CIVILIAN PERSONNEL IN GERMANY The CHAIRMAN. I think we will now take up the civilian picture. How many people do you now have in Germany on the pay rollUnited States citizen employees? Mr. DRAPER. We have brought Colonel Dubbelde from Germany on this subject. Would you like him to make a short statement first, or do you want to ask questions? Colonel DUBBELDE. I have a short statement, and I can start out with that. The CHAIRMAN. Go ahead. CHRONOLOGY OF CIVILIAN PERSONNEL STRENGTH Colonel DUBBELDE. Prior to World War II, no organization was provided in the Military Establishment nor were any personnel specifically earmarked for military government in occupied areas. Shortly after the entrance of the United States into the war, personnel were recruited and trained in special schools and colleges for duty in military government detachments designed to operate immediately behind a fighting army in liberated countries. The bare nucleus of a staff designed for employment in occupied areas was likewise assembled. In general, all personnel selected for military government duty were inducted in the armed forces. After VE-day, it was anticipated that the Department of the Army would be relieved of the responsibility of military government, accordingly plans were made to convert the military government staff in Germany from military to civilian. In order to give you a picture of the trend of personnel employed in Germany, I invite your attention to this chart. For comparative purposes the latest available personnel strength of the British and French are also shown. The United States zone of occupation contains approximately 17,200,000 Germans and covers 107 square kilometers of territory; the British zone has approximately 22,300,000 Germans and 99 square kilometers of territory; and the French zone has approximately 6,000,000 Germans and 43 square kilometers of territory. PROPOSED CIVILIAN STRENGTH, FISCAL YEAR 1949 The planned civilian strength for fiscal year 1949 is 3,695 people. Of this number, 155 are required to staff our schools for American children. Forty will be used in the office of the Civil Affairs Division primarily in connection with the military responsibility for care of displaced persons, and 3,500 will be used to staff the Office of Military Government and its affiliated agencies, such as the Bizonal Control Office and the Joint Import-Export Agency. The estimates contemplate that all positions will be occupied by civilians. When the budget was prepared, it was assumed that the War Crimes Tribunal in Nuremberg would have completed its mission prior to the beginning of fiscal year 1949, however primarily due to extensions requested by defense counsels, it now appears certain that the last trial will not be completed until September. After the last decision is announced, a small residual force will be required to complete the close-out of all related records. The bipartite organization located in Frankfurt is a joint United States-United Kingdom intergrated operation. Under the terms of the fusion agreement, each participating Government furnishes 50 percent of the necessary staff. As of July 1, 1947, civilian employment totaled 3,469 and military personnel numbered 1,648, making a total employment of 5,117. ANALYSIS OF POSITIONS BY GRADES The estimate of personal services requirements submitted for fiscal year 1949 provided a total of 3,695 positions. Of the total number of positions required, 58 percent, or 2,143 fall in wage brackets the equivalent of CAF-9 or above. Although this appears to be a large percentage of positions in the upper wage brackets, any such analysis. must take into consideration the indigenous personnel employed by military government. It is estimated that 8,000 indigenous employees will be engaged by military government in fiscal year 1949. From 90 to 95 percent of these employees perform duties the nature of which is equivalent to that in grades CAF 1 to 8. The balance are engaged in work of a technical nature which would fall in higher wage brackets were they paid from appropriate funds according to the Classification Act. When the indigenous employees are added to the United States. positions, it will be noted that the ratio of employees CAF-9 or above to total positions, is only 18 percent. It is believed that this percentage compares favorably with other agencies of government in the zone of interior. RECRUITING DIFFICULTIES It has been our experience that the kind of people we want and need are in many instances unwilling to give up a permanent job in the United States for one which they feel is indefiníte. Military government is considered a temporary organization subject to frequent reorganization and reduction in force. There is no assurance of permanency of employment. The expense of moving, estimated at approximately $1,000, the necessity for renting or otherwise disposing of their properties, separation for an indefinite period from friends and relatives, all have a deterring effect on our recruiting program. While every effort is made within the means available to make living conditions as comfortable