Mr. WOODRUM. When do you expect to reach that strength? Mr. TABER. Do you mean the calendar year? Mr. WOODRUM. That objective will be reached by the induction of conscriptees as well as enlistments? General MOORE. Yes, sir. Mr. WOODRUM. Are voluntary enlistments in the Army holding up? General MoORE. Yes. Mr. WOODRUM. Are they contemplated in this additional number you expect at the end of the calendar year? General MOORE. Yes, sir; to some extent. Mr. WOODRUM. Are you reasonably sure of reaching that number of 3,600,000 by the end of the fiscal year? General MOORE. Yes, sir. The 3,600,000 figure includes approximately a 1,000,000 Air Force including ground elements. INTERCHANGE OF APPROPRIATIONS (See pp. 8, 13, 20, 23) Mr. WOODRUM. With reference to the requested permission to have the right to transfer not to exceed 25 percent of the funds appropriated, I understood you to say that some similar provision was covered in legislation during the prior war. Colonel HELMICK. That statement applied to consolidation of appropriations. The consolidation of Quartermaster appropriations was authorized in the last war. Mr. WOODRUM. What about the right to transfer funds? Is there any precedent for that? Colonel HELMICK. Not in the War Department appropriations. Colonel Moore will state the other precedent. Colonel MOORE. Section 101 (f) of the Second Supplemental National Defense Appropriation Act, 1942, provides that the President may transfer not to exceed 20 percent of an appropriation to another consolidated appropriation, but no appropriation may be increased more than 30 percent. This applied to defense aid. Mr. WOODRUM. The principal reason for the request to increase this limitation from 5 percent to 25 percent is because of the fact that we are now having troops abroad in the field: Is that the reason? General MOORE. It is due to emergencies, or to unforeseen contingencies that may arise in war. Mr. WOODRUM. You cannot tell one day what you will be called upon to do the next day. General MOORE. That is true. Something comes up every day that we have not foreseen to some extent. Mr. WOODRUM. If such a provision should be made, would there be the same procedure to the end that Congress would be apprised of what had been done in the way of making such transfer? General MOORE. We will be glad to submit a complete report of it to Congress. Mr. WOODRUM. Is that provided for in the case of the 5-percent transfer, or is that the ordinary procedure when transfers are made? Colonel HELMICK. It is not provided for in the present or proposed wording. However, any transfer must be approved by the Bureau of the Budget. It is processed through the Bureau of the Budget and is authorized by them. Mr. WOODRUM. I understand that in some bills we provide a 10percent transfer clause, and in that connection we also provide for full report to be made whenever the authority is used. That could be done in this case if such permission was granted by the committee, so that Congress would be fully apprised of exactly what changes had been made in the appropriation. General MOORE. Yes, sir; that could be done. CONSOLIDATION OF APPROPRIATIONS (See p. 6) Mr. STARNES. Speaking with reference to the proposal to consolidate the funds within the Quartermaster Department and within the Engineer Department so you would have a 100 percent interchangeability, you still contemplate submitting to the Appropriations Committee a detailed and exhaustive justification for that, with your figures and estimates? General MOORE. Yes, sir. Mr. STARNES. You look upon this provision or this request as being necessary because of war conditions only, and it is not to establish a precedent for peacetime appropriations? General MOORE. That is correct. Mr. STARNES. Furthermore, the War Department is perfectly willing to pledge itself to give a strict accounting to the committee of any transfers of funds under this appropriation? General MOORE. Yes, sir. Mr. STARNES. Did I understand you to say that about $12,500,000,000 would be transferred to the Associated Powers, or that that amount was contemplated for lend-lease purposes? General MOORE. Yes, sir. Mr. STARNES. How is the production program coming along? General MOORE. It is coming along very well in some items, but in other items not so well. Mr. LUDLOW. General, the President in his message to Congress stated certain objectives as to quantities of production for this year and next year in the way of planes, tanks, etc. Are these objectives. being met, in your opinion, or will they be met in toto? General MOORE. I would rather you would discuss that with the Under Secretary. That is the objective, and the whole attempt is to meet that objective. That is all we expect to do under this estimate. Mr. LUDLOW. Is it your opinion that you will be able to assimilate this enormous program? General MOORE. I think, in general, that we will. Mr. LUDLOW. What about the manpower? Will there be sufficient manpower to make the program effective? General MOORE. There will be manpower, but it takes time to train man-power. Mr. LUDLOW. Is it contemplated that manpower will be enlisted? General MOORE. No, sir. PURPOSE OF MANPOWER BOARD Mr. LUDLOW. What is the purpose of the manpower board that has been set up? General MOORE. I think it is for the possible allocation of manpower to certain industries. Mr. LUDLOW. It is not the purpose to enlist manpower now and make it subject to the same law as soldiers? General MOORE. No, sir. Mr. LUDLOW. When do you expect delivery of these enormous quantities of production that would come under this bill? General MOORE. I do not know. I think you had better ask the Chief of Ordnance and the Quartermaster General about that. Mr. LUDLOW. Are you continuing in your contracts the same cancelation clause that has been made a part of former contracts? General MOORE. Yes, sir. INTERCHARGE OF APPROPRIATIONS (See pp. 8, 11, 20, 23) Mr. LUDLOW. I understood one officer to say that under the 5percent transfer privilege there has really been no cramping of the Department up to date. In our normal previous estimates of appropriations, you have been asking for a 10-percent transfer privilege, or that is the percentage that has been normally requested. Do you not think that would be sufficient? General MOORE. We requested 10 percent in our 1943 estimates, before war was declared. We considered that carefully for quite a while and determined 25 percent as required for war conditions. I think General Somervell made the original recommendation on this. General SOMERVELL. A large part of the difficulty will be met in consolidating the appropriations within the Quartermaster's Corps and within