to be performed by it, the Commission does not object to this provision of the bill, nor does it oppose enactment into law of the bill insofar as it pertains to any other function within the scope of the Commission's activities. The Commission, in accordance with established procedure, has been informed by the Bureau of the Budget that there would be no objection to the presentation of the proposed report, which is confined to the personnel provisions of the bill, to your committee. By direction of the Commission: HARRY B. MITCHELL, President. GENERAL ACCOUNTING OFFICE, Hon. EDWIN C. JOHNSON, Chairman, Committee on Interstate and Foreign Commerce, United States Senate. MY DEAR MR. CHAIRMAN: Further reference is made to your letter of January 18, 1949, acknowledged January 19, requesting any comments I may care to offer concerning S. 426, Eighty-first Congress, entitled "A bill to provide for the development of civil transport aircraft adaptable for auxiliary military service, and for other purposes." Under date of May 19, 1948, this Office made a report on a practically identical bill (S. 2644, 80th Čong.) to the chairman of the Committee on Interstate and Foreign Commerce, United States Senate, making no recommendation with respect to the merits of the bill. Information as to the purpose and need of the proposed legislation is contained in Senate Report No. 1461, Eightieth Congress, accompanying the said bill, S. 2644; also, in House Report No. 2320, Eightieth Congress, accompanying a similar bill (H. R. 6501). See also hearings on the said bill (S. 2644) held before a subcommittee of your committee May 18 and 21, 1948; and hearings on H. R. 6501, held before a subcommittee of the Committee on Armed Services, House of Representatives, May 22, 1948. It is noted that H. R. 6501 passed the House of Representatives June 18, 1948, but failed of passage in the Senate prior to adjournment. Other than as above indicated, this Office has no information as to the proposed legislation, and I have no recommendation to make relative to the enactment of S. 426. MY DEAR SENATOR JOHNSON: Reference is made to your letter of January 18, 1949, enclosing a copy of S. 426, a bill to provide for the development of civil transport aircraft adaptable for auxiliary military service, and for other purposes, and requesting any comments which this Department may wish to offer concerning it. Except for section 6, the Department perceives no objection to the enactment of the bill. It is believed that section 6 of the bill should be omitted as unnecessary. This section provides that aircraft manufactured from specifications approved pursuant to the provisions of the bill shall not be sold to foreign governments or other foreign users without the approval of the Secretary of the Air Force. As you know, all aircraft, components, parts, and accessories are subject under the President's Proclamation No. 2776, dated March 26, 1948, to export. licenses issued by the Secretary of State. This proclamation also requires that all articles classified from the standpoint of military security be subject to these export license requirements. In administering the law (sec. 12 of the joint resolution of November 4, 1939) governing the licensing of arms, ammunition, and implements of war, the Secretary of State has developed procedures and arrangements whereunder export license actions are taken only after consultation, in appropriate cases, with the National Military Establishment. The effect of section 6 would be to impose, without any apparent reason for so doing, a clearance requirement of a particular category of aircraft which in itself is only one classification of the many articles in the proclamation referred to above. The Department has been advised by the Bureau of the Budget that while authorizing the design and development of prototype aircraft would not be in accord with the program of the President, there is no objection to the submission of the report deemed appropriate by this Department. Sincerely yours, JACK K. MCFALL, Assistant Secretary (For the Secretary of State). Hon. EDWIN C. JOHNSON, United States Senate. DEPARTMENT OF STATE, MY DEAR SENATOR JOHNSON: Reference is made to your letter of July 25, 1949, to the Secretary of State requesting the comments of the Department on S. 2301, entitled "A bill to promote interstate and foreign commerce and strengthen the national defense by providing for commercial cargo and transport aircraft adaptable to military transport service," which has been referred to the Senate Committee on Interstate and Foreign Commerce. The Department of State perceives no objection to the proposed legislation from the point of view of foreign affairs. This Department has been advised by the Bureau of the Budget that while authorizing the design and development of prototype aircraft would not be in accord with the program of the President, there is no objection to the submission of the report deemed appropriate by this Department. Sincerely yours, Hon. EDWIN C. JOHNSON, JACK K. MCFALL, (For the Secretary of State). DEPARTMENT OF THE AIR FORCE, Chairman, Committee on Interstate and Foreign Commerce, United States Senate. DEAR MR. CHAIRMAN: We refer to your recent request to the Secretary of Defense for the views of the Department of Defense with respect to S. 2301, Eighty-first Congress, a bill to promote interstate and foreign commerce and strengthen the national defense by providing for commercial cargo and transport aircraft adaptable to military transport service. The Secretary of Defense has delegated to this Department the responsibility for expressing the views of the Department of Defense. The purpose of this bill is to provide for the development by the Department of Defense of prototype civil air-transport planes which could be converted to military uses in time of war. The proposed legislation is related to the broad subject of subsidy to the entire aircraft industry. Because of the many ramifications involved, an exhaustive study of this problem is currently being undertaken by interested agencies of the Department of Defense. When the views of the Department of Defense resulting from this study have been developed, our position with respect to S. 2301, and other similar items, will