Mr. BOLAND. The chart on CG-1 of the justifications shows an increase of 32 positions under the Assistant Chief of Staff for Management. Why do you have this increase?

Admiral SMITH. Mr. Chairman, these personnel are requested to operate our new ADP system.

Mr. BOLAND. All 32 positions?

Admiral SMITH. All 32 positions.

Mr. BOLAND. So they will all be located here in Washington?
Admiral SMITH. That is right.

Mr. BOLAND. Under the Office of Research and Development you show an increase of 21. What is the reason for this increase?

Admiral SMITH. These increases in research and development are personnel to be added to the program. Part of those will be assigned in Washington and part will be assigned in the field.

Commander FITZGERALD. Six people in Washington to monitor the pollution control contract; seven people to field testing activities at Mobile, Alabama, and Baltimore; six people will be assigned to Washington to monitor the small contracts such as aids to navigation, and two people on the data buoy project, also in Washington.

OFFICE OF THE CHIEF COUNSEL

Mr. BOLAND. In the office of the Chief Counsel you show a total of 45 personnel, civilian 33 and military 12. Are these all stationed in Washington?

Admiral SMITH. Yes, sir.

Mr. BOLAND. How many lawyers do you have throughout the establishment?

Admiral SMITH. At the present time in the neighborhood of 97, including staff support.

Mr. BOLAND. Supply that for the record. Also break it down as to civilians and military.

(Information requested follows:)

On August 31, 1969, there were 45 military lawyers and 21 civilian lawyers assigned to legal positions throughout the Coast Guard.

Mr. BOLAND. How many districts do you have? Is it 12?

Admiral SMITH. Yes.

Mr. BOLAND. I thought I saw 17 somewhere on the chart. Is that right?

Admiral SMITH. There is a 17th district. We have a number of blanks in our district organization. For example, we have no fourth district and no sixth district.

TRANSFERS TO OFFICE OF THE SECRETARY

Mr. BOLAND. During fiscal year 1969 how many Coast Guard personnel were transferred, detailed, or put under operating control of the Office of the Secretary?

Admiral SMITH. Eighteen who are detailed to the Office of the Secretary. This is covered in the DOT Act, funded by the Office of the Secretary and assigned to various parts of his office.

Mr. BOLAND. Are they budgeted in the Office of the Secretary in the fiscal 1970 budget and not yours?

Admiral SMITH. That is right. In addition to these 18, five more are assigned to other elements of the DOT under similar arrangements. Mr. BOLAND. There were 23 of those?

Admiral SMITH. In 1969; yes, sir.

Mr. BOLAND. How many are under the actual control of the Office of the Secretary?

Admiral SMITH. In addition to the consolidation of the offices in the new building our five librarians will be reassigned as our contribution to the operation of the single joint library in the new building. I believe this transfer already has been made effective except that the people are still working for us until the move actually takes place. Mr. BOLAND. You say that there were 23 transferred.

Admiral SMITH. They are specifically detailed in the provision of the law where officers may be detailed to the Office of the Secretary and the Secretary's office pays these people.

In addition to the five librarians there are three officers and two civilians assigned to our congressional liaison. They are under the general supervision and control of the Office of the Congressional Liaison, Secretary's Office.

Mr. BOLAND. Are they budgeted by the Office of the Secretary? Admiral SMITH. No, sir; budgeted by us. They are still actually located at our headquarters but they are responsive to direction of the legislative liaison officer of the Department.

FISCAL YEAR 1969 REDUCTIONS

Mr. BOLAND. In fiscal 1969 under operating expenses the budget request, excluding reserve training, was reduced by about four and a half million dollars? What items which you requested last year were deferred?

Admiral SMITH. We split up this reduction. $1.1 million was covered by the decommissioning of four vessels and four aircraft. We deferred projects in the amount of $3.4 million.

Mr. BOLAND. Supply those for the record. (Information requested follows:)

We deferred projects totaling $3.4 million including—

Operation of balloon tracking radar__

Improvements to buoy tenders_.

Increased ammunition allowance_

Oceanographic equipment---

Loran C improvements__
Fire protection equipment.
Overseas inspection staffs.

Support billets (146)-

$240,000

200, 000

238, 000

362, 000

855,000

230,000

105, 000

1, 192, 000

The remaining cut of $1.1 million was met by laying up four ships and four aircraft.

Mr. BOLAND. Which of these are again being requested in fiscal 1970? Admiral SMITH. In the 1970 request we are including balloon tracking radar, the buoy tender improvement, oceanographic equipment, and loran improvements and fire protection equipment.

EFFECT OF CONTINUING RESOLUTION

Mr. BOLAND. You'll be operating under a continuing resolution for at least the first quarter of this year, perhaps the first half. What effect will this have on your 1970 programs?

Admiral SMITH. Under operating expenses we have deferred implementation of all programs other than annualizations and cost increases. In cases where there is a continuing cost budgeted for operating a new facility there will be a saving. In cases where we are budgeting funds to buy something specific, or to repair something, there will just be a deferral to the second half of the year. Any savings we realize in personnel costs will be considered by Bureau of the Budget in deciding on our pay supplementals. The savings we realize by deferring operating of new facilities-about $1 million-will be offset by the fact that(1) Delay in delivery of new buoys means that the $365,000 savings planned by layup of lightships (page OE-38 will not come until 1971).

(2) Since the ninth large 378 foot cutter was not delivered until this summer and will be on shakedown this fall, we have had to retain one old 311 footer for 3 extra months at a cost of $312,000.

(3) When our pay supplemental for fiscal year 1969 was cut in June, we deferred some engineering projects and let maintenance slip. We have planned to utilize savings to restore this $500,000 in the second quarter of fiscal year 1970.

Reserve training is seasonal, and quite close to the 1969 level. It is possible, therefore, to schedule training periods and recruit quotas for the second half of the year. Retired payments are fixed by law and not affected by the resolution.

In the areas of R. & D. and ACI, the continuing resolution means that we will not be able to start our program until late in the second quarter. This will have little effect on obligational authority needed, because we can do the staff work and preparation of contract specification in advance. It may reduce our planned cash outlays during fiscal year 1970, although such reductions very probably will be more than offset by increases in outlays due to payments for construction contracts planned but not accomplished in fiscal year 1969.

OPERATING EXPENSES

Mr. BOLAND. Insert pages 2 through 12 and 15 through 20 of the justification material for Operating Expenses.

(The information follows:)