the Corps of Engineers. However, as previously mentioned, there are some small appropriations where they may need to move money from one to another, and where 5 percent would not be enough. As has been brought out, there has been very little recourse of the Department to this privilege which it had. It has always followed the appropriation very well, without recourse to that privilege, and when we go to 25 percent, we do not anticipate many big changes in the appropriation. The big thing we are trying to secure is the right to do it in the event of emergencies. We do not know what emergencies will arise, and when we do not know what they will be, we want to see it provided for right now. Mr. LUDLOW. Now, General, as I visualize the situation with reference to this transfer privilege, the necessity for the transfer privilege applies only to your small appropriations, and I was wondering if language could be devised where it would place a certain limitation, where it is applicable? General SOMERVELL. Yes, sir. Mr. LUDLOW. Where it is really needed; but, at the same time, would not extend this transfer privilege over the whole bill. General SOMERVELL. You could say "25 percent, but not to exceed $1,000,000,000", if you like. Mr. LUDLOW. I was wondering if that would be acceptable to you. General MOORE. That would be acceptable. DELETION OF NONESSENTIAL ITEMS FROM SUPPLY TABLES Mr. LUDLOW. Now I wish to ask some questions about supplies: Has the Army deleted nonessential items from their supply table, General Moore? General MOORE. Yes, sir; as far as I know. Mr. LUDLOW. If so, will you submit to the committee a list of the items deleted? General MOORE. It is in process of preparation. Mr. LUDLOW. Can you give the committee a list of the items deleted? General SOMERVELL. Yes, sir, that is in process now and probably will be completed around the 1st of March. Mr. LUDLOW. Does the Army have committees on standardization and simplification? General SOMERVELL. Yes, sir. Mr. LUDLOW. Are they actively at work in those committees? REMOVAL OF COST LIMITATION ON MOTOR-VEHICLE REPAIRS Mr. LUDLOW. I notice in the bill you propose to delete the provision which we have carried in the Treasury and Post Office bill for a good many years, applicable to the general service. That is the one which places a limitation of $400 on repairs to motor vehicles. Do you think that would be quite a handicap? Would that be much of a handicap, General Gregory? General GREGORY. Yes, it would. It is a handicap largely from an accounting standpoint, in just figuring out how many need repairs. Mr. LUDLOW. Of course, where you are going to effect operations in a short space of time, that would really be a serious drawback? General GREGORY. Yes, sir. Mr. LUDLOW. But since you make it applicable here only to the War Department, the same situation, I take it, would apply to the Navy, and you would not have any objection to having this language apply to all of the military forces, both the Army and the Navy? General GREGORY. No, sir. REDUCTIONS IN ESTIMATES EFFECTED BY BUDGET BUREAU Mr. POWERS. General Moore, did the Budget allow you all of the funds you requested in this particular supplemental? Colonel HELMICK. All of the funds for specific equipment, with two exceptions. Mr. POWERS. What are they? Colonel HELMICK. One was the purchase of ships, amounting to some $56,000,000, which was eliminated with the acquiescence of the War Department based on the statement of Admiral Land to the Bureau of the Budget that the Maritime Commission would furnish to the War Department ships as needed, as they were available. Mr. POWERS. What was the other item? Colonel HELMICK. The other item was a small one of office supplies and equipment for schools. The expansion of the service schools was estimated to require office equipment and supplies amounting to about $500,000. It was a general estimate, because the expansion of the schools at that time was still not absolutely determined. The Bureau of the Budget allowed $400,000 with the understanding that if it developed the schools were pinched the amount would be put in a later supplemental. In other words, there has been no cut in these estimates by the Bureau of the Budget which the War Department considers essential. Mr. POWERS. I am glad to hear that, because Congress is appropriating every dime that you gentlemen come up here and ask for, and we always like to know what the Budget has done to you before you arrive here; because, in years gone by, the Budget did a plenty to the regular fiscal year War Department bills, and we have found that out much too late. Colonel HELMICK. I would like to emphasize, sir, that the Bureau of the Budget has been most helpful in processing these estimates. It has examined the estimates thoroughly from the point of view of checking their adequacy, the prices and factors used, the logic of the justifications, and coordination with other agencies. It has made no reductions in which the War Department has not acquiesced. Mr. POWERS. I am glad to hear that. In other words, in the last couple of years the Bureau of the Budget is really taking the War Department's word for what they need? Colonel HELMICK. Yes, sir; and has been most helpful. Mr. POWERS. In the last 18 months? General MOORE. Yes, sir. Mr. POWERS. General Moore, the size of this estimate together with the previous Army supplemental that we passed, the size of the Navy bill just passed, the indication there will be another supplemental in here in a very short time, plus the regular 1943 bill, indicates to me that you gentlemen look for a long-drawn-out affair and at the moment you are asking for everything for an all-out effort. That is correct, is it? General MoORE. That is correct. Mr. POWERS. I think you can rest assured that this Congress will believe the War Department and give you every dime of money you will require. Now, General, I understood you to say the ultimate objective, as far as the strength of the Army is concerned, is correct? General MOORE. No. men; is that Mr. POWERS. Who mentioned that factor this morning? General AURAND. I mentioned it as an objective in the productive capacity in endeavoring to state the number of men which the capacity that we are endeavoring to create will provide for. It is very difficult to answer that on a manpower basis. What we are trying to do is to get out a balanced program in a given period of time. It bears a certain relationship to manpower, but some of these associated powers require only certain items, while other items are made at home, and it is very difficult to express anything on the manpower basis. (After discussion off the record.) 68725-42-▬▬ |