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(c) Accommodation of vessels of the Reserve Fleet.

These projects are required to develop the repair facilities commensurate to the magnitude of the program as visualized for the fiscal year 1946 and includes the rearrangement and conversion of the various yards and stations to increase the repair output and to provide those additional facilities found necessary in the present operations of the yards. There is included under this heading an item of $99,850,000 to provide berthing and maintenance facilities for inactive ships. These consist of piers, wharves, services, shop facilities, and limited custodial housing for ships placed in inactive status so that they can be properly maintained for instant recommissioning Fleet training facilities, amphibious and operational, $12,000,000.

The projects provided under this heading are based not upon an expansion of the training facilities but upon expected changes to be made in the methods of training brought about by the development of new weapons and the changing technique of combat. The successes of our Navy over the Japanese have been due largely to our better developed weapons and our superior training in the use of these weapons. It is considered essential that all personnel entering the combat area have the best and most up-to-date training that it is possible to provide. Aviation facilities, $59,416,500.

During the current fiscal year and in previous years it has been necessary to forego the construction of many important facilities, because of limitations of material and labor markets. Projects in the present bill will round out the stations with facilities necessary for increased efficiency of operation, but which it has not previously been possible to provide. Some of the facilities now required are needed to replace construction accomplished under pressure during the early days of the war from materials that have not withstood the test of time. The changes in the character of warfare, including jet propulsion, rocket projectiles, and greater emphasis on night fighting and air support of ground troops, require additional facilities for both operational and base training: Lessons learned from combat experience require constant change in technique. Such changes are rapidly reflected in shore facility requirements and the program submitted bythe Navy Department is based on the fulfillment of these requirements. Storage facilities, $19,950,000.

The projects submitted under this heading are those considered by the Department to be absolutely necessary to take care of storage and warehousing of supplies and equipment which must be kept in stock and readily available for shipment to various units of the fleet and shore establishments as the needs arise. It is essential that adequate storage facilities be provided, so that no lack of material and supplies will exist at times when they are critically needed. The provision of storage facilities is a constantly changing problem and continuous supervision is maintained to make the most efficient use of existing facilities as well as to anticipate future requirements. Marine Corps housing and training, $14,190,000.

The construction projects under this heading during 1946 are necessary to provide the essential training and housing facilities to keep the Marine Corps in the best possible fighting trim and to develop a unit

ready in all respects to meet the enemy. The items submitted have been examined thoroughly by the Commandant of the Marine Corps and have been sent to the committee as being essential for training activities of the Marine Corps for the coming

fiscal year.

Ordnance facilities, $65,500,000.

The items presented to the committee under this heading fall into four general groups; namely, research, production, storage and handling, personnel. The scope of these groups may be summarized as follows:

(a) The need for additional facilities or completing new facilities for the development of new and novel ordnance and improvement of existing ordnance designs.

(6) The need of increase in production facilities for new types of ordnance and the need for alteration of production facilities to improve safety.

(c) The need of increase in storage facilities to keep the material reserve for the maintenance and replacement of naval ordnance in service, including battle damage replacements, and the ammunition for the increase both in number and type of weapons and to provide an enlarged supply line to keep an adequate flow of this material. This category likewise includes such items as improvements in rail facilities, transfer depots, and the like.

(d) The need to increase personnel housing and recreational facilities in isolated areas and to obtain facilities enabling replacement of personnel by mechanized equipment in the face of dwindling civilian manpower and because of heavier production and distribution demands.

Each item included in this category has been thoroughly screened by the Chief of the Bureau of Ordnance before submission in this bill. The Chief of the Bureau of Ordnance has stated to us that each item in the bill is considered essential for the effective and efficient prosecution of the war. Some of the items presented, for example, ammunition storage, were couched in general terms because the Bureau of Ordnance, while foreseeing the need for storage in the capacity set forth, cannot at this time determine precisely where the storage should be constructed nor the exact type of buildings which would be required. Nevertheless, the experience of the Bureau indicates definitely that the funds requested are necessary to meet the present program. Personnel training and housing facilities, $40,022,000.

The items included in this category have been determined by the Bureau of Personnel to be essential and are as modest as possible to carry out its mission of housing and training of the officers and men of the Navy. The items submitted are those necessary to round out existing installations and to provide minimum requirements for rebabilitation and retraining of personnel returning from combat and for housing of families of naval personnel. The maintenance of morale among persons serving in naval forces is dependent upon the provision of housing for families in localities where such accommodations do not exist. This need is especially acute on the west coast. The rehabilitation of personnel suffering from malaria, filariasis, and battle fatigue is an important project and vital if such personnel is to

be returned to normal usefulness either in military or civilian life. The authorization requested is a minimum one but essential to the preservation of morale. Hospital facilities, $28,519,000.

