July 15, 1959: The commanding general, communications zone, Europe (CG COMZ) authorized the Director, U.S. Army Construction Agency, France (USACAF) to develop plans and specifications for the project, and requested advice as to funds required. O. & M. A. funds were authorized in the amount of $6,000. The original concept for this project was to provide mainly for the improvement of kitchen facilities. More detailed studies indicated urgent requirements for the rearrangement of the entire dining facilities to get more effective and efficient operation, the provision of much needed lounge facilities, and the improvement of sanitary facilities.

July 1, 1959, to March 2, 1960: Nonappropriated funds totalling $132,000 in grants from Headquarters, USAREUR club and mess fund, Headquarters, U.S. Air Force, Europe, Army central mess fund, Air Force central welfare fund, and Naval officers' mess contingency funds; and a $42,000 loan from Headquarters, USAREUR, club and mess fund were made available for this project, supporting a joint staff headquarters. The remainder of the funds required was made available from Headquarters, U.S. European Command club's own nonappropriated fund resources.

March 23, 1960: CG COMZ authorized the use of additional $17,000 O. & M. funds for preparation of final plans and specifications for the project.

April 13, 1960: Architectural engineering contract was negotiated with the French architectural engineer at a total cost of $14,500.

September 23, 1960: Advertised for bids for construction contract. October 24, 1960: Original bids were opened on project. The low bid was $265,000, which was well above available funds. Specifications were modified and negotiations were initiated to reduce the contract cost. If favorable bids had been received, a construction contract would have been executed at this time. December 16, 1960: In view of Presidential directive of November 16, 1960. relative to offshore procurement and subsequent JCS directive, USCINCEUR requested JCS aproval to proceed with project.

January 23, 1961: Final contractor's offer of $214,000, still above available funds, was unacceptable.

January 31, 1961: OSD message (DEF 542807) authorized USCINCEUR to proceed with project.

February 7, 1961: Project was readvertised by the G'enie Militaire (French Engineers).

February 18, 1961: OSD message (DEF 545316) revoked authority of USCINCEUR to proceed with project.

February 21, 1961: Seven bids were received for the project by G'enie Militaire ranging from a low of $192,800 to a high of $215,500. Three low bids were well within the available funds. Government estimate was $191,000. As previously instructed, USACAF suspended all contractual actions on this project. Mr. FORD. It is clear that not 1 taxpayer's dollar was involved in this proposed expenditure?

General DUFF. This is the information that has been supplied by the European commander, sir.

Mr. FORD. Let's verify that, to see whether there were any tax dollars involved in this expansion and if so, how much, both as to the total or as to the proportion.

General DUFF. Yes, sir.

Mr. WHITTEN. Would you yield?

Mr. FORD. Yes.

Mr. WHITTEN. Could we have added to that the fact as to whether there has been any increase in the charges made to personnel for the fringe benefit area to raise this money-all such information of that kind if the gentleman will submit it.

(The information requested is as follows:)

The nonappropriated funds planned to be used in the support of this project were derived from the club's own membership dues and revenues from sale of food and beverages; and from grants and loans of other nonappropriated funds derived from the operation of other officers' open messes (clubs).

General DUFF. Very well, Mr. Whitten.

Mr. FORD. I know earlier it was mentioned there had been a great delay in people being able to be served, et cetera. Include whatever justification along that line is pertinent for the record.

General DUFF. We will include it, Mr. Ford.

(The information requested is as follows:)

Headquarters, U.S. European Command, as the Joint U.S. Military Command Headquarters in Europe, is frequently visited by governmental and military dignitaries from the United States and other nations. Large luncheons, official receptions, and ceremonial luncheon for those visits must be handled effectively. Probably more important, an attractive and efficient messing and social facility should be available to the resident officers, their families, and their guests. The only facility available at present for these activities is the old officers open mess building which is inadequate, poorly arranged, and has an absolutely unsanitary and inefficient kitchen, badly needing rehabilitation. This kitchen has a history of an unsatisfactory medical inspection report, indicating a most unacceptable kitchen from a health standpoint. The present facility has always been unsatisfactory, has been a frequent source of criticism and justified complaints, and has resulted in personnel seeking other places for their private social activities on the French economy. If this open mess had been renovated as it was planned, it is considered that an attractive, efficient, and economical mess would have provided the necessary facilities which would elicit much greater usage of this facility than is presently made of it. Such increased usage definitely would have assisted in working toward the Presidential goal of decreasing dollar expenditures on the economy.

Mr. FORD. That is all, Mr. Chairman.

Mr. MAHON. Mr. Minshall?

Mr. MINSHALL. Thank you, Mr. Chairman.

RESERVE INDUSTRIAL FACILITIES

I should like to have justification pages 214-215, for project 2240, inserted in the record as pertains to the reserve industrial facilities. Mr. MAHON. It will be inserted at this point if it is not already in the record.

(The pages referred to follow :)

Project 2240 provides for the maintenance and protection of the inactive portion of the Army's production base and for some support to active industrial installations operating under the Army industrial fund. The inactive portion of the production base consists of complete industrial plants, idle portions of active industrial plants, separate production lines, and separate items of industrial equipment which are stored either in Government-owned storage sites or in the plants of contractors. These facilities are being retained for use in an emergency to produce items or perform services which private industry is unable to produce or perform with its own facilities, or because Government ownership is essential for reasons of military necessity, security, or safety. The support to active industrial installations operating under the Army industrial fund consists primarily in maintenance of public housing and acquisition of nonproduction capital equipment, neither of which is chargeable to the industrial fund.

