surplus property list will be carefully screened to insure that usable property only is moved from Morocco to Spain. Lumber, reinforcing steel, pipe, rockcrushing machines, asphalt and cement plants are available from this surplus stockpile.

6. Indigenous type construction will be used, based on United States Air Force and Navy standard functional plans. It is believed the standard Spanish masonry construction will provide a better type structure at lower costs than the United States Air Force standard 10-year life, frame-type construction in the United States or the costly prefabricated buildings shipped in from the United States or central Europe. Prefabricated buildings will be used only where one or more moves to new locations are anticipated or where buildings. which can be quickly erected must be stockpiled for emergencies.

7. Available prepared plans and specifications will be adapted and used, insofar as practicable. Such data is being collected from military construction sites in France, Germany, Tripoli, the United States, and other areas. A substantial savings in design costs and planning time will result. Much of the planning work by the architect-engineering firm is being done right in Spain, a very effective and economical arrangement in that necessary supporting information as well as services of missions, Spanish officials, and others, are readily at hand.

The architect-engineer group selected in early December 1953, to prepare the plans and specifications is composed of four American firms, namely: Shaw, Metz, & Dolio, Chicago, Ill.; Frederic R. Harris, Inc., New York City; Metcalf & Eddy, Boston, Mass.; Pereira & Luckman, Los Angeles, Calif.

8. Under the first phase construction program, on-base family housing will be limited to five houses for the base commander and key members of his staff. Housing for other permanent employees with dependents is being explored. A number of American business firms with blocked pesetas are interested in building or financing construction of housing or purchasing suitable existing housing provided they are paid rents in dollars under a 5- or 10-year guaranteed rental contract. Very little suitable housing is available in communities where some of the bases are to be located, while in larger cities like Madrid, a serious problem exists because of the spiraling of rental prices. Housing units, which under Spanish control ceiling range around $25 per month, are being boosted to $100 and $125 per month, and the best class dwellings under control ceilings of about $60 to $80 per month are being held for from $150 to $300 per month. A small unit of the military group is planned in order to centralize dependent housing requirements with the Spanish authorities. No major rental problems exists at present as only personnel essential to completion of site plans, specifications, estimates, and so forth, will be in Spain for the next few months.

9. Wherever possible it is planned to use available civilian facilities, utilities, and services in the vicinities of United States installations. A study will be made to determine what is available, such as hospital facilities, warehousing, water, electric and gas supplies, refuse disposal, laundry and dry-cleaning services. New hospitals have been built in many of the communities near projected sites and their bed capacity exceed local needs. Because of seasonal water shortages and the fact that electric current in Spain is 50 and not 60 cycles it may be advisable to install onbase generating plants and water systems.

Use of existing Spanish facilities at the projected airbases, excepting the control towers and portions of present runways, is limited; they are needed to support their own command and operating forces. It is planned, therefore, to construct all United States facilities in an area separate from the existing facilities. 10. Contractors' facilities (camps) will be located, designed and built insofar as practicable at the proposed sites in a way to insure their maximum usefulness to base activities, after the contractors have finished with them. Savings should result by adhering to this policy.

QUESTION OF CRASH PROGRAM

Senator FERGUSON. I notice the first one that is there is no crash program should be allowed.

Senator CHAVEZ. That is right,

Senator FERGUSON. Can you classify a project where you do not even have the plans and specifications and ask for the money as not being a crash program?

Mr. FERRY. Sir, we do not intend to build until we have plans. We have no intention of building until the plans are developed. It is imposible to build properly without them.

Senator CHAVEZ. It was the crash program in Morocco that got them in trouble. There at Sidi Slimane, they wanted a runway so fast they forgot to investigate the soil and just put a runway down. Inside of 30 days the thing buckled up and they had to dig it away and rebuild it.

Senator THYE. Mr. Chairman, there is $40,232,000 that is presented in this appropriations item for the projects in Spain with individual projects listed here which totals up to that amount of $40,232,000. There is some progress insofar as what your plans are. Of course, we are trying to get the information relating to those projects, and what steps you have taken, and in which manner you propose to take them.

Senator HAYDEN. What part of your total estimated expenditures in Spain will $40 million be?

