RETENTION LEVEL IN STOCK FUND Mr. MAHON. Is there any relationship to the stock fund involved in this testimony you are giving here? What impact, if any, does this have on the retention of levels in the stock fund? General DUFF. Sir, this would include all items, whether these items are provided by direct issue to the troops which would use them or whether they are provided by purchase from the stock fund, so this would cover all items, sir, whether they are stock-funded items or whether they are direct-issue items. Mr. MAHON. Are declines in mobilization reserve stock levels offset by increases in so-called economic and contingency retention levels? Colonel TOLLIVER. Our mobilization reserves in the stock funds, sir? Our mobilization reserve in the stock fund is short some $800 million, if I am being responsive to your question. We anticipate that the stock fund will in future years generate enough cash to permit us to make up this deficiency at an acceptable rate. Mr. MAHON. What do you mean by economic and contingency retention levels? Colonel TOLLIVER. The economic retention limit is the point beyond which it is more advantageous to the Government to dispose of an item as excess than to keep it. In other words, it is the point at which the cost of storage to the time of issue or anticipated time of issue, is greater than the cost of the item. Mr. FLOOD. Mr. Chairman, the chairman's question was restrictive, of course, and you answered it on that basis, to a discussion of the costs a million dollars plus-of systems and methods. General DUFF. Yes, sir. Mr. FLOOD. What has that system and method produced? Are we going to know what you did? General DUFF. Yes, sir. Mr. FLOOD. You are talking about the application, a million dollars plus it is going to cost you to apply a method and a system to two channels, limited war and general war. That is what the methods and system is going to work on. That is what he is interested in. What I am interested in is what did you do, and at what point do I hear about that? General DUFF. Mr. Flood, with regard to the 1.2 million, sir, this was number of studies, rather than the cost of making these studies. Mr. FLOOD. That is methods and systems. That is all right. We have to know about that, too. We have to pay for it. What do I find out about the other end of the horn? What did you give birth to here? General DUFF. Sir, this is the whole basis of the material that will be presented as the background material for the "Procurement of equipment and missiles, Army" appropriation. What I mean to say is, sir, that for the number of M-14 rifles or the number of M-60 tanks Mr. FLOOD. I know that. I want to know at what point in these hearings do I find out from you or procurement as to what the planning is? I am interested in the planning after this happens. Is this a new thing? Do I understand that we are actually going to give attention or really spend some money to find out about limited war? Are we going to be serious about this? General DUFF. Šir, this is based upon the employment of forces in a limited war situation. Mr. FLOOD. We are going to talk about that later on? General DUFF. Sir, in connection with the presentation of the PEMA appropriation, if the committee desires, we would like to precede this presentation with an overall explanation of our planning and programing basis. Mr. FLOOD. We will get to that later on? Is that it? General DUFF. That is right, sir. Mr. FLOOD. This is a method and system. I have been worrying about this for 10 years. It appears that I will finally get an audience. TELETYPEWRITER SERVICE IN SUPPORT OF NIKE-ZEUS Mr. MAHON. On page 511 of your justifications you indicate the use of a point-to-point teletypewriter service in support of NIKE-ZEUS. Of course, we all know that the ZEUS program presently is a research program. Why is a teletypewriter network necessary as an O. & M. activity! General DUFF. Mr. Chairman, the NIKE-ZEUS program is still in the research and development stage. However, sir, in order to properly manage the research and development aspect of this study, because of the fact that it is widespread and comprehensive, it is necessary to have a management network to interconnect the various suppliers and the Army Rocket and Guided Missile Agency at Redstone Arsenal, which actually supervises the research and development aspect of this program. This network consists of a number of agencies, sir, a number of stations, and I would like to enumerate them. They are: the Army Guided Missile Agency Headquarters at Redstone; the Army Guided Missile Agency R. & D. Division; the White Sands Missile Range; the Ralph A. Parsons Co. at Los Angeles, Calif.; the Douglas Aircraft Co. at Culver City, Calif.; the Pacific