be communicated to the Congress. The Department of Defense has no comment to make with respect to this bill, and it is doubtful that a position thereon will be developed in time for consideration by the present session of the Congress. This report has been coordinated among the departments and boards in the Department of Defense in accordance with procedures prescribed by the Secretary of Defense. The Bureau of the Budget has been consulted and advises that there is no objection to the submission of this report to the Congress. Sincerely, EUGENE M. ZUCKERT, Acting Secretary of the Air Force. Hon. EDWIN C. JOHNSON, RECONSTRUCTION FINANCE CORPORATION, Chairman, Committee on Interstate and Foreign Commerce, United States Senate, Washington, D. C. DEAR SENATOR JOHNSON: This is in response to your letter of July 25, 1949, requesting our comments on S. 2301, a bill to promote interstate and foreign commerce and strengthen the national defense by providing for commercial cargo and transport aircraft adaptable to military transport service. The bill would create within the Department of the Air Force a Board, called the "Aircraft Development Board," charged with the responsibility of making a continuing survey and study of the potential commercial and military reserve requirements of the United States for transport aircraft. Upon recommendation of the Board, the Secretary of the Air Force would be authorized to initiate and support (1) research and experimentation looking toward the development, and (2) the actual development of new and improved types of transport aircraft. Subject to the provisions of section 6, the Secretary would be authorized to enter into agreements with qualified persons for the production of cargo aircraft developed under the provisions of S. 2301. The Reconstruction Finance Corporation would be affected only by section 8 of the bill which provides that "In connection with the transfer of aircraft produced pursuant to this Act, it is hereby declared to be the policy of the Congress that the Reconstruction Finance Corporation shall participate in the financing of any such transfer to the extent not inconsistent with other provisions of law." The term "transfer of aircraft" is defined in section 1 to mean “sale, lease, or other disposition. by the producer, of cargo aircraft produced under this act." The Reconstruction Finance Corporation has no objection to section 8 of S. 2301. We have been advised by the Bureau of the Budget that it has no objection to the presentation of this report to your committee. Sincerely yours, HARLEY HISE, Chairman. DEPARTMENT OF JUSTICE, Washington, May 2, 1950. OFFICE OF THE ASSISTANT TO THE ATTORNEY GENERAL, Hon. EDWIN C. JOHNSON, Chairman, Committee on Interstate and Foreign Commerce, United States Senate, Washington, D. C. MY DEAR SENATOR: This is in response to your request for the views of the Department of Justice concerning the bill (S. 2984) to provide for the development and improvement of aircraft intended for industrial or personal use, and adaptable for military service. The bill would provide for the establishment of a National Civil Aviation Council composed of the Administrator of Civil Aeronautics, the Chief of the Army Field Forces, and the Chairman of the National Advisory Committee for Aeronautics. The Council would be authorized and directed to survey the national requirements for aircraft designed for industrial or personal use and adaptable for military service; to prepare and recommend the operating and utility characteristics and specifications of such aircraft, and to allocate to the Civil Aeronautics Administration from funds appropriated to carry out the purposes of the measure, sums to be used for the purpose of entering into contracts for the design, development, construction and testing of prototypes of aircraft or the improvement of existing types of aircraft, in accordance with standards established by the Council. To assist it in carrying out its functions, the Council would be authorized to establish an advisory committee of seven members, four of which to be designated as best representing the leading industrial, public, and private aeronautical groups, and the other three to be designated to represent the general public. Whether the bill should be enacted involves a question of legislative policy concerning which this Department prefers not to make any recommendation. There are certain features of the measure, however, to which your committee may care to give further consideration. Section 2 (b) of the bill providing for the establishment of an advisory committee to assist the Council, would exempt the members of the committee from 67500-50- -3 the provisions of sections 216, 281, 283, and 434 of title 18, United States Code, and section 190 of the Revised Statutes (5 U. S. C. 99) "or any other provision of law imposing restrictions, requirements, or penalties in relation to the employment of persons, the performance of services, or the payment or receipt of compensation in connection with any claim, proceeding, or matter involving the United States * * * : Provided, That the provisions of section 3679 of the Revised Statutes (31 U. S. C. 665), as amended, shall not apply to the acceptance of voluntary service by any member of such committee." Section 216 of title 18, United States Code, prohibits any officer or agent of the United States from receiving any money or thing of value for procuring any contract with the United States. Section 281 of title 18, United States Code, makes it an offense for any officer or employee of the United States to receive compensation for services rendered to any person in relation to any proceeding or claim before any agency of the Government in which the Government is interested. Section 283 of title 18, United States Code, prohibits any officer or employee of the United States from acting as an agent or attorney for the purpose of prosecuting any claim against the Government. This section also prohibits such officer or employee from aiding or assisting in the prosecution of such claim or from receiving any gratuity, or any share of or interest in any such claim. Section 434 of title 18, United States Code, prohibits any officer or agent of the United States from transacting