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sure combat serviceability of Army-owned materiel through depot level maintenance and related engineering services, to include field support. The program seeks to improve and maintain materiel readiness by extending the usefulness of equipment in the authorized Army inventory and is accomplished by overhauling unserviceable economically repairable equipment, providing technical assistance and maintenance publications to the using units, utilizing maintenance engineering from the design stage of the equipment throughout its useful life, and providing capital equipment to depot maintenance facilities to insure that overhauled equipment will perform in accordance with existing specifications.

MEDICAL ACTIVITIES

The recommended program includes approximately $380.1 million for the budget activity entitled "Medical activities." This activity provides for medical, dental, and veterinary support of the Army worldwide, with the exception of facilities located in Vietnam and Thailand which are financed through the previously mentioned activity, "Operating forces." Medical service activities include base operations, the Office of the Surgeon General, patient care in Army facilities, health benefits in non-Army facilities, medical training, Armed Forces examining and induction stations, and other medical activities. During fiscal year 1970 it is estimated that this activity will provide 8.3 million patient-days of care, an estimated 23.9 million patient visits to medical clinics and 7.7 million dental treatments.

ARMY-WIDE ACTIVITIES

The recommended program includes approximately $860.3 million for the budget activity entitled "Army-wide activities." This account supports a variety of activities essential to overall command and administration of the Army to include departmental and major field command headquarters, recruiting, and the operation of examining and induction stations, processing of incoming military personnel, morale and welfare services, education of dependents overseas, finance and audit services, communications and pictorial services, intelligence activities, and services for the Department of Defense. The Department of Army overseas dependent education program has 120,900 students, including 4,900 reimbursable, at an annual per capita cost of $683. Funds provided for communications include the operation of the Strategic Army Communications System, the Army's portion of the Defense Communications System.

ARMY RESERVE AND RESERVE OFFICERS TRAINING CORPS

The recommended program includes approximately $127.3 million for the budget activity entitled "Army Reserve and ROTC." This activity provides direct support funds for the operation and maintenance of the U.S. Army Reserve and the Reserve Officers Training Corps to include the employment of civilian personnel, operation and maintenance of facilities, supplies and materials, procurement and maintenance of equipment, and support of year-round and summer training. The Army Reserve troop unit program for fiscal year 1970 has an average strength of 256,264. The senior division of the ROTC will have a beginning enrollment of 150,400 students and an estimated

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17,523 second lieutenants are expected to be commissioned from the program at the end of fiscal year 1970.

UNALLOCATED REDUCTION

The sum of $31.1 million of the recommended reduction has not been allocated to the various budget activities.

OPERATION AND MAINTENANCE, ARMY, 1966

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The committee recommends a language provision to liquidate these deficiencies incurred during fiscal year 1966 pursuant to section 3732 of the Revised Statutes (41 U.S.C. 11).

OPERATION AND MAINTENANCE, NAVY

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The committee recommends an appropriation of $5,129,200,000, an increase of $91,900,000 over the House allowance, a reduction of $194,500,000 in the revised budget estimate, and a reduction of $247 million from the 1969 appropriation.

House reductions concurred in by the committee are as follows:

Withdrawal of forces from Southeast Asia..

Inactivation of ships and aircraft.

Reduction of civilian employees.

Automatic data processing operations_

Communications operations..

Intelligence operations..

Management studies..

Service support contracts..

Public affairs, relations, and information_

Headquarters operation and administration_

Project Transition__.

Operation Deepfreeze..

Helicopter pilot training..

Pilot training---.

Subtotal-.

$35, 000, 000

86, 000, 000 50, 000, 000

30, 000, 000

12, 000, 000

8, 300, 000 4, 000, 000 15, 000, 000 400, 000 20, 000, 000 1, 500, 000 1, 200, 000

10, 000, 000

13, 000, 000

286, 400, 000

Additional changes recommended by the committee follow:

Deletion of funds for CENTO International Military Headquarters.

Additional funds for overhaul of 4 Polaris submarines.

Subtotal net changes.--

Total reductions (net)...----

-$100, 000 +92, 000, 000

+91, 900, 000

194, 500, 000

The recommended disallowance of $100,000 for the SEATO Headquarters is in accord with the recommendation of the committee with respect to funds requested for the various military international headquarters. See page 5 of this report.

The recommended increase of $92,000,000 represents the costs funded under this appropriation for the overhaul of four Polaris submarines, in lieu of conversion for the Poseidon missile. See page 7 of this report.

HELICOPTER PILOT TRAINING

The committee feels that military pilots should be afforded the maximum training opportunities to assure their desired performance of duty, thus, the military service is most capable of determining if fixed-wing instruction should be given prior to helicopter training.

This appropriation maintains the current combat readiness of the naval forces. This includes the carrier striking forces, submarine forces, antisubmarine forces, amphibious forces, and the operating and maintenance costs of the shore establishment, which provides for supply, repair, training, and other support services.

A 3-year summary of major military and naval forces follows:

SUMMARY OF MAJOR FORCES, FISCAL YEAR 1968-70

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1 End fiscal year 1970 data reflect the force levels projected in the President's fiscal year 1970 budget as amended Apr. 15, 1969.

PROGRAMS AND ACTIVITIES

The budget programs and activities included in the appropriation are discussed below. The sums referred to are intended to reflect the magnitude of the various activities and programs and are not to be considered as specific recommendations.

