    [Department of Defense Annual Report of the Secretary of Defense and the Annual Reports of the Secretary of the Army, Secretary of the Navy, Secretary of the Air Force. July 1, 1959 to June 30, 1960]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    ^^XfeGHENY COLLEGE LIBRARY!
    DEPARTMENT OF DEFENSE
    Annual Report
    of the
    SECRETARY OF DEFENSE
    and the
    ANNUAL REPORTS
    oi the
    SECRETARY OF THE ARMY
    SECRETARY OF THE NAVY
    SECRETARY OF THE AIR FORCE
    July 1,1959, to Jane 30,1960

    DEPARTMENT OF DEFENSE
    Annual Report
    of the
    SECRETARY OF DEFENSE
    and the
    ANNUAL REPORTS
    of the
    SECRETARY OF THE ARMY
    SECRETARY OF THE NAVY
    SECRETARY OF THE AIR FORCE
    July 1,1959, to June 30,1960
    UNITED STATES
    GOVERNMENT PRINTING OFFICE
    WASHINGTON : 1961
    For sale by the Superintendent of Documents, U.S. Government Printing Office
    Washington 25, D.C. — Price $1.25

    Letter of Transmittal
    The Secretary of Defense
    Washington
    January 18,1961
    Dear Mr. President :
    In compliance with Section 202(d) of the National Security Act
    of 1947, as amended, I submit the annual report of the Secretary of
    Defense, for fiscal year 1960, together with the reports of the Secretaries
    of the Army, Navy, and Air Force for the same period.
    With great respect, I am
    Faithfully yours,
    Thomas S. Gates, Jr.
    The President
    The White House
    iii

    Contents
    ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Page
    Chapter I. The Armed Forces__________ 3
    II. Research and Development__________________________ 17
    III. The Defense Budget________________________________ 32
    IV. Management________________________________________ 42
    V. Manpower__________________________________________ 51
    VI. Weapons, Equipment, and Facilities__________________ 68
    VII. Collective Security_________________________________ 85
    Annual Report of the Reserve Forces Policy Board___ 99
    ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    Chapter I. Introduction_________________________________________ 115
    II. Operations and Training_____________________________ 119
    III. Personnel__________________________________________ 143
    IV. Logistics____________________________________________ 157
    V. Research and Development__________________________ 179
    VI. Civil Works_________________________________________ 204
    VII. Management________________________________________ 211
    VIII. Budget______________________________________________ 216
    IX. Conclusion__________________________________________ 221
    ANNUAL REPORT OF THE SECRETARY OF THE NAVY
    Introduction_________________________________________ 227
    Chapter I. The Fleet____________ ... ----- ------ -------------- - 230
    II. The Marine Corps___________________________________ 251
    III. Naval Personnel___________________ ------------------- 259
    IV. Design and Construction of Ships_____________________ 265
    V. Weapons and Aircraft_______________________________ 272
    VI. Medical and Dental Services________________________ 280
    VII. Supply______________________________________________ 287
    VIII. Shore Facilities_____________________________________ 289
    IX. Research____________________________________________ 293
    X. Civilian Personnel__________________________________ 301
    XI. Business Management_______________________________ 304
    Conclusion___________________________________________ 311
    VI CONTENTS
    ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Page
    Chapter I. Introduction_________________________________________ 315
    II. Combat Forces______________________________________ 319
    III. Manpower__________________________________________ 331
    IV. Military Training___________________________________ 337
    V. Health and Welfare________________________________ 346
    VI. Installations_______________________________________ 351
    VII. Research and Development__________________________ 356
    VIII. Procurement and Production of Materiel____________ 367
    IX. Logistical Services__________________________________ 374
    X. Management________________________________________ 378
    XI. Budget______________________________________________ 385
    XII. Conclusion________________ 389
    Appendix____________________________________________________ 391
    Index________________________________________________________ 421
    Annual Report
    of the
    SECRETARY OF DEFENSE
    July 1, 1959, to June 30, 1960
    Contents
    Page
    Chapter I. The Armed Forces_____________________________________ 3
    II. Research and Development__________________________ 17
    III. The Defense Budget___________________________________ 32
    IV. Management_________________________________________ 42
    V. Manpower____________________________________________ 51
    VI. Weapons, Equipment, and Facilities____________________ 68
    VII. Collective Security_________________________________ 85
    2
    I. The Armed Forces
    During fiscal year 1960 the United States continued to maintain
    armed forces second to none. These forces successfully carried out
    their basic mission of insuring the security of the United States and
    deterring aggression.
    The maintenance of an effective balance of these forces remained
    the objective of Department of Defense plans and programs—balance
    between general and limited war forces, between the requirements of
    the present and those of the future. This balance requires great
    judgment and constant review and is always controversial. Perfect
    balance is difficult to achieve. Nevertheless, all key civilian and military
    officials of the Department were in essential agreement on the
    decision reached during the past year.
    While the multipurpose capabilities of many weapons and units
    make a clear distinction between general and limited war forces impossible,
    by far the larger part of available resources continued to be
    devoted to forces maintained primarily for limited war emergencies.
    At the same time, our retaliatory strategic forces achieved a readiness
    and striking power unequaled in their history.
    Reflecting the impact of the current scientific revolution on weapons
    technology, the amount and proportion of resources spent on research
    and development have steadily risen, reaching $3.7 billion or
    9 percent of the military expenditures in fiscal year 1960. The change
    in emphasis from aircraft to guided missiles continued—highlighted
    by the achievement of an operational capability for the intercontinental
    ATLAS in September 1959 and by bringing the development of
    the first POLARIS weapon system to near completion by the end of
    the fiscal year. Increased amounts of advanced weapons and equipment
    of all types were delivered to the active forces, including not
    only missiles but also supersonic aircraft, tanks, small arms, nuclearpowered
    ships, electronic equipment, and many other items. Programs
    for future weapon systems were accelerated whenever the
    progress in research made such acceleration practicable and the importance
    of the weapon to our security justified the additional cost.
    The reserve establishment continued to grow in effectiveness as
    personnel policies, organization, and equipment were improved. Policies
    concerning the size and effective missions of various components
    were placed under further review.
    3
    4 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    ARMED FORCES
    MILITARY PERSONNEL, DEPLOYMENT
    AND ALLOCATION
    (THOUSANDS)
    AS OF 30 JUNE
    ACTIVE
    DUTY
    PERSONNEL
    DEPLOYMENT
    *
    PERSONNEL
    IN
    OPERATING
    FORCE
    1959 1960 1959 1960 1959 1960
    DEPARTMENT
    OF DEFENSE 2,504 2,476 1,011 991 1,575 1,543
    ARMY 862 873
    iiiili
    343 347 545 562
    NAVY 626 394 388 364 376
    MARINE
    CORPS 176 171 42 42 109 101
    AIR FORCE 840 815 232 214 557 531
    * PERSONNEL ASSIGNED TO OVERSEAS BASES, ALASKA,
    HAWAII AND NAVY UNITS MOBILE AND AFLOAT
    Figure 1
    THE ARMED FORCES 5
    Our armed forces are today ready and prepared for all forms of
    military action. They are led by an officer corps of high capability,
    and both officers and enlisted men have an unequaled devotion to our
    national safety. Without the continued maintenance of such morale
    even the most glamorous new weapons will be ineffective.
    Fiscal year 1960 represented another year marked primarily by
    the modernization of our armed forces. Military personnel strength,
    deployment, and the allocation of forces changed only slightly (see
    fig-1).
    Military personnel on active duty at the end of fiscal year 1960
    totaled 2,476,000 as compared to 2,504,000 a year earlier. The reduction
    of 28,000 men reflects primarily the lower requirements resulting
    from the decrease in the number of Air Force wings and ships in the
    active Fleet. The changes in Army and Marine Corps year-end
    strengths are the result of recruiting policies to stay within the
    planned levels of 870,000 and 175,000, respectively.
    Over 40 percent of our forces—991,000 men—were assigned on
    June 30, 1960, to oversea bases, to Alaska and Hawaii, or to afloat
    and mobile activities of the Navy. Practically all these men were
    under the operational command of unified and special commanders
    and organized for immediate action in case of emergency. These
    deployments included 39.7 percent of the Army, 62.8 percent of the
    Navy, 24.8 percent of the Marine Corps, and 26.2 percent of the Air
    Force. No changes of major significance in these deployments occurred
    during the year.
    The percentage of personnel in the operating forces declined
    slightly during the year—62.9 percent to 62.3 percent. This decrease
    of 0.6 percentage points is largely accounted for by the heavier demand
    on the training facilities of the Air Force and the Marine
    Corps, caused by the larger number of first enlistments. A continuous
    effort is being made to reduce the number of personnel assigned to
    both the training and the supporting forces.
    The Army
    The modernization of equipment to improve firepower and mobility
    received primary emphasis in the Army during fiscal year 1960. The
    only organizational changes in the major forces structure were the
    elimination of one understrength training division and 4% air defense
    battalions and the addition of one battle group (see fig. 2).
    REDSTONE, CORPORAL, and LACROSSE missiles, with
    ranges of about 200, 80, and 20 miles, respectively, were delivered in
    greatly increased quantities and provided substantial additional
    striking power with their dual capability of carrying nuclear as well
    as nonnuclear warheads. A new antitank missile, the wire-guided
    6 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    ARMY
    MAJOR FORCES
    AS OF 30 JUNE
    1959 1960
    DIVISIONS 15 ' ** /sill
    REGIMENTS/RCT'S 5
    ARMORED COMBAT CMDS. 1 i
    INFANTRY BRIGADES 2 ■■111 :||||||j
    BATTLE GROUPS 8 9 SiH
    ARMY MISSILE CMDS. 4 4
    AIR DEFENSE BATTALIONS 85 SO T/4
    PERSONNEL
    ACTIVE DUTY 861,964 873,078 :
    RESERVE COMP. (PAID STATUS ) 749,600 //•sO-gi-//
    NATIONAL GUARD (399,427) (401,765)
    RESERVE (350,173) (361,797)
    CIVILIAN 526,300 503,009 /
    ACTIVE
    AIRCRAFT INVENTORY 5, 199 5/493 "
    HELICOPTERS (2,357) (2,633)
    FIXED WING (2,842) ■ (2,860) '■
    Figure 2
    THE ARMED FORCES 7
    SS-10, became operationally available during the year, increasing
    the defensive strength of infantry divisions.
    In the small arms field, the 7.62-mm. rifle and machinegun, which
    are scheduled to replace eventually eight different weapons now in use,
    started to be delivered in quantity. The new arms are lighter, more
    effective, and more reliable than their predecessors and use the standard
    NATO cartridge. The interchangeability of ammunition with
    our allies and the reduction in the number of different weapons is
    expected to lower significantly the Army’s logistical requirements.
    Fiscal year 1960 also marked the first deliveries of the M-60
    medium tank and the M-113 armored personnel carrier. The new
    tank—compared to its predecessor, the M-48—carries a more powerful
    snm, is lighter, and has a more efficient engine, using diesel
    fuel, and a greater operating range. The M-113 is an aluminum
    armored personnel carrier with less than half the weight of its
    predecessor and provides, therefore, pronounced advantages in range,
    speed, and gas consumption.
    Additional tactical mobility was achieved by the Army with an
    increase of about 6 percent in its aircraft inventory—from 5,199 to
    5,493 planes. New aircraft delivered to field units included the
    turbine-powered utility helicopter, the Iroquois.
    The Army’s antiaircraft missile strength improved as the HAWK
    became operational at the beginning of fiscal year 1960, giving the
    Army an effective defense against low-flying aircraft. The rapid
    replacement of NIKE-AJAX with NIKE-HERCULES battalions
    continued. The longer range and greater effectiveness of the nuclearcapable
    NIKE-HERCULES accounted primarily for the reduction
    in the number of regular Army air defense battalions from 85 to
    80*4. In addition, the Army National Guard took over full responsibility
    for the continued operational readiness of 11 NIKE-AJAX
    battalions in the continental United States, bringing the total number
    of on-site battalions thus assigned to 13.
    The Navy and Marine Corps
    The commissioning of the first two POLARIS submarines—the
    George W ashing ton on December 30, 1959, and the Patrick Henry
    on April 9, 1960—and the successful launching shortly after the close
    of the fiscal year of two POLARIS missiles from the submerged
    George Washing ton gave clear evidence that the POLARIS missile
    system would be operationally deployed as scheduled before the end
    of calendar year 1960.
    The development of this radically new weapon system was accomplished
    within less than 4 years from the time that the Navy’s
    8 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    solid-propellant ballistic missile program was approved. With the
    ships authorized by the budget for fiscal year 1961, the POLARIS
    program included, in addition to the 2 submarines commissioned,
    authorization for the construction of 12 new submarines and the
    procurement of long leadtime components for 7 more. Four of these
    submarines are scheduled to be commissioned during fiscal year 1961
    and will provide an increasingly effective addition to the deterring
    power of our armed forces.
    Substantial progress was also made in other major naval programs,
    particularly in nuclear propulsion, guided missiles, modernization of
    aircraft, and antisubmarine warfare.
    The main striking power of the Fleet continued to be centered
    around 14 attack carriers, including 4 Fvrrestal-type carriers. While
    the number of active warships was reduced from 386 to 376 during
    the fiscal year (see fig. 3), the additions included 5 nuclear-propelled
    submarines, bringing the total of such ships commissioned to 11. To
    the guided missile ship category, 8 ships were added—3 converted
    cruisers, 2 new frigates, and 3 nuclear-propelled submarines—increasing
    the number of guided missile ships serving with the Fleet on
    June 30, 1960, to 16. Additional new construction and modernization
    funded through fiscal year 1961 included 50 conventionally powered
    and armed ships, 38 nuclear-powered ships, and 65 guided missile
    ships, of which 14 will be nuclear-powered.
    The 16 carrier air groups were strengthened, particularly by further
    deliveries of the improved all-weather version of the A4D Skyhawk
    light attack aircraft and of the F8U Crusader, the most widely used
    carrier fighter at the present time. New aircraft placed into production
    during the fiscal year included the A2F-1 Intruder, a light attack
    plane with greater range, endurance, and all-weather capabilities, and
    procurement continued for the A3J-1 Vigilante, a new heavy attack
    bomber, and the F4H-1 Phantom II, a supersonic, all-weather, twinjet
    fighter.
    The Navy’s nuclear striking power at the close of the fiscal year
    consisted of the attack aircraft of the carrier air groups and five
    REGULUS I submarines, capable of destroying targets more than
    500 miles distant. Aircraft, many of them equipped with SIDEWINDER
    and SPARROW III air-to-air missiles, continued to carry
    major responsibility for the air defense of the Fleet, but wore increasingly
    supplemented by 12-mile TERRIER and 75-mile TALOS surface-
    to-air missiles. Additional deliveries of BULLPUP air-to-surface
    missiles reinforced the traditional ground support provided by
    naval ships and aircraft.
    Greatly increased emphasis was placed on antisubmarine warfare
    during the year. The centralized command structure for all antisubTHE
    ARMED FORCES
    MAJOR FORCES
    COMMISSIONED SHIPS
    AS OF 30 JUNE
    1959 1960
    860 812
    WARSHIPS (386) (374)
    OTHER SHIPS (474) (436) -
    CARRIER AIR GROUPS 16 16
    CARRIER ANTI-SUB. SQDNS. 22 ••
    PERSONNEL
    ACTIVE DUTY 626,340 617,984
    RESERVE (PAID STATUS) 130,006 132,709
    CIVILIAN 374,500 365,502
    ACTIVE
    AIRCRAFT INVENTORY 9, 649 8,863
    JET AIRCRAFT PERCENTAGE 43% 43%
    OPERATING (7, 562) (6,542)
    LOGISTICAL SUPPORT (2,109) (2,104)
    MARINE CORPS
    MAJOR FORCES
    DIVISIONS 3 O:?-: 3
    AIRCRAFT WINGS 3 3
    PERSONNEL
    ACTIVE DUTY 175,571 170,621
    RESERVE (PAID STATUS) 46,416 46,470
    Figure 3
    10 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    marine activities established for the Atlantic Fleet in fiscal year 1959
    was introduced into the Pacific Fleet. Accelerated progress in antisubmarine
    tactics was achieved by combining doctrine development,
    training, and operations—a concept originally tested in 1958 by Task
    Force Alfa. Detection ranges were extended by new sonars and sonobuoys
    and the Fleet’s attack capabilities increased by an improved
    homing torpedo. The 22 antisubmarine air squadrons were reorganized
    into 11 air groups and the number of component squadrons increased
    to 31 by the activation of replacement units that provide the
    air groups with better trained personnel and increased combat
    readiness.
    The Marine Corps continued to maintain three combat-ready divisions
    and three air wings—organized, trained, and equipped for rapid
    deployment to any trouble spot in the world. With a total personnel
    strength of 171,000 at the close of the fiscal year, the Marines were
    slightly below their programed strength of 175,000. Like the other
    military Services, the Marine Corps improved its combat capabilities
    by deliveries of additional modern weapons, including new attack and
    fighter aircraft; helicopters; SIDEWINDER, BULLPUP, and
    TERRIER missiles; and HONEST JOHN rockets. The first Marine
    HAWK surface-to-air missile battalion was activated during the fiscal
    year.
    The Air Force
    When the first ATLAS missile became operational in early September
    1959, a major step was taken by the Air Force in shifting its
    retaliatory capability from aircraft to a mixed force of ballistic
    missiles and aircraft.
    The approved Air Force program at the close of the fiscal year
    called for 13 ATLAS squadrons to be ready by December 1962.
    Starting in 1961 the first of 14 TITAN squadrons is scheduled to
    become operational. In 1963 these liquid-propelled intercontinental
    missiles will be joined by the first solid propellant MINUTEMAN,
    planned to be deployed initially in fixed hardened and dispersed
    emplacements.
    The heavy bomber force continues to grow in effectiveness. During
    fiscal year 1960, an additional wing of B-52’s was activated,
    while the number of B-47 medium bombers was reduced. Deliveries
    of the advanced model B-52G and a steady increase
    in the number of KC-135 jet tankers for aerial refueling lengthened
    the radius of action of the Strategic Air Command. In
    May 1960, the HOUND DOG, an air-to-surface 500-mile aerodynamic
    missile, became operationally available and by the end of the fiscal
    year two squadrons of B-52’s were being equipped with this powerful
    THE ARMED FORCES 11
    AIR FORCE
    MAJOR FORCES
    TOTAL WINGS
    AS OF 30 JUNE
    1959 1960
    1 05 96
    STRATEGIC (43) (40)
    AIR DEFENSE (27) (23)
    TACTICAL (35) (33)
    PERSONNEL
    ACTIVE DUTY 840,028 814,752
    RESERVE COMP. (PAID STATUS) 1 35, 556 135,848
    NATIONAL GUARD (70, 994) (70, 820)
    RESERVE (64, 562) (65,028)
    CIVILIAN 364,094 354, 928
    ACTIVE
    AIRCRAFT INVENTORY 20,890 18/712
    JET AIRCRAFT PERCENTAGE 66% 67%
    OPERATING (18,260) (16, 567)
    NON-OPERATING (2,630) (2, 145)
    595308—61------ 2
    Figure 4
    12 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    new weapon system. The HOUND DOG enables manned bombers
    to attack heavily defended targets without direct exposure to enemy
    antiaircraft fire. The penetrating capability of these bombers was
    also enhanced with the successful operational tests in June 1960 of
    the QUAIL, an air-launched decoy. The long research and development
    effort on the aerodynamic SNARK was also completed during
    the year, when a SNARK squadron became operational.
    In the air defense field, the Air Force’s contribution was strengthened
    during the year as most of the subsonic F-86’s and F-89’s were
    replaced by supersonic F-lOl’s and F-106’s. Improved FALCON
    and SIDEWINDER air-to-air missiles and GENIE air-to-air rockets,
    equipped with nuclear warheads, increased the effectiveness of these
    fighter interceptors. An additional nuclear capability was introduced
    in September 1959 when the 200-mile BOMARC—A was placed in
    service; by June 1960, four squadrons had been declared operational.
    The Tactical Air Force includes bomber, fighter, reconnaissance,
    and troop carrier aircraft and surface-to-surface missiles. While the
    supersonic F-100 continued to be the principal aircraft in tactical
    fighter squadrons, one wing was being converted to the new F-105,
    designed to provide more effective close air support to ground combat
    troops. Substantial progress was also made in reequipping MATADOR
    surface-to-surface missile squadrons with the longer range
    and more effective MACE-A, which became operational during
    the year. Increases in the number of transport aircraft, particularly
    of the C-130 Hercules assault troop carrier, improved our capability
    to lift men and materiel to distant trouble spots.
    The adjustments in the Air Force wing structure and personnel
    strength during fiscal year 1960 reflected the impact of the introduction
    of these new and improved weapons. While the number of
    wings was reduced from 105 to 96 and military personnel from
    840,000 to 815,000, the over-all striking power of the Air Force
    was greater at the close of the fiscal year than at the beginning (see
    fig- •
    Major Missions and Deployment
    The units organized, trained, and equipped by their respective
    military departments are assigned for operational command to eight
    unified and specified commands established by the Secretary of Defense—
    six unified commands for Alaska, Atlantic, Caribbean, Continental
    Air Defense, Europe, and Pacific and two specified commands
    for Strategic Air and the Eastern Atlantic and Mediterranean
    (see fig. 5). In general, the missions of these commands are focused
    on strategic, continental air defense, or limited war operations.
    THE ARMED FORCES 13
    Figure 5
    Strategic Forces
    United States retaliatory capability remained centered during the
    fiscal year on the heavy and medium bombers of the Strategic Air
    Command (SAC), operating from bases in the United States, Europe,
    north Africa, and the Pacific and flown by thoroughly trained and
    expert crews. Strategic aircraft continued to be dispersed to additional
    airfields to provide increased readiness and protection, and
    about one-third of the combat strike force was placed on 15-minute
    ground-alert. In December 1959 steps were taken to procure the
    materiel and train the additional crews required for keeping a substantial
    part of the heavy bomber force on a continuous airborne alert,
    in case such an alert should become necessary.
    During the fiscal year the first intercontinental missiles reinforced
    the strategic bombers—ATLAS ballistic missiles at Vandenberg Air
    Force Base, Calif., and SNARK aerodynamic missiles in Maine.