Missile Range at Point Mugu, Calif.; the Office of the Chief of Ordnance here in Washington; the Bell Telephone Laboratories at Whippany, N.J.; and Kwajalein, in the Marshall Islands at which a major test will be conducted in the not too distant future. Mr. FLOOD. What about Ascension Island? General DUFF. Ascension Island is not covered in this specific General DUFF. I would assume that instead of using this particular system, there are other networks; these are all systems, which except for Kwajalein are, I believe, interconnected by land line communi cation. Mr. FLOOD. Kwajalein has the same relationship to Mugu as Ascension has to Canaveral. General DUFF. Why it is not connected, I do not know. I will supply that for the record. This system, sir, permits immediate communication, either of classified or unclassified messages instantaneously and it is felt that this sort of communication is necessary in order to supervise this program adequately. (The information is as follows:) RELATIONSHIP OF ASCENSION ISLAND TO THE NIKE-ZEUS Operational testing of the NIKE-ZEUS system will be conducted in the Pacific Missile Range, requiring extension of the NIKE-ZEUS management network to Kwajalein. Ascension Island is a part of the Atlantic Missile Range which will not be used for operational testing of NIKE-ZEUS, therefore the network need not be extended to that location. Mr. MAHON. Is it approved by the Defense Communications Agency? General DUFF. Sir, the Defense Communications Agency is a relatively new agency. It just went into operation this year, and I am not certain, sir, what specific recommendations have been made to the Defense Communications Agency with regard to this system. It has just become an operational activity as of the 7th of March, or will become operational on the 7th of March of this year, sir, so I do not believe that this item specifically has been submitted to it for approval. Mr. MAHON. Should it be approved by the Defense Communications Agency? General ĎUFF. Sir, if it were being initiated as a new project, it would, I believe, normally be submitted to that Agency. Mr. MAHON. Mr. Minshall. Mr. MINSHALL. What type communication do they have between these points now? Couldn't they be utilized and properly be secured and accomplish the same result? General DUFF. This is a communications network that is in operation at this moment. Mr. MINSHALL. How much is in the budget? How much are you asking for in this budget for this purpose? Mr. MINSHALL. That is an increase. General DUFF. Yes, sir. This is an increase in the program, sir, for this specific agency. Mr. MINSHALL. An increase in the program? General DUFF. Yes, sir. Mr. MINSHALL. Then it is new facilities, isn't it? Colonel JOSLIN. Sir, this is due primarily to expansion of the system, plus additional circuitry required. The Defense Communications Agency so far has no relation to this particular activity. Mr. MINSHALL. There are new facilities if this is for expansion. Colonel JOSLIN. That is correct, sir, plus increased costs in some instances. Mr. FLOOD. Specifically Kwajalein. Colonel JOSLIN. Yes, sir. Mr. MAHON. What sort of construction is required in order to effect this communications system with Kwajalein? Colonel JOSLIN. From Kwajalein back to the States it comes by radio and then from leased circuits over A.T. & T. The only time leased circuits are required is when there is no circuitry available. When circuitry is not available, we lease it from A.T. & T. because it is cheaper than to construct. Mr. FLOOD. Are you familiar with the Ascension Island part of it? Colonel JOSLIN. No, sir. I believe, Mr. Flood, Ascension Island will not tie into this network because this work will be done in the Pacific rather than the Atlantic. I believe Ascension is connected only with Canaveral. Mr. FLOOD. You mean this communications system we are talking about and this money will be restricted to the Pacific operation entirely? General DUFF. This is for NIKE-ZEUS only. Mr. FLOOD. What are they using between Ascension and Canaveral? Colonel JOSLIN. That is an Air Force contract. I imagine they are using radio. I am not familiar with it. Mr. MAHON. Have you told us how much this will cost us? General DUFF. Yes, sir. As far as this particular activity is concerned, it is $290,000, sir. That is the increase in the cost over 1961, sir. What the basic cost in 1961 was I am not sure. Do you have that information? Colonel JOSLIN. No, sir. General DUFF. I will supply that for the record, sir. (The information requested follows:) Prior-year lease costs in support of the NIKE-ZEUS Fiscal year 1961 lease costs_--- $75,000 Mr. MAHON. Can you describe the military affiliate radio system for which $40,000 is requested on page 