I hope, in conclusion, that you will see to it that a new look is taken at the armed services budget. I know all of these years that Congress has done all it could do, during the 17 years I have been in Congress. We have allowed money that the administrations did not want allowed, both in the Democratic and Republican administrations. This committee has allowed money. We have allowed more than any of them stated. I think we have done all we can do.

I do hope and pray that those who are now in charge of the Joint Chiefs of Staff and the military services will all take another look and see if there is something else we can do. Mr. Secretary, if there is something else we can do, I am sure this committee is going to be willing to go along and spend the money, and I believe you and others are, too.

That is all.

Mr. MAHON. Thank you for those helpful comments, Mr. Norrell. They are very timely.

Secretary WILSON. On the comments, I might point out that in my statement to your committee I wound up by saying:

For this reason I am requesting the Joint Chiefs of Staff and the military departments, in addition to their regular reviews, to make a special complete and careful evaluation of the size, nature, and composition of the forces likely to be required for the Nation's security during the next 3 years. This longer range study will provide us with a sound basis for planning future procurement and other military programs, which necessarily extend over a period of years, and for estimating future expenditures and obligations. It is an essential step in our continuing efforts to improve the planning and formulation of our defense programs.

I think I would also like to put in the record, if it is all right for me to do that

Mr. MAHON. Surely.

Secretary WILSON. During the early part of December at a meeting with some of his advisers and department heads, President Eisenhower made a statement regarding financial responsibility in Government that impressed me very much and that I would like to repeat for the record and this committee. Here is what he said

Mr. NORRELL. I would like to have that. I still think we are all worried over the fact of what is going on, but I do not know whether we are doing as much about it as we might do.

Secretary WILSON. Well, I pointed out we are going to have a review. Here is what the President said about it:

Budget-making time is always difficult, and expenses are mounting. Nevertheless, no official of this Government is truly performing his duty unless he clearly recognizes that he is engaged in defending a way of life over a prolonged period, unless he is constantly aware of the weight of financial burdens that our citizens are willing and able to bear. Our Government could force upon our citizens defense and other spending at much higher levels and our abundant economy could stand it for a while, but you cannot do it for the long pull without destroying incentives, inflating the currency and increasing Government controls. This would require an authoritarian system of government and destroy the health of our free society. We must, of course, do what we must do to defend ourselves. We must not put dollars above the security of the United tSates. But we must prove, if we are to demonstrate the superiority of our system, that in times of unprecedented prosperity we can pay as we go without passing on intolerable burdens to coming generations. Conse quently every official of this Government must search out places where we can save a dollar which could be used somewhere else where its contribution would be vital. This issue is critical. This doctrine should be remembered and preached in every waking hour by every official of this administration.

Mr. NORRELL. Thank you, Mr. Secretary.
That is all, Mr. Chairman.

Mr. MAHON. Mr. Andrews.

ATTEMPTS TO ABOLISH ARMY AVIATION

Mr. ANDREWS. Mr. Chairman, we have covered most every subject possible, and I have only a few questions for the Secretary.

Mr. Secretary, you have stated that the Army's battlefield mobility. will be improved by increased numbers of helicopters. The Army Aviation School is located in my district in Alabama I hear from time to time that there is an effort being made on the part of officials of the Air Force to abolish the Army Aviation Department. I read one or two articles in aviation magazines to that effect.

Can you tell me whether or not any effort in that connection has reached your office, or is anything being said about it in the Department?

Secretary WILSON. I do not think there is much to it. Some of the "Indians" talk too much once in a while, but I would not worry about

it.

Mr. ANDREWS. The chiefs have not. That is all.
Mr. MAHON. Mr. Riley.

Mr. RILEY. Mr. Secretary, most of the questions that I had in mind have been covered, but I would like to clarify just a few, if you please.

NONOPERATIONAL PERSONNEL

I want to add my commendations to you and your shop for improving the operational forces of the services, but I note that even with the fures you have given us, approximately 1 million out of the 2,814,000 people in the service are nonoperational people. That is a pretty high percentage when the public rather visualizes that everybody in uniform is a combat soldier. So I hope that you can work out a higher percentage of operational forces and continue the good work you have been doing.