    The enormous striking power of the strategic forces can be further
    increased in the event of a major war by numerous tactical aircraft
    capable of delivering nuclear weapons. The USAF Tactical Air
    Forces have over 1,000 aircraft with such a capability deployed overseas
    and about 200 naval attack planes are constantly on station with
    the Sixth and Seventh Fleets in the Mediterranean and the Far East.
    To provide increased assurance of the effectiveness of all forces with
    retaliatory missions, improved procedures were being developed at
    14 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    the close of the fiscal year for the continued review of target assignments,
    incorporated into a Single Integrated Operational Plan. This
    plan covers all forces assigned, including the POLARIS submarine.
    The approved programs for the introduction of advanced weapon
    systems guarantee that our strategic units will remain a ready and
    effective retaliatory force in the years ahead.
    C ontinental Air Defense
    The responsibility for the air defense of the northern half of the
    Western Hemisphere has been assigned to the North American Air
    Defense Command (NORAD), a joint United States-Canadian headquarters,
    of which the Continental Air Defense Command (CONAD)
    constitutes the U.S. component. CONAD is a unified command, including
    Army, Navy and Air Force units, and exercises operational
    control over some of the Navy’s early warning ships and aircraft in
    the Atlantic and Pacific.
    The imminent shift in the air threat to our security from aircraft
    alone to ballistic missiles and aircraft led to a comprehensive review
    of our air defense programs in fiscal year 1960. As a result, elements
    of the defense against aerodynamic weapons, that would take excessive
    time and funds to complete, were cut back in favor of a more
    rapid modernization of available weapons and equipments. These
    adjustments brought a reduction in the programs for the BOMARC
    missile and the hardened “supercombat” centers for the Semi-Automatic
    Ground Environment (SAGE) system, and an acceleration in
    the modernization of the fighter interceptor forces and in the construction
    of the Ballistic Missile Early Warning System (BMEWS).
    At the same time the research effort to develop more advanced warning
    systems against ballistic missiles was strengthened. The revised
    program provides an earlier completion of defenses against aerodynamic
    weapons, but on a less extensive scale than previously planned.
    The BMEWS program includes three widely dispersed, long-range
    radar stations, a central computer and display facility in the United
    States, and a communications network to link the separate elements.
    This system is capable of providing a 15-miriute warning of a massive
    ballistic missile attack. The first ground station at Thule, Greenland,
    was nearly completed during the year and construction schedules for
    the other two stations at Clear, Alaska, and Fylingdales, England,
    were advanced.
    The warning net against bomber attack was improved with the
    installation of additional “gap filler” radars and the modernization of
    radar and communication equipment for the Distant Early Warning
    (DEW) line, stretching from the Aleutians around the Arctic Circle
    THE ARMED FORCES 15
    to the east coast of Canada, and the Mid-Canada line along the 55th
    parallel. The picket ships in the Pacific barrier, extending from the
    Aleutians to Midway, were withdrawn during the year, and sole responsibility
    for coverage was assigned to early warning aircraft.
    Substantial progress was also made in the development of active
    defenses against air attack. The SAGE system for coordinating the
    operations of aircraft and missiles was extended from the northeastern
    section of the United States to the north central and northwestern
    sections, tripling the area covered by SAGE and greatly increasing
    the operational effectiveness of the advanced interceptors and
    BOMARC missiles delivered during the year. Also tied in with the
    SAGE system are the Army’s MISSILE MASTERS, used to direct
    the fire of NIKE batteries providing the local defenses of important
    cities and air bases throughout the country. Four more MISSILE
    MASTERs were placed in operation during fiscal year 1960, for a
    total of five.
    Tactical Forces
    The great bulk of our armed forces, while carrying important missions
    in case of a general war, is available to counter local aggression.
    These forces have a nuclear and nonnuclear capability and are being
    equipped with the most modem weapons available. A large portion
    is assigned overseas, helping our allies to guard their frontiers, while
    units stationed at home are trained to move at short notice. The
    sea lanes essential for continued support are guarded by powerful
    naval forces, and substantial reserve components are available as
    reinforcements in case of need.
    The tactical forces deployed are assigned to unified commands
    with responsibility for particular areas. The combat forces held in
    reserve for rapid deployment will be assigned to the unified commander
    in whose area the emergency develops.
    Ground forces are provided by both the Army and Marine Corps.
    Eight Army divisions are stationed outside the continental United
    States—five in Europe with the forces of the North Atlantic Treaty
    Organization (NATO), two in Korea, and one in Hawaii. Supporting
    troops, including REDSTONE, CORPORAL, and LACROSSE
    missile and HONEST JOHN rocket battalions and NIKE antiaircraft
    missile batteries, are available at strategic locations to provide
    additional firepower and protection to ground combat units. The
    Strategic Army Corps (STRAC), composed of one infantry and two
    airborne divisions, together with strong supporting units, is stationed
    at home, prepared at all times to move out on short notice.
    As for the Marines, one division-wing team is located in the Pacific,
    with units on Okinawa and Hawaii and with the Seventh Fleet;
    16 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    another one is on the Pacific Coast in southern California; and the
    third one is in North Carolina, from where units are deployed to the
    Mediterranean and Atlantic Fleets.
    The ships and aircraft of the Navy are organized into four powerful
    fleets. The First and Seventh Fleets, with eight attack carriers,
    stand guard in the Pacific and Far East, while the Second and
    Sixth Fleets, with six attack carriers, protect the Atlantic and the
    Mediterranean, respectively. Ships are rotated between Fleets on a
    regular schedule to keep about one-third of our naval strength at
    advanced positions and one-third near our own coasts, while the remaining
    one-third is in port for overhaul or is being used for training
    purposes.
    Over one-half of the Air Force’s tactical units are based in Europe
    and the Far East, responsive to the requirements of unified commanders.
    Those in the United States are organized under the Air Force’s
    Tactical Air Command and are frequently rotated for short stays
    overseas. In case of emergency, the necessary units will be assigned
    to Composite Air Strike Forces for instant deployment.
    II. Research and Development
    The orderly adjustment to the impact of current revolutionary
    developments in science and technology on military weapon systems
    has presented a major challenge to our armed forces in recent years.
    To meet this challenge, research and development activities throughout
    the Defense establishment have been steadily expanded, and
    management controls have been strengthened to provide effective
    direction and prevent unnecessary duplication.
    Fiscal year 1960 brought another marked increase in the military
    research and development effort. Obligations in this field reached
    a total of $5.8 billion, as compared to $5.4 billion during the preceding
    year. Of this year’s total, $4.0 billion was provided by research and
    development appropriations, $1.5 billion by procurement funds, and
    $0.3 billion by military personnel and construction accounts for the
    direct support of research activities.
    The effort devoted to improving missiles and missile defenses continued
    as the major field of research, receiving 39 percent of the research
    and development funds. Future changes in weapon systems
    are forecast by the increase during the last 2 fiscal years in the
    obligations for space projects from 9 to 11 percent and the decrease
    in aircraft development research from 12 to 8 percent. Obligations
    in other fields of research were at about the same level in fiscal year
    1960 as the year before—13 percent for general research in the military
    sciences; 5 percent for ships and related equipment; 5 percent
    for ordnance, vehicles, and related items; 13 percent for other types
    of equipment; and 6 percent for program management (see fig. 6).
    Authoritative and improved direction of research activities was
    provided by the Director of Defense Research and Engineering—a
    position authorized by the 1958 Reorganization Act and established
    early in calendar year 1959. The Director was given responsibility
    not only to supervise all research activities of the military departments
    but also to direct and control those that require centralized
    management. The Advanced Research Projects Agency (ARPA)
    was officially placed under his immediate control on Decmber 30, 1959.
    17
    18 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    RESEARCH AND DEVELOPMENT ACTIVITIES
    OBLIGATIONS OF R&D FUNDS
    (MILLIONS of dollars)
    FISCAL YEAR 1959
    TOTAL 3,543.6
    Figure 6
    Military Space Technology
    The effect on military activities of the recently achieved capability
    of man to probe outer space is important but still uncertain. Current
    military research is focused on the development of early warning,
    reconnaissance, navigation, and communication satellites and is
    exploring other possible uses of space.
    In view of the unknown potential in this field, the direction and
    control of the military space effort was originally assigned to ARPA.
    The rapid progress made since 1958 permitted the progressive assignment
    of space projects to the military departments. In accordance
    with a plan announced in September 1959, the Air Force was given
    responsibility for the development, production, and launching of all
    military space boosters, and the development of payloads for specific
    satellites and supporting ground equipment was transferred to one
    of the military departments on the basis of primary interest and research
    capability.
    In November 1959, the Air Force was assigned responsibility for
    three projects—DISCOVERER, MIDAS, and SAMOS. The objective
    of DISCOVERER is to test components, propulsion, and
    guidance systems to be used in other satellite projects and to develop
    techniques for the recovery of space capsules. Of the eight attempts
    made during the year to place DISCOVERER satellites into orbit,
    five were successful, but the recovery of the capsule was not achieved.
    The MIDAS project is aimed at developing an early warning satellite
    that will detect the launching of ballistic missiles. Two MIDAS
    RESEARCH AND DEVELOPMENT 19
    launchings were attempted during the year, with one being successful.
    SAMOS satellites are scheduled to be launched in fiscal year 1961
    and should provide further information on the feasibility of reconnaissance
    from space.
    Responsibility for the navigational satellite, TRANSIT, was transferred
    to the Navy in May 1960. Of the three TRANSIT shots attempted
    during the year, two were successful. One of these carried
    two satellites into orbit for the first time; the TRANSIT capsule
    provided data on the precise shape of the earth and its smaller companion
    measured the intensity of solar radiation.
    Responsibility for communication satellites was transferred from
    ARPA to the Army after the close of the fiscal year. This transfer
    involved primarily COURIER, a delayed repeater communications
    system, and ADVENT, an active instantaneous relay system.
    Altogether, Department of Defense agencies during fiscal year 1960
    attempted 13 satellite launchings, of which 8 were successful—placing
    9 satellites into orbit (see fig. 7). In addition, the Department
    of Defense participated in the space activities of the civilian National
    Aeronautics and Space Agency (NASA), which attempted eight
    additional satellite launchings and two space probes and succeeeded
    in orbiting four satellites and sending one capsule into interplanetary
    space. In summary, of the 23 space shots by the United States during
    the fiscal year, 13 were successful, placing 13 satellites into orbit
    and achieving 1 space probe.
    The civilian space effort was further strengthened during the year
    with the transfer to NASA—proposed by the President on October
    21, 1959—of the Development Operations Division of the Army Ballistic
    Missile Agency at Huntsville, Ala., including its SATURN
    project for the development of a rocket engine with a 1.5 millionpound
    thrust. The Defense establishment also assisted NASA by
    making boosters and launching and tracking facilities available for
    its satellite shots and space probes.
    Progress was also made in improving satellite detection and tracking
    facilities, a joint responsibility of NASA and the Department
    of Defense. A more powerful transmitter was being constructed to
    extend the coverage of the military Space Surveillance Detection
    Net (SPASUR) that detects, identifies, and tracks silent satellites
    and feeds the information into the National Space Surveillance Control
    Center (SPACETRACK), a central point for analyzing such
    data from all sources. Central supervision and coordination of activities
    in this field were assigned in April 1960 to a special office
    reporting to the Director of Defense Research and Engineering, and
    plans were developed for the early transfer of the projects to the
    military departments—SPASUR to the Navy and SPACETRACK
    20 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    MILITARY SATELLITES
    FISCAL YEAR I960!
    DATE NAME TYPE TEST RESULTS
    Aug. 13, 1959 DISCOVERER V Recoverable
    Satellite
    Achieved orbit but capsule not
    recovered; down Sept. 28, 1960.
    Aug. 19, 1959 DISCOVERER VI Recoverable
    Satellite
    Achieved orbit but capsule not
    recovered; down Oct. 20, 1959.
    Sep. 17, 1959 TRANSIT l-A Navigation
    Satellite
    Did not achieve orbit.
    Nov. 7, 1959 DISCOVERER VII Recoverable
    Satellite
    Achieved orbit but capsule not
    recovered; down Nov. 26, 1959.
    Nov. 20, 1959 DISCOVERER VIII Recoverable
    Satellite
    Achieved orbit but capsule not
    recovered; down Mar. 7, 1960.
    Feb. 4, 1960 DISCOVERER IX Recoverable
    Satellite
    Did not achieve orbit.
    Feb. 19, 1960 DISCOVERER X Recoverable
    Satellite
    Did not achieve orbit.
    Feb. 26, 1960 MIDAS 1 Warning
    Satellite
    Did not achieve orbit.
    Apr. 13, 1960 TRANSIT l-B Navigation
    Satellite
    Achieved orbit; indicated
    feasibility of navigational
    satellite system.
    Apr. 15, 1960 DISCOVERER XI Recoverable
    Satellite
    Achieved orbit but capsule not
    recovered; down Apr. 26, 1960.
    May 24, 1960 MIDAS II Warning
    Satellite
    Achieved orbit; transmitted
    infrared data.
    Jun. 22, 1960 TRANSIT 1 l-A Navigation
    Satellite
    Two satellites placed in orbit;
    one further demonstrated
    feasibility of navigational
    satellite system; second
    satellite measured solar
    radiation.
    June 29, 1960 DISCOVERER XII Recoverable
    Satellite
    Did not achieve orbit.
    Figure 7
    RESEARCH AND DEVELOPMENT 21
    to the Air Force—for the assignment of operational control to the
    North American Air Defense Command.
    The Department of Defense and NASA continued their close association
    in developing equipment and techniques for human space
    travel. The X-15, a high-speed, high-altitude experimental manned
    aircraft developed by the Air Force, made six powered test flights
    during the year, reaching an altitude of more than 100,000 feet and
    a speed of Mach 3. The studies of Dyna-Soar, a glider vehicle designed
    for altitudes of several hundred thousand feet and speeds up
    to Mach 25, progressed sufficiently to justify the selection of a contractor.
    Manned space flight is the objective of Project MERCURY,
    a NASA activity undertaken with the cooperation and support of the
    Department of Defense.
    Nuclear Developments
    In the nuclear field, the Atomic Energy Commission (AEC) is
    responsible for research, development, and production of all nuclear
    weapons and power reactors. Agreement on specific projects is
    reached through the Military Liaison Committee to the AEC.
    No nuclear weapons were tested during the fiscal year, in accordance
    with the voluntary suspension of such tests initiated by the
    United States in November 1958. In the meantime, theoretical
    studies, laboratory experiments, and simulation techniques were used
    to expand our knowledge of nuclear weapons effects. This work
    is coordinated by the Defense Atomic Support Agency with the assistance
    of the Department of Defense Weapons Effects Board,
    established in April 1960. The approval in October 1959 of an
    Armed Forces Radiobiology Research Institute is expected to expand
    the medical effort in this field.
    The high altitude sampling program, initiated in 1957 to study the
    distribution of radioactive debris injected into the stratosphere by
    nuclear tests, was completed during the year. It involved the collection
    by U-2 aircraft of over 4,000 samples of the atmosphere at altitudes
    of about 70,000 feet from the Arctic to the Antarctic. The
    analysis of these samples makes possible predictions of worldwide
    fallout patterns in case such nuclear tests are resumed.
    Increased emphasis was placed during the year on the development
    of technically more reliable detection systems for nuclear explosions,
    particularly those occurring underground or high in the atmosphere.
    This project was assigned to ARP A in September 1959.
    The use of nuclear energy as a source of power was considerably
    expanded by the armed forces during the year.
    Improved reactors were developed for naval ships, of which a total
    of 11, all submarines, had been commissioned by June 30, 1960. One
    22 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    of these, the Seawolf, was temporarily withdrawn from service to
    substitute a water-cooled reactor for the original one using sodium.
    The nuclear-powered ships under construction include, in addition to
    submarines, the aircraft carrier Enterprise, the guided missile cruiser
    Long Beach, and the guided missile frigate Bainbridge.
    On land, the construction of a stationary medium-power-range
    reactor at Fort Greely, Alaska, was nearly completed; it is based on
    the experience gained from a similar experimental and training
    reactor installed at Fort Belvoir, Va. These reactors provide about
    1.7 megawatts of electricity and additional power for heating.
    Portable medium-power-range reactors have been scheduled for early
    installation at Sundance Air Force Station, Wyo., and Camp Century,
    Greenland; they are air-transportable and can be assembled within
    90 days.
    Still in the research and development stage are a number of advanced
    nuclear reactors for the propulsion of ships, for mobile use on
    land, and to provide a power source for instruments in satellites.
    Research on nuclear propulsion for aircraft and missiles continued
    as a joint program of the Atomic Energy Commission and the Department
    of Defense. The Aircraft Nuclear Propulsion (ANP)
    project was again reviewed during the year, and it was concluded that
    further research on reactors still represented the primary prerequisite
    for the successful development of a militarily effective aircraft. Work
    progressed on both the direct- and indirect-cycle reactors under study
    for this project. The development of a nuclear-propelled ramjet
    missile, Project PLUTO, advanced through the early design stage.
    An experimental reactor for this project was built by the Atomic
    Energy Commission and will be tested during the coming fiscal year.
    The feasibility of propelling space vehicles by closely spaced nuclear
    explosions is being investigated under Project ORION.
    Guided Missiles
    Research in the guided missile field has been responsible for the
    greatest changes in weapons technology in recent years. Not only
    is nearly 40 percent of the research dollar being allocated to this field
    but, including procurement and construction directly associated with
    missile programs, about 13 percent of all Defense dollars—or about
    $5.2 billion—was appropriated for this purpose during fiscal year
    1960.
    At the close of the year, the number of missile systems operational
    or approved for development totaled 41. Of these, 23 were operationally
    available, with 9 entering into this category during fiscal
    year 1960. The rapid progress in this field is illustrated by the inRESEARCH
    AND DEVELOPMENT 23
    creasing replacement of earlier missiles by more advanced versions,
    as for example NIKE-AJAX by NIKE-HERCULES and MATADOR
    by MACE and the introduction of numerous improved models
    without a change in nomenclature. This trend will continue at an
    accelerated rate as the 18 projects currently under development reach
    the operational stage. One project, the Navy’s medium-range, airto-
    surface CORVUS missile, was canceled.
    Strategic Missiles
    In view of the vital importance of maintaining an effective retaliatory
    force, the highest national priority continued to be assigned
    to the development of intercontinental ballistic missiles (ICBMs)
    and the POLARIS program.
    The 5,500-nautical-mile ATLAS missile, which became operational
    in September 1959, was flight tested 30 times during the year, with
    26 of these tests considered successful, 1 partially successful, and 3
    unsuccessful. Among the successful tests was an ATLAS fired 7,800
    nautical miles from Cape Canaveral to the Indian Ocean on May
    20, 1960—the longest range yet achieved by an ICBM. Work on
    the advanced ATLAS-E missile, equipped with all-inertial instead
    of radio-inertial guidance, progressed as programed.
    Development tests of the TITAN missile encountered difficulties
    during the early part of the fiscal year, but the cause of these malfunctions
    was discovered and the success of subsequent launchings
    brought the program back on schedule. Of the 13 TITAN tests
    during the year, 8 were classified as successful, 2 partially successful,
    and 3 unsuccessful. The TITAN, a true two-stage missile, is currently
    scheduled to carry a more powerful nuclear warhead than
    the ATLAS.
    The three-stage, solid-fueled MINUTEMAN successfully passed
    most of the tests preliminary to the first free flight launchings. The
    results of the tethered silo launchings of the full-scale missile were
    so satisfactory that the number of tests in this phase of the program
    was reduced from 18 to 8. The test firing of the engines for the various
    stages of this missile proceeded essentially on schedule, and a
    preliminary evaluation of the railway mobility concept for MINUTEMAN
    was undertaken. Thus, increased assurance was provided
    that the MINUTEMAN, with its high degree of readiness, relatively
    small size, and capability for varied deployment, will represent a
    most significant addition to our deterrent power in the near future.
    The POLARIS missile system, as indicated earlier, was close to
    operational availability on June 30, 1960. Of the 33 test flights attempted
    during the fiscal year, none was classified as unsuccessful;
    24 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    STRATEGIC MISSILES
    JUNE 30, 1960
    Type Developing Service Operationally Available In Late Development In Early Development
    1,500-MILE IRBM
    ARMY
    AIR FORCE
    JUPITER
    THOR
    FLEET BALLISTIC MISSILE NAVY POLARIS
    5,500 -MILE AERODYNAMIC AIR FORCE SNARK
    5,500-MILE ICBM AIR FORCE ATLAS TITAN MINUTEMAN
    AIR-TO-SURFACE AIR FORCE HOUND DOG SKYBOLT
    AIR-LAUNCHED DECOY AIR FORCE QUAIL
    Figure 8
    21 were considered successful and 12 partially successful. Improved
    POLARIS missiles, increasing both range and payload, are being
    developed. The POLARIS missile-submarine combination places
    this intermediate-range missile in the intercontinental missile category.
    To assist our strategic bombers in penetrating enemy defenses, various
    long-range air-to-surface missiles have been under study for
    some years. The supersonic, 500-mile-range HOUND DOG missile
    was declared operational in May 1960; some components were being
    modified at the close of the year to improve future performance.
    Research continued on the SKYBOLT, an air-launched ballistic
    missile with a range of over 1,000 nautical miles. As noted earlier,
    an initial operational capability was achieved toward the end of the
    year for the air-launched decoy missile, the QUAIL.
    Air Defense Missiles
    Major emphasis in active air defense research continued to be
    placed on the development of weapons to counter enemy ballistic
    missiles. While further progress was made in this field, difficult
    scientific and technological problems remain to be resolved before an
    effective system will become available.