A small amount of funds is also utilized for production support costs at Government-owned and operated industrial installations operating at rates substantially below practical capacity.

SECTION 2. JUSTIFICATION OF FUNDS REQUESTED

Obligations for the activities funded under this project are as follows:

Workload data for plant and equipment maintenance are contained in the following tabulation:

Mr. MINSHALL. I should like to ask the general if he would explain to us very briefly the reserve industrial facilities, the type of reserve facilities that you have. The number, of course, is included in the justification.

ect.

General DUFF. Yes. I will ask Colonel Tolliver to cover this proj

Colonel TOLLIVER. Sir, we have a total of some 80 reserve industrial facilities which are controlled by the Army. Of these a total of 58, as shown on page 215 of the budget presentation, require the expenditure of appropriated funds to maintain. The difference between the 58 we are supporting with the funds herein requested and our total assets of 80 plants are made up of plants which are excess, being supported by GSA, and plants that are under lease to private concerns or to Government agencies, thus relieving us of the cost of maintaining. Mr. MINSHALL. The total cost of maintenance of these reserve facilities as shown on the justification on page 214 is $42,464,000; is that correct?

Colonel TOLLIVER. Yes, sir.

STATUS OF PLANTS

Mr. MINSHALL. Of these 80 plants, how many of them are completely buttoned up and how many of them are in partial or full production?

Colonel TOLLIVER. Of the 80, sir, there are 30 active, 34 inactive, and 16 in the process of being disposed of.

Mr. MINSHALL. By being in the process of being disposed of, what do you mean?

Colonel TOLLIVER. I mean, sir, that the Army has declared them excess and in the case of 13 of the 16, this excess status has been reported to GSA. Three of the 16 we are yet in the process

Mr. MINSHALL. Do those particular plants fall into the particular category as to the type of manufacturing equipment available?

Colonel TOLLIVER. I do not have, sir, a list of the specific 16 plants declared excess. I will supply that for the record.

(The information is as follows:)

The list of 16 plants declared excess and the type of product each produced is as follows:

Mr. MINSHALL. One portion of these standby plants I understand are for the tracked vehicle family; is that correct?

Colonel TOLLIVER. The great majority of the plants, sir, some 75 or 80 percent are in the munitions and chemical production area.

Mr. MINSHALL. I asked you about tracked vehicles. What plants are set aside for tracked vehicles?

Colonel TOLLIVER. There are 1 or 2 plants in our total inventory of 80 that relate to the small vehicle and track vehicle family.

Mr. MINSHALL. Aren't there more than that? Don't you have three? I am speaking specifically of the Detroit-Cleveland-Lima complex.

Colonel TOLLIVER. I would have to furnish the details of that, sir, for the record. We do have the Cleveland Ordnance Plant, which is inactive and the Lima Ordnance Modification Center, which is inactive.

(The information requested is as follows:)

The Army has three Government-owned facilities, i.e., land, buildings, and integral equipment for the production of the track vehicle family. These are the Detroit Arsenal, the Lima Ordnance Modification Center, and the Cleveland Ordnance Plant.

CLEVELAND ORDNANCE PLANT

Mr. MINSHALL. The reason I put this background information in the record, Mr. Chairman, is that in Cleveland, Ohio, to be exact, 13.6 miles from the city, we have what is known as the Cleveland Tank Plant. For the history of it for the committee, and I think I should

take time to give it to you. This is a tremendous bomber plant built during World War II. It covers 258 land acres. It covers 258 land acres. It has over 2,265,000 square feet of manufacturing space under one roof. This plant is part of the so-called Cleveland-Detroit-Lima tracked vehicle complex. My interest in this plant is not a new one. My interest, active interest in it has been carried on ever since I was first elected to the Congress and came here in 1955, but I direct particularly my attention and interest to it in this respect.

Back in 1959 this plant, then employing many thousands of people, received word to button it up.

Mr. MAHON. When was that?

Mr. MINSHALL. Early in 1959. At that time it was making M-56, self-propelled 90-mm. guns. I believe I am correct on that. Colonel TOLLIVER. I do not know, sir.

(The information follows:)

In 1959 the Cleveland Ordnance Plant was producing the M-56 self-propelled 90 mm. gun.

Mr. MINSHALL. I believe that is the correct identification.

Since that time there have been many many promises on the part of the Army and many promises on the part of the Department of Defense to reactivate this plant.

Mr. MAHON. And promises to the city of Cleveland?

Mr. MINSHALL. Promises to the city of Cleveland. Yes to the effect that they would turn it back so the taxpayers would not be burdened with the tremendous cost of maintaining this plant.

I might state at that point and put into the record that the cost of maintaining this plant is tremendous $660,000 a year-just to keep this plant buttoned up.

Mr. MAHON. Do you have a breakdown of that?

Mr. MINSHALL. Yes, sir.

I should like to offer that for the record.

(The information follows:)

Cleveland ordnance plant-Estimated maintenance costs on austere shutdown basis