as possible, many bachelors or those who do not elect to bring their families with them, contrary to their normal living standards at home, must share apartments with two or three other employees. In some communities, due to housing shortages, individuals are often quartered two or three to a room, and often as many as five or six share a community bathroom. The present political situation has created in the minds of some people a sense of fear which may or may not be unwarranted. They at least are unwilling to subject their dependents to an unforeseeable danger and are unwilling to go to Germany without them. Many of our employees come at a great personal sacrifice, both financially and personally. RECRUITING PROCEDURE Military government operates under civil-service procedure as directed by the Secretary of the Army. The normal requirements for 75408-48-pt. 2—12 position classifications, wages, salaries, placement, and training are closely followed. Base-pay salaries are in line with similar positions in the United States. There are many positions in military government that are not covered in Department of the Army civilian personnel standard job descriptions due to the fact that they are peculiar to military government and have no counterpart in the United States. Job descriptions for these positions are carefully drawn up and standards are set along the same lines as those used in the established normal positions. The key positions in military government, especially the advisers and division heads require personnel who in civilian life in the United States, receive salaries from $15,000 to $30,000 or more annually. As a consequence of the $10,000 per year limitation for Government employees in overseas areas, many people who would be willing to accept employment, cannot financially afford to do so and those that have are making great personal sacrifices. INTERN PROGRAM To overcome some of the difficulties in obtaining competent personnel particularly in those fields which have no counterpart in the United States the military governor, in April 1946, established a training program for selected individuals. The purpose of the program is to develop career military government personnel to assure continuity of policy and to offset administrative difficulties encountered in recruiting highly qualified personnel. Graduates of American universities, both men and women, between the ages of 21 and 30, are carefully screened by personnel specialists to determine whether they meet the high requirements established. A superior academic record and evidence of outstanding potential in the fields of economics, political science, finance, and civil government are required. The greater majority of those selected are veterans of World War II. They are appointed with a minimum personnel rating with a salary of $3,306 and must agree to serve a minimum of 2 years. The intern follows a prescribed schedule. His first year is devoted to training, which develops a broad over-all understanding of military government policies and functions. He becomes familiar with all levels of military government operations from the Allied Control Authority down to and including the operations of the liaison and security detachments. The training program is flexible and allows for development of individual lines of endeavor and interest. At the conclusion of the training year, provided his progress has been satisfactory, the intern is assigned to the division the functions of which he demonstrated the greatest capacity. The select standards and surveillance given these interns has paid dividends. Up to the present time, only 1 individual out of 87 appointed has been disqualified. Twenty-four have completed their training year, 40 have completed 7 months in training, 20 have less than 7 months in training, 1 was separated for emergency reasons, and 2 have separated for illness. CIVILIANIZATION OF MILITARY GOVERNMENT EMPLOYEES Early in 1946 the military governor decided to inaugurate a program of civilianization of the military government staff. Since the beginning of the program, to date, 1,257 military personnel, officers and enlisted men (primarily officers), have civilianized and taken posi tions in military government. Most of this personnel continued in the position held by them at the time. Of that number, approximately 1,000 are still with military government. Until February of this year, only military personnel were utilized in the liaison and security detachments. It is now felt that conditions permit the civilianization of that group. During the months of February, March, and April, 418 candidates have been interviewed by a specially appointed board. Two hundred and sixty-six of the personnel interviewed were military, and 152 were civilians whose original positions had been declared surplus. Of the number who appeared before the board, 210 were found qualified of which 122 were military and 88 civilians. Of the number qualified initially, 208 accepted, 144 military and 64 civilians. Subsequently 55 declined. Of those who declined, the majority were military and did