    The NIKE-ZEUS effort is the program furthest advanced, and the
    highest national priority has been assigned to the development and
    full-scale test of this missile. Experimental models performed well
    in test flights during the year, and research and development to
    RESEARCH AND DEVELOPMENT 25
    AIR DEFENSE MISSILES
    JUNE 30, 1960
    Type Developing Service Operationally Available In Late Development In Early Development
    FOR FRONT-LINE
    GROUND TROOPS
    ARMY
    ARMY
    REDEYE
    MAULER
    DEFENSE AGAINST
    LOW-FLYING PLANES
    ARMY HAWK
    GROUND-TO-AIR ,
    SHORT/MEDIUM RANGE
    ARMY
    ARMY
    NIKE-AJAX
    NIKE-HERCULES
    GROUND-TO-AIR,
    LONG RANGE
    AIR FORCE BOMARC
    FOR NAVAL VESSELS
    NAVY
    NAVY
    TERRIER
    TALOS
    TARTAR TYPHON
    AIR-TO-AIR,
    SHORT RANGE
    NAVY
    AIR FORCE
    NAVY
    SIDEWINDER
    FALCON
    SPARROW
    AIR-TO-AIR,
    LONG RANGE NAVY EAGLE
    ANTI-BALLISTIC
    MISSILE ARMY NIKE-ZEUS
    Figure 9
    improve the system’s capability to detect, track, identify, and intercept
    ballistic missiles continued at full speed. The decision to approve
    quantity production must await the results of these studies.
    Other approaches to resolving the ballistic missile defense problem
    are being investigated through project DEFENDER, assigned to
    ARPA. This effort was sharply increased. The search for new
    answers includes the analysis of the phenomena associated with the
    boost, mid-course, and terminal phase of the ICBM flight pattern and
    the examination of techniques, other than those employed by NIKEZEUS,
    to find and destroy such missiles.
    Research on missiles to counter airborne threats brought into operational
    use during the year the HAWK, particularly effective against
    low-flying aircraft, and the BOMARC-A, designed to destroy airborne
    targets at a distance of over 200 miles. Although the over-all
    BOMARC program was reduced, the development of BOMARC-B,
    with twice the range of the A model, continued satisfactorily,
    including the successful interception of a supersonic target.
    Additional protection of combat troops against air attack is the
    objective of two Army projects started in fiscal year 1959—REDEYE,
    a shoulder-fired, bazooka-type weapon with an electronic homing
    device for defense against low-leve] aircraft, and MAULER, an allweather
    guided missile system installed on a self-propelled chassis.
    Both projects advanced on schedule.
    Progress was also made in improving the NIKE-HERCULES
    system. Particularly important was a test in which this air defense
    26 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    system successfully acquired, tracked, and intercepted a CORPORAL
    surface-to-surface missile, thus promising increased effectiveness
    against supersonic targets with a small cross-section.
    The air defense of the Fleet was improved with the delivery of
    improved TERRIER and TALOS missiles which have twice the range
    and altitude of the first models issued. The development of the
    TARTAR, a smaller surface-to-air missile for deployment on destroyers,
    progressed satisfactorily through the first test of a production
    model. The Navy also began research on the TYPHOON missile
    system, designed to provide antiaircraft and antimissile weapons
    that will greatly outperform TERRIER, TALOS, and TARTAR.
    Advanced models of the three short-range air-to-air missiles currently
    operational—the FALCON, SIDEWINDER, and SPARROW
    III—were under development with the prospect of greatly
    increasing their speed, range, and effectiveness. The long-range,
    supersonic air-to-air EAGLE missile remained in the early development
    stage.
    Tactical Missiles
    In the tactical missile field, three new weapon systems—the SS-10,
    the LACROSSE, and the MACE—moved into the operationally
    available category during the year and good progress was made in
    the development of other advanced weapons.
    After thorough tests, the Army purchased the French-developed
    wire-guided SS-10 missile as an antitank weapon to be used by frontline
    troops. Improved models of the SS-10—the SS-11 and SS-12—
    and the German-developed COBRA were being evaluated with a view
    toward eventual selection of a single, man-portable system to be used
    by all our ground combat forces. Still in the early development
    stage is the SHILLELAGH, which is being designed for use with
    future armored assault vehicles and will fire either command-guided
    antitank missiles or conventional 152-mm. ammunition, whichever is
    appropriate for the tactical mission at hand.
    The effectiveness of close tactical support was improved with the
    delivery of substantial numbers of LACROSSE missiles, which were
    first issued to troops in June 1959 and became fully operational in
    January 1960. As a possible future replacement for LACROSSE
    and for existing short-range rockets, the Army started the MISSILE
    A project, which has as its objective the development of a simpler and
    less expensive weapon system. Still in the feasibility-study stage was
    MISSILE B with a somewhat greater range.
    To replace the liquid-fuel CORPORAL and REDSTONE missiles,
    with respective ranges of about 75 and 200 miles, the solid-fuel
    SERGEANT and PERSHING were under development. After the
    RESEARCH AND DEVELOPMENT 27
    TACTICAL MISSILES
    JUNE 30,1960
    Type Developi ng'Service Operationally Available In Late Development In Early Development
    CLOSE-IN SUPPORT
    Of GROUND TROOPS ARMY SHILLELAGH
    ANTI-TANK
    ARMY
    MARINE CORPS
    SS-10
    COBRA
    SURFACE-TO-SURFACE,
    SHORT RANGE
    ARMY
    ARMY
    LACROSSE MISSILE A
    MISSILE B
    SURFACE-TO-SURFACE,
    75-MILE RANGE
    ARMY CORPORAL SERGEANT
    SURFACE-TO-SURFACE,
    200-MILE RANGE
    ARMY REDSTONE PERSHING
    SURFACE-TO-SURFACE,
    LONG RANGE
    AIR FORCE
    AIR FORCE
    MATADOR
    MACE
    SHIP-TO-SHORE,
    LONG RANGE
    NAVY REGULUS I
    AIR-TO-SURFACE,
    SHORT RANGE
    NAVY BULLPUP
    ANTI- SUBMARINE
    MISSILE
    NAVY ASROC SUBROC
    Figure 10
    problems encountered in the SERGEANT program early in the year
    were resolved, research and engineering firings were resumed. The
    PERSHING entered the propulsion test flight stage, and the five
    flights attempted were successful.
    Moving into the production stage was the MACE-B, an improved
    version of the 600-mile MACE-A which became operational during
    the year. The new model of this aerodynamic missile will have a
    range close to that of such intermediate-range ballistic missiles
    (IRBMs) as JUPITER and THOR.
    The air-to-surface guided missile, the BULLPUP, demonstrated
    outstanding reliability in its operational employment with Navy
    units. An advanced model, designed particularly for Air Force use,
    is under development.
    To improve our antisubmarine warfare capabilities, the Navy is
    developing two new missile systems—the ASROC to be launched
    from surface ships and the SUBROC for firing from submerged
    submarines. ASROC will combine a solid-fuel rocket with an acoustic
    homing torpedo, while SUBROC will provide a complete torpedomissile
    system. The missile-boosters in ASROC and SUBROC greatly
    increase the range at which the enemy can be brought under attack.
    The Navy began the evaluation of prototype ASROC missiles during
    the year and successfully completed the first flight test of the
    SUBROC system.
    Rockets
    In the rocket field, work continued on the LITTLE JOHN designed
    as a helicopter-transportable weapon to replace the heavier
    595308—61-------3
    28 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    HONEST JOHN. The development of a more accurate version of
    the HONEST JOHN with greater range was nearly completed.
    A significant addition to the firepower of infantry and armored
    units will be provided by DAVY CROCKETT, which is being designed
    to fire either high-explosive or nuclear rounds. Two launcher
    systems are under development—one to be mounted on a vehicle and
    a lighter one to be hand-carried.
    Work also continued on the development of other lightweight
    rocket launchers for various types of conventional ammunition.
    These launchers are designed for transportation by helicopter and will
    provide increased mobility to Army and Marine units.
    Aircraft
    With the increase in strategic and tactical missile programs, the
    extensive aircraft development effort of earlier years has been gradually
    reduced, but numerous significant projects continue to be pursued.
    In the strategic bomber field, the medium-range B-58, the first
    bomber capable of traveling at supersonic speeds, was undergoing
    final evaluation tests and should become operational soon. The latest
    model of the B-52, the B-52H, was placed into production and, with
    its new turbofan engine, will provide a further range increase of 15
    percent.
    As the result of a review of the B-70 program, the plans for this
    supersonic heavy bomber were changed in December 1959 from the
    original weapon system concept to the development of an experimental
    Mach 3 aircraft. Work on the critical bombing navigation
    system and other subsystems of the B-70 was continued, however,
    although on a reduced scale, to provide time for collecting additional
    data bearing on the need for this type of bomber in the years ahead
    when ICBMs will have been deployed in quantity.
    A reevaluation of the entire air defense program brought, among
    other adjustments, the cancellation of the F-108 program for a longrange
    Mach 3 fighter. This change was accompanied by greater emphasis
    on programs for strengthening the intercept capabilities of
    existing aircraft. An improved model of the F-105, a supersonic, allweather
    tactical fighter, started to be delivered in the latter half of
    the fiscal year.
    Future increases in naval striking power were foreshadowed by
    the delivery of the first test models of the A3 J Vigilante and the A2F
    Intruder—the first a heavy attack aircraft with greater speed and
    combat altitude than its predecessors and the latter a light attack
    aircraft with greatly increased range. The final evaluation of the
    F4H Phantom II, a supersonic, all-weather fighter with a high combat
    ceiling, was nearly completed at the close of the year.
    RESEARCH AND DEVELOPMENT 29
    Improved detection of enemy aircraft was provided with the first
    deliveries to the Fleet of the new WF-2 early warning plane, a more
    advanced version of which, the W2F, is under development. The
    detection of submarines will be facilitated with the delivery in the
    near future of the first all-weather helicopter, the HSS-2; also under
    development is a new land-based turboprop patrol plane, the P3V-1,
    which will replace the Neptune developed during World War II. For
    air rescue operations a new turbine-powered helicopter is being
    procured.
    As for Army aviation, two fixed-wing aircraft—the Mohawk for
    observation purposes and the Caribou, a tactical transport—were passing
    through final evaluation tests at the close of the fiscal year. The
    Chinook, a heavy transport helicopter capable of carrying a 2- to 3-ton
    payload, was in the early development stage. Design studies were
    initiated for a light observation helicopter to be available in about 5
    years.
    To increase airlift capabilities, the Air Force has placed under
    development an improved model of the Hercules turboprop assault
    transport, the C-130C. Requirements analysis and technical feasibility
    studies were completed for the SOR 182, a new long-range alljet
    cargo aircraft designed to meet the criteria of civilian air transport
    as well as those for strategic airlift.
    To reduce future requirements for hard-surface runways and increase
    tactical mobility, all Services are cooperating in feasibility
    studies for the development of short-take-off-and-landing (STOL)
    and of vertical-take-off-and-landing (VTOL) fighter and transport
    aircraft.
    Other Research Activities
    The ever-broadening impact of science and technology on military
    operations has expanded the research and development effort of the
    armed forces into practically all fields of human knowledge. Any
    new discovery or development may have a profound effect on national
    security. Consequently, research activities have been closely monitored,
    the search for new ideas encouraged, and applied research projects
    initiated whenever the objectives appear to justify the cost.
    Basic research, adding to our fund of fundamental scientific knowledge,
    is the key to all future progress. Obligations by the Department
    of Defense in support of basic research during fiscal year 1960
    amounted to $185 million. Of this total, $102 million was allocated
    to the physical sciences proper, $40 million to engineering, $29 million
    to the life sciences, $9 million to the mathematical sciences, and $5
    million to psychological research. Special emphasis was placed dur30
    ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    ing the year on research in propellant chemistry and the development
    of interdisciplinary centers devoted to the “materials sciences.’'
    The support of oceanography was greatly increased with the
    expectation that it might yield valuable information contributing to
    antisubmarine warfare. Our knowledge of the northern seas was
    furthered by the submerged trip of the submarine Fargo to the North
    Pole and back, the first winter passage of any ship, and military funds
    and personnel contributed to the scientific explorations on the
    Antarctic continent.
    The development of more effective devices for the early detection
    of hostile air, sea, and ground activities has been a major research
    objective of the Department of Defense for some years. Considerable
    progress was made in this effort during the year.
    More powerful radars, greatly extending the range of earlier
    models, are being introduced into our air defense systems. Projects
    under study include radar techniques reaching beyond the horizon;
    developments in the amplification of micro waves (Maser) ; the miniaturization
    and microminiaturization of electronic components; improvements
    in photography, optics, and infrared detection; and new
    methods to identify friend or foe (IFF). Our own advances in electronic
    countermeasures have been paralleled by programs to counter
    the effects of such jamming techniques if employed by the enemy.
    Maximum urgency was placed on the discovery of more effective
    means for the detection of submarines. New sonars and sonobuoys
    with considerably greater range and accuracy were developed. Experiments
    to extend the range of these acoustic devices still further
    brought encouraging results, as did the investigations of nonacoustic
    means for detecting submarines. Research in this field, however, remains
    a close race between improvements in detection systems and
    increases in the submarine’s ability to escape detection, particularly
    by noise reductions.
    The rapidity with which combat operations might have to be initiated
    has placed a premium on instantaneous, secure communications
    to any part of the globe. Existing systems were considerably improved
    and expanded during the year, and further advances are expected
    as the result of placing the point-to-point, long-distance
    communications systems of the military departments under a single
    Defense Communications Agency. The feasibility of a moon bounce
    communications system was publicly demonstrated in January 1960;
    the work on communications satellites has been noted earlier.
    Other applied research and development projects covered practically
    all remaining military activities. Ship construction was being advanced
    by the design of more advanced submarines and amphibious
    vessels and by experimentation with hydrofoil boats. More versatile
    RESEARCH AND DEVELOPMENT 31
    vehicles of many types were under development to increase the mobility
    of ground forces. New methods for increasing the efficiency of
    high explosives were being studied as well as the feasibility of new
    chemical and biological agents and the means for defense against such
    agents.
    The Weapons Systems Evaluation Group (WSEG), created in
    1948, has the responsibility for providing comprehensive, objective,
    and independent analyses and evaluation of present and future weapons
    systems and analyzing the effects of new developments on combat
    operations. WSEG, with a staff of about 85, obtains its assignments
    from the Director of Defense Research and Engineering and the
    Joint Chiefs of Staff. It relies for the research and analysis connected
    with these assignments on about 100 civilian scientists and technicians
    drawn from the Institute for Defense Analysis (IDA), which also
    provides essential administrative support. During fiscal year 1960
    $3.4 million was obligated to support this work.
    The membership of IDA, a nonprofit organization, was increased
    from five to eight major universities during the year. IDA also
    provided a staff of about 50 technicians to assist ARPA in its effort
    to direct research into fields most promising for the acquisition of
    new knowledge important to our future military security. Obligations
    under ARPA contracts with IDA totaled $2.5 million for the fiscal
    year.
    III. The Defense Budget
    The Defense budget reflects in financial terms the programs, plans,
    and policies of the Department of Defense. It is based on military
    requirements evaluated in the light of the current national and international
    situation and possible future developments. Its formulation
    involves many difficult judgments, but in its final form it represents
    the consensus of the executive and legislative branches of our Government
    on the effort required for the maintenance of effective armed
    forces in the years ahead.
    In planning its budgets, the Department of Defense has sought to
    meet the threats of general and limited war, now and in the future, at
    a level of effort that can be sustained for many years—or indefinitely,
    if necessary. In accordance with these objectives, the Defense budget
    has provided our armed forces with the capability to counter local
    aggression as well as to retaliate decisively in case of nuclear attack.
    Defense programs have been carefully balanced between the forcesin-
    being, the procurement of new weapons and equipment, and the
    research effort essential to our future security.
    The achievement of this over-all balance has become an ever more
    difficult problem. The accelerating pace of change in military technology
    demands virtually continuous review of the Defense program
    and budget. Individual projects with considerable merit when considered
    by themselves frequently assume a vastly different character
    in the total balance sheet. The appealing simplicity of a single
    strategy or an “ultimate weapon” has to be matched against the continued
    need for flexibility in response. In all cases, the determining
    factor must remain the development of ready armed forces properly
    trained, equipped, and deployed to meet the full range of possible
    enemy actions. The budgets for fiscal years 1960 and 1961 reflected
    this objective and provided a military establishment ready to counter
    any form of aggression.
    The Fiscal Year 1960 Budget
    In the summer of 1959 the Congress approved for fiscal year 1960
    $40.6 billion in new obligational authority for the military functions
    of the Department of Defense—$39.2 billion in August in the Department
    of Defense Appropriation Act and $1.4 billion in September in
    32
    THE DEFENSE BUDGET 33
    the Military Construction Appropriation Act. With the addition of
    transfers from revolving funds and other special accounts, the new
    obligational availability for the fiscal year totaled $41.1 billion.
    The amounts available for expenditure, consisting of the unexpended
    balances from previous fiscal years and the new appropriations
    of $41.1 billion, came to a total of $72.2 billion.
    Net expenditures during fiscal year 1960 amounted to $41.2 billion—
    about the same as for the preceding year. While the fiscal year
    1960 expenditures included substantially higher amounts for Research,
    Development, Test, and Evaluation, these increases were offset
    by reductions in expenditures in most of the other budget categories.
    The fiscal year 1960 budget reflected the new budget format and
    changed appropriation structure recommended in the budget message
    for that year. These changes were intended to facilitate the
    consideration of the Defense Department budget by the Congress on
    a more uniform basis than in past years.
    The 1960 arrangement, while retaining Service identification, emphasized
    budget categories rather than the organizational aspects of
    the Department of Defense. All appropriations were grouped under
    five main categories: Military Personnel; Operation and Maintenance;
    Procurement; Research, Development, Test, and Evaluation; and
    Military Construction. A sixth grouping covered the revolving and
    management funds of the Department of Defense.
    In addition, changes were made in the content of some of the individual
    appropriations. For example, a clearer distinction was made
    between Procurement on the one hand and Research, Development,
    Test, and Evaluation on the other, resulting in decreases in the Procurement
    appropriations and corresponding increases in the more
    comprehensive Research, Development, Test, and Evaluation category.
    To the extent that amounts associated with development, test,
    and evaluation remained in the Procurement appropriation, they
    were identified separately.
    The changes in language and the changes in structure of the budget
    for fiscal year 1960 neither increased nor decreased the authority of
    the Secretary of Defense over the utilization of appropriations for
    the military functions administered by the Department of Defense.
    On the basis of the new functional titles, expenditures in 1960 for
    Military Personnel—including active forces, reserve forces, and retired
    pay—amounted to $11.7 billion. Operation and Maintenance—
    the day-to-day operating costs of the Department’s activities and
    installations—accounted for $10.2 billion. Procurement expenditures
    for aircraft, missiles, ships, tanks, guns, ammunition, and other
    major items of equipment came to $14.3 billion. Expenditures for
    34 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    DEPARTMENT OF DEFENSE EXPENDITURES FOR MILITARY FUNCTIONS
    FISCAL YEARS 1953-1961
    1953 1954 1 9 5 5 1956 1957 1958 1 9 5 9 1 9 6 0 1961 Estimated
    THE DEFENSE BUDGET 35
    the newly enlarged budget grouping of Research, Development,
    Test, and Evaluation totaled $3.7 billion; on a comparable basis, that
    was nearly $0.9 billion more than in 1959. Construction expenditures—-
    for both active and reserve forces—were $1.6 billion (see
    fig- U).
    An excess of receipts over expenditures in the revolving and management
    funds of the Department-—amounting to some $0.4 billion—
    was taken as a deduction against the expenditures in the five main
    budget categories and served to reduce net expenditures for fiscal year
    1960 to $41.2 billion.
    Summarized in terms of organizational components, expenditures
    in fiscal year 1960 totaled $9.4 billion for the Army; $11.6 billion for
    the Navy; $19.1 billion for the Air Force; and $1.1 billion for the
    Office of the Secretary of Defense, the Joint Chiefs of Staff, and interService
    activities—principally pay for retired personnel.
    The balance of unobligated funds rose during fiscal year 1960
    despite the Department’s continuing effort to limit such carryovers to
    the minimum needed for the orderly management of the Defense program.
    Unobligated balances on hand totaled $7.5 billion at the beginning
    of the year and $8.6 billion at the end of the year. The rise of
    about a billion dollars resulted primarily from an unanticipated shortfall
    from the Department’s planned obligational program for 1960,
    thus serving to increase the unobligated balance carried over into fiscal
    year 1961.
    Unexpended balances, however, declined somewhat during fiscal
    year 1960—from $31.6 billion to $30.7 billion.
    The Fiscal Year 1961 Budget
    A review of the international situation, the state of military technology,
    and the general economic and fiscal situation in the fall of 1959
    made it appear that the 1960 level of expenditures—then estimated at
    $41.1 billion—would be a reasonable point of departure for the preparation
    of the 1961 Defense budget.
    In order to assist in bringing major issues into focus, the military departments
    were asked to use, for the development of their “basic budgets,”
    planning objectives aggregating somewhat less than the 1960 level
    and to include in these “basic budgets” the hard core of top priority
    requirements. In addition, they were requested to submit an “addendum”
    of up to $500 million above the 1960 level. This “addendum”
    was to highlight, regardless of past individual Service funding levels,
    other high priority projects or promising developments that could not
    be accommodated in the basic budgets. Defense agencies, however,
    were not precluded from submitting items over and above these limits,
    36 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    and the Army, the Air Force, and the Advanced Research Projects
    Agency made such submittals.
    Budget requests totaling $43.9 billion in new obligational authority
    and $42.6 billion in net expenditures were submitted. These were
    carefully reviewed in the Office of the Secretary of Defense, program
    by program, on a Defense-wide, across-the-board basis. A special
    effort was made to assure the participation in this review of all the
    principal officials of the Department of Defense—particularly the
    Director of Defense Research and Engineering, the Secretaries of the
    military departments, and the Chiefs of Staff, both as Service chiefs
    and in their corporate capacity as the Joint Chiefs of Staff. In
    accordance with established procedures, the development of the
    budget was closely followed by representatives of the Bureau of the
    Budget. The major issues were discussed with the President, and the
    final budget request was reviewed in the National Security Council.
    The only change in the 1964 budget structure was a realignment
    of the Navy Procurement appropriations paralleling the consolidation
    of the Bureau of Aeronautics and the Bureau of Ordnance into the
    new Bureau of Naval Weapons. The 1961 budget also carried a
    step farther the effort begun in 1960 to differentiate more clearly between
    procurement for “operational, general service use, or added to
    inventory upon delivery” and for “research, development, test, and
    evaluation.”
