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HEARING Copad

BEFORE THE
E" COMMITTEE ON ARMED SERVICES

UNITED STATES SENATE
EIGHTY-FIRST CONGRESS
. FIRST SESSION

ON
S. 1269 and S. 1843

? and S. 1819

A BILL TO CONVERT THE NATIONAL MILITARY ESTAB-
LISHMENT INTO AN EXECUTIVE DEPARTMENT OF THE
GOVERNMENT, TO BE KNOWN AS THE DEPARTMENT OF
DEFENSE; TO PROVIDE THE SECRETARY OF DEFENSE
WITH APPROPRIATE RESPONSIBILITY AND AUTHORITY,
AND WITH CIVILIAN AND MILITARY ASSISTANCE ADE-
QUATE TO FULFILL HIS ENLARGED RESPONSIBILITY;

AND FOR OTHER PURPOSES

MARCH 24 AND 29, APRIL 6, 7, 11, AND 12,

MAY 5 AND 6, 1949

Printed for the use of the Committee on Armed Services

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COMMITTEE ON ARMED SERVICES

MILLARD E. TYDINGS, Maryland, Chairman RICHARD B. RUSSELL, Georgia

STYLES BRIDGES, New Hampshire HARRY FLOOD BYRD, Virginia

CHAN GURNEY, South Dakota VIRGIL CHAPMAN, Kentucky

LEVERETT SALTONSTALL, Massachusetts LYNDON B. JOHNSON, Texas

WAYNE MORSE, Oregon ESTES KEFAUVER, Tennessee

RAYMOND E. BALDWIN, Connecticut : LESTER C. HUNT, Wyoming

WILLIAM F. KNOWLAND, California
J. NELSON TRIBBY, Olerk

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235
108
108

------- 48. 201

Statements of-

Bradley, Gen. Omar N., Chief of Staff for Army-----
Cake, Gilbert L., Associate Commissioner of Accounts, Treasury De-

partment-------
Cates, Gen. Clifton B., Commandant, United States Marine Corps----
Denfeld, Admiral Louis E., Chief of Naval Operations-------
Eberstadt, Hon. Ferdinand.---
Forrestal, Hon. Janes, Secretary of Defense-------
Hoover, Hon. Herbert-----
Kimball, Dan A., Assistant Secretary of the Navy for Air-
McNeil, W. J., Special Assistant to the Secretary of Defense--
Pace, Hon. Frank, Director of the Budget----------
Patterson, Hon. Robert P--
Royall, Hon. Kenneth C., Secretary of the Army ---
Stauffacher, Charles, Assistant Director in charge of Administrative

Management, Bureau of the Budget--

Symington, Hon. W. Stuart, Secretary of Air Force--

Vandenberg. Gen. Hoyt S., Chief of Staff for Air---

CONTENTS BY DATES

March 24, 1949 :

Text of S. 1269--------------------------------------------------

Statement of Hon. James Forrestal, Secretary of Defense; accom-

panied by Marx Leva, Assistant to the Secretary--

Letter from Secretary of Defense to chairman of the Armed Services

Committee dated March 24, 1949, and a press release concerning

monetary savings effected thus far under unification of armed

forces -

March 29, 1949 :

Letter from Secretary of Defense to chairman of the Armed Services

Committee dated March 28, 1949, and a comparison of President's

recommendations for amending the National Security Act of 1947

and the recommendations of the Hoover Commission.-------

Letter from Secretary of Defense to chairman of the Armed Services

Committee dated March 28, 1949, attaching statement on Munitions

Board purchase assignment program------

Letter from Secretary of Defense to chairman of the Armed Services

Committee dated March 28, 1949, attaching summary table and

detailed memorandum of dollar savings under unification.--------

Statement of Ferdinand Eberstadt-----

April 6, 1949: Statement of Hon. Frank Pace, Director of the Budget, ac-

companied by Frederick J. Lawton, Assistant Director of the Budget ;

Charles B. Stauffacher, Assistant Director, Administrative Management

Division; William Finan, Deputy Chief, Management Improvement

Branch; and William Schaub, Deputy Chief, Division of Estimates----

April 7, 1949 :

Statement of Hon. W. Stuart Symington, Secretary of the Air Force_

Statements of Admiral Louis E. Denfeld, Chief of Naval Operations;

Gen. Hoyt S. Vandenberg, Chief Staff for Air; Gen. Omar N. Bradley,

Chief of Staff for Army; and Gen. Clifton B. Cates, Commandant,

United States Marine Corps---------

April 11, 1949 :

Statement of Herbert Hoover------------

Statement of Robert P. Patterson.-

127

145

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April 12, 1949 :