business with a corporation, association, or firm of which he is an officer, agent, or member. Section 190 of the Revised Statutes (5 U. S. C. 99), prohibits a former officer of the United States from prosecuting a claim against the United States involving any matter directly connected with which such person was employed or performed duty within 2 years after the termination of such employment. Section 665 of title 31, United States Code, among other things, prohibits any department or any officer of the Government from accepting voluntary service for the Government or from employing personal services in excess of that authorized by law, except in emergency cases involving the loss of human life or the destruction of property. The main purpose of the above-mentioned statutes is to protect the loyalty and integrity of the Government service and to prevent the defrauding of the United States by the exercise of undue influence on the part of its officers and employees who may have personal interests which conflict with their public duties. While this Department is in sympathy with the desire to utilize the services of persons with outstanding ability and experience for public work, it is feared that the proposed exemptions from the provisions of law above cited would tend to establish an undesirable precedent. It is believed that where exemptions are allowed, such should be resorted to only in cases of emergency and, so far as practicable, should be specified. It should be noted, in this connection, that the bill contains no provision stating that the exemptions shall not apply to any activity involving any matter in direct connection with which such person is employed by the Government or is performing his official duties. It is suggested that the measure should contain such a safeguard. The Director of the Bureau of the Budget has advised that the enactment of the bill would not be in accord with the program of the President. Yours sincerely, PEYTON FORD, The Assistant to the Attorney General. Hon. EDWIN C. JOHNSON, THE SECRETARY OF DEFENSE, Chairman, Committee on Interstate and Foreign Commerce, United States Senate. MY DEAR MR. CHAIRMAN: This is in reference to your letter of February 6, 1950, concerning S. 2934, a bill to provide for the development and improvement of aircraft intended for industrial or personal use, and adaptable for military service, which was introduced by you on February 3, 1950. The proposed legislation is similar in many respects to S. 2301 and related bills with respect to which Secretary Symington testified before your committee on January 30, 1950. Although the types and purposes of the aircraft to be developed differ, the means of accomplishing the development through Federal financing is, in principle, the same in both bills and is objectionable for the reasons which Secretary Symington discussed with you at that time. As a result, the Department of Defense does not favor enactment of S. 2984. The Bureau of the Budget has been consulted and advised that there is no objection to the submission of this report. Sincerely yours, STEPHEN EARLY, Acting Secretary. NATIONAL ADVISORY COMMITTEE FOR AERONAUTICS, Senator EDWIN C. JOHNSON, Chairman, Committee on Interstate and Foreign Commerce, United States Senate, Washington 25, D. C. DEAR SEANTOR JOHNSON: Permit me, in the absence of Chairman Hunsaker, to reply to your letter of February 6, 1950, in which you request comment on S. 2984, a bill to provide for the development and improvement of aircraft intended for industrial or personal use, and adaptable for military service. This matter was considered by the NACA at its last meeting and the following reply was approved, subject to clearance by the Bureau of the Budget, and this has subsequently been received: The establishment of a new independent agency of the Government to be known as the National Civil Aviation Council, as proposed in S. 2984, seems unnecessary to facilitate the development of prototype cargo or civil aircraft for industrial or personal use and adaptable for military service. The bill would make the Chairman of the National Advisory Committee for Aeronautics the chairman of the proposed three-man Council. This would involve an implied enlargement of the functions of the NACA to include the design of aircraft and the evaluation of their utility. This would be an undesirable change in character of the NACA as a research agency, whose findings the military services and the aircraft industry have been free to accept or reject. The NACA, of course, stands ready and willing to assist the military services or any other group designated by the Congress in matters relating to scientific and technical areonautical data. DEAR SENATOR JOHNSON: Further reference is made to your letter of February 6, 1950, requesting a report of the Commission's views on S. 2984, a bill to provide for the development and improvement of aircraft intended for industrial or personal use, and adaptable for military service. S. 2984 would establish the National Civil Aviation Council to carry out the purposes of the bill. These purposes as stated in the language of the bill are as follows: "That it is hereby declared to be the policy of the Congress that it is in the national interest to sponsor the design, development, construction, modification, and testing of prototypes of aircraft and aircraft components intended for industrial or personal use, and adaptable for military service." To assist the Council in carrying out its functions, the bill grants authority for the Council to establish an advisory committee composed of seven members. Three of these seven members would represent the general public, while the other four would represent aeronautical groups. The Council would be permitted to appoint members of the advisory committee without regard to the civil-service laws or the Classification Act of 1949. The Commission has no objection to this exception. Subsection 2 (d) of the bill contains the only other provision of the bill within the scope of the Commission's activities. This subsection authorizes the employn.ent of such personnel as the Council and the Administrator of Civil Aeronautics (the Administrator is a member of the Council) may deem necessary to carry out |