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The recommended program includes approximately $1,860.6 million for the budget activity entitled "Operating Forces." This activity

provides for the operating and maintenance costs of the operating forces and shore activities of the Atlantic Fleet, Pacific Fleet, U.S. Naval Forces, Europe, and the Marine Corps air stations. Four major categories of the program are operation and maintenance of the active fleet, flight operations, active fleet ship repairs and Naval Shore Establishment activities that support the operating forces. Operation and maintenance of the active fleet includes ships supplies and equipage, ship propulsion fuel and utility services, fleet personnel travel, construction battalions, Project Deepfreeze (Antarctica) and facility maintenance costs. The flight operations program provides for the fuel, oil, consumable supplies and other direct support for the Navy and Marine aircraft assigned to the active fleet. The ship repair program includes both scheduled overhaul and nonscheduled and emergency repairs. The overhaul of four Polaris submarines is also included. The committee feels that the morale and retention rate of Navy personnel is of paramount importance and recommends that ship repair work be performed in, or as near as possible to, the home port of the vessel, since many of the ship's personnel will have families living in the area.

LOGISTICS SUPPORT

The recommended program includes approximately $2,295.1 million for the budget activity entitled "Logistics Support." This activity finances operations of the Navy's supply system, rework and overhaul of aircraft and weapons and a wide range of technical engineering and logistics programs supporting naval forces.

MEDICAL SUPPORT

The recommended program includes approximately $203 million for the budget activity entitled "Medical Support." This activity provides funds for various medical support functions, including hospitalization and outpatient care of active duty personnel and other eligible beneficiaries in naval hospitals and nonservice facilities. Also provided are the professional education and training of medical department personnel at naval and civilian institutions, the care of the dead, and the operation of the Bureau of Medicine and Surgery. During fiscal year 1970 it is anticipated that the Navy medical activities will have an average daily inpatient load of 14,094, provide care for 7,749,315 outpatients, and render 23,325,325 outpatient services.

TRAINING AND MILITARY PERSONNEL SUPPORT

The recommended program includes approximately $264.9 million for the budget activity entitled "Training and Military Personnel Support." This activity provides for the indoctrination for recruits and officer candidates; military training in a variety of technical and operational skills for officers and enlisted personnel; professional education in scientific, engineering, and management curriculums; procurement and distribution of personnel; various morale-building services; and elementary and secondary education for all eligible minor dependents authorized to accompany military and civilian DOD personnel to oversea duty stations in the Atlantic school area. The new Naval Training Center at Orlando, Fla., is operational with the first recruit class having graduated in December 1968. This new boot training camp has helped to alleviate serious overcrowding problems of recent years.

The fiscal year 1970 Navy overseas dependent education program plans to support 6,300 students in seven Navy-operated schools and 9,200 students in tuition-fee schools, with 7,400 of these attending Canal Zone schools.

RESERVE FORCES

The recommended program includes approximately $88.6 million for the budget activity entitled, "Naval Reserve." This activity provides funds for supplies, equipage, fuel, and utilities required for Reserve training ship operations, including destroyers, escorts, minesweepers and patrol craft. Also included are scheduled overhauls and nonscheduled repairs needed to maintain the ships in a state of material condition which will enable them to be employed with the active fleet in event of mobilization. The program also provides for aviation Reserve personnel to insure complete combat-ready, fleet-size squadrons, fully equipped with aircraft, aircrews, and support personnel, and trained pilots, crewmen, and support personnel who are capable of augmenting fleet aviation units to full mobilization complements. The activity also supports the training of Reserve officer candidates and members of the Naval Reserve (other than Air) to include funds for the junior and senior ROTC programs, Reserve officer candidate indoctrination, the flight instruction program, the military training of officer and enlisted reservists at training centers and facilities and in ships, and associated administrative costs. The senior division of the ROTC will have a beginning fiscal 1970 strength of 5,228, a decrease of 158 below 1969, and produce an estimated 959 ensigns, an increase of 218 over 1969. The NROTC scholarship, program will have a beginning strength of 5,328 for 1970, an increase. of 123 over 1969, and commission an estimated 1,120 ensigns, an increase of 60 over fiscal 1969.

SERVICEWIDE OPERATIONS

The recommended program includes approximately $474 million for the budget activity entitled, "Servicewide operations." This activity provides funds for servicewide communications, naval intelligence, naval weather service, oceanography, CNO field activities, CNO departmental administration, Navy Secretariat field activities and departmental administration. Servicewide communications is made up of shore terminals supporting Navy tactical forces, the Navy assigned components of the national communications system and the defense communications system. Naval intelligence funds provide for civilian personnel compensation, travel, contractual services, printing, supplies, and minor equipment necessary for operation of the Naval Intelligence Command components. Oceanography funds provide for the mapping, charting, geodesy, and oceanography

programs.

PETROLEUM RESERVES

The recommended program includes approximately $5.3 million for the budget activity entitled, "Petroleum reserves." This activity provides for the operation of the naval petroleum and oil shale reserves in accordance with the act of 1920 which directs the Secretary of the Navy to explore, prospect, conserve, develop, use, and operate the reserves for the production of petroleum and shale oil when required for national defense. Funds are provided for continua

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