    The President’s 1961 budget, submitted to the Congress on January
    18, 1960, proposed a total of $40.9 billion in new obligational availability
    for the Department of Defense—$40.5 billion in new obligational
    authority and $0.4 billion in transfers from the Department’s
    revolving funds in lieu of new appropriations. Expenditures for fiscal
    year 1961 were estimated at $41.0 billion.
    Obligations for active forces personnel were estimated at $10,176
    million—an increase of $155 million over 1960 and $107 million over
    1959. A steady rise in the cost per military man during recent years
    has tended to offset the savings achieved through lower manpower
    levels. This trend is expected to continue in 1961 with the average
    cost per man rising to about $4,330, as compared to $4,255 in 1960
    and $4,160 in 1959.
    A planned reduction of 10 percent in Army National Guard and
    Army. Reserve strength lowered estimated military personnel costs
    for the reserve components in 1961 to $612 million—$67 million less
    than for the current fiscal year and $13 million less than for 1959.
    With the average number of persons receiving retired pay estimated
    at 272,000 for 1961, as compared to 244,000 in 1960 and 223,000 in
    1959, obligations for Retired Pay rose to $799 million—an increase
    THE DEFENSE BUDGET 37
    in direct obligations of $91 million over 1960 and $164 million over
    1959.
    Obligations for Operation and Maintenance in 1961 were estimated
    at $10,527 million—$227 million more than in 1960 and $395 million
    more than in 1959. Although military man-years, the number of
    active ships and aircraft, and steaming and flying hours continued
    to decline gradually from 1959 to 1961, increasing unit costs, associated
    with the growing complexity and higher performance of the
    new weapons and equipment, continued to offset savings achieved
    through lower activity levels and more efficient management.
    A total of $14,364 million in direct obligations was budgeted for
    the purchase of major items of equipment in 1961. Of this total,
    $6,013 million was for the procurement of some 1,500 aircraft—633
    for the Air Force, 658 for the Navy, and 219 for the Army. Both the
    number of aircraft and the planned obligations were slightly higher
    than for 1960, but well below the level of 1959. Included in the 1961
    request were additional quantities of the improved B-52H intercontinental
    jet bomber, the B-58 supersonic medium jet bomber, and the
    associated KC—135 jet tankers, as well as F-105 fighter-bombers for
    air support of the ground forces and C-130 transports for tactical
    airlift.
    Obligations for missiles in fiscal year 1961 were expected to total
    $3.8 billion. Of this amount, approximately $2.2 billion was programed
    for the four main strategic missiles—ATLAS, TITAN,
    MINUTEMAN, and POLARIS—as compared to $1.6 billion in 1960
    and $1.3 billion in 1959. Including Research, Development, Test,
    and Evaluation and Military Construction—and in the case of
    POLARIS, the cost of the submarines—the total amount programed
    for these four systems rose from about $2.4 billion in 1959 to about
    $3.4 billion in 1961, an increase of over 40 percent. In addition, a
    wide variety of other air defense, air-to-surface, and tactical missiles
    was planned for purchase in 1961.
    The obligations planned for ships came to $1,740 million—substantially
    above the level of 1960, but $106 million less than in 1959.
    The 1961 shipbuilding program submitted to the Congress in January
    1960 provided for 20 new ship starts and 15 conversions or modernizations,
    including 1 conventionally powered attack carrier, 3 guided
    missile frigates, 2 guided missile destroyers, 3 POLARIS submarines,
    3 other nuclear-powered attack submarines, 8 miscellaneous vessels,
    1 conversion, and major modernization for 14 destroyers.
    Obligations estimated for the “Other” procurement category rose
    to $2,806 million in fiscal year 1961, as compared to $2,624 million in
    1960 and $2,248 million in 1959. The steady upward trend reflects
    the increasing emphasis being placed on electronic and communica38
    ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    tions equipment and Army modernization—the two main items in
    this category.
    A total of $4.0 billion was allocated to Research, Development,
    Test, and Evaluation. This figure was $4.3 billion in 1960 and
    $3.5 billion in 1959. Some major aircraft and missile development
    projects nearing the completion of their test and evaluation phase
    were kept in the Procurement appropriation where they were identified
    as separate budget activities. If these amounts were added to
    the regular allocations for research, development, test, and evaluation
    activities, the total would aggregate $5.3 billion in 1961 as compared
    to $5.8 billion in 1960 and $5.1 billion in 1959.
    Obligations for military construction in 1961 were estimated at
    $1,382 million. This was $115 million less than the amount planned
    for 1960 and $366 million less than for 1959.
    It was clearly indicated at the time the 1961 Defense budget was
    first presented to the Congress that the rapid progress in military
    technology was making exact and relatively constant budget estimates
    for the various Defense programs increasingly difficult. As the result
    of technical advances, programs which looked promising only a short
    time before could quickly become marginal in importance, thus compelling
    the Department of Defense to terminate some programs or to
    shift available resources from older to newer ones.
    The continuous review of the entire Defense program during the
    early months of 1960 soon made it clear that certain changes in the
    January budget were highly desirable. Accordingly, on April 6,
    1960, appropriate budget revisions were proposed to the Congress.
    Generally speaking, these adjustments involved a redirection of the
    continental air defense program to complete more speedily a less elaborate
    program of defense against manned bombers while shifting
    emphasis to ballistic missile defense programs. The Air Force intercontinental
    ballistic missile and space programs were also augmented.
    The changes in the Navy involved an increase in the procurement of
    long leadtime items for the POLARIS program and a reduction in
    the attack submarine program.
    On May 12, 1960, still other changes were proposed to the Senate,
    involving principally the application of additional funds for Army
    modernization, antisubmarine warfare, and airlift aircraft.
    Final Congressional action on the 1961 Defense budget was completed
    early in July 1960. A total of $41.4 billion was appropriated,
    composed of $41.0 billion in new obligational authority and $0.4
    billion in transfers from the Department’s revolving funds in lieu of
    new appropriations. The total of $41.4 billion was about $0.5 billion
    more than the amount requested by the President in January.
    Within these totals, considerable shifts in the allocation of resources
    THE DEFENSE BUDGET 39
    had been, made since January—some at the request of the executive
    branch and others initiated by the Congress. In view of these changes
    and the tense international situation, the entire Defense program
    was again reviewed to make certain that the additional amounts provided
    would be expended to assure at the same time the greatest
    immediate strength and the continued orderly development of properly
    balanced armed forces. In accordance with these criteria, substantial
    portions of the new funds were allocated to provide additional
    Army modernization, an increase in the POLARIS program, greater
    support for the B-70, more transport aircraft, accelerated work on
    SAMOS, and still greater emphasis on antisubmarine warfare.
    Financial Management
    More effective controls over financial operations continued to be
    achieved through the progressive modernization of the programing,
    budgeting, accounting, reporting, and auditing practices of the
    Department of Defense. These innovations are being made as part
    of the Government-wide Joint Financial Management Improvement
    Program and include actions designed to promote the expansion of
    accrual accounting systems and of monetary accounting for property,
    the simplification of the budget structure, and the development of
    more accurate and useful financial reports. These steps are increasing
    the financial data available to Defense management officials
    at all levels, thus facilitating more effective direction of departmental
    activities.
    The Department’s program for financial management improvement
    is keyed to the major subdivisions of the Department of Defense
    budget. An integrated system of budgeting, programing, accounting,
    and reporting is being established for each of these subdivisions.
    Work is furthest along in the Operations and Maintenance area.
    In May 1959 a directive was issued establishing a phased program for
    the introduction of new procedures to govern activities financed by
    Operations and Maintenance funds. This plan was carried out on
    schedule during fiscal year 1960. A uniform budget program structure
    for this appropriation title was drawn up, and uniform budget
    activity accounts, which form the subsections of the budget program
    structure, were being developed. Concurrently with these developments,
    training materials were prepared to acquaint Defense personnel
    with the principles and techniques on which the new procedures are
    based.
    Parallel steps will be taken to improve financial management and
    control over the other major appropriation categories. During fiscal
    year 1960, a directive extending the improvement program to Military
    Construction funds was drafted, and fact-finding studies, preliminary
    40 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    to the issuance of similar directives, were nearly completed for the
    Military Personnel category and well along for the Research and
    Development and the Procurement appropriation categories.
    Further improvements were also made in the management of revolving
    working capital funds. There are two types of such funds—
    industrial funds to finance industrial- and commercial-type activities,
    and stock funds to facilitate financial control over supplies for which
    there is a recurring demand. Both types of capital funds utilize
    accrual accounting systems.
    A single, uniform reporting system for industrial fund accounts
    was established during the year. The new reports will facilitate the
    review of the financial operations of industrial fund activities and
    assist in determining appropriate financial controls. A total of 61
    activities, including printing plants, arsenals, laundries, and the Single
    Manager agencies for ocean transportation and airlift services, were
    operating under industrial fund charters during the year—or two
    more than during the preceding year. The Army operated 24 of
    these, the Navy 34, and the Air Force 3. Industrial fund inventories
    of raw materials, supplies, and work in progress were reduced during
    the year, from $336 million on June 30,1959, to $294 million on June
    30, 1960. Sales rose to a total of $2.6 billion—an increase of $0.2
    billion over the preceding year.
    Working capital stock funds have become an increasingly effective
    tool for the improved management of supply operations. A supply
    activity operating under a stock fund issues supplies to a using organization
    and charges the cost to the appropriated funds of the consumer.
    These appropriated funds are credited to the stock fund and used to
    replenish inventories as needed. Better management has resulted in
    a steady reduction in inventory levels, thus generating excess cash
    balances in the stock funds of the Department. These balances have
    been utilized in lieu of new appropriations or returned to the Treasury,
    as directed by the Congress. Through such transfers and rescissions,
    it has been possible to reduce stock funds by $4.9 billion since 1953,
    with $0.4 billion contributed during fiscal year 1960. Stock fund
    inventories on June 30, 1960, amounted to $7.7 billion, including excess
    stocks. The Army, with responsibility for such major categories
    as clothing and textiles for the entire Department of Defense, managed
    63 percent of the stock fund inventories, the Navy 32 percent,
    and the Air Force 5 percent. Naval ordnance repair items, valued
    at $0.2 billion, were placed under stock funds during the year.
    Flexibility in supply operations was also increased. Regulations
    were issued providing for the transfer of excess materiel between the
    military Services without reimbursements from appropriated funds in
    order to encourage the fuller utilization of available stocks within the
    THE DEFENSE BUDGET 41
    Department of Defense. Instructions to govern the return of unneeded
    supplies from the consuming agency to stock fund inventories
    were revised to facilitate accounting and funding operations. Uniform
    pricing policies and financial inventory accounting requirements
    were established for machine tools and other plant equipment owned
    by the military departments; these new policies provide the basis for
    determining reasonable and equitable rentals when this equipment
    is loaned to defense contractors.
    The Department continued to evaluate and modernize its auditingprocedures.
    A new plan for more effective auditing of contracts was
    developed and tested, assigning to a single auditing agency the responsibility
    for reviewing all matters concerning a single contractor,
    even though that contractor may operate several plants at a number
    of locations. This system provides contractors with greater assurance
    of uniform and consistent audits. The internal audit programs of
    the Department were also being reevaluated to assure more comprehensive
    coverage; special emphasis was placed during the year on
    procurement and supply management functions.
    IV. Management
    Fiscal year 1960 marked the first full year of operations under the
    Defense Reorganization Act of 1958. The experience gained endorsed
    the basic organizational concepts of the new legislation. The
    current Department of Defense structure provides the necessary management
    authority for effective direction as well as the flexibility to
    make prompt adjustments in line with changes in weapons technology
    and in the international situation.
    The organizational problem of the armed forces since World
    War II has been created primarily by the conflicting demands of the
    varied threats to our security, on the one hand, and of the impact of
    the continuous and increasingly rapid scientific revolution of our age,
    on the other.
    The immediate threat to our security requires that our armed forces
    be in a state of readiness at all times to counter aggression in whatever
    form it may occur. Since major reorganizations, no matter how well
    conceived, upset the effectiveness of any organization for a considerable
    time, changes introduced too quickly would be unwise. Moreover,
    the varied threats with which we are confronted, ranging from
    massive nuclear attack to small local aggression, caution against oa eremphasis
    on any single strategy.
    At the same time, however, the continuous scientific revolution is
    inexorably calling for adjustments in strategy and tactics as well as in
    management procedures. There is no perfect organization under
    these circumstances. Our primary need is flexibility.
    These two prerequisites—constant readiness and flexibility—are being
    met by the current organization of the Department of Defense.
    Any large and complex organization is always subject to improvement
    and work should continue toward this end. However, the Secretary
    of Defense has extensive authority and can make many improvements
    administratively—without the need for new legislation.
    42
    MANAGEMENT 43
    Organizational Concepts
    Three major principles have shaped the organizational evolution of
    our armed forces since the end of World War II:
    First, that—as the President stated in his message to the
    Congress in April 1958—“separate ground, sea, and air warfare
    is gone forever.” This means that “strategic and tactical
    planning must be completely unified, combat forces organized
    into unified commands, each equipped with the most
    efficient weapons systems that science can develop, singly led
    and prepared to fight as one, regardless of Service.”
    Secondly, that the best way to provide the forces for
    this unified effort remains the pattern of the traditional military
    departments—the Army, Navy, and Air Force—responsible
    for the effective management of the vast administrative,
    training, and logistical functions of the armed forces.
    And finally, that a Secretary of Defense, acting as the
    President’s agent, be responsible for the effective and efficient
    direction of the military effort—assisted by the Deputy Secretary
    of Defense (his alter ego), the Secretaries of the military
    departments (his principal agents for management),
    the Joint Chiefs of Staff (his military advisers), and the key
    officials in the Office of the Secretary of Defense (his civilian
    advisers in specialized fields).
    In accordance with these principles, the Secretary of Defense has
    been given full direction, authority, and control over the entire Defense
    establishment. He exercises his powers through two command
    lines: One for the operational direction of the armed forces running
    through the Joint Chiefs of Staff to the unified and specified commands
    and the other for the direction of support activities running
    to the military departments. Under the existing management concept,
    major policy and program decisions are made at the top, while
    the direction of operational activities is decentralized (see fig. 12).
    The Secretary of Defense
    Successive reorganizations have increased the authority of the
    Secretary of Defense to such a degree that today the only statutory
    limitations on his powers under the National Security Act are:
    First, that he shall not merge the military departments.
    Secondly, that he shall not establish a single Chief of
    Staff, an over-all armed forces general staff, or any military
    staff other than the Joint Chiefs of Staff.
    Thirdly, that the statutory functions of the military
    Services shall not be changed without careful Congressional
    595308—61------ 4
    44 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
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    OFFICE OF THE SECRETARY OF DEFENSE
    IPIHL chiefs OF STAFF OIIECIOl OF oefehse besejbch *ho engineering
    ASSISI W S traw OF OFFFHSE (COMPTROLLER)
    CHAIRMAH FOIHT CHIEFS OF STAFF ASSISTAHT SECRETARY Of OEFEHSE HEALTH AKO MEDICAL)
    ASSISTAKT SECIEIW 01 OEFEHSE ( IHIERHATFOHAl SECURITY AFFIFIS)
    T|(E CHIff « STATE ARMY ASSISTANT SECRETARY Of OEFEHSE MAHFOWER RERSOHHEL “ “ “ AKO RESERVE) CHIEF OF HAVAL ORERAIIIHS ASSISTAHT SECIEIW Of OEFEHSE ( PROPERTIES AHO IHSTALLATIOHS)
    10INT STAFF ASSISTANT SECIEIW OF OEFEHSE ( PUBLIC AFFAIRS)
    CHIEF Of STAFF. AIR FORCE ASSISTAHT SECIEIW OF OEFEHSE (SUPPLY AHO LOGISTICS)
    .....i tn>PE» GEHEIIl COWSEI Q[ I,! OEFWHEHI OF OEFEHSE
    10 ' hihire ASSISTAHT 10 IHE SECIEIW (ATOMIC EHERGY)
    ASSISIW 10 THE SECRETARY ( LECISLAIIHE AFFAIRS)
    ASSISTAHT 10 THE SECIEIW ( SPECIAL OPERAIIOHS)
    atom’" SUPPORT I COHTIHEHTAL EASTERH ATI. STRATEGIC OEPARTMENT OF THE ARMY DEPARTMEHT OF THE NAVY DEPARTMENT OF THE AIR FORCE
    --------« « « J ALASKAN ATLANTIC CARIBBEAN AIR A MEDITER- EUROPEAN PACIFIC <|r ---------s!tR!I|„ „ ,H[ lm -------------------- SEC.EIW OF IHE HAY.-------------------SECREIARY OF THE AIR FORCE -----------------------
    COMMAND COMMAND COMMAND DEFENSE RANEAN COMMAND COMMAND ----- ------------- ------------- AOYAHCED RESEARCH
    COMMAND COMMAND WOK SECIEIW OF IHE ARMY tM(F gF qhOER I C0MH1HDW WOEI SECIEIW OF THE 111 FORCE PRQIECTS AEEHCV
    ___________ ___________________________________________________________________________ 3 ASSISTANT HAYAl 3 ASSISTAHT MARINE 3 ASSISTANT
    SECRETARIES OF THE MHT OPERATIONS SECRETARIES CORPS SECIcmiES OF IHE AIR FORCE
    CHIEF Of SUFI. AUNT ” CHIEF Of STIFF. AIR FOIC!
    * «lfl rflfilllNt II IMINf COPS NillflS
    Figure 12. Organisation Chart.
    MANAGEMENT 45
    review—excepting, however, from this prior careful review
    “the development and operational use of new weapons or
    weapons systems” and “any supply or service activity common
    to more than one military department.”
    And finally, if it is a limitation, that a Secretary of a
    military department and a member of the Joint Chiefs of
    Staff may present to the Congress, on his own initiative, any
    recommendation he may deem proper. This provision has
    not been used since it was established in 1949.
    Within these limitations, the authority of the Secretary of Defense
    is today beyond legal challenge. No function of the Defense establishment
    is to be carried out independent of this authority. Further
    statutory increases of the Secretary’s powers would be of little or no
    significance.
    In carrying out his responsibilities, the Secretary’s concern is
    focused on three major areas—the effective direction of the operational
    forces, the allocation of resources, and the efficient management
    of these resources. Each of these areas involves different
    procedures in reaching decisions as well as different roles for the principal
    advisory groups to the Secretary of Defense. In each case,
    however, the final decision is his, subject to the approval of the President
    and, in certain cases, of the Congress.
    The Direction of the Armed Forces
    The effective direction of the armed forces requires not only that
    adequate plans be prepared for possible emergencies but also that clear
    command authority exists to put such plans into effect without
    any delay.
    In this area, the Joint Chiefs of Staff constitute the key element,
    having been assigned by law the responsibility for preparing strategic
    plans and providing for the strategic direction of the armed forces,
    subject to the authority and direction of the President and the Secretary
    of Defense. These functions have been carried out with increased
    efficiency under the 1958 Reorganization Act.
    The unique contribution of the Joint Chiefs of Staff system is that
    it provides for the careful consideration of alternative courses of
    action before recommendations are made to the Secretary of Defense.
    In case different points of view on major issues persist, they can be
    fully presented to civilian authority for final resolution. Bringing
    together the judgment of the Chairman of the Joint Chiefs and of the
    chief military officers of the four Services assures that strategic plans
    and military advice are based on a thorough and broad review of all
    46 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    relevant factors. In this area, off-the-cuff conclusions are as undesirable
    as lengthy delays.
    During the past year, the existing procedures to expedite action
    were further improved with the establishment in December 1959 of
    regular meetings of the Secretary of Defense with the Joint Chiefs of
    Staff. These sessions have greatly facilitated the formulation of
    military advice as well as subsequent decision by civilian authority
    and have promoted an increasingly closer relationship between
    the chief civilian and military officials of the Department. By having
    his military advisers express their individual views in the presence
    of each other, the Secretary obtains a clearer understanding of the
    problem, and each of the military chiefs is assured that his judgment
    is given full consideration. Above all, this simple procedure has
    greatly speeded up the decision-making process throughout the Defense
    establishment.
    One of the important results of the meetings of the Secretary of
    Defense with the Joint Chiefs of Staff has been the establishment
    shortly after the close of the fiscal year of a special staff group to
    provide centrally directed operational planning for all elements of
    our strategic retaliatory force. This group, headed by a Director
    of Strategic Target Planning, will be responsible, under the policy
    control and direction of the Joint Chiefs of Staff, for the development
    and continued review of a Single Integrated Operational Plan
    covering the target assignments of the weapon carriers of all forces
    committed by the unified and specified commanders.
    The Joint Staff, enlarged from 210 to a maximum of 400 officers
    in 1958, is operating with increased effectiveness. Officers of all
    Services are objectively developing Defense-wide solutions to military
    problems and demonstrating that a truly joint effort of the various
    Services is as feasible in Washington as in the field.
    The new chain of command for the operational direction of the
    armed forces, running from the President and the Secretary of Defense
    through the Joint Chiefs of Staff to the unified and specified
    commanders, is increasingly proving its value as an efficient mechanism
    for central direction and quick and authoritative decisions.
    With established procedures kept under constant review, it is believed
    that the provisions made for top-level emergency action, the “full
    operational command” assigned to the unified commanders in 1959,
    and the traditional military command structure of the operational
    forces provide the command authority required for instantaneous
    action.
    Thus, the current Joint Chiefs of Staff organization is keyed to
    rapid decisions in the operational area and to thoroughly considered
    MANAGEMENT 47
    actions for the planning and advisory functions of the Joint Chiefs.
    These differing procedures, subject to further refinement in the years
    ahead, are essential for the effective direction of our armed forces.
    The Allocation of Resources
    The proper distribution of men and materiel to counter effectively
    the threats of general and local war now and in the future has been
    the major Defense problem for many years. This task involves decisions
    that not only affect our military security but also have a profound
    impact on our foreign policy and domestic economy. Such
    decisions cannot be based on military requirements alone. They must
    be reached within the broad framework of our national goals and
    policies and, therefore, become the final responsibility of civilian
    authority.
    The current organization of the Department of Defense provides
    that the allocation of resources is determined, subject to the guidance
    and approval of the President, by the Secretary of Defense with full
    military advice.