513? Mr. FLOOD. I think, Mr. Chairman, the record should show that the installations for the NIKE-ZEUS operation, which we hope are getting introduction this year, and I have reasonable cause to think we will get production money requested this year, the Kwajalein operation is a very largely advanced physical structure for the NIKEZEUS program and this is not just a casual operation between Magu and Kwajalein at this very moment. During the course of this budget it will be materially advanced; don't you see? The operations on Kwajalein are substantial so this will not be a small thing as far as communications traffic is concerned. It will be very heavy traffic. MILITARY AFFILIATE RADIO SYSTEM Mr. MAHON. I believe you did not answer the question with respect to page 513 of the justifications. My question was: Can you describe the military affiliate radio system for which the $40,000 is requested? What is the statutory authority for this outlay? Colonel JOSLIN. Sir, the military affiliate radio system is composed of amateurs, both military and civilian, throughout the United States and oversea installations. There are some 5,408 stations, of which 338 are operated by military personnel or units, 528 stations are operated by military personnel as individuals, and 4,542 are operated by clubs, or people not in the organization. This is an organization that is designed to keep civilian radio operators in practice, keep their proficiency up, and they are available during emergencies. During the hurricane that hit Louisiana about 4 years ago, the only communication with this island and this town that were practically destroyed was through the amateurs. These people are provided with surplus excess equipment that the military services have no longer any need for. They work in real nets. They have to maintain a certain number of hours a year to belong to the system. They are available in case of emergency of any type, both a natural disaster or in the event of war. Mr. FLOOD. These are the well-known "hams," aren't they? Mr. MINSHALL. Who decides how they get this equipment and who gets it? Colonel JOSLIN. Sir, in the ZI of the United States, each Army area. has a director who is normally the Army Signal officer. He normally has one paid civilian assistant who keeps all the records and runs the control station at the Army headquarters. Unless these people stay active in the nets, and maintain a certain number of contacts within the net during the operating period, they are no longer operating members. When he gets the surplus equipment, depending on the requirements that have been put on him by these individual members, he decides who should get the equipment. Mr. MINSHALL. Can you give me an example of how much equipment was distributed last year? Colonel JOSLIN. By dollars? Mr. MINSHALL. Units and dollars both. Colonel JOSLIN. Sir, it is not available here. I will get it. However, I can tell you what was spent in money for equipment other than that which was declared excess or surplus or scrapped. The directors have the privilege of going to the scrap stations at the post to see if there is anything there that can be used for MARS members. There was $20,000 spent last year for crystals. That was the only outright expenditure layout last year. In fiscal year 1957 there was some money available to buy equipment for the Army headquarters. As far as individual members are concerned, they rely on surplus or excess equipment. This equipment does not come from only the Army, Air Force, and Navy, it comes from other agencies. The Armed Forces have the opportunity to screen this equipment. It is then indicated to national MARS directors here in Washington, who then allocate it to the various Army and oversea stations based on requirements. (The information is as follows:) Other than the $20,000 spent for crystals no funds were expended for the purchase of MARS equipment during fiscal year 1960. Equipment issued to MARS members is obtained without cost from obsolete and excess stocks of various military and Federal departments and agencies. This equipment runs the gamut from nuts, bolts, and screws to obsolete but sometimes complete radio receivers and low (1 kw.) powered transmitters. The number of units, all items considered, runs into many thousands each year and because of this the MARS headquarters does not maintain the numbers of items distributed. They do however maintain records of the original acquisition value and a percentile fair value figure of the property distributed. The original acquisition value of obsolete and excess property obtained for distribution to MARS members during fiscal year 1960 approximated $14,682,000. The fair or present-day value of that property approximated $2,569,000. |