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Mr. Gary. It appears that for this purpose in 1950 the request was $13,134,000, and the appropriation was the same amount; and in 1951 you are asking for $15,575,000. What is the reason for that increase, Admiral?

Admiral O'NEILL. That is primarily due to the pay increases under the Career Compensation Act. That is for 427 additional people, as an increase over the present fiscal year.

Mr. GARY. You estimate that there will be 427 more entitled to retirement pay in 1951 than in 1950?

Admiral O'NEILL. Yes, sir. Mr. Gary. Then the retirement payments have been increased by law; is that correct?

Admiral O'NEILL. Yes, sir.
Mr. Gary. What was your unobligated balance as of December 30?

Commander ARRINGTON. As of December 31 the unobligated balance was $6,485,314.

Mr. Chairman, there will be a supplemental for 1950 on this, the same as there will be on the active duty pay, because the Pay Increase Act was not passed until October.

Mr. Gary. So you will have to ask for a supplemental to take care of the addition to the amount ! Commander ARRINGTON. Yes, sir.

RESERVE TRAINING

Funds available for obligation:

Appropriation or estimate, 1931------

------- $4, 100,000

PROGRAM AND PERFORMANCE

This appropriation is for the purpose of initiating a Reserve training program to provide a trained nucleus of Reserve officers and enlisted men so that the Coast Guard will be prepared to carry out its missions as a part of the Navy in time

of war. A break-down of the training program by type of duty and numbers of personnel involved is as follows:

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Mr. Gary. It appears that you requested $3,500,000 last year. No appropriation was made, and for 1951 you are requesting $1,100,000.

Will you explain what this money is to be used for, Admiral?

Admiral O'NEILL. Under the law, Mr. Chairman, the Coast Guard operates as a part of the Navy in time of war. And we are, of course, assigned certain vital wartime missions to be performed in, say, any future national emergency.

As I mentioned earlier, the Coast Guard Reserve was established in 1941, and since the war we have had a reserve force of primarily commissioned officers who were placed on inactive duty after the war.

There has been no provision made for reserve training for these officers or for the training of enlisted men.

In order for us to carry out our wartime missions, it is necessary that we conduct a reserve training program, because these missions assigned to us by the Navy are not assigned to any other service, and the Navy naturally expects us to be prepared and ready to carry out those duties.

We have a figure here of $1,100,000 that will provide for an initial training in fiscal 1951 of 1,900 officers and 6,000 enlisted men.

Mr. Gary. Just what expenses are you going to pay with this? Are you going to pay these reserve trainees the same compensation that Army and Navy Reserve trainees receive ?

Admiral O'NEILL. Yes, sir. It would be a training program, and there would be a training period, and pay for drill periods.

Mr. GARY. When these men join the reserve, they meet so many nights a month for training and drill, and you will pay them for the time that they actually put into the reserve at the same rate that the Army and Navy pays? Is that right?

NECESSITY FOR RESERVE Admiral O'NEILL. Yes; the same as the Navy. And, of course, one of the most critical missions that we will have in time of national emergency is in regard to port security. And it is necessary, in order to carry out that mission, that we have a force trained and ready for immediate mobilization and use to carry out that function.

Largely, our wartime missions assigned by the Navy are an extension of our peacetime activities on a wartime basis, with this added port security duty, which will be extremely important immediately on the outbreak of war or when a national emergency is declared. And as I said before, we now have about 4,000 commissioned officers on inactive duty and about four or five hundred enlisted men. So this would require an expansion up to 6,000 enlisted men for training purposes in this year.

Of course that does not necessarily mean that that would be the entire force that we would require to carry out our missions assigned to us by the Navy. That would be the 1951 project. Those duties are port security and aurmenting the crews of our vessels, manning highfrequency direction-finder stations to be used in connection with search and rescue activities, aids to navigation, communications, and administrative personnel.

In connection with this Reserve training program, I have a copy of a letter from the Secretary of Defense to the Secretary of the Treasury, indicating the interest and concern of the Department of Defense in connection with the Reserve training program. With your permission, I would like to submit it for the record.

Mr. (Ary. Very well.
(The letter referred to follows:)

THE SECRETARY OF DEFENSE,

Washington, D. C., January 11, 1950. The honorable the SECRETARY OF THE TREASURY,

D-partment of the Treasury, Washington, D. C. DEAR VIR. SECRETARY: I have been informed that the Treasury appropriation bill for fiscal 1951 contains an item of $4,100,000 for reactivating the Coast Guard Reserves. I also understand that in accordance with the provisions of law by which the Coast Guard is to operate under the Navy during any future national emergency the Navy has assigned certain vital wartime missions to the Coast Guard. It is therefore apparent that the proposed reactivation of the Coast Guard Reserves is a matter of strong concern to the Department of Defense.