    The Joint Chiefs of Staff role in this process has been increased with
    the implementation of the 1958 Reorganization Act. Through the
    Joint Programs Office, the Joint Chiefs receive the budget submissions
    of all the military departments, the preliminary revisions recommended
    as a result of a review by the Secretary’s civilian assistants,
    and the comments of the military departments on these revisions. In
    addition, they are familiar with the requirements of the unified commanders,
    receiving the views of these commanders on the force requirements
    submitted by the component commanders of unified commands.
    Thus, the Joint Chiefs of Staff have available full information on the
    total budget picture and are able to assist the Secretary in his final
    determination from an over-all rather than a purely Service point of
    view.
    This military advice is supplemented by the views of the Secretary’s
    civilian assistants, particularly the Director of Defense Research and
    Engineering and the Assistant Secretary of Defense (Comptroller).
    The former contributes scientific and technological considerations to
    the final judgments on proposed research and development programs,
    while the latter, by the nature of his assignment, must emphasize the
    cost factors and the effect of the military programs on the national
    economy. Other civilian assistants comment on specific programs affecting
    their particular field of responsibility, such as manpower, supply,
    and installations.
    With this military and civilian assistance, the Secretary of Defense
    is able to probe deeply into the budget submissions of the military de48
    ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    partments, which are responsible for the difficult and painstaking task
    of translating the military requirements of the Services into fiscal
    requirements.
    While advice on most of the proposed budget items is unanimous,
    the budget review brings out the conflicting views existing on some
    major programs. Established procedures enable the Secretary of
    Defense to hear all sides and realistically weigh alternative courses.
    They place upon him the task for recommending the most effective
    allocation of available resources to the President and the Congress.
    This responsibility is vested in the Secretary and cannot be delegated.
    In this area, as in strategic planning, careful consideration of all
    relevant factors is more important than rapidity of decision.
    The Management of Resources
    The efficient management of available resources is a never-ending
    function. The size of the Defense operation, human frailty, and constantly
    changing requirements have created major problems in the past
    and will continue to do so in the future. However, utmost economy
    in operations is not only a continuing responsibility of every public
    servant, but the ever rising cost of defense has made such economy increasingly
    vital to our national security.
    In the Department of Defense the achievement of economy is complicated
    by the fact that combat effectiveness is the ultimate goal and
    that economy must not be achieved at the expense of military readiness.
    This fact is readily understood when the organization of combat units
    is reviewed but sometimes overlooked in the field of logistics, although
    the effectiveness of combat forces is directly dependent on the effectiveness
    of logistic support. To maintain the effectiveness of both, it is
    essential that management improvements be introduced at the operational
    level gradually—step by step, in orderly sequence.
    During fiscal year 1960, considerable progress was made in the
    management of resources throughout the Department of Defense by
    following these principles. This report and those of the Secretaries
    of the military departments relate the major steps taken. Particularly
    noteworthy from a Defense-wide point of view was the establishment
    of four new Single Managers for common supply items, of the
    Defense Communications Agency for the control of all long-haul
    communications facilities, and of central supervision for the test
    ranges, tracking stations, and other technical facilities used in missile
    and space programs. Among the management studies initiated were
    a review of intelligence operations, the practicability of additional
    Single Managers, the development of closer State-Defense relations
    through the exchange of personnel, and the development of greater
    MANAGEMENT 49
    uniformity in the officer promotion, retirement, and retention practices
    of the various military Services.
    These and similar actions constitute part of a continuing Defense
    program aimed at the double objective of maintaining military effectiveness
    while promoting greater efficiency. Future actions in this
    area must be based as in the past on careful prior planning to make
    certain that the ability of our armed forces to counter aggression is
    not harmed by proposed organizational changes, no matter how well
    conceived.
    The Organization of the Armed Forces
    The current Defense organization provides for the development of
    ground, naval, and air forces in separate military departments and
    the amalgamation of these forces in the field under a single commander.
    This basic pattern proved its value in World War II and
    since then has demonstrated its ability to absorb the impact of the
    present revolution in weapons technology.
    It is a pattern that has preserved the justified pride of the military
    Services in their historic achievements and encouraged their determination
    to excel in the future. While the weapons revolution created
    inevitable stresses and strains, Service competition has been a major
    factor speeding the rapid modernization of our combat forces. To
    dismantle the existing pattern without compelling reason would be a
    tremendous loss to the armed forces and the Nation.
    One of the primary purposes of the 1958 Reorganization Act has
    been to assist the Secretary of Defense in keeping Service competition
    within reasonable limits. He was specifically charged with assigning
    or reassigning the development and operational use of new weapon
    systems and with organizing common supply and service activities to
    eliminate duplication and to provide more effective, efficient, and
    economical administration. Under these authorities, several important
    determinations regarding new weapons were made during the
    past year and numerous steps were taken and additional ones planned
    to improve the management of resources. The administrative tools
    to effect further improvements are available.
    Most of the criticism of the Defense organization in recent years
    has been directed less against the existing structure than against the
    decisions made by responsible officials. Many of these decisions were
    difficult to reach, and alternative courses were often discarded with
    great reluctance. Still, it is most doubtful that different decisions
    would have been reached under a different organizational framework.
    Reorganizations do not resolve substantive problems.
    The current organizational pattern provides for quick command
    decisions for combat operations and well-considered decisions for the
    50 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    approval of plans, policies, and programs. It helps to assure that
    the resolution of major problems is made by civilian authority and in
    the light of all existing alternatives. The preservation of these advantages
    is essential for the maintenance of effective and efficient
    armed forces.
    Organization is not an end in itself, but only a means to an end—-
    and a limited means at best, for the caliber of people determines the
    effectiveness of any organization. In these circumstances, “unification
    of purpose,” rather than “unification of things,” remains the ultimate
    goal of the Department of Defense.
    V. Manpower
    The modernization of our armed forces has been accompanied by
    greatly increased requirements for experienced and technically trained
    personnel. To meet this requirement, the Department of Defense has
    developed personnel policies to maintain a relatively stable force
    structure, to make quality of performance a key to retention in service,
    and to create career patterns and a professional environment
    inducive to high morale.
    The implementation of these policies is a long-range task. Fiscal
    year 1960 was marked by a gradual rise in the quality and experience
    level of military personnel, helped along by the modern compensation
    and career management systems approved by the Congress in 1958.
    The principles of the Reserve Forces Act of 1955 and increased
    deliveries of modern weapons continued to contribute to the readiness
    of the reserve establishment. Additional legislation to meet special
    problems in the active and reserve forces was approved or under active
    consideration. Working conditions for civilian personnel were
    further improved, particularly for those overseas.
    The many measures taken have established a sound foundation for
    an effective Defense personnel system. They are based on the belief
    that the quality and morale of the individual military man and his
    civilian counterpart are fundamental factors in the effectiveness of our
    armed forces. This belief must remain the guiding principle for
    whatever adjustments the rapidly changing conditions of warfare
    will make necessary.
    The Active Forces
    The problem of attracting and retaining the best qualified officers
    and enlisted men continued to receive major attention in fiscal year
    1960.
    Most encouraging progress was made in meeting the requirement for
    more junior officers. The retention rate for officers commissioned
    through the Reserve Officers’ Training Corps (ROTC) rose from 28.1
    percent in fiscal year 1959 to 32.9 in fiscal year 1960. This gain was
    particularly significant since the ROTC program provides about 40
    percent of the new officers who enter the armed forces each year.
    Despite the general improvement, however, some shortages continue
    to exist in specialized fields, particularly in engineering and science.
    51
    52 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    To induce still more junior reserve officers to stay on active duty,
    legislation was proposed to require the military departments to offer
    contracts for a stipulated number of years to reserve officers upon completion
    of 2 years of service. In addition, the legislation would have
    substantially increased lump-sum payments upon completion of a contract
    or upon release to inactive duty, whether voluntary or involuntary.
    The bills passed by the House and the Senate on this subject
    included major differences which were not resolved before adjournment,
    and the Department of Defense subsequently initiated studies
    for a compromise proposal to be submitted to the next Congress.
    Effective career management in the middle grades of the officer
    corps has been hampered for some time by the large number of officers
    commissioned during World War II. This “hump” problem has seriously
    affected the promotion of junior officers and created an imbalance
    in the entire officer structure, particularly in the Navy and the Air
    Force. Legislation passed by the Congress in the late summer of 1959
    helped to ease this situation. Public Law 86-155, approved on August
    11,1959, authorized the Navy and Marine Corps to prescribe the early
    retirement of commanders and captains, or their Marine Corps equivalent,
    who no longer had any chance for further promotion. About
    1,100 Navy and Marine Corps officers were retired or scheduled for
    retirement under the provisions of this law during fiscal year 1960.
    Public Law 86-355, approved on September 21,1959, granted a temporary
    increase of 3,000 in the authorized number of Air Force majors in
    order to permit immediate promotions while the selective retirement
    of Reserve majors was carried out in an orderly manner. Shortly
    after the close of the fiscal year, the Congress gave broad permanent
    authority to all the military Services to retire officers in the grades of
    colonel and lieutenant colonel or captain and commanders who have
    been twice passed over for promotion. These measures will greatly
    assist the military Services in the immediate years ahead to reestablish
    normal career opportunities and improve still further the quality
    of our officer corps.
    Rapidly changing weapons technology has posed a major career
    personnel management problem in the case of aeronautically rated
    career officers, particularly among those with 15 to 20 years of service,
    in which group the number available has come to exceed requirements.
    While no longer needed on flight status, most of the affected officers
    possess skills which require their continued retention in the Services.
    To resolve this situation by arbitrarily removing these officers from
    flight status, accompanied by substantial pay losses, would have a
    serious adverse effect upon the attractiveness of a career in military
    aviation and disrupt the operating efficiency of the armed forces. At
    the close of the year, the Department was considering a legislative proMANPOWER
    53
    posal to provide a financial adjustment for rated career officers affected
    by the changing force structure.
    Of great importance to future career management will be the results
    of the review of the Officers Personnel Act of 1947 initiated by the
    Department of Defense on May 23, 1960. This study was undertaken
    to provide greater uniformity among the Services in officer promotion,
    retention, and retirement by eliminating unjustifiable disparities in
    personnel laws and policies. Some steps in this direction had been
    taken in recent years, such as the elimination in November 1959 of
    Navy and Marine Corps authority for advancement on the retired
    list—so-called “tombstone” promotions. The current comprehensive
    review is expected to provide an equitable career pattern for all the
    military Services.
    The efforts of the military Services to develop a more balanced enlisted
    force, in terms of skill and experience, continued to produce
    encouraging results. Occupational manning levels at the lower enlisted
    grades were generally improved, partly through retraining
    from the less critical skill categories. Career personnel shortages
    continued, however, in a number of highly technical skills.
    Voluntary enlistments increased by 15,000 during the year—from
    309,000 in fiscal year 1959 to 324,000 in 1960—and inductions through
    the Selective Service System were reduced by 21,000—from 111,000
    to 90,000. Selective Service legislation, however, remained a key
    factor in stimulating voluntary enlistments and meeting the personnel
    requirements of the Army.
    The reenlistment rate for regular personnel—computed on the basis
    of normal completion of term of service rather than as in previous
    years, on the date of reenlistment or separation—dropped to 26.2
    percent in fiscal year 1960 from the post-Korean high of 30.1 percent
    reached in fiscal year 1959. The 1960 decline appeared to be due in
    large part to tightened controls over reenlistment in the Air Force and
    Marine Corps. Personnel in the more technical skills, such as electronics
    maintenance, continued to reenlist at substantially lower rates
    than in other specialities.
    The proficiency pay program, established in 1958, is expected to
    help to counter this trend. During fiscal year 1960, the number of
    men holding the Pl rating, which grants an additional $30 per month,
    increased from 47,000 to 146,000, and a further expansion to over
    200,000 is planned for the next fiscal year. Almost 70 percent of the
    1960 Pl ratings were assigned to electronics specialists, other technicians,
    and mechanics and repairmen, over 20 percent to ground
    combat personnel, and the remaining 10 percent to other skill groups
    such as crafts, services, and administrative personnel. The first
    54 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    awards of the P2 rating, carrying additional pay of $60 per month,
    will be made in fiscal year 1961.
    Additional reenlistment incentive is being provided regular career
    personnel by the new grades of E8 and E9 for noncommissioned officers.
    On June 30, 1960, a total of 18,900 men were holding the E8
    grade—an increase of 8,300 during the fiscal year—and the highest
    enlisted grade of E9 was held by almost 4,300 men, 2,900 more than a
    year earlier. As a result of these promotions, the E8’s accounted for
    0.9 percent of total enlisted strength, and the E9’s for about 0.2 percent.
    Current plans call for advancing 2.0 percent of enlisted personnel
    to the E8 rating by 1963 and 1.0 percent to the E9 level.
    Although this year’s reenlistment rate was below the 1958 and
    1959 levels, it remained substantially higher than the rates prevailing
    in the early 1950’s. Most of this improvement can be ascribed to the
    incentive programs introduced in recent years. It is believed that the
    continued orderly development of these programs will continue to
    provide the best means for meeting the increasing requirement for
    more experienced and skilled enlisted personnel.
    The recruitment of women for military service was greatly helped
    by the activities of the Defense Advisory Committee on Women in
    the Services (DACOWITS). This committee of 50 prominent civic
    and professional women leaders keeps the public informed of military
    career opportunities for women through the issuance of pamphlets,
    films, and posters and through local contacts with civic organizations,
    educational institutions, and news media. The group has concerned
    itself particularly with improving the training, housing, and general
    welfare of Service women. The results of the work of the
    DACOWITS are reflected in the high reenlistment rate for women,
    which compares favorably with that for enlisted men.
    On June 30, 1960, the women components had a strength of 31,700,
    or about 100 less than on June 30,1959. Of these, 12,500 were serving
    in the Army, 9,700 in the Navy and Marine Corps, and 9,500 in the
    Air Force. Almost 11,000 women were officers, including 8,800
    nurses and medical specialists, and 20,700 were serving in the enlisted
    ranks.
    The high degree of success of the armed forces in achieving racial
    integration during the past decade is documented by the absence of any
    major incidents. Within the established policy of equal treatment regardless
    of race or color, Negro officers and enlisted men enjoy the
    same job opportunities as other military personnel and persistent efforts
    to improve community relations are reducing “off-base” barriers.
    Noteworthy in this respect has been the recent integration of “off-base”
    schools, attended solely by children of military personnel, in Arkansas,
    Florida, and Tennessee.
    MANPOWER 55
    Family Housing
    i In line with the over-all program to retain experienced and skilled
    personnel, the Department of Defense has for some years emphasized
    measures to meet the most urgent family housing requirements of
    military personnel. Substantial progress has been made in this field.
    New construction during fiscal year 1960 raised to 361,000 the number
    of quarters controlled by the military Services—a net gain of
    < 30,000 during the year. An additional 24,000 units were under construction.
    Major requirements have now been met, and most future
    construction will be in response to changes in weapons technology
    and the need for housing at small and isolated installations. Maxis
    mum reliance is being placed upon private housing resources in communities
    adjacent to military installations.
    Practically all of the new housing that became available during the
    / year was constructed under the Capehart program—projects built
    j by private contractors under federally insured mortgages for operation
    by the military Services as public quarters. About 30,800 Capehart
    units were completed during 1960, bringing to 66,500 the total
    number that has been finished. Another 22,800 units were under
    construction, of which 9,200 were started in fiscal year 1960. An
    additional 26,000 units have been authorized, for a total Capehart
    program of 115,300, a net increase of 6,600 during the year (see
    fig. 13).
    About 4,500 housing units originally constructed for private operation
    by private contractors under federally insured mortgages—
    Wherry projects—were acquired by the military departments during
    fiscal year 1960, in accordance with legislation passed by the Congress
    in 1956. These acquisitions brought to 62,400 the number of Wherry
    units incorporated into military holdings; 20,000 were still operated
    by private owners. Money from revolving funds is being used to
    rehabilitate and improve some 52,400 Wherry units now under military
    control.
    Military family housing overseas has been provided in recent years
    primarily through the surplus commodity and rental guaranty programs.
    Under the surplus commodity program, funds are generated
    through the sale or barter of surplus agricultural products and supplemented
    as necessary by appropriated funds for items not available
    in foreign countries. Some 8,200 housing units financed in this manner
    had been completed and 1,100 were under construction on June
    30, 1960. Only 700 new units were placed under contract during
    the fiscal year, partially because improving economic conditions in
    areas where U.S. troops are stationed reduced the market for surplus
    commodities. Under the rental guaranty program, foreign builders
    56 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    CAPEHART FAMILY HOUSING PROGRAM
    Thousands
    Figure 18
    MANPOWER 57
    are assured of a specific level of rental income for a period of years
    as an incentive to build private housing for U.S. military personnel
    and their families. The construction of 5,600 units has been made
    possible by such guarantees.
    Military family housing also included 121,000 units built on military
    bases with appropriated funds or foreign currencies available to U.S.
    forces, and 5,800 units of off-base housing leased from private owners
    by the military Services. In addition, there were 72,000 substandard
    units, consisting of old public quarters, converted structures, trailers,
    and rental housing. The inadequate public quarters in this category—-
    totaling nearly 48,000—are being reviewed to determine those units
    that should be rehabilitated, converted to other uses, sold, or demolished.
    Various types of rental housing are also being screened for
    similar purposes. These studies should bring the vast majority of
    the militarily controlled housing to at least the minimum standards
    established for public quarters.
    Dependents’ Medical Care
    Adequate medical protection for dependents of military personnel
    has made an important contribution to higher morale, particularly in
    recent years. While military hospitals and dispensaries have longbeen
    open to dependents of Service personnel, many families had
    been unable to avail theemselves of this care until 1956 because of
    distance from the nearest military installation, overcrowded conditions,
    or lack of specialized treatment facilities. The supplementary
    medical care program for dependents established in that year extended
    the coverage to treatment received from civilian sources. In
    October 1958 the scope of the program was restricted to assure
    optimum utilization of military hospitals and to keep expenditures
    within the limits set by the Congress (see fig. 14).
    This change brought admissions of dependents to military hospitals
    to a level more nearly consistent with the efficient operation of these
    facilities, but also created unusual hardships for some families. The
    Medicare program was carefully reviewed in 1959 and on January 1,
    1960, treatment by civilian sources was restored for four types of
    cases—emergency treatment for minor injuries, initial hospitalization
    for acute emotional disorders, nonemergency surgical care, and certain
    pre- and post-hospitalization tests and procedures. The requirement
    that dependents obtain a Medicare permit from a military
    facility for treatment by a civilian source was retained.
    A total of 300,000 claims from civilian physicians, amounting to
    $26.7 million, was paid from fiscal year 1960 funds by the Department
    of Defense for medical treatment of dependents, as compared to
    491,000 claims for $40.0 million during the preceding year. A parallel
    58 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    reduction occurred in payments to civilian hospitals which decreased
    from $38.1 million for 306,000 claims charged to fiscal year 1959 funds
    to $31.1 million for 204,000 claims paid with 1960 funds. With the
    Medicare program designed primarily to provide protection to dependents
    residing apart from their sponsors—families separated by
    oversea duty or assignment to isolated posts—it is noteworthy that
    53.2 percent of the cases financed by the program involved this group.
    MEDICAL CARE FOR DEPENDENTS-IMPACT OF MEDICARE PROGRAM
    FISCAL YEARS 1955 - 1960
    Note: The above statistics include dependents not only of the military Services of the Department of Defense, but
    also of other "uniformed Services" covered by the Medicare program — the Coast Guard, the Coast and
    Geodetic Survey, and the Public Health Service. The latter group accounts for about 2 percent of the totals.
    Figure 14
    Information and Education
    Off-duty education programs assist members of the armed forces
    to acquire training, skills, and knowledge to further their careers.
    These programs, in which participation is voluntary, include correspondence
    courses and classroom instruction and had an enrollment
    of more than 500,000 in fiscal year 1960.
    The U.S. Armed Forces Institute (USAFI) with headquarters
    at Madison, Wis., is responsible for the major part of this service.
    Its 200 college and high school level correspondence courses were
    taken by 118,000 military personnel and off-duty study groups using
    USAFI texts enrolled 157,000. The total enrollment of 275,000 represented
    an increase of 48,000 over the previous year. Participation
    MANPOWER 59
    in correspondence courses prepared and administered by 44 American
    universities under USAFI contracts decreased slightly—from 11,400
    in fiscal year 1959 to 9,400 in 1960.
    In addition, off-duty formal classroom work was offered on or near
    military installations at home and abroad by some 350 universities
    and colleges and 150 secondary schools. More than 220,000 applications
    were received for this type of instruction during the year.
    The Department of Defense also sponsors an extensive troop information
    program to keep members of the armed forces abreast
    of the latest national and international developments. During fiscal
    year 1960 the Office of Armed Forces Information and Education prepared
    and distributed over 4,900,000 pamphlets, 500,000 posters, 22,000
    fact sheets, 20 motion pictures, and 2,100,000 reprints of articles from
    commercial publications. Some 200 armed forces radio outlets were
    furnished over 3,000 hours of radio programs, and 33 television stations
    received 2,600 hours of kinescopes. Most of this material was
    made available by commercial sources, with the Department preparingonly
    one-sixth of the total.
    The troop information program placed special emphasis during the
    year on encouraging military personnel and their dependents to register
    and vote in the forthcoming Presidential primaries and elections.
    Information on the requirements for voting by absentee ballot was
    widely disseminated. In addition, the Department continued to work
    closely with State governments to assure that all military and civilian
    personnel away from home would have an opportunity to exercise their
    franchise as electors.
    Health
    The continued improvement in the health of the active forces is
    reflected in the progressively lower hospital admission and noneffectiveness
    rates in recent years. Admissions of Service personnel
    to hospitals fell from an average of 288 per 1,000 in fiscal year 1959
    to 274 in 1960, and the proportion of the armed forces in hospitals
    from 0.94 percent to 0.88. The noneffectiveness rate for the year
    averaged 10.96 per 1,000—a decline of 0.49 per 1,000 from the fiscal
    year 1959 rate.