ESTIMATE TO COMPLETE JOB

Mr. FERRY. We expect that the total job will finish up about $200 million. This is based on preliminary estimates with no actual plans yet prepared on which to get complete details.

Senator HAYDEN. Nevertheless, you could not do anything unless you had some authorization to work on.

Mr. FERRY. That is right.

Senator THYE. If I may interrupt, that is Air Force only?
Mr. FERRY. Yes.

Senator THYE. Then you have your Navy installations which are down at the coastline, and besides that you have your other installations on the eastern coast.

Mr. FERRY. Yes, sir; I could get you an answer on the Navy estimate.

Senator THYE. Pardon the interruption.

Senator HAYDEN. $40 million was the total estimated cost before we get through. Certainly it is reasonable to ask for a certain portion of this money out of $200 million.

Senator THYE. If we had the total of both Air, Navy, and all installations, it would be how much?

Admiral PERRY. Navy will run $77 million total.

Senator THYE. And the Air Force?

Mr. FERRY. $200 million. These are approximate estimates of the Air Force.

Senator THYE. So you have $277 million, and the other figure was $261 million that was first given.

SELECTION OF SITES

Senator FERGUSON. Could I inquire as to who now has the responsibility of fixing the sites of these airports?

Mr. FERRY. The responsibility for selection of the sites will rest with General Kissner after the detailed investigations of the architectengineers have been made as to the suitability of the sites tentatively selected.

Senator FERGUSON. What we want to know is this: Are we going to get what we got in North Africa? That after you determine a site, you go ahead, move the equipment in, and then you decide you are not going to build?

Mr. FERRY. Very definitely not.

Senator FERGUSON. What assurance are we going to have here that before we start these programs we are going to be certain that is where the site is to be?

Mr. FERRY. We will have had a determination of soil conditions, of layouts, of complete plans on which we intend to build, of a full determination of the conditions under which we will have to build, before a final selection and determination is made to go ahead with any of the work. We are not going to build things until we have plans and know we can build them and know what it is going to cost.

COST OF PLANS

Senator FERGUSON. How much money do you need for plans?

Mr. FERRY. Plans, sir, will probably cost us, would you say a million projects.

Admiral PERRY. Five percent of your total estimated cost of the projects?

Senator FERGUSON. Will these be drafted by the military or will these plans be drafted by outside private enterprise?

Mr. FERRY. By private enterprise architect-engineers who have been hired for the job.

Senator ELLENDER. Five percent of $270 million?
Admiral PERRY. That is about right.

Senator FERGUSON. You mean the plans on runways run 5 percent of the cost?

Admiral PERRY. The plans and engineering investigations will run approximately 5 percent of the estimated cost of the construction.

SELECTION OF ARCHITECTS

Senator ELLENDER. How are those people employed who do this work?

Admiral PERRY. In my Bureau we have a contract with four architect-engineering concerns. Metcalf & Eddy of Boston, Frederic R. Harris, Inc., of New York, and Pereira & Luckman of Los Angeles. Senator ELLENDER. How were they selected?

Admiral PERRY. A board consisting of the officers of the Bureau of Yards and Docks and officers of the Air Force Installations Office jointly reviewed the records of any number of architects throughout the United States, and finally came up with this selection.

Senator ELLENDER. Is your contract with each of them to pay them as much as 5 percent of the cost?

Admiral PERRY. No, sir, it is not.

Senator ELLENDER. Why do you say it is 5 percent?

Admiral PERRY. Because in the final analysis, Senator, we know that plans and specifications cost you 5 percent of the estimated cost of the work.

Senator ELLENDER. How about engineering?

45111-543

Admiral PERRY. That includes the engineering.

Senator ELLENDER. Architect and engineer.

Admiral PERRY. That is right. That is why we use the term "A. and E", architect and engineer.

Senator ELLENDER. When these plans are finished, your prime contractor takes them over?

Admiral PERRY. That is correct.

Senator ELLENDER. On whatever estimate is made he is paid a certain fixed fee?

Admiral PERRY. Yes, sir, that is correct.

Senator ELLENDER. Is this fixed fee based on a percentage of the estimated amount?

Admiral PERRY. Yes, sir.

Senator ELLENDER. As you stated a while ago on 2 or 3 occasions, if the cost is in excess of the estimate, he gets his fee only on what the estimated costs are?