REDUCTION IN CIVILIAN EMPLOYMENT

I note that you have reduced the civilian employment here considerably. Is that due to the fact that some of the services are being transferred to private industry, or is it a more efficient operation?

Secretary WILSON. I think I can say it is a more efficient operation. Ten thousand out of 1.2 million is not much progress. I am not bragging about that. I had hoped it would be a little more. But that is all We could subscribe to at this time.

We are looking over this whole problem of the proper utilization of manpower both in the civilian and the military side of it. We are changing some jobs from military to civilian. Once in a while we have to do it the other way. Some work we transfer from Government operated to civilian operated, but it is not a very big thing. It is a gradual evolution; our guiding principle is to put the function where we can do the best job for the country at the least cost. We keep looking at it all the time. That is about all I can say.

Mr. RILEY. Where you transfer these activities to private industry you are able to get a higher percentage of operational forces in uniform?

Secretary WILSON. It usually has that effect. It is in the right direction. It really is a little bit like your question we were talking about a while ago of the training of aviators, and whether you can do it better yourselves or by contracting to somebody else. The decision is based on the result you get for the money you spend.

EARLY WARNING SYSTEM

Mr. RILEY. I wonder if you could tell the committee the progress you are making in implementing the early warning system, either on or off the record. What percentage of the program has been completed, and what is the target date for the completion of the present program? I know that there are areas where the warning system has not been set up.

Secretary WILSON. I cannot give you that information for the record now, but the services can cover that for you later.

I can say this: We have a special problem in connection with the SAGE system. I do not think this is necessarily the committee with which to take it up. Perhaps you read in the papers last fall about a controversy as to whether we could go ahead with it legally under our existing authority. We have to clear that up as promptly as we can in order not to lose time.

AIR NATIONAL GUARD

Mr. RILEY. In the Air National Guard we have what is supposed to be one of our reserves that we could call on in an emergency. I am wondering just what progress has been made to give them modern aircraft. There has been some criticism from the various Air National Guard units that they do not have modern airplanes and, therefore, they would have to be retrained to a large extent if they were called into active service.

Secretary WILSON. I can either work up an answer for you on the record, or if you would ask the Air Force when they come before you they can give you all the details and tell you about the progress they are making and what the problems are. I think they are doing quite well with it.

Mr. RILEY. If you could have somebody put that in the record that would serve the purpose, I believe, sir.

(The information is as follows:)

The Air Force, in the next year and a half, expects to make significant progress in modernizing the aircraft inventory of the Air National Guard. At the end of December 1955 all Air National Guard fighter units were equipped with jet aircraft but only a small number of these aircraft were first-line by Air Force standard. By June 30, 1957, however, 40 percent of the Air National Guard fighter interceptor squadrons are expected to be equipped with first-line jet aircraft, some of which will be brandnew aircraft delivered directly from the manufacturer. All but one of the tactical reconnaissance bomber squadrons, which are now equipped with reciprocating engine aircraft (B-26's) will be reequiped with first-line jet aircraft by the end of fiscal year 1957. The two tactical bomber wings will be reequipped with first-line jet aircraft after June 30, 1957.

Approximately 43 percent of all Air National Guard combat squadrons will be equipped with first-line jet aircraft by June 30, 1957, as compared with a nominal number on December 31, 1955.

FORT JACKSON HOSPITAL AND BLACK HILLS HOUSING

Mr. RILEY. Mr. Secretary, last year Congress made certain authorizations and appropriations which more or less involved policy. In discussing that in this room with Secretary Stevens there were several items I believe included that were not requested by the military forces. One was the housing project up in the Black Hills and the other was a hospital at Fort Jackson. During the discussion Secretary Stevens said that

I would put that a little differently. I would say if the Congress provides the money and tells us to build these that they are going to be built.

I wonder if you could tell me just what the status of those projects that Congress authorized and provided for in the budget is. What is the present status?