    In the field of medical personnel, encouraging progress was made
    in increasing the proportion of regular officers. The medical corps
    of the three military departments included 4,923 regulars on June 30,
    1960, out of a total strength of 10,321 officers, or 47.7 percent as compared
    to 46.0 percent at the close of the preceding year. The proportion
    of regular dental officers rose from 39.5 percent to 40.4
    percent—2,041 regulars in a total strength of 5,055. This trend,
    595308—61------ 5
    60 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    fostered by the Medical and Dental Officers Career Incentive Act of
    1956, is providing greater continuity in medical and dental personnel
    and establishing a broader base for wartime expansion.
    The remaining requirements for physicians and dentists were met
    during fiscal year 1960 through voluntary recruitment. Established
    programs offer reserve commissions to senior medical and dental
    students in the military Service of their choice. Interns are also given
    the option of requesting deferment to complete residency training in a
    medical speciality required by the armed forces rather than being
    called to active duty upon completion of internship. Since these
    choices were first made available in 1954, about 11,000 physicians have
    been commissioned as reserve officers, of whom 6,500 volunteered for
    immediate active duty and 4,500 requested deferment for residency
    study. On June 30, 1960, almost 2,400 physicians were on deferred
    status; they will begin active duty at the rate of about 700 per year.
    While this program has been very effective in filling military needs
    for specialists, only about half the required number of students applied
    this year for immediate active duty as general practitioners. To
    remedy this shortage it may become necessary during fiscal year 1961
    to use the Selective Service System for recruiting physicians for the
    first time since February 1957.
    Senior medical students are also eligible to apply for reserve commissions
    to complete their medical training on active duty and subsequently
    serve 3 years as physicians with the armed forces. Some
    365 students were commissioned under this arrangement during fiscal
    year 1960, about the same number as during the preceding year. A
    similar program for senior dental students was discontinued this year.
    The joint use of medical facilities and personnel by the three military
    departments continued to increase. Cross-servicing of patients
    among the military Services rose during the year from 10.1 to 11.4
    percent for active duty military personnel and from 18.7 to 18.9 percent
    for dependents. Plans were well advanced for designating certain
    major hospitals with specialized facilities and staffs to serve as regional
    referral centers for all patients needing such treatment regardless
    of Service affiliation. This formal assignment of responsibility
    should increase cross-servicing of patients in the years ahead and
    contribute to the better utilization of specialists and specialized
    treatment facilities.
    The military Services completed the construction of four new
    permanent hospitals in the United States during fiscal year 1960.
    Special attention was given to combating the recent trend toward
    higher costs in hospital construction. Some remedial measures were
    adopted and, as the result of a comprehensive study, additional
    controls will be established in the near future.
    MANPOWER 61
    Procedures for the procurement and distribution of medical supplies
    were further improved during fiscal year 1960 by the Military
    Medical Supply Agency, one of the Single Manager logistical support
    agencies of the Department of Defense. Overhead expenses were
    reduced by relocating the agency’s offices, permitting the consolidation
    of some administrative functions and the elimination of 67 personnel
    spaces. One storage depot was placed on a partial maintenance status,
    handling only equipment little used in peacetime and requiring minimum
    surveillance. By placing wholesale stocks of serum albumin,
    derived from blood plasma, in refrigerated storage the shelf life of
    this item was doubled; this action should save about $16 million during
    the next 10 years.
    As part of the preparation for emergency operations, standard lists
    of material for the treatment of military personnel in the event of
    nuclear attack were brought up to date, and 18,000 special emergency
    packs—each to serve 100 men—were assembled; the remaining requirement
    for 9,000 packs will be filled during the coming fiscal year. New
    and improved medical supplies and equipment for field use were
    developed, such as disposable hospital linens, plastic instruments that
    conserve scarce surgical steels, aluminum field beds and lightweight
    collapsible litters, and an aluminum field sterilizer that is 70 percent
    lighter and less bulky than the current model.
    The Department of Defense also continued to support strongly the
    Medical Education for National Defense program, which keeps
    faculties of medical colleges advised on the latest developments in
    planning for medical care in the event of a major disaster. The
    number of schools participating in this program was increased during
    the year by 15 to a total of 71, and 11 more will join during the coming
    year. Faculty members and administrators of these schools attended
    four symposia on disaster medicine during the year and also visited
    military medical installations.
    The Reserve Forces
    During fiscal year 1960 the reserve components of the armed forces
    further improved their readiness for rapid mobilization. Modern
    materiel was delivered in increased quantities, and the provisions of
    the Reserve Forces Act of 1955 continued to contribute to the development
    of a more effective reserve establishment. Since the approval
    of this act, the proportion of Ready Reservists with basic training
    has risen from less than 50 percent to 95 percent. The availability of
    the Ready Reserve for active service on short notice is being assured by
    the continuous screening of personnel to eliminate those who might
    be unable to respond to sudden orders.
    62 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    On June 30, 1960, the Department of Defense reserve components
    had a total personnel strength of 4,367,000, including the 220,000
    Ready Reservists on extended active duty. Total strength declined
    by 234,000 during the year, with most of the decrease occurring in the
    Standby Reserve. The over-all reduction resulted in part from improved
    reenlistment rates in the active forces, thus reducing the input
    into the reserves at a time when large numbers of reservists had completed
    their tours of obligated reserve service.
    The Ready Reserve, excluding reservists on extended active duty,
    totaled 2,418,000 on June 30, 1960—38,000 less than at the close of the
    preceding year. Almost 1,079,000 of these reservists were receiving
    pay for regular participation in drills or for training on active duty—
    an increase of 17,000 during the year. The Ready Reserve continued
    to benefit from special enlistment programs which provide 3 to 6
    months of active duty for basic training out of 8 years of reserve participation.
    Since August 1955, a total of 439,000 men have entered
    these programs and 356,000 completed training and rejoined local
    reserve units. During fiscal year 1960, 121,000 recruits began and
    101,000 completed their active duty training tours.
    The Standby Reserve includes previously trained personnel who
    are not currently required to participate in regular drills. They
    could be called to active service in the event of war or a national emergency
    declared by the Congress. During fiscal year 1960, this group
    decreased by 185,000, or from 1,770,000 to 1,585,000.
    The Retired Reserve increased by 16,000 during the year and totaled
    144,000 on June 30, 1960.
    Department of Defense proposals to reduce the Army National
    Guard from 400,000 to 360,000 and Army reservists on drill-pay status
    from 300,000 to 270,000 were not approved by the Congress, and these
    reserve components maintained their higher strength levels. The conversion
    to the pentomic tables of organization, adopted previously for
    regular Army divisions, was completed for the 37 reserve combat
    divisions—27 in the Army National Guard and 10 in the Army Reserve.
    The Army National Guard also manned 52 on-site NIKE air
    defense artillery batteries in 11 areas on an “around-the-clock” basis.
    Under the Navy’s Selected Reserve program, initiated in February
    1958, most reservists on drill-pay status were being organized and
    trained to augment the fleet immediately upon the outbreak of hostilities.
    The Selected Reserve was manning 36 destroyer-type ships and
    21 fleet-size antisubmarine warfare air squadrons at the close of fiscal
    year 1960. Other Selected Reservists were being trained in units to
    bring ships of the active fleet and the shore establishment up to wartime
    strength. Realistic training and the delivery of more modern
    equipment, including medium tanks and jet aircraft, improved the
    MANPOWER 63
    readiness of the 225 ground and 86 aviation units of the Marine Corps
    reserve.
    The Air National Guard continued to maintain 24 tactical flying
    wings—all squadrons of which have now been converted to jet aircraft—-
    plus 16 flying support and 116 ground support units. A total
    of 22 Air National Guard squadrons have been assigned to augment
    our continental air defenses, with 6 squadrons providing around-theclock
    readiness and the other 16 being available 14 hours a day. The
    Air Force Reserve organization included 14 medium troop carrier
    wings, 1 assault troop carrier wing, and 5 flying support and 52 ground
    support units. The responsibility for training and inspecting Air
    Force Ready Reserve units began to be shifted from the Continental
    Air Command to the major air commands that would have operational
    control of these units in case of war.
    Expenditures for the reserve components totaled $1.0 billion during
    fiscal year 1960—$0.6 billion for the Army National Guard and Army
    Reserve, $0.1 billion for the Navy and Marine Corps Reserve, and $0.3
    billion for the Air National Guard and Air Force Reserve.
    Civilian Personnel
    In accordance with established policies to keep the civilian work
    force at a minimum consistent with efficient operation, a reduction of
    42,000 Defense employees was achieved during fiscal year 1960, decreasing
    civilian employment by 3.3 percent or from 1,267,000 to
    1,225,000. Including this reduction, 541,000 fewer civilians were employed
    by the Department of Defense than on June 30, 1953—a decrease
    of 31 percent (see fig. 15). Additional reviews of staffing
    requirements, particularly those for departmental headquarters, were
    initiated at the close of the fiscal year.
    The 1,225,000 civilian employees of the Department on June 30,
    1960, included 500,000 salaried Civil Service employees, 547,000 “blue
    collar” workers paid according to local hourly rates established by
    wage boards, and. 178,000 foreign nationals hired under contractual
    arrangements with friendly governments. Over 95 percent of these
    foreign nationals were located in France, Germany, Japan, and Korea.
    The 1960 decrease of 42,000 in employment involved 8,000 salaried
    employees, 23,000 “blue collar” workers, and 11,000 contract-hire foreign
    nationals.
    The problem of equitable employment conditions overseas was given
    special attention during the year. At the request of the Department
    of Defense, the Congress enacted two new laws in this field shortly
    after the close of the year. The first of these provided reemployment
    rights in the United States to career personnel accepting transfers to
    oversea posts. Under this authority an employee is granted rights to
    64 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    DEPARTMENT OF DEFENSE CIVILIAN EMPLOYMENT
    1953 - 1960
    ( IN THOUSANDS)
    Figure 15
    MANPOWER 65
    return either to the same position he vacated to go overseas or to an
    equivalent one in the same geographical area. These guarantees were
    designed to facilitate the rotation of key personnel between positions
    at home and abroad. The second new law, the Overseas Differentials
    and Allowances Act, improved and standardized such payments for
    oversea employees of Federal agencies, not covered by the Foreign
    Service Act. It authorized quarters allowances, cost-of-living allowances,
    differentials for hardship posts, the storage of household goods,
    payments for maintenance of official residences by chief representa-
    I ives, transportation of private motor vehicles, and regular home leave.
    Although some of these special forms of compensation have been
    available to oversea employees of the Department of Defense, the new
    law for the first time granted allowances for temporary lodging
    abroad, the storage of household goods in the United States, the transportation
    of private motor vehicles when required in connection with
    the performance of official duties, and home leave after 2 years’ continuous
    oversea service, computed at a rate not to exceed 1 week of leave
    for each 4 months of duty.
    The 6,000 teachers in the 226 elementary and 58 secondary schools
    operated abroad by the Department for the education of children of
    Service families were also given more attractive working conditions.
    The Overseas Teachers Pay and Personnel Practices Act, approved
    on July 17, 1959, and effective in January 1960, transferred this small
    but important group of employees from the regular Civil Service
    work schedule to a program patterned after that prevalent in U.S.
    schools.
    Direct-hire employees at home as well as overseas became eligible
    for coverage under the Federal Employees Health Insurance program
    that became effective in July 1960. With this program the Federal
    Government assumed responsibility for the first time for part of
    the expense of providing health insurance for its workers—a practice
    increasingly followed by private industry.
    While measures to improve conditions of employment represented
    one approach to the problem of recruiting and retaining high quality
    personnel, another effort has been centered on the programs for the
    career development and training of employees. Under authority of
    the Government Employees Training Act of 1958 all the military
    Services made extensive use of Federal and private training facilities—
    including Service schools, colleges, and universities—to help
    civilian employees develop needed skills and improve their efficiency.
    The number of inventions and suggestions for improved operations
    submitted by employees of the Department of Defense showed a sharp
    increase during fiscal year 1960. A total of 278,000 suggestions were
    received, as compared to 255,000 during the preceding year, and 75,000
    66 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    of these were accepted—an increase of 7,000 over 1959. The firstyear
    savings resulting from these proposals were estimated at $61.3
    million. Cash awards totaling $2.2 million were paid to the employees
    who made these contributions to greater efficiency. In addition,
    49,000 civilian employees were awarded $7.5 million for
    sustained superior performance of their duties, and 3,100 received
    $0.3 million for special acts or services. Total savings through the
    incentives awards program in fiscal year 1960 were estimated at
    $131.5 million—$32.5 million more than during the preceding year.
    Security Policy
    The personnel security program of the Department of Defense
    covers by necessity not only civilian employees and members of the
    armed forces but also defense contractors and their workers engaged
    in classified projects. The program is designed to protect military
    secrets from disclosure to hostile powers without establishing unreasonable
    or unwarranted limitations on the liberties of U.S. citizens.
    During fiscal year 1960 the policies and procedures directed toward
    these objectives continued to be carefully reexamined. Particular
    attention was given to the security program for industrial personnel,
    first established in 1942, in view of the Supreme Court decision of
    June 29,1959, in the case of Greene versus McElroy.
    The points raised by this decision were covered in Executive Order
    10865, issued on February 20, 1960, which prescribed revised security
    standards and procedures for defense contractors and their employees.
    Under this order, persons denied access to classified data must be
    afforded an opportunity to respond to the detailed statement of reasons
    for denial and to cross-examine individuals who made adverse statements
    on disputed questions of fact. Although limited exceptions
    were authorized to protect confidential information, in all such cases
    final decisions adverse to the applicant may be made only by the head
    of an executive department or agency, based on his personal review
    of the facts.
    Instructions to carry out the terms of this order were approved by
    the Secretary of Defense shortly after the close of the fiscal year.
    The new regulations provide for a screening board to review the record
    of all cases referred to it. This board will either grant access to
    classified information or prepare a statement of reasons for denial,
    to be forwarded to the applicant. Applicants who desire a hearing
    may appear personally before field boards located in New York City,
    Washington, D.C., and San Francisco, where the Government’s evidence
    will be submitted in the presence of the applicant, except for
    matters specifically exempted by the terms of the Executive order.
    The field boards will make findings of fact, and their recommendaMANPOWER
    67
    tions will be reviewed by a central board which will permit the applicant
    or his attorney to present further written or oral argument if
    he so desires. Final decision will be made by the central board or
    by the Secretary of Defense, as appropriate under terms of the new
    Executive order. These procedures, while recognizing the requirement
    to restrict access to classified information in the interest of national
    defense, provide increased protection to the individuals
    involved.
    The use of the Department of Defense Industrial Security Program
    has been expanded to meet the needs of the National Aeronautics and
    Space Administration, the Federal Aviation Agency, the General
    Services Administration, and the Department of Commerce, thus
    making it unnecessary for those agencies to develop separate programs
    to meet their respective needs.
    Other developments in the field of industrial security included a
    revision of the Security Requirements Check List reducing the number
    of classified items and the level of classification. The new list
    should save time and money for both the contractors and the Government.
    The industrial security agreement with Canada was also
    expanded during the year to cover the exchange of information on
    the security status of firms located in one country but operating subsidiaries
    in the other, in order to permit security clearance of subsidiary
    plants without a duplicating investigation of their parent
    company. The same sort of information will also be exchanged with
    regard to individuals employed on classified work. These exchanges
    should simplify and expedite the placing of classified defense
    contracts.
    Further steps were taken by the Department to reduce the volume
    of classified documents in its files. New instructions were issued to
    require the automatic downgrading and the declassification of al]
    classified material within 12 years, except for extremely sensitive
    documents. The exempted records will be downgraded from Top
    Secret to Secret to Confidential at 12-year intervals, but will not be
    automatically declassified. All other documents will be downgraded
    at 3-year intervals and automatically declassified after 12 years.
    This procedure is an extension of the action taken during the preceding
    fiscal year concerning documents originated prior to January 1,
    1946. Considerable savings in storage and handling costs will accrue
    as a result of the new standards.
    VI. Weapons, Equipment, and Facilities
    The increased coordination and integration of military logistic
    support activities during recent years has resulted in greatly improved
    utilization of resources.
    Building on the Federal Catalog program, which provides a common
    supply language for all the military Services, the Department
    developed new organizational patterns to facilitate inter-Service
    cooperation in logistics, such as the Single Manager system and the
    Armed Forces Supply Support Center. Standardization programs
    reduced the number of items in the supply system. Storage facilities
    and distribution systems were consolidated, and the interchange of
    supply assets was increased, resulting in substantial reductions in
    inventories and in storage and personnel requirements. The enormous
    problem confronting the Department of Defense is illustrated by the
    size of the military inventories which, at the close of the fiscal year,
    were valued at $120.2 billion—$68.1 billion for arms and equipment
    issued for use, $42.0 billion for items in the supply system, and $10.1
    billion for production machinery, industrial fund accounts, and surplus
    property.
    Real property holdings of the military departments, with an acquisition
    cost of $34.4 billion, were kept under continuous review to assure
    optimum utilization of available resources and minimize the need for
    new acquisitions. Installations found surplus to mobilization requirements
    were sold or transferred to other Government agencies .
    Recently approved programs have removed many deficiencies,
    produced tangible economies, and laid a sound foundation for the
    future.
    The Single Managers
    The Single Manager system for controlling logistical service and
    supply activities common to all the military departments was extended
    during this fiscal year to four additional commodity classes—automotive,
    construction, industrial, and general supplies. These new
    assignments increased to 11 the number of Single Manager agencies
    established since 1956.
    Delegation to the Secretary of the Army of responsibility for general
    supplies and to the Secretary of the Navy for industrial supplies
    was made on November 6, 1959. The further designation of the
    68
    WEAPONS, EQUIPMENT, AND FACILITIES 69
    Secretary of the Army as Single Manager for automotive and for
    construction supplies followed on May 11, 1960. As a first step, a
    total of about 1,200,000 items are being screened to identify those
    items that can profitably be controlled centrally by the new Single
    Managers, those that should be procured by the General Services Administration
    for the Department of Defense, those that are better
    bought locally by using organizations, and those so essential to operations
    that control should remain vested in the individual military
    Services. Current inventories of these commodities are estimated at
    $3.2 billion and annual usage rates at $1.1 billion.
    The new Military General Supply Agency, expected to be fully
    operational about July 1,1961, will be responsible for handtools, furniture,
    and other “housekeeping” items, for certain types of materialshandling
    equipment and of photographic supplies, and for several
    classes of fabricated goods. Over 100,000 supply items are currently
    included in these categories. The Military Industrial Supply
    Agency, which will become operational at a later date, has been
    assigned hardware, nuts and bolts, paint, metal bars and shapes,
    bearings, rope, chain, cable, tackle, and related supplies—over 600,000
    separate items. The charters under which these two new agencies
    will operate were approved shortly after the close of this fiscal year.
    About 253,000 items, including tires and tubes, vehicle components,
    engines, engine accessories, and turbines will be handled by the new
    Single Manager for automotive supplies. Operating responsibility
    for controlling these repair components and parts will be discharged
    by the Army’s Ordnance Tank Automotive Command, which already
    purchases almost all vehicles for the military Services under a single
    department procurement assignment. The construction supply classes
    selected for screening by the fourth new Single Manager agency encompass
    about 208,000 different items, including a large number of
    “end-items,” or assembled units, the management of which may need
    to be retained by the military Services rather than being assumed by
    the Military Construction Supply Agency.
    Studies were initiated during fiscal year 1960 to determine the feasibility
    of a Single Manager for electrical and electronic items and to
    develop a single integrated distribution system and uniform operating
    procedures for all the commodity Single Managers.
    The four Single Manager agencies for common supplies established
    in 1956 and 1957—subsistence and clothing and textiles under the
    Secretary of the Army, medical supplies and petroleum under the
    Secretary of the Navy—reported aggregate savings in operating costs
    during fiscal year 1960 of nearly $20 million. The consolidation of
    functions and inventories by these Single Managers has permitted the
    elimination of over 900 personnel spaces, the closing of more than 5
    70 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    million square feet of storage space, and the reduction of stocks on
    hand by $420 million since the establishment of these agencies.
    More effective utilization of resources with fewer personnel and at
    less cost has also been achieved by the three Single Managers for common
    services—the Military Traffic Management Agency (MTMA) in
    the Department of the Army, the Military Sea Transportation Service
    (MSTS) in the Department of the Navy, and the Military Air Transport
    Service (MATS) in the Department of the Air Force.
    MTMA is responsible for the effective and economical management
    of the freight and passenger transportation services required by all
    the military departments within the continental United States. During
    fiscal year 1960, the agency arranged for transportation costing
    $511 million. Operating with a staff of 975—as compared to the
    1,300 persons who were authorized when each military Service arranged
    for its own transportation—administrative overhead expenses
    amounted to only $6.6 million or about 1.3 percent. Through rate
    negotiations, utilization of in-transit stopover privileges, reassignment
    of export shipments to the most favorable ports, annual passenger
    agreements, and group movements, the agency achieved economies of
    $42.2 million during fiscal year 1960 as compared to $30.0 million
    during the preceding year. In addition to its daily operations,
    MTMA has had an important role in developing plans for the movement
    of military traffic in the event of limited or general war.
    MSTS, established to provide ocean transportation for all the military
    Services, operates a nucleus fleet of Government-owned vessels
    and arranges with commercial shippers for the bulk of the sealift requirements
    of the Department of Defense. Passenger traffic was 20
    percent lower in fiscal year 1960 than in the preceding year, and cargo
    tonnage and petroleum shipments each 12 percent lower, with a resulting
    13 percent reduction in operating expenses—$358.6 million as
    compared to $414.0 million. Of this year’s expenses, $265.9 million,
    or 74 percent, was paid for services rendered by common carriers,
    private shipyards, and other commercial interests. The nucleus fleet
    was reduced from 151 ships to 115 and personnel from 12,031 to 10,087
    in keeping with lower sealift requirements.
    Following Presidential approval in February 1960 of a comprehensive
    study of the war and peacetime roles of MATS, this Single
    Manager agency began to reorient its airlift operations. Greater emphasis
    will henceforth be placed on the modernization and maintenance
    of the MATS fleet and facilities in readiness for vital wartime
    military missions. Commercial carriers will be encouraged to provide
    more of the routine peacetime airlift support. To this end, new
    long-term contracting procedures were being developed that will provide
    greater stability of operations for private firms and improved
    WEAPONS, EQUIPMENT, AND FACILITIES 71
    continuity of service for the Department of Defense. During fiscal
    year 1960, commercial carriers flew 259 million ton-miles for MATS,
    as compared to 232 million ton-miles during the preceding year, and
    were paid $64.1 million, or $6.3 million less than in 1959, as the result
    of more favorable contracts concluded by the Department of Defense.