Admiral PERRY. That is all he gets, yes.

Senator FERGUSON. To clear up that other item, section 550 (a).

FURTHER DISCUSSION OF AGRICULTURAL SURPLUS

Senator MCCARTHY. Mr. Chairman, I would like to revert back to a subject that you were on when I came in, if I could, for 1 or 2 questions unless you have already gone into this. I do not have a picture of who is handling the disposal of the surplus. Is the FOA handling that or the military handling that?

Mr. FERRY. You are talking of the agricultural surplus?

Senator MCCARTHY. Yes.

Mr. FERRY. That will be handled by the Department of Agriculture, according to my understanding.

Senator MCCARTHY. Will the ECA, or I guess you call it the FOA now, have anything to do with that or would you know?

Mr. FERRY. I cannot answer. I do not know.
Senator FERGUSON. I might clarify 550 (a):

Not less than $100 million and not more than $250 million of the funds authorized to be appropriated under this act (the Mutual Security Act) shall be used directly or indirectly to finance the purchase of surplus agricultural commodities or products thereof produced in the United States.

This act we are talking about in section 550 has nothing to do with the bases in Spain. This is directly under the Air Force.

Senator MCCARRAN. This is not under that plan at all.
Senator FERGUSON. That is right.

Senator MCCARRAN. Mr. Chairman, may I ask you, as chairman of the Subcommittee on Armed Services, would you care to comply with the request that I have made, that either a subcommittee be appointed, or that your subcommittee take up a study or investigation of this matter that I have raised here today?

Senator FERGUSON. I will take up with the Senator from Nevada. his question of the Armed Services Subcommittee looking into this, but I think General Kissner should come back because we need him on the other program anyway.

Senator MCCARRAN. I think Colonel Dole is his assistant.

Mr. FERRY. Yes.

Senator MCCARRAN. He should also come back.

Senator THYE. If you bring those gentlemen back here, you will get a very thorough explanation of every step that has been taken to date. Speaking about General Kissner, having spent the day with him, I was very, very favorably impressed with him. He knew what he was talking about. He also seemed to indicate a certainty as to what he would have to have as information about these installations before he proceeded to make any further plans or arrangements. Mr. Chairman, while we are on this question

Senator MCCARRAN. Before you go further, I want to say that specifically-I have seen General Kissner-the expression that I quoted him was not made to me. It is merely rumor or report that I have received. I want that understood.

Senator THYE. That is why I was very much surprised, because he did not leave that impression when you were with him that he would ever dispose of any question in that manner. I think, however, that insofar as the surplus agricultural question is concerned, the State Department from the diplomatic arrangements with the Ambassador over in Spain through the Department of Agriculture will have to solve the question of how they work this surplus commodity into the financial program.

Senator CHAVEZ. Neither the Navy Department nor the Air Force could deal with the Spanish Government.

Mr. FERRY. We can only use moneys that are made available to us. We cannot deal with other things that are beyond our sphere of action.

Senator THYE. Exactly. It is the State Department and the Department of Agriculture in conjunction with the Ambassador in Spain that will resolve how to handle that, and you get the credit in the form of local currency which will come from that.

Senator McCARRAN. That is correct.

Mr. FERRY. That is correct.

MATERIAL AND SUPPLIES IN MOROCCO

Senator THYE. That would be my guess. Senator McCarran, we have one other question here, and that then is this: You have disposed of how you will handle the equipment that is in Morocco, but the material or supplies that are there we have never had an explanation of how you propose to handle that and work it into the installations in Spain.

Survey

Mr. FERRY. Let me see if I can clarify that for the record. team composed of the Bureau of Yards and Docks office, the prime contractor, the Air Force, and the Corps of Engineers will make a survey of the materials presently stored and serviced in French Morocco to determine whether or not they are sufficiently in good condition to be utilized for the Spanish construction.

Such of those materials as are in good condition and are indicated for the type of construction that we have in mind will be then earmarked for the Spanish project, and will be transported into Spain, and put down in Spanish store locations on our construction sites. The costs involved in this will be a transfer on the books at its present value, the depreciated value, plus the cost of transportation to the site in Spain, and will be charged against the construction in Spain.