CALIFORNIA FOURTH SUPPLEMENTAL NATIONAL DEFENSE HEARINGS CONDUCTED AT A JOINT SESSION OF THE SUBCOMMITTEES OF THE COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, IN CHARGE OF DEFICIENCY AND WAR DEPARTMENT APPROPRIATIONS: MESSRS. CLARENCE CLARENCE CANNON (CHAIRMAN), CLIFTON A. WOODRUM, LOUIS LUDLOW, J. BUELL SNYDER (CHAIRMAN, WAR DEPARTMENT SUBCOMMITTEE), EMMET O'NEAL, GEORGE W. JOHNSON, LOUIS C. RABAUT, JED JOHNSON, DAVID D. TERRY, JOE STARNES, ROSS A. COLLINS, JOHN H. KERR, GEORGE H. MAHON, JOHN TABER, RICHARD B. WIGGLESWORTH, WILLIAM P. LAMBERTSON, D. LANE POWERS, J. WILLIAM DITTER, ALBERT J. ENGEL, AND FRANCIS H. CASE; ALSO PRESENT, JAMES G. SCRUGHAM (CHAIRMAN), SUBCOMMITTEE ON NAVAL APPROPRIATIONS; ON THE DAY FOLLOWING, NAMELY: TUESDAY, JANUARY 20, 1942. WAR DEPARTMENT AIR CORPS STATEMENTS OF LT. GEN. H. H. ARNOLD, DEPUTY CHIEF OF STAFF FOR AIR; BRIG. GEN. O. P. ECHOLS, ASSISTANT FOR PROCUREMENT SERVICES; COL. L. W. MILLER, AIR CORPS; T. P. WRIGHT, OFFICE OF PRODUCTION MANAGEMENT; COL. C. G. HELMICK, GENERAL STAFF; COL. G. J. RICHARDS, GENERAL STAFF; AND LT. COL. R. S. MOORE, FINANCE DEPARTMENT The CHAIRMAN. A joint meeting is being held of the War Department and Deficiency Subcommittees to consider the Budget estimate that has been sent up here by the President in House Document No. 567 for a new Air Corps program. We are having both subcommittees meet on this estimate in order that we may have present the men who are most familiar with the subject matter, because this is a grave responsibility. This is the largest estimate for war equipment ever submitted to any committee or any Congress in the history of the world, and it involves the greatest dislocation, readjustment, and conversion of industry that the country has ever seen. We trust, on account of the extremely confidential nature of the subject matter, that everyone present will be appreciative of the necessity that the evidence given here shall be regarded as highly confidential. M226079 1 We will ask the witnesses to determine what, in their opinion, shall go in the record; and if at any time they are about to give testimony which they think should not go into the record, all that it is necessary for them to do is to indicate to the reporter to lift his pen, and that portion of the testimony will not be recorded. A transcript of the testimony given for the record will be submitted to the witness, and the War Department will be free to eliminate anything judged best to be omitted. We will hear the statements of the witnesses without interruption and ask members to refrain from putting questions until the conclusion of the witnesses' statements and not to interrupt other members during the course of their examination. May I suggest that if any question occurs to a member concerning a matter which he thinks should be further explored, to make a note of it, and in due time the member will be given an opportunity to ask his questions. The estimate submitted is in five items, providing for planes, production facilities for planes, armament, equipment, and ammunition, to a total amount of $12,525,872,474. A copy of the estimate will be inserted in the record at this point. (The estimate is as follows:) THE WHITE HOUSE, Washington, January 16, 1942. The SPEAKER OF THE HOUSE OF REPRESENTATIVES. SIR: I have the honor to transmit herewith for the consideration of Congress five emergency supplemental estimates of appropriations, totaling $12,525,872,474, fiscal year 1942, to remain available until June 30, 1943, for the military activities of the War Department. The details of these supplemental estimates of appropriations, the necessity therefor, and the reasons for their submission at this time are set forth in the letter of the Director of the Bureau of the Budget, transmitted herewith, with whose comments and observations I concur. Respectfully, FRANKLIN D. ROOSEVELT. EXECUTIVE OFFICE OF THE PRESIDENT, BUREAU OF THE BUDGET, Washington, D. C., January 16, 1942. The PRESIDENT,' The White House. SIR: I have the honor to submit for your consideration five emergency supplemental estimates of appropriations, totaling $12,525,872,474, fiscal year 1942, to remain available until June 30, 1943, for the military activities of the War Department, as follows: WAR DEPARTMENT MILITARY ACTIVITIES For additional amounts for the Military Establishment, fiscal year 1942, to remain available until June 30, 1943, to be supplemental to, and merged with, the appropriations under the same heads in the Military Appropriation Act, 1942, including the objects and subject to the limitations and conditions specified under said heads, respectively, in said act, as follows: OFFICE OF THE SECRETARY OF WAR Expediting production: For expediting production of equipment and supplies for national defense_-_ $933, 000, 000 SIGNAL CORPS Signal Service of the Army: For Signal Service of the Army--. 680, 242, 180 AIR CORPS Air Corps, Army: For Air Corps, Army. ORDNANCE DEPARTMENT Ordnance Service and Supplies, Army: For Ordnance Service Total___. $9,041, 373, 090 1, 547, 948, 529 323, 308, 675 12, 525, 872, 474 GENERAL PROVISION Whenever the President deems it to be in the interest of national defense, he may authorize the Secretary of War to sell, transfer title to, exchange, lease, lend, or otherwise dispose of, to the government of any country whose defense the President deems vital to the defense of the United States, any defense article procured from funds appropriated herein for the Military Establishment, in accordance with the provisions of the act of March 11, 1941 (Public Law 11): Provided, That the total value of articles disposed of under this authority shall not exceed $4,000,000,000. The purposes of the foregoing supplemental estimates of appropriations are to provide for the further strengthening of the national defense in accordance with the general objectives heretofore approved by you. The foregoing supplemental estimates of appropriations are to provide for contingencies which have arisen since the transmission of the Budget for the fiscal year 1942. I recommend that they be submitted to Congress. Very respectfully, HAROLD D. SMITH, Director of the Bureau of the Budget. GENERAL STATEMENT The CHAIRMAN. We have with us General Arnold, who will discuss the general features of this estimate. We also have with us, and will have with us, the heads of other branches who will be able to discuss any phase of the matter in which the committee may be interested. Will you give us a statement at this time on this estimate, General Arnold? General ARNOLD. Mr. Chairman, it was my thought to submit a written statement, which