    Total industrial fund expenses incurred by MATS amounted to
    $275.6 million.
    Contract Policies
    Constant improvement in contracting procedures is vital to the
    efficient management of the Department of Defense, since nearly 40
    percent of expenditures is allocated to the purchase of goods, services,
    and construction. A major difficulty in this area has been the fact that
    costs cannot be predicted with reasonable accuracy in many research,
    development, and construction activities for major weapon systems.
    Moreover, formal advertising procedures are not suitable to much of
    this procurement, and small business firms cannot be employed extensively
    as prime contractors. The Department has taken numerous
    steps in recent years to reduce the impact of these difficulties and
    during fiscal year 1960 issued further instructions designed to assure
    fair and reasonable charges to the Government and an equitable distribution
    of contracts to small business.
    The principles for determining allowable costs were revised on
    November 2, 1959. This revision of the Armed Services Procurement
    Regulation is applicable not only to cost-reimbursement contracts
    but also to fixed-price type contracts whenever an evaluation
    of costs is necessary for the establishment of a fair price. Thus, the
    new guidelines facilitate the selection of the proper type of contract to
    be used, since costs will be measured alike under all types of contracts.
    The revised policies were permissive until July 1, 1960, when they
    became mandatory. The instructions governing the negotiation of
    prices were also extensively rewritten, including a new requirement
    for prime contractors and subcontractors to certify that the most
    current, accurate, and complete cost data have been used as a basis
    for negotiation.
    To assure further that the Government secures a reasonable price
    and that small business firms receive an equitable share of awards
    decisions of prime contractors to manufacture components themselves
    or to subcontract for them are being given an increasingly detailed
    review. In addition, the former voluntary subcontracting program
    was made mandatory for all firms awarded prime contracts of more
    than $1 million having substantial possibilities for subcontracting.
    Policies governing the use of Government industrial facilities by
    private contractors were amended during the year, particularly to
    72 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    prevent any unfair competitive advantage accruing to a firm utilizing
    such facilities.
    The wider use of consolidated purchasing assignments, whereby
    a single military department acts as the contracting agent in filling
    the needs of all the armed forces for a particular commodity, has also
    contributed to more economical procurement operations. Responsibility
    for single department procurement of electron tubes was assigned
    to the Air Force during the year, bringing to 32 the number of
    such single department procurement assignments. Similar consolidated
    procurement actions are taken by the Single Manager agencies,
    the General Services Administration under the interdepartmental procurement
    program for common commercial items, and by the military
    departments under the 63 plant cognizance assignments for aircraft
    and aircraft componets.
    Military procurement actions during fiscal year 1960 totaled
    7,061,000 with a net value of $23.7 billion, about $1.6 billion less than
    during the preceding year. Most of this decrease was accounted for
    by smaller awards for manned aircraft, services, construction, oversea
    procurement, and fuels and lubricants that were offset only in part by
    increased procurement of missile systems and electronics and communication
    equipment (see fig. 16). Almost 90 percent of the procurement
    actions represented awards to business firms in the United
    States, totaling $21.3 billion—including almost $17.3 billion for weapons
    and supplies, $1.3 billion for services, $1.2 billion for construction,
    and $1.5 billion in more than 5,400,000 small purchases each less than
    $10,000 in value and not reported by category. The remaining $2.4
    billion in awards was comprised of $1.2 billion for work outside the
    United States, $0.8 billion in intragovernmental transactions, and $0.4
    billion in contracts with educational and other nonprofit institutions.
    Of the $21.3 billion in procurement actions for work by business
    firms in the Uniteci States, $14.8 billion or 69.5 percent was for major
    hard goods, such as aircraft, missiles, and ships; $1.3 billion or 6.2
    percent was for services; and $5.2 billion or 24.3 percent was for
    soft goods (such as subsistence and textiles), for construction, and for
    small purchases.
    Excluding intragovernmental transactions, 84 percent of the awards
    by value were made by competitive methods. Formal advertising and.
    other types of price competition—including open market purchases of
    not more than $2,500 each—accounted for 30 percent of this total and
    awards placed as a result of design or technical competition for 54
    percent. On about 13 percent of the awards there was no competition,
    mainly because of the existence of patent rights or other proprietary
    interests restricted the procurement to a single source. The competitive
    status of nearly 3 percent of the awards was not reported.
    WEAPONS, EQUIPMENT, AND FACILITIES 73
    PROCUREMENT TRENDS
    MAJOR HARD GOODS CATEGORIES
    VALUE OF AWARDS
    Figure 16
    74 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Prime contracts awarded to small business totaled $3.4 billion during
    fiscal year 1960, about $0.3 billion less than in 1959. With fewer
    procurement actions, the amount of business considered to fall within
    the potential productive capacity of small business firms declined from
    $6.0 billion in 1959 to $5.9 billion in 1960. Small business was somewhat
    less successful in bidding this year than last, receiving 58.2 percent
    instead of 63.1 of the awards that were within its total potential.
    While receiving only 4.3 percent of the awards to U.S. business for
    major hard goods, small firms obtained 21.4 percent of the awards for
    services and 48.7 percent of the awards for soft goods, construction,
    and small actions of less than $10,000.
    The emphasis placed on subcontracting kept the total small business
    share of military procurement at a level of about $7.0 billion during
    fiscal year 1960, despite the decline of $0.3 billion in prime contract
    awards. The 293 large prime contractors enrolled in the Defense
    subcontracting program reported disbursements to small firms of $3.6
    billion for subcontract work—over $0.2 billion more than during the
    preceding year.
    With the reduction during fiscal year 1960 in the number of areas
    with a substantial surplus of labor from 264 to 153, contracts awarded
    by the Department to firms in such areas also declined considerably.
    These awards, including set-asides and tie-bid preferences, totaled $2.0
    billion during 1960 as compared to $9.3 billion during 1959.
    Inspection procedures, designed to assure that the products purchased
    for mi litary use are of the requisite quality, also continued to
    be improved during the year. New control specifications were placed
    into effect for missiles and missile components, particularly electronic
    components. Higher personnel standards for inspectors handling
    complicated technical materiel were developed. Handbooks were
    issued to provide guidance to inspection personnel on the use of
    statistical sampling methods in initial testing and in verifying inspections
    by suppliers. Increased economy in this area was provided by
    expanding the interchange of inspection services not only between the
    military departments themselves but also between them and other
    Federal agencies.
    Cataloging and Standardization
    The Federal Catalog system, maintained by the Armed Forces
    Supply Support Center, has proved an increasingly useful tool for more
    effective supply management. During the past year special emphasis
    was placed on helping inventory managers to eliminate those items
    that have been designated under the Accelerated Item Reduction
    program as no longer required by the military Services. In addition,
    substantial progress was made in assigning freight rate classification
    WEAPONS, EQUIPMENT, AND FACILITIES 75
    codes to supply items, making possible considerable economics in
    transportation costs; a total of 1,132,000 items—out of an estimated
    potential of over 2,000,000—have been given such rate codes since the
    start of the program in February 1959.
    On June 30, 1960, over 3,678,000 different active supply items were
    identified in the Federal Catalog. Of this total, 3,568,000 items were
    used by the Department of Defense, including 36,000 common items
    in general usage throughout the Federal Government. The remaining
    110,000 identifications covered equipment stocked only by civilian
    agencies. During fiscal year 1960, 570,000 new items were added to
    the catalog largely as the result of the development of new weapon
    systems and of improvements in older equipment. Over 390,000
    listings were eliminated from the catalog during the year, for a net
    increase of 180,000 items.
    The direct wire transmission net linking the automatic dataprocessing
    system of the central catalog office with inventory control
    points was expanded during the year to include 12 more field installations,
    for a total of 36. This equipment has greatly reduced the time
    required for all supply actions.
    The first phase of the Accelerated Item Reduction program was
    almost completed during the year. Data on 99 percent of defense
    items in the Federal Catalog were obtained, providing information on
    how each item is managed, procured, and stocked and permitting its
    classification as standard, limited standard, or nonstandard. In the
    course of this work, 147,000 items were designated for elimination.
    Phase II of the program, to improve further the quality of catalog
    data, and Phase III, to reduce the varieties of items through
    nontechnical evaluation, were proceeding on schedule at the close of
    the year.
    The Defense standardization program—based on a technical rather
    than on a nontechnical evaluation of items—aims to reduce the inventory
    by the consolidation of specifications and requirements. The
    review of specifications during fiscal year 1960 made possible the replacement
    of 206 overlapping or duplicating military specifications
    by 105 new ones and, as the result of obtaining agreement among the
    military Services on standard requirement, 90,472 items were declared
    nonstandard, i.e., no further procurement will be made after current
    stocks are exhausted. Examples of this year’s accomplishments included
    the reduction of 742 different types of electrical wire and cable
    stocked by the military Services to 166 types, of 3,900 roller bearings
    to 585, and of 110 bulldozer and grader blades to 6. Since the standardization
    program was established in 1952, 1,174 specifications and
    1,027,800 items have been eliminated or designated for elimination by
    595308—61------ 6
    76 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    these procedures. Special efforts were made during the year to enlist
    the active participation of private industry in this program, particularly
    with regard to the development of new weapons and
    equipment.
    inventory Control, Storage, Maintenance, and Disposal
    More realistic requirement computations, improved inter-Service
    cooperation, and modernized surplus disposal procedures have made
    it possible to reduce military inventories to significantly lower levels
    and at the same time improve the effectiveness of logistic support.
    The degree of success in this effort is reflected in the reduction during
    the past 3 years of $10.5 billion in the value of supply system inventories,
    excluding excess stocks.
    Further progress was made during fiscal year 1960 in adjusting
    mobilization reserves to the constantly changing military requirements.
    Formal instructions were issued in June 1960 to govern the
    selection by the military departments of the items to be procured and
    retained as reserve. The new criteria considerably reduce the range
    of items and lower the authorized stock levels.
    To promote the greater utilization of available supply assets, a
    directive issued in June 1960 prescribed that items in excess of requirements
    be transferred between departments without reimbursement
    from appropriated funds. This new procedure provides an additional
    incentive for a military department to screen carefully the excess
    stocks of another department before initiating regular procurement
    actions. In addition, the screening of excess supplies against new
    requirements was accelerated by the use of electronic data-processing
    equipment and Federal Catalog files. Since March 1, 1960, excess
    items with an acquisition cost of less than $3,000 have been screened
    concurrently by the military Services and Federal civilian agencies in
    the regional area in which the items are located and screening time
    has been reduced from 165 to 75 days. Items with an acquisition cost
    exceeding $3,000 are reported to the Armed Forces Supply Support
    Center for screening against worldwide military requirements and
    then to the General Services Administration for screening against the
    needs of civilian agencies; for these items screening time has been
    reduced from 160 to 120 days.
    The lower inventories and the better utilization of assets also made
    possible a substantial reduction in military storage facilities. During
    the last 5 fiscal years, Department of Defense holdings have been
    reduced by 37.7 million square feet of covered storage space in the
    United States—from 370.1 million to 332.4 million. Almost 11.0
    million square feet of this reduction was achieved during fiscal year
    1960. Greater efficiency was also obtained through cross-servicing
    WEAPONS, EQUIPMENT, AND FACILITIES 77
    operations, which, were in effect on June 30, 1960, for approximately
    5.9 million square feet of military storage space—with 1.2 million
    being cross-serviced between the military departments, and an additional
    4.7 million involving the military departments and other Federal
    agencies. These totals do not include 9.0 million square feet of
    covered and 20.3 million square feet of open space made available by
    the military departments to the General Services Administration for
    the stockpile of strategic materials.
    In the field of materiel maintenance, new instructions were issued
    shortly after the close of the year encouraging the use of commercial
    resources wherever practicable. Under the new policy, tactical units
    remain self-sufficient, while at the depot level the military departments
    will maintain an in-house capability, but not necessarily at full
    capacity. The new instructions recognize the need for contractor
    maintenance during the introduction of new weapons and equipment
    into military use and the fact that the augmentation of military maintenance
    capabilities by commercial sources is vital to the defense effort.
    When excess supply items cannot be used by any military department
    or Federal agency, they are declared surplus and become available
    for disposal to nonprofit organizations or private groups and
    individuals. The planning for streamlining the procedures for surplus
    disposal was completed, and early in fiscal year 1961 315 regional
    surplus sales offices will be consolidated into 35 offices. A central sales
    information office will also be established to maintain a national list
    of bidders and to prepare and distribute sales catalogs for all regional
    offices. These new organizational arrangements should improve
    buyer-seller relations and lower overhead costs.
    The Department of Defense carried over into fiscal year 1960
    excess and surplus property amounting to $4.2 billion, after adjustments.
    During the year, $8.5 billion of additional personal property
    was declared excess or surplus, thus making property valued at $12.7
    billion available for disposal. The Department of Defense reutilized
    or disposed of property with a value of $8.2 billion, leaving a yearend
    inventory of $4.5 billion—of which $2.1 billion represented excess
    property still in process of being screened for possible use within the
    Department or other Federal agencies and the remaining $2.4 billion
    was the value of surplus property being processed for disposal.
    The fiscal year 1960 disposals of $8.2 billion in personal property
    included $1.6 billion reutilized within the Department of Defense,
    including the Military Assistance Program; $0.2 billion transferred
    to other Federal agencies; $0.3 billion donated to States, educational
    institutions, and other nonprofit organizations; $2.4 billion sold as
    usable property; $3.6 billion designated for sale as scrap; and $0.1
    billion destroyed or abandoned. In addition to the $8.2 billion in
    78 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    disposals, excess supplies worth $0.4 billion were exchanged between
    the military departments before being officially placed into the Department
    of Defense disposal system.
    The return on these transactions is difficult to compute, since the
    valuation is based on acquisition costs or standard prices rather than
    on current value including depreciation for wear and tear and obsolescence.
    The market value of much of the materiel reutilized within
    the Department, transferred to other Federal agencies, and donated
    to nonprofit agencies is probably not far below the book value. The
    returns on usable property sold to the public varies greatly with the
    type of product and the market demand and averages about 5 percent
    of the original price, while surplus property sold for scrap purposes
    yields less than 2 cents on the dollar. Almost $0.2 billion was obtained
    through such sales in fiscal year 1960.
    Communications
    The development of a modern, integrated communications system to
    meet present and future needs of the military Services economically,
    efficiently, and effectively was significantly advanced with the establishment
    of the Defense Communications Agency in May 1960.
    The creation of the agency came as the result of studies initiated in
    March 1959 in response to new telecommunications policy objectives
    established by the Secretary of Defense. Alternative methods of accomplishing
    these objectives were carefully evaluated during the fiscal
    year by the military departments, the Joint Chiefs of Staff, and the
    Office of the Secretary of Defense. The plan adopted provided for
    a Defense Communications Agency responsible to the Secretary of
    Defense through the Joint Chiefs of Staff for the operational control
    and supervision of all long-haul, point-to-point communications facilities
    of the military departments. The agency is scheduled to assume
    full operational responsibility in fiscal year 1961.
    The facilities to be integrated into a single Defense Communications
    System carry an annual traffic of 63 million messages, control
    6,532,000 channel miles and 489,000 long-range radio voice channels,
    and represent an investment of about $2.0 billion. Annual costs are
    estimated at $0.6 billion and 25,000 people are required for operations
    and maintenance. These facilities link the Washington headquarters
    with major commands all over the world and carry command and control
    messages, intelligence reports, and weather, logistics, and administrative
    information. The system does not include tactical communications
    and other communication facilities that are primarily local
    in character.
    The new organization will facilitate the elimination of unnecessary
    duplication and uneconomical utilization of existing facilities—probWEAPONS,
    EQUIPMENT, AND FACILITIES 79
    lems that have been of concern to the Congress and the Department of
    Defense for some time. Centralized control will permit the standardization
    of equipment and operations, assure prompt and dependable
    communications with the increased capability for alternate routings,
    and, in general, provide greater flexibility and efficiency to worldwide
    military communications.
    Mobilization Planning
    Department of Defense planning for the continued logistic support
    of the armed forces in the event of war is carried out under policies
    established by the Office of Civil and Defense Mobilization (OCDM).
    The Department participates in programs for maintaining industrial
    productive capacity and for operating a priorities and allocations
    system.
    Mobilization planning was expanded during fiscal year 1960 to include
    many key subcontractors producing essential components of
    military equipment previously not covered by the Defense Industrial
    Readiness Planning program. The military departments designated
    representatives to serve on eight regional Civil and Defense Mobilization
    Boards, established by OCDM, to provide local plans for the continuation
    or resumption of production in case of a nuclear attack.
    The Department of Defense continued its sponsorship of the National
    Resources Evaluation Center maintained by OCDM and established
    a Department of Defense Damage Assessment Center. This new
    agency, operating under policy guidance from the Joint Chiefs of
    Staff, is oriented to military problems and will prepare advance vulnerability
    studies and assess worldwide damage to armed forces resources
    if such an attack were to occur.
    The National Priorities and Allocation system has been established
    not only to assist in keeping on schedule the current development of
    our most important new weapon systems but also to assure the most
    effective utilization of the Nation’s industrial capacity in time of war.
    The national regulations for carrying out these objectives were revised
    and simplified during the year, and the Department of Defense
    priorities and allocations manuals were amended accordingly.
    Through the priorities system delays to military production were
    held to a minimum during the 116-day steel strike from July 15 to
    November 7, 1959, and the subsequent period of adjustment. The
    Department processed 743 requests for special assistance in obtaining
    materials, components, and production equipment to overcome delays
    in the completion of defense contracts during the past year.
    Assistance to private firms for projects that enlarge the mobilization
    base has been available under two programs—rapid tax amortization
    privileges and federally guaranteed loans. Authority for rapid tax
    80 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    writeoffs expired on December 31, 1959. During the final 6 months
    of this program, the Department of Defense commented on 197
    amortization requests for plant expansion, and OCDM certified 188
    in the amount of $78.2 million—$16.5 million less than during fiscal
    year 1959. The Department also processed 17 requests for loans, of
    which 11 were guaranteed totaling $58.1 million—$41.3 million less
    than during the preceding year, when 34 loans were approved. In line
    with the voluntary program for the dispersal of industry away from
    military installations and congested urban areas, 210 inquiries were
    submitted by private firms and other Government agencies; 121 of
    the new plants met established standards.
    The National Industrial Plant Reserve (NIPR) of the General
    Services Administration and the plant reserves of the three military
    departments consist of industrial facilities originally constructed by
    the Government and still retaining potential mobilization value. The
    number of plants in the NIPR was further reduced during the year
    from 24 to 13, of which 10 are privately owned subject to recapture
    and 3 are operated under lease or contract. Changing requirements
    in weapon systems and strategy have been largely responsible for the
    decrease in the NIPR. The plant reserves of the Department of
    Defense included 384 facilities on June 30, 1960, valued at an acquisition
    cost of $6.2 billion, as compared to 387 plants with a value of
    $5.9 billion at the close of the preceding fiscal year. During 1960,
    224 of the departmental reserve plants were being operated by contractors
    and 68 by the Government; 70 were in standby status; and 22
    had been declared excess but had not yet been transferred to the
    General Services Administration for disposal.
    As for reserve machine tools and other production equipment, the
    National Industrial Equipment Reserve (NIER) of the General
    Services Administration administered 6,000 pieces on June 30, 1960,
    as compared to 4,000 a year earlier, while the central Department
    of Defense inventory included 56,400 pieces—25,200 less than at the
    end of the preceding year. The major part of this substantial reduction
    is attributable to the termination of central control for various
    categories of equipment and reassigning administrative responsibility
    to the military departments. In addition, 5,300 pieces were shipped
    for use by military contractors and military production facilities.
    Properties and Installations
    The rapid modernization of our armed forces has had a major
    impact on real property management as on all other activities of the
    Department of Defense. New weapons have created substantial
    additional requirements for operational, training, and support facilities
    and at the same time increased greatly the rate of obsolescence for
    WEAPONS, EQUIPMENT, AND FACILITIES 81
    many existing installations. By the continuous review of new requirements
    and current holdings, the Department has aimed to limit the
    acquisition of new holdings to a minimum and, at the same time, to
    accelerate the disposal of excess property.
    The real property holdings of the Department of Defense increased
    during fiscal year 1960 by $2.3 billion and 200,000 acres. The acquisition
    cost of all holdings was $32.0 billion on June 30, 1960, as compared
    to $29.7 billion a year earlier, and the acreage controlled by
    the military departments rose from 31.3 million acres to 31.5 million.
    Work in place under construction contracts not fully completed
    amounted to an additional $2.4 billion.
    The 1960 increase was the result of the high priority placed on the
    rapid construction of operational as well as testing facilities for the
    major new weapon systems. These projects included new bases for
    ATLAS and TITAN missile squadrons, stations for the Ballistic
    Missile Early Warning System (BMEWS), testing sites for NIKEZEUS,
    and supporting facilities for POLARIS. Further progress
    was also made in completing additional air defense missile sites and
    SAGE control centers as well as in providing the runways, taxistrips,
    and support facilities to permit greater dispersal and shorter reaction
    time for the Strategic Air Command.
    The Congress appropriated $1.4 billion for the military construction
    programs for fiscal year 1960. Obligations during the year totaled
    $1.4 billion and expenditures $1.6 billion—about $0.3 billion less for
    each category than in fiscal year 1959. Closer management controls
    made possible a reduction of $0.3 billion in unexpended construction
    funds—from $2.5 billion to $2.2 billion. Shortly after the close of
    the fiscal year, the Congress made available $1.0 billion in new funds,
    with about one-third of the total assigned to ballistic missile facilities.
    The high cost of current construction has placed new emphasis on
    the development of cost-saving designs and the establishment of uniform
    construction standards and criteria. Technical studies were
    made of types of missile silos and control centers to achieve maximum
    protection at lowest cost for these “hardened” facilities. Construction
    criteria applicable to general purpose facilities common to all the
    military Services—such as family housing, hospitals, barracks, mess
    halls, cold storage facilities, and the like—continued to be revised as
    necessary to promote more economical practices. A new uniform system
    for reporting maintenance costs was placed in effect in March 1960
    to provide the necessary data for more effective controls.