Secretary WILSON. There is a review being made of all our Army post, camps, and station at this time. We classify some of them as permanent. These are called forts. We have a somewhat different policy in regard to forts as compared to the camps on the question of new construction, expansion or improvement of facilities, like a hospital or new barracks to replace World War II construction. So that particular one, along with a number of others, is being reviewed now. Mr. RILEY. Could you advise me as to about when a decision will be made, and just what consideration is given to the Congress in view of the fact that the officials last year agreed to take care of the situation after a rather full discussion?

Secretary WILSON. If Secretary Stevens made any kind of a commitment, I would stretch it a bit to carry out the commitment, but I do not feel that I can make a definite statement today, since I am not personally acquainted with all the details involved. I imagine it is going to come out all right for you, but I do not know; it might not. Mr. RILEY. Thank you, sir. That is all, Mr. Chairman.

Mr. MAHON. Mr. Deane?

Mr. DEANE. Mr. Chairman.

Mr. Secretary, I, too, am grateful for your patience, and also for my colleagues across the table, who apparently will not have an opportunity to go through and question you at this particular time.

I noticed this morning we had present Assistant Secretary Gordon Gray, from my State of North Carolina. I do feel that he will make a distinct contribution to the Defense Establisment, and I certainly wish him well.

COMMENDATION OF COMMANDERS IN EUROPE

I recall 3 weeks that I spent in Germany, France, Spain, and England, in August and September 1955 involving studies of the Air Force. I was certainly challenged by men like General Tunner, commander in chief of the United States Air Forces in Europe, and the difficulties that he faces. I talked with General Wilson, commanding general of the Third Air Force, who is doing a great job in England-and at this point I would like to go off the record.

Discussion off the record.)

COST OF OPERATIONS IN EUROPE

Mr. DEANE. Do you feel that we are getting value received for our military expenditures in the European countries and in England? Secretary WILSON. Generally speaking we do. There have been isolated cases where it would not look like we did.

INFLATION

Mr. DEANE. Would you agree that the inflation in Germany and France and also in England is going to have an impact in the increased cost of operations constructionwise in those countries?

Secretary WILSON. Well, inflation always has that effect, no matter what country is involved.

Mr. DEANE. What I am asking is this: Does this budget anticipate increased costs?

Secretary WILSON. Mr. McNeil says, "No." I am not conscious of providing for any important change.

Mr. DEANE. I got the opposite impression from commanders over there, and our joint construction people.

Mr. MCNEIL. The answer, I think, is still no, but all of this forward planning for projects or procurement of major items is always indefinite to 1, 2, or 3 percent, so far as what the cost will be. In the course of actually carrying out a particular project, if you do have a very rapid drop in the value of the currency or a rise in cost, there are some things you could not do. If, however, the change is gradual your plans can be adjusted. It may mean a week's difference in the time in which you accomplish something. In other words, you do not get quite as much done as you had hoped. Or, if the prices go down you get a few little things done that you did not plan on.

However, our budget, since it is expressed in dollars, would permit us to carry out our programs regardless of inflation in other countries. We can generally carry out the whole program without specifically providing for that eventuality.

Secretary WILSON. An inflation over here would be more serious than over there. Mr. McNeil is really saying that as long as our dollars buy their money, and they have an inflation, we get more francs or pounds for our money. If we had a bad inflation in this country, it would hurt the whole world.

CHANGE IN REQUIREMENTS

Mr. DEANE. Referring now to your testimony, Mr. Secretary, and the second paragraph, to which Mr. Sikes referred and which has been mentioned several times, you indicate that

nothing has occurred in the international situation during the past year which would indicate the necessity for any major change *

in your policies and concepts.

Mr. Secretary, I recall when this committee was passing on your previous budget you were asked by Mr. Mahon, our chairman, and several members of the committee, "Does this budget cover your total needs?" By the time you reached the Senate it appeared that our Air requirements indicated there was a gap between policy and program, which resulted in acceleration of the B-52 bomber production.