The estimates submitted by the Bureau of Medicine and Surgery for inclusion in this bill embrace major repairs to the existing naval hospital plant, the provision of additional facilities in connection with the rehabilitation program for patients and the acquisition of an additional 10,000 beds to provide a total of 90,000 beds in the continental Navy hospitals at the end of the fiscal year 1946. Shore radio facilities, $3,230,000.

The projects included under this category contemplate a continuation of the program started last year and the items submitted are toward this end. The items include facilities for precision frequency measurement and control of naval shore transmitters, for aeronautical communications and safety devices involving electronic applications, and for preparation, storage, and shipment of communication publications. Other projects, though important, have had to be held up for lack of engineering talent to process them. These projects are included in the requested estimates and are designed to develop the shore communication services to a high point of efficiency. Naval Research Laboratory, $225,000.

The items submitted under this heading are to provide housing for scientists and other technical personnel in the Naval Research Laboratory now located on the Chesapeake Bay, where suitable housing does not exist and where it is essential that adequate housing be provided to properly house the high-grade technical and scientific men now engaged in technical research. Miscellaneous structures and facilities, $41,265,000.

The items submitted under this heading are those essential to the upkeep and maintenance of the shore establishment including power, sewer, water, fire protection, communication, and other miscellaneous facilities not covered specifically in other categories and which are essential to the satisfactory operation of the naval shore establishment. These projects vary greatly in magnitude and are required to meet changing conditions and to provide for 'unforeseen failure in services wherever they may occur. Advance-base construction, material and equipment, $986,000,000.

These funds are required to provide the necessary material and equipment for overseas construction where the combat areas may exist or be extended. The importance and character of this program are emphasized in the statement of the Vice Chief of Naval Operations, which appears previously in this report.

The total of the bill as reported is $1,500,549,500.

The committee beld extended hearings on this bill and it developed that the Navy Department felt that after careful consideration of its needs for public works, the sum of $1,500,549,500 was the minimum figure which would permit it to successfully prosecute the war. was further developed that this figure was submitted to the Bureau of the Budget for approval and was approved by them in the total amount requested. The committee has carefully considered each item enumerated in the bill and has accordingly reported out the sum above mentioned.

The committee considers that the Navy Department has fully justified each item and the committee has considered most carefully each item before giving its approval.

The following letter from the Secretary of the Navy, addressed to the Speaker of the House of Representatives and transmitted by him to the chairman of the Committee on Naval Affairs, House of Representatives, setting forth the views and recommendations of the Navy Department with regard to this bill, is hereby made a part of this героrt.

DECEMBER 26, 1944. Hon. Sam RAYBURN,

Speaker of the House of Representatives, Washington, D. C. MY DEAR MR. SPEAKER: There is transmitted herewith a draft of a proposed bill to authorize the Secretary of the Navy to proceed with the construction of certain public works, and for other purposes.

The purpose of the proposed legislation is to authorize the appropriation of $1,515,623,000 for the establishment or development of naval shore activities in addition to those presently authorized, necessary to meet the requirements of the various bureaus and offices in support of the war effort. These projects have received the careful consideration of each individual bureau and the bureaus have certified that all of the work requested is essential to the prosecution of the war.

The funds for which authorization is sought will, in part, further extend existing facilities believed necessary by the Nayy Department to keep pace with the vastly expanded operation program. The various items for which authorization is sought by this proposed legislation, and the approximate amounts that it is estimated will be expended, are as follows: (a) Shipbuilding, repair, and laying-up facilities.

$230, 222, 000 (6) Fleet training facilities, amphibious and operational.

12, 000, 000 (c) Aviation facilities.

74, 500,000 (d) Storage facilities ..

19, 950, 000 (e) Marine Corps housing and training.

14, 190, 000 Ordnance facilities.

65, 500, 000 (9) Personnel training and housing facilities

40, 022, 000 (h) Hospital facilities ..

28, 519, 000 (0) Shore radio facilities.

3, 230, 000 6 Naval Research Laboratory,

225, 000 (k) Miscellaneous structures and facilities

41, 265, 000 © Advance base construction, material and equipment... 986, 000, 000 Total..---

1, 515, 623, 000 Provision is made in the proposed legislation for varying the approximate costs of the several classes of projects enumerated either upward or downward, but the total cost of the projects authorized is not to exceed $1,515,623,000. The proposed legislation also directs the Secretary to transmit to the Congress, not less frequently than every 60 days, a full report of all acquisitions of land, by lease or otherwise, effected under the authority of the act.

The ultimate cost to the Government of the enactment of this proposed legislation, if the intended appropriations are subsequently made, will be $1,515,623,000.

The Navy Department recommends enactment of the proposed legislation.

The Navy Department has been advised by the Bureau of the Budget that there would be no objection to the submission of this proj legislation to the Congress. Sincerely yours,

JAMES FORRESTAL. Enclosure.

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