will be somewhat below the 1961 level. The 1962 program includes the development of a new vertical takeoff and landing transport aircraft, a new short takeoff and landing fighter for the Air Force, a new surveillance aircraft for the Army, and the aircraft nuclear propulsion project conducted jointly by the Air Force and the Atomic Energy Commission. Work on the DYNASOAŘ boost-glide rocket vehicle, which is designed to explore the fringes of space in suborbital flight, will go forward at a higher level in 1962. Funds devoted to the development of missiles and related equipment, a major portion of our total research, development, test, and evaluation effort, also decline slightly in 1962. The largest portion of the early development effort on ballistic missiles of all types is approaching completion. However, funds will be provided at about the 1961 level to continue important work related to missiles, including devices and techniques to enable ballistic missiles to penetrate possible enemy defenses. Substantial funds will continue to be provided for the development of the POLARIS missile, including the longer range A-3 version. This latter development will enable all of the POLARIS submarines, including those already in service, to be deployed with greater flexibility and will increase their target coverage. Development work will also continue on the long-range, air-launched ballistic missile, SKYBOLT, with funds provided in 1961, and further development effort will be devoted to the air-to-surface tactical support missile, BULLPUP. About a quarter of a billion dollars will be provided to continue the development and testing program for the NIKE-ZEUS anti-missile-missile, culminating in full-scale system tests in the summer of next year. Substantial funds will be devoted in 1962 to the continued development of the solid fuel, tactical missile, PERSHING. Work will be pressed forward on a new, highly mobile surface-tosurface missile to increase the shorter range firepower of battle groups in the combat area, as well as on MAULER, a surface-to-air missile for air defense of the forces in the field. Again this year, a large and diversified program of research on antisubmarine warfare will be carried forward. The Navy's development program includes surveillance systems and continued work on the SUBROC antisubmarine weapon. Military space and satellite development activities are rapidly rising in importance and in 1962 will rank as one of the largest categories within the research, development, test, and evaluation title. Substantial funds are provided for · 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: Army. Air Force... OSD (including $165,000,000 for the Advanced Research Projects Agency) The $43,423 million of direct obligations will provide: $10, 530, 500, 000 12, 237, 000, 000 17, 881, 400, 000 1, 341, 445, 000 $10, 593, 500, 000 12, 802, 000, 000 18, 705, 905, 000 1, 321, 445, 000 $10, 073, 000, 000 12, 078, 000, 000 19, 344, 000, 000 1, 415, 000, 000 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 stability second to none. NEW OBLIGATIONAL AUTHORITY AND EXPENDITURES, FISCAL YEAR 1962 President's budget estimates compared with initial service submissions and planning objectives [Millions of dollars] 1 Less than $500,000. Subsequent to the initial submission, Navy submitted an amendment in the amount of $8,500,000. Includes $22,000,000 to cover funding of the Defense Communications Agency. In the President's budget, this item is included in Army appropriations. Retired pay, Department of Defense. 895 895 Proposed for later transmission: Retired pay, Department of Defense.. 31 Promotion of rifle practice, Army. 1 1 Operation and maintenance, Alaska Communication System, Army. Salaries and expenses, Secretary of Defense. Contingencies, Department of Defense. Claims, Department of Defense. Salaries and expenses, Court of Military Appeals, Department of Defense. Defense.... Miscellaneous expired accounts, Army. Operation and maintenance, Olympic winter games, Department of Miscellaneous expired accounts, Navy Miscellaneous expired accounts, Air Force. Miscellaneous expired accounts, Office of Secretary of Defense.. Total, title II, operation and maintenance... Salaries and expenses, Advanced Research Projects Agency, Department of Defense. Emergency fund, Department of Defense.--- Total, title IV, research, development, test, and evaluation.. See footnotes at end of table, p. 13. |