so due to the present political situation, because they felt that they should remain in the military service. The others, both military and civilians, declined because they were dissatisfied with the rating and salary offered. In summarizing, I would like to say that every effort is made to operate with the minimum number of personnel and to obtain the highest qualified employee possible. CIVILIAN PERSONNEL IN GERMANY With reference to the trend in our personnel employed in Germany, Mr. Chairman, I call your attention to the large chart giving the personnel, at this point, in May 1946. This shows a downward trend. This shows the number of personnel at that date. The number of British and French, as of December 31, 1947, is something like this [indicating on chart]. The CHAIRMAN. You mean that the over-all personnel is down somewhere to approximately 3,000? Colonel DUBBELDE. It will be down, for the military government, in Germany, it will be at this figure. The CHAIRMAN. By the military government that means what is paid out of this fund. Colonel DUBBELDE. That is right. The CHAIRMAN. That means United States citizens? Colonel DUBBELDE. That is right. The CHAIRMAN. It does not cover indigenous personnel? Colonel DUBBELDE. No; it does not. Mr. STEFAN. How many of those are there? Colonel DUBBELDE. They are not paid in dollars. There will be about 8,000 German employees; and around 3,500 United States citizens. Mr. DRAPER. They are paid by the German Government. Mr. STEFAN. That number has gone down, you say, to $3,000? Colonel DUBBELDE. Three thousand five hundred. This black line indicates the strength at the beginning of May 1946, the total United States personnel, both military and civilian employees, from May 1946 down to December 1946, June 1947, December 1947, and the plan also for the fiscal year 1949; on June 30, 1948, 3,500. The CHAIRMAN. The way that blue appears, offhand it would seem as if it were increasing rather than decreasing. Colonel DUBBELDE. Not in this area, Mr. Chairman. Mr. DRAPER. As you reduce the military they are replaced with civilians, although some of them stay when they become civilians. The CHAIRMAN. You have a great bunch over there who ought to be out. An examination of that list will show all sorts of folks that never ought to have been on the pay roll over there. Mr. DRAPER. I would like to make a statement in that connection, Mr. Chairman, that in view of questions that have been raised, the Department of the Army proposes to get the best personnel officer of one of the big corporations in this country, the best that we can obtain in this country, to go over there as soon as we can get the work lined up, to confer with General Clay and his staff on this whole problem of the type of personnel tests that should be adapted to secure the proper personnel and the methods of procuring that personnel; and another thing, to see whether the present United States civil-service requirements which now apply should appropriately be applied in the interest of getting the best possible personnel. After that study is made, we propose to see if some better way of setting up our own personnel methods can be put into operation in order to improve the caliber and character of the personnel. Mr. STEFAN. Have you got the man picked? That request to get rid of some of them was made a year ago. The CHAIRMAN. The officer personnel is down, but the civilian seems to be up, and the list that I got indicated there were a lot of those people who ought never to have been over there. Mr. DRAPER. We will give him all the technical help he needs, and I am sure he can get the cooperation of the Army staff. Colonel Dubbelde may be able to estimate the number of officers a year ago, 6 months ago, as well as the civilians. Do you have those figures? Colonel DUBBELDE. I do not have them with me. The CHAIRMAN. This does not relate to that item, but have you ever had in a consulting capacity or otherwise a top-notch man in steel making from the United States? Mr. DRAPER. Yes. The CHAIRMAN. And have you ever had a top-notch coal man? Mr. DRAPER. Yes. In the steel section, we had that section headed up, during the first year and a half when I was over there, by Mr. Rufus Wysor, president of the Republic Steel Co. We also had in that section Mr. Peter Martin, of Carnegie Steel, and about five or six other top steel people of this country. Then we had a man from one of the principal copper companies. We also had the vice president of the Aluminum Co. of AmericaI have forgotten his name-in connection with aluminum reparation. matters. Then we had a man from the Anaconda Copper Co., the vice president of Anaconda, a Mr. Kelly. And also another man from one of the big copper companies. There was a group of about 40, and I presume all of them were getting a lot more than we paid them. They went over there on patriotic grounds, practically all of them. Then in coal, we had a Mr. Moses, who was president of one of the big coal companies The CHAIRMAN. Did you have anyone from the Pittsburgh area? Mr. DRAPER. Yes; we had one man who was over there for about 2 |