Accordingly, I desire to go on record as fully concurring with the request for the necessary funds for this purpose. While many of the wartime purposes of the Coast Guard are but large-scale expansions of its peacetime functions, such as aids to navigation, search and rescue, marine inspection and licensing, I am particularly perturbed about the security of our ports in the event of an emergency. It is vital to national defense that a medest but highly trained force be

and explosions, control the identity of water-front personnel, etc. I wish to emphas Z that in my opinion the maximum need for this protection will be immediate upon a declaration of an emergency. With kindest personal regards, I am, Sincerely yours,

Louis Johnson. Mr. Gary. You asked for $3,500,000 last year. You are asking for $4,100,000 this year. What is the reason for that increase?

Admiral O'NEILL. That is the pay increase. There is no change in the program.

Mír. Gary. This will include the pay of the regular Coast Guard men that you now have who would be assigned to this training course, would it? Or who would do the training under this program?

Admiral O'NEILL. Of course, we would naturally supervise the training of it with regular personnel. That would be included in this program. But reservists would be brought on active duty and would carry on much of the training themselves for other reservists. May I make one other observation, Mr. Chairman?

Also, there is another matter with regard to this reserve training, as to the money we are asking for. Under Public Law 810, which is sometimes referred to as the Reserve Retirement Act, Coast Guard reservists are included; whereunder they are required to acquire points toward retirement purposes by training periods and attending drill periods. And our reservists are unable to qualify under that, because of the fact that we have not been able to initiate a training program.

SIZE OF RESERVE PROGRAM Mr. Gary. Does this represent just an initial program which will increase from year to year?

Admiral ()'NEILL. Yes, sir.
Mr. GARY. What do you anticipate the maximum expenditure to be?
Admiral O'NEILL. In money?
Mr. Gany. Yes.
Admiral O'NEILL. $8,000,000.
Mr. Gary. Eight million a year?
Admiral O'NEILL. That would be for 1952.
Am I right about that, Captain?
Captain RICHMOND. That is right.

Mr. Gary. Ycu anticipate that the maximum cost for the program will be approximately $8,000,000 annually, and that you will reach that maximum in 1952?

Admiral O'NEILL. Yes, sir.

Mr. Johnson. Mr. Chairman, I think it might be added, there, just to clarify the record, that on the ultimate cost of $8,000,000, that would include 2,469 officers and 26,615 enlisted men.

Mr. Gary. I understand. Yes.

Mr. Johnson. Rather than the 6,000 contemplated in the program for the first year.

Mr. Gary. But you do not contemplate going beyond that figure?
Admiral O'NEILL. No, sir.

Mr. Gary. The figure just mentioned, that is. And you will reach a maximum.

Admiral O'NEILL. That is right.

Mr. CANFIELD. Admiral, you say that the Coast Guard Reserve was established in 1941 ?

Admiral O'Neill. February 1941; yes, sir.
Mr. CANFIELD. February 1941; which was in time of peace.
Admiral O'Neill. Yes, sir.
Mr. CANFIELD. And how long was it activated ?

Admiral O'NEILL. Well, we inducted a few officers. I do not recall the number, but we inducted a small number in 1941 to augment our forces which were then in our neutrality patrol, and so forth, that was going on at that time, in the early part of 1941.

Mr. CANFIELD. Did you ask for funds for the Coast Guard Reserve in that particular year!

Commander ARRINGTON. No, sir; not in a separate appropriation. The Reserves were included in the regular appropriation.

1950 ESTIMATE FOR RESERVES INCLUDED IN SUPPLEMENTAL BILL

Mr. CANFIELD. In other words, the first time the Coast Guard requested funds for the Coast Guard Reserve was this last year, when, after this committee had finished work on the regular appropriation bill for the new fiscal year, you went to the Senate and the Senate incorporated a certain amount in a supplemental bill. Is that right!

Captain RICHMOND. In the supplemental bill, the Senate put in $3,000,000, sir. Mr. CANFIELD. $3,000,000 out of a $4,000,000 request ? Captain RicHMOND. No, sir; $3,500,000. Mr. CANFIELD. How much did you request ? Captain RICHMOND. $3,500,000. Mr. CANFIELD. The full amount?

Captain RICHMOND. Yes, sir. But the Senate had previously considered it in connection with the regular appropriation as an additional request, and did not include it. That was the point I wanted to make clear.

Mr. Gary. The reason the Senate did not include it in the regular bill was because the House had been given no opportunity for consideration.

Captain RICHMOND. That is right. Mr. Gary. And then it was, as we say, knocked out in conference, Captain RICHMOND. That is correct. Mr. Gary. Insofar as the supplemental approach was concerned. That request, however, has never been before this committee, nor has this committee acted on it. That supplemental bill went before the Deficiencies Subcommittee and was not submitted to this subcommittee, and the Deficiencies Subcommittee of the House sat in conference on it.

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