I shall read. I realize that there will be many questions asked, and I think by that means we will be able to clear up in detail the different items as they are presented to you. The offensive act on December 7, 1941, that suddenly thrust war upon us clearly demonstrated the vital importance of the air arm in our national defense. During the recent period of insecure peace the air force has been working logically step by step for the attainment of a state of preparedness compatible with our national policy as its objective. Our enemies, by their unprovoked and untimely attack, have interrupted our planned air-force augmentation. Now we are not only accelerating the attainment of our original state of preparedness, but we are also conducting combat operations and must concurrently build toward our offensive knock-out blow. Our enemies, with their clear aggressive policies, have the jump on us by having selected their own time for war and their own objectives for attack. By virtue of their national policies, they have long ago laid and pursued their plans for aggressive war. Now, we, by decisive action, must counteract the time advantage of the enemy. The air-force problem in this case is efficiently and conclusively to fulfill our team assignment. In order that we may carry out this team assignment we must accelerate the augmentation of our air force and at the same time provide for the attrition of combat operation. In other words, we now must have a continuous flow of aircraft and the necessary production, instead of a series of job-lot orders which has heretofore been adaptable and desirable in the process of building up to a given strength or state of defense. This program is submitted in order to provide for the building up of planes for our air force and for our Allies, and to provide for the combat attrition inevitable in air operation. Continuous flow of production depends, first, upon continuously extended contracts and continuous production planning. Here we are proposing a base upon which the airplane plants may further extend their production plans. Under present production schedules we will attain maximum production on existing orders for most types in August of 1942, and from thereon production will gradually decline due to lack of further orders. The program we are here presenting is necessary to maintain continuity of present planned capacity in that portion of the aircraft industry allocated to the Army, and to increase the production level of heavy bombers to per month. Since the production cycle of the heavy bombers is considerably longer than that of the training types, production plans for this type must be projected many months further ahead. Continuity of production is essential for maximum effort. In order to assure delivery of heavy bombers in 1943 and 1944 we must let contracts for them early in the calendar year 1942. However, contracts for trainers let now should result in delivered articles during August of 1942. The production program has been carefully worked out and is of two parts. The first contemplates the maximum utility of present facilities under present planned production, and the second provides for increased facilities for additional capacity in the heavy bomber types. These types are of paramount importance in the present emergency, and their production must be assured even though present facilities should be destroyed. We cannot afford to take a chance on this production. Facilities are provided to round out the production of present prime capacity as well as for the increased capacity. These facilities include those for the production of essential accessories, special raw materials and semifinished materials, and ammunition as well as prime facilities for aircraft and engine production. The air force is attempting, and the aircraft industry is fully cooperating, to obtain maximum production of present facilities through working 24 hours a day 7 days a week. Such schedules will naturally considerably reduce the period with which the airplanes in this program will occupy the aircraft industry. Continual study is being made to determine possible production schedules with this maximum utilization of present and planned facilities. It is considered essential that funds for this program be made available at the earliest possible date in order that the present facilities may prepare for futher production and that the new facilities may be expedited. Briefly, the program, totaling $12,525,872,474, is made up as follows: Air Corps estimates provide for airplanes and spare engines and spare parts in the usual percentages. (General Arnold made a further statement off the record.) The CHAIRMAN. General Arnold, I wonder if there would be any objection to including in the record the total number of planes, without reference to types and classes, in view of the fact that the President, in his message, specified a number as the objective? General ARNOLD. I see no objection to putting in the record the statement that this fund will cover the procurement of 23,000 combat types and 10,000 training types, giving us a total of about 33,000 airplanes. The CHAIRMAN. Have you concluded your statement, General Arnold? General ARNOLD. I have concluded; yes, sir. (Further discussion off the record.) COORDINATION OF AIRPLANE PRODUCTION PROGRAM WITH PILOT-TRAINING PROGRAM 1 The CHAIRMAN. General Arnold, will you tell us how well coordinated our airplane production program is with our pilot-training program? As these airplanes are produced, will there be sufficient pilots to take care of them? General ARNOLD. Every program that the War Department has adopted in connection with the expansion of the air forces has been based upon the number of pilots, the number of airplanes, the number of mechanics, and the bases for operating those airplanes all being available at the same time. First we had a 24-group program; then a 54-group program. The 54-group program was supposed to be completed by the end of this fiscal year; but due to the fact that we entered the war early in December, we advanced that date materially, and at the same time, as a result of studies of what the actual requirements would be to meet the war effort, we adopted another program which we hope to meet by December 31, 1942, in which the number of pilots, mechanics, squadrons, groups, and bases are all figured out so that they will all be available at the right time in December 1942. The CHAIRMAN. The production, the pilot training, the ground forces, and the airports are all being coordinated so that they will synchronize? General ARNOLD. That is correct, sir. |