- Page

Letter from Hon. John J. McCloy, president of the International Bank

for Reconstruction and Development, dated April 7, 1949, to chair-

man of the Senate Committee on Armed Services, enclosing copy of

his letter to Mr. Ferdinand Eberstadt giving his views on proposed

amendments to the National Security Act of 1947-----

160

Statement of Hon. Kenneth C. Royall, Secretary of the Army, accom-

panied by Maj. Gen. W. H. Arnold, Chief, Budget Division, Depart-

ment of the Army---------

173

Letter from Secretary of the Ariny Royall to Mr. Herbert Hoover en-

closing comments on the Eberstadt Committee Report on the Mili-

tary Budget---------------

174

May 5, 1949:

Statement of Ferdinand Eberstadt--

201

Letter dated May 4, 1949, from E. F. Bartlett, Fiscal Assistant Secre-

tary, Treasury Department, to chairman, Senate Committee on

Armed Services --

202

Letter dated May 4, 1949, from Hon. Lindsay Warren, Cemptroller

General of the United States, to chairman of Senate Committee on

Armed Services_------

202

Letter dated May 5, 1949, from Hon. Louis Johnson, Secretary of De-

fense, to chairman, Senate Committee on Armed Services_ ------- 206

Letter dated May 5, 1949, from Hon. F. J. Lawton, Acting Diretor,

Bureau of the Budget, to chairman of Senate Committee on Armed

Services

----

206

May 6, 1949 :

Statement of Gilbert L. Cake, Associate Commissioner of Accounts,

Treasury Department --

235

Statement of Charles Stauffacher, Assistant Director in charge of ad-

ministrative management, Bureau of the Budget-------

236

Statement of W. J. McNeil, special assistant to the Secretary of

Defense -----

------

Address of Mr. Marx Leva, special assistant to the Secretary of De-

fense, before the Joint Orientation Conference of the National

Military Establishment-----

256

Organization Chart for National Security, as set forth in the National

Security Act of 1947-----

---- facing 261

Organization Chart for National Security, showing proposed amend-

ments.

-------- facing 261

Memorandum from Admiral Louis Denfeld, for the Joint Chiefs of

Staff, dated March 25, 1949, to the Secretary of Defense---------- 261

Memorandum from Secretary of Defense Forrestal, dated March 26,

1949, to the Joint Chiefs of Staff---

262

Letter from Secretary of Defense Johnson, dated April 7, 1949, to the

chairman of the Senate Armed Services Committee---

262

May 12, 1949 : :

Copy of S. 1834, substitute bill for S. 1269------

Copy of Senate Report 366_---

275

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NATIONAL SECURITY ACT AMENDMENTS OF 1949

THURSDAY, MARCH 24, 1949

UNITED STATES SENATE,
COMMITTEE ON ARMED SERVICES,

Washington, D. The committee met, pursuant to call, at 10:30 a. m. in the committee room, room 212 Senate Office Building, Senator Millard Tydings (chairman) presiding.

Present: Senators Tydings, Byrd, Chapman, Johnson of Texas, Kefauver, Hunt, Saltonstall, Baldwin and Knowland.

The CHAIRMAN. The committee will come to order. : The committee will begin consideration today of S. 1269. This is a proposal which reflects the position of the President as stated in his message of March 5. It has been drafted by our legislative counsel, and conforms to changes which have been suggested by, and agreed to by, the interested executive departments of the Government. In its present form I understand it has the concurrence of the Bureau of thé Budget, the National Military Establishment and other interested parties. (S. 1269 is as follows:)

[S. 1269, 81st Cong., 1st sess.] A BILL To convert the National Military Establishment into an Executive Department of

the Government, to be known as the Department of Defense ; to provide the Secretary of Defense with appropriate responsibility and authority, and with civilian and military assistance adequate to fulfill his enlarged responsibility ; and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SHORT TITLE SECTION 1. This Act may be cited as the “National Security Act Amendments of 1949”.

CHANGE IN COMPOSITION OF THE NATIONAL SECURITY COUNCIL SEC. 2. The fourth paragraph of section 101 (a) of the National Security Act of 1947 is amended to read as follows:

"The Council shall be composed of the President; the Secretary of State; the Secretary of Defense, appointed under section 202; the Chairman of the National Security Resources Board, appointed under section 103; and such of the Secretaries of the other Executive Departments, and such other officials of the executive branch of the Government, as the President may designate from time to time.”

CONVERSION OF THE NATIONAL MILITARY ESTABLISHMENT INTO AN EXECUTIVE

DEPARTMENT

Sec. 3. Section 201 of the National Security Act of 1947 is amended to read as follows:

SEC. 201. (a) There is hereby established, as an Executive Department of the Government, the Department of Defense, and the Secretary of Defense shall be the head thereof.

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