    Real property holdings of the Department of Defense are subject
    to continuous screening to identify installations suitable to meeting
    new requirements and eliminate those no longer needed. Transfers
    between the military departments completed during the year involved
    82 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    DEPARTMENT OF DEFENSE
    REAL PROPERTY HOLDINGS
    JUNE 30, 1960
    ACQUISITION COST
    $32.0 BILLION
    (in billions of dollars)
    ACREAGE
    31.5 MILLION ACRES
    (in millions of acres)
    400,000 acres of public domain land with an indeterminate value and
    10,000 acres of other types of holdings worth $32 million, including improvements.
    Real property holdings identified .as excess to military
    requirements by the 1960 review included all or parts of 188 installations
    representing an acquisition cost of $741 million. In contrast, the
    WEAPONS, EQUIPMENT, AND FACILITIES 83
    1959 review had involved only 62 installations and property valued at
    $298 million. To comply with the provisions of the Hawaiian Statehood
    Act, a special review of Defense holdings in this new state was
    initiated to facilitate the orderly disposition of real estate not essential
    to the needs of the military Services.
    Of the total real property holdings of the Department of Defense,
    those in the United States accounted for about 83 percent of the acquisition
    costs and almost 91 percent of the acreage. As for the military
    departments, the Air Force with its extensive requirements for
    airfields and missile sites controlled by far the largest share—40 percent
    in terms of the acquisition cost and nearly 49 percent in terms of
    acreage. (See fig. 17.) About 23 percent of the total Defense land
    holdings was owned outright, 55 percent was acquired from the public
    domain, 8 percent represented rights in foreign countries, and the
    remaining 14 percent included leases, easements, and other temporary
    use arrangements.
    84 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    TEO STATES COLLECTIVE SECURITY ARRANGEMENTS
    Figure 18
    VII. Collective Security
    The basic assumption underlying the U.S. Military Assistance Program
    is that the security of the free world is indivisible. Action that
    strengthens any part strengthens the whole. To this end, the United
    States has assisted friendly countries in maintaining forces essential
    for their self-defense and has joined regional collective security organizations
    in Europe, Asia, and Latin America to provide additional
    protection against Communist aggression.
    The events of the past year clearly indicated the continuing need
    for United States support of these collective security arrangements.
    The Soviet Union intensified its efforts to intimidate the people of
    West Berlin. Communist efforts to control newly independent and
    uncommitted nations increased. In Africa, Asia, and Latin America,
    the Communist bloc continued to exploit the rising demands for rapid
    political and economic advancement as a means to impose Communist
    domination.
    These threatening actions impelled the United States to strengthen
    its own armed forces and continue the programs for military assistance.
    Without protection against aggression and subversion, the successful
    implementation of long-range economic and political reforms
    would become impossible. The U.S. Military Assistance Program has
    been a key factor in providing this protection.
    Free world military cooperation has also improved our own defense
    posture. The 42 nations to whom we are linked through multilateral
    and bilateral collective defense treaties (see fig. 18) constitute a vast
    reservoir of fighting strength. Many allies have made available to
    us bases and facilities for the strategic deployment of defensive forces,
    for advance warning and interception of airborne attack on the United
    States, and for logistic support. Without such facilities, our first line
    of defense would of necessity be at home.
    We and our allies have built a defense far stronger than could have
    been provided if the funds for military assistance had been applied
    to U.S. forces alone. Military assistance forms an essential part of
    our national strategy.
    85
    86 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Military Assistance
    Organizational arrangements and procedures for administering the
    Military Assistance Program were streamlined and strengthened during
    the year both at Washington and in the field. These changes carried
    out suggestions made during the preceding year by the President’s
    Committee to Study the U.S. Military Assistance Program—the socalled
    Draper Committee. Recognizing that year-by-year authorizations
    were not contributing to efficiency, the committee emphasized the
    need for long-range planning and proposed the adoption of new
    operating procedures.
    The major recommendations of the committee were carried out during
    the year. A Director of Military Assistance was appointed within
    the Office of International Security Affairs to supervise all aspects of
    the Department of Defense Military Assistance Program. Responsibility
    was assigned to unified commands for integrating the military
    assistance programs of individual countries into comprehensive regional
    programs, closely coordinated with the planning for U.S. forces.
    Joint State and Defense Mutual Security Objective Plans were developed
    to provide common guidance for military assistance and economic
    aid activities. These measures have improved the planning
    and programing process and provided increased efficiency and effectiveness
    to program management.
    Since 1950, the Congress has appropriated a total of $28.2 billion
    for military assistance, of which $26.7 billion has been available for
    obligation after net adjustments of $1.5 billion for transfers, lapsed
    accounts, and reimbursements. At the close of fiscal year 1960, all
    but $51 million of the available funds had been obligated or reserved
    for obligation.
    Military assistance expenditures during fiscal year 1960 amounted
    to $1.6 billion, for a total of $24.4 billion since 1950. Unexpended
    balances on hand, which had reached $8.5 billion at the end of fiscal
    year 1953, were further reduced by this year’s program—from $2.5
    billion at the beginning of the year to $2.3 billion at its close (see
    fig. 19).
    The procurement of military weapons, ammunition, equipment, and
    supplies accounted for by far the largest part of the expenditures—
    $1.1 billion during fiscal year 1960 and $19.8 billion since 1950. In
    addition, materiel excess to the requirements of U.S. forces and valued
    at an acquisition cost of about $1.7 billion has been made available to
    our allies without reimbursement from military assistance funds, except
    for rehabilitation charges. The cost of packing, crating, handling,
    and transporting new and excess materiel amounted to $130
    million in fiscal year 1960 and reached a total of $1.3 billion for the
    period since 1950.
    COLLECTIVE SECURITY 87
    MILITARY ASSISTANCE PROGRAM
    UNEXPENDED FUNDS 1954-1960
    NOTE: Obligational authority represents appropriations
    adjusted for transfers, reimbursements, and rescissions'.
    Figure 19
    88 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Increased emphasis was placed on training foreign military personnel
    in the proper use and maintenance of U.S. equipment and in
    the organizational, tactical, and logistic doctrine used by modern
    forces. Learning and working side by side has enabled U.S. and
    allied personnel to establish personal bonds of friendship and gain
    greater understanding of each other’s national outlook and objectives.
    During fiscal year 1960, foreign personnel completed 18,900 courses
    of study in Service schools in the United States and 4,600 courses
    abroad, and additional training was provided in many allied countries
    by U.S. mobile training teams and other training personnel. The
    1960 costs of the training program amounted to $82 million—for a
    total of $592 million since 1950.
    The remainder of 1960 military assistance expenditures—$282 million—
    was devoted primarily to the construction and maintenance of
    joint bases and facilities, U.S. participation in foreign research and
    production programs, the payment of the U.S. share of the cost of
    maintaining allied headquarters, and the administration of the program.
    Expenditures for these purposes since 1950 accounted for $2.7
    billion (see appendix, table 6).
    The Military Assistance Program has provided the essential increment
    in weapons, equipment, and training without which the
    maintenance of effective forces for the collective defense of the
    free world would have been impossible. The need for this assistance
    continues, although major changes are constantly occurring
    in the type of materiel and services required and in the amounts
    allocated to specific allies. In fiscal year 1960, for example, countries
    in the Far East area received for the second year in succession the
    largest share of military assistance deliveries, supplanting our European
    allies, many of whom have become increasingly self-sufficient.
    While the vital contribution made by military assistance to the
    security of the United States as well as of the free world is beyond
    challenge, differences of opinion on the size of the effort have increased
    in recent years. The President’s request of $1.6 billion for
    military assistance in fiscal year 1960 was reduced by the Congress to
    $1.3 billion and for fiscal year 1961 the Congress appropriated only
    $1.8 billion instead of the $2.0 billion proposed by the President.
    These reductions have necessarily curtailed existing programs and
    made it more difficult to meet new requirements. With over 80 percent
    of the military assistance funds being expended in the United States,
    the program has only a very minor effect on the international balance
    of payments of the United States. The increased security provided by
    our military assistance continues to outweigh its cost many times over.
    COLLECTIVE SECURITY 89
    Europe
    Neither the dangers confronting Western Europe nor the need for
    building up regional defenses decreased during fiscal year 1960. The
    Soviet Union rejected Western proposals for the reunification of
    Germany and demanded the withdrawal of western forces from West
    Berlin, threatening to conclude a unilateral settlement with the East
    German regime. The stalemate failed to be resolved by the Foreign
    Ministers Conference at Geneva during the summer of 1959, and the
    Paris meeting of the Heads of Government in May 1960 was broken
    up by the Communists, using as a pretext the flight of a U-2 reconnaissance
    aircraft over the Soviet Union.
    These developments emphasized the importance of the NATO alliance
    as the primary means for maintaining the security of Western
    Europe. Backed by the retaliatory striking power of the U.S.
    Strategic Air Command and the British Bomber Command, NATO
    tactical units provided a strong balanced force to resist any overt
    aggression. Although protracted military operations in Algeria continued
    to divert French units from their NATO deployments during
    the year, the common defense remained assured by the increased contribution
    of the Federal Republic of Germany. On June 30, 1960,
    the German armed forces included about 250,000 men; seven German
    divisions had been assigned to NATO commands and five more were
    being activated and trained for NATO missions, while additional
    strength was being provided by German air and naval units.
    The modernization of NATO forces continued to receive primary
    attention during the year as new missiles, aircraft, and other weapons
    were introduced in substantial numbers. While the United States,
    through bilateral agreements with individual countries and multilateral
    NATO agreements, has played a major role in this transition,
    NATO countries also accepted greater responsibility than ever before
    for meeting their own defense requirements. Total defense expenditures
    by the European NATO members, which had climbed from
    $12.2 billion in calendar year 1958 to $13.6 billion in 1959, rose to
    $14.4 billion in 1960.
    Significant progress was made by the United Kingdom and Italy
    in the deployment of U.S. intermediate-range ballistic missiles, for
    which the host countries constructed the required facilities, while the
    United States through the Military Assistance Program provided the
    missiles, ground support, and training required by allied personnel.
    In accordance wih a bilateral agreement signed by the United Kingdom
    and the United States, the delivery of the original unit equipment
    for four squadrons of THOR missiles was completed during
    the year. By June 30, 1960, over 1,200 British personnel had been
    90 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    trained in the operation and maintenance of the new weapon system,
    and all four IRBM squadrons had been fully manned by Royal Air
    Force crews. Training and construction for the JUPITER missiles
    to be installed on Italian bases proceeded on schedule. Arrangements
    were also completed during the year for British participation in the
    development and possible future production of the SKYBOLT, a proposed
    1,000-mile, air-to-ground ballistic missile.
    As for tactical missiles and rockets, the U.S. forces stationed in
    Europe are equipped with the latest operational models of weapon
    systems produced in the United States, while allied forces have available
    not only missiles of their own manufacture but also have been
    provided through the Military Assistance Program with such U.S.
    weapons as HONEST JOHN rockets, NIKE air defense missiles,
    CORPORAL surface-to-surface missiles, and SIDEWINDER airto-
    air missiles.
    Further modernization is being facilitated through the jointly
    financed Weapons Production Program, to which the United States
    has contributed about 10 percent of the resources required for plant
    facilities, including in some cases specialized engineering services,
    tools, and equipment. Five European NATO members have joined to
    produce HAWK ground-to-air missiles in Europe, and eight are participating
    in the production of SIDEWINDER missiles. Arrangements
    were also made for the joint financing of facilities to produce in
    Europe the F-104 aircraft and the advanced Mark 44 naval torpedo.
    As a result of these four projects, approximately $1.0 billion of work
    will be given to U.S. business, including orders for tools, electronic
    test equipment, engineering services, licenses, and components. Estimated
    payments of this type to U.S. industry in calendar year 1961
    should total $0.2 billion.
    NATO research and development activities are being accelerated
    through the Mutual Weapons Development Program (MWDP),
    which in fiscal year 1960 supported about 175 active projects. Nearly
    60 of these were in the production and field testing stage. This costsharing
    program, established in 1954, has made a major contribution
    to focusing European technical capabilities on current defense needs.
    MWDP also finances much of the cost of the NATO Antisubmarine
    Research Center at La Spezia, Italy, which operates under the direction
    of the Supreme Allied Commander, Atlantic. In April 1960,
    the NATO Council initiated a “20 Projects Exercise” for the purpose
    of evaluating specific weapon systems for multilateral research,
    development, and production.
    A major joint NATO effort has been devoted to constructing the
    military installations required for effective military operations, such
    as airfields, communications networks, oil distribution and storage
    COLLECTIVE SECURITY 91
    facilities, naval bases, missile sites, early warning radar, and headquarters.
    Construction costing $2.6 billion had been authorized for
    this purpose by NATO since the start of the program and $1.5 billion
    had been expended by the close of the fiscal year. The United States
    had contributed $589 million to this infrastructure program—or about
    39 percent of expenditures—including $83 million in fiscal year 1960.
    Joint logistic activities are supervised by the NATO Maintenance
    Supply Service Agency, created in 1958. A major expansion of its
    activities occurred in March 1960 when a NATO supply center was
    established at Chateauroux France, to provide NATO-wide logistical
    support for five types of aircraft, selected missile systems, and communication
    equipment. Other types of materiel will be added to this
    list as more experience with this new supply channel is obtained.
    The readiness of NATO forces was tested during the year by various
    field maneuvers and command post exercises. Perhaps the most extensive
    of these exercises was SIDESTEP, a NATO-wide test of naval
    logistics plans. Involving active participation of NATO and national
    military headquarters, national shipping authorities, and the NATO
    Planning Board for Ocean Shipping, the exercise provided valuable
    experience in the implementation of plans for the wartime control and
    protection of shipping. The principal troop maneuver in fiscal year
    1960 was WINTERSHIELD, a U.S. sponsored exercise in which
    Belgian and German troops participated. The operations involved
    over 50,000 troops and tested modern operational doctrine.
    Apart from our NATO contribution, the United States has been
    providing military assistance to Spain in accordance with an agreement
    that made possible the location of joint U.S.-Spanish air and
    naval bases on the Iberian Peninsula. These bases were fully operational
    during fiscal year 1960. Military assistance, including excess
    stocks, delivered to Spain in 1960 amounted to $50.3 million. Spare
    parts and maintenance equipment continued to be purchased from the
    United States by Yugoslavia for materiel furnished some years ago
    under a military assistance agreement terminated by mutual consent
    in December 1958.
    The Middle East and Africa
    The Central Treaty Organization (CENTO), composed of Iran,
    Pakistan, Turkey, and the United Kingdom, provides the mechanism
    for coordinating the defense of the Middle East against Communist
    aggression. While the United States is not a member of the alliance,
    it has been associated with many of the CENTO projects. In the
    military area, the United States is a member of the military committee
    and is represented on the Combined Military Planning Staff as well
    595308—61------ 7
    92 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    as on the Permanent Military Deputies Group, which was created in
    J anuary 1960 to oversee the work of the staff planners. In addition,
    the United States has played an active role in several CENTO military
    training exercises and helped to improve local defenses through
    bilateral military assistance agreements.
    Turkey, as an active member of both NATO and CENTO, provides
    the geographic link between these organizations and, through the
    maintenance of substantial security forces backed by an inflexible
    determination to safeguard its independence, represents a major deterrent
    to aggression in the area. The Turkish contribution to collective
    security was not affected by the assumption of governmental powers
    by the Turkish armed forces on May 27,1960. U.S. military assistance
    to Turkey in fiscal year 1960 involved weapons and equipment in
    considerable quantities, including HONEST JOHN rockets and
    NIKE air defense missiles as well as extensive assistance in trainingactivities.
    Progress continued to be made during the year in improving the
    combat effectiveness of Iranian forces. Newly activated training
    centers became fully operational, and military units were brought to
    higher manpower levels. The complete replacement of earlier models
    of fighter aircraft with F-86F’s will mark an important step in the
    modernization of the Iranian Air Force.
    The eastern flank of the CENTO area is guarded by Pakistan, which
    is also a member of the Southeast Asia Treaty Organization
    (SEATO) and the recipient of extensive U.S. military assistance
    under a bilateral agreement concluded in 1954. The 1960 program
    included additional materiel for force maintenance and improvement
    of Pakistani ground, naval, and air units. The training of military
    personnel was continued with particular emphasis on supply and
    maintenance activities.
    Some military assistance—involving equipment or training assistance—
    was also provided to the armed forces of Afghanistan, Jordan,
    Lebanon, and Saudi Arabia in accordance with special bilateral
    arrangements.
    The rapid movement of African countries toward full independence
    has been creating new security problems for this strategically important
    continent. In fiscal year 1960 the number of independent
    states in Africa expanded from 10 to 15, and another 12 were scheduled
    to obtain their freedom in fiscal year 1961. With the Communist bloc
    exploiting the inevitable uncertainties of the transition period, the
    United States has been ready to provide to the new governments, as
    it has to the older ones, essential assistance for the maintenance of
    their independence.
    COLLECTIVE SECURITY 93
    During fiscal year 1960, established military assistance programs
    continued in effect for Ethiopia, Liberia, and Libya. Training for
    Sudanese military personnel was provided in the United States, and
    Tunisia continued to receive a small amount of military assistance.
    Morocco and the United States agreed, at the time of the President’s
    visit to Morocco in December 1959, that U.S. airbases in this country
    would be vacated by the end of calendar year 1963. A small military
    aid program was initiated during fiscal year 1960 and substantial
    emergency relief was also provided to the people of Agadir, Morocco,
    in March 1960 when their town was virtually destroyed by a severe
    earthquake.
    Asia and the Pacific
    In the Far East, the United States continued during fiscal year 1960
    to give its assistance to friendly countries in their struggles against
    unrelenting Communist pressure. This assistance was rendered in
    accordance with the provisions of regional and bilateral defense
    agreements of many years’ standing.
    The Southeast Asia Treaty Organization—including Pakistan,
    Thailand, the Philippines, Australia, New Zealand, France, the United
    Kingdom, and the United States—was established in 1954 to coordinate
    and strengthen collective defenses in its area. Not having,
    like NATO, a peacetime military headquarters with units directly
    assigned, SEATO relies for its defense on the mobile striking forces
    of its members. Military plans for the coordination of these forces
    are developed by the SEATO Military Planning Office, operating
    under the direction of the SEATO Military Advisers.
    Two major joint training exercises were held during fiscal year
    1960 to improve the effectiveness of member nations in carrying out
    joint operations. In January and February 1960, Australian, British,
    Thai, and United States units participated in Exercise TEAMWORK
    II, an amphibious reconnaissance maneuver off the coast of Thailand.
    Subsequently, in April and May, more than 60 ships, over 100 airplanes,
    and thousands of men from all eight SEATO countries took
    part in Exercise SEA LION, the largest naval training maneuver of
    SEATO to date. The exercise started in Manila Bay and in the Gulf
    of Thailand, continued with a rendezvous in the South China Sea,
    and was concluded at Singapore.
    Throughout the year, SEATO followed developments in Laos with
    particular attention. At the request of the Royal Laotian Government,
    United States technicians, in conjunction with the local French
    Military Mission, assisted in the training of native troops in the use
    of U.S. military equipment.
    94 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    U.S. military assistance also continued to be extended to Thailand,
    Vietnam, and Cambodia. Shipments to Thailand included additional
    jet fighters and weapons and equipment to further the standardization
    program of the Thai forces. The Vietnamese armed forces were
    strengthened by a recent reorganization of Army units, expansion of
    antiguerrilla warfare capabilities, and substantial deliveries of U.S.
    equipment. Military supplies continued to be delivered to Cambodia
    in accordance with established agreements.
    Through bilateral defense treaties, the United States has pledged
    itself to the defense of the Republic of China, Japan, Korea, and the
    Philippines, and military assistance agreements have been concluded
    with these countries in support of these treaties.
    The forces of the Republic of China, under continuous Communist
    harassment on the islands of Quemoy and Matsu, were substantially
    strengthened during fiscal year 1960 by the delivery of additional
    military equipment. The Chinese Army streamlined its combat units,
    and the personnel thus released was transferred to newly created
    combat and supporting forces. Additional amphibious craft and improvements
    in the shore establishment increased the effectiveness of
    the Chinese Navy. As for the Chinese Air Force, the continuing
    delivery of F-lOO’s and SIDEWINDER missiles was supplemented
    at the close of the fiscal year with the first shipment of F-104’s to
    offset the possible use of MIG-19 jets by the Chinese Communists.
    During fiscal year 1960, small arms, artillery, transport vehicles,
    and spare parts of many types were provided to the Philippine Army.
    The United States also assisted in the maintenance of naval ships and
    the training of pilots in the use of jet aircraft and of SIDEWINDER
    missiles.
    The vigilance of the Korean armed forces against Communist aggression
    continued undiminished, despite the changes in the government
    brought about by popular pressure in April 1960. The Korean
    Army, trained in U.S. military doctrine and equipped with U.S.
    materiel, guarded more than 90 percent of the positions along the
    demilitarized zone. Logistic support considerably improved during
    the year, particularly through the establishment of more accurate inventories.
    Intensive training programs of jet combat and maintenance
    crews were continued.
    The increased role of Japan in world affairs was reflected in the
    revision of the 1950 mutual security treaty, which had been concluded
    at a time when Japan was entirely dependent on the United States for
    its security. Since Japanese Self-Defense Forces assumed responsibility
    for many defense missions during the intervening years, it was
    mutually agreed that the new relationship between the two countries
    COLLECTIVE SECURITY 95
    should be recognized by a formal statement reflecting the sovereign
    equality of Japan and the United States. The revised treaty was
    signed in January 1960 and became effective on June 23, although
    violently opposed by some Japanese minority groups. The transfer
    of the U.S. air communications and warning network in Japan to
    Japanese forces was completed during the year, and military assistance
    was increasingly shifted from the delivery of military materiel
    to cost-sharing arrangements increasing Japan’s own production
    capabilities for modern weapons and equipment.
    In addition to their common membership in SEATO, Australia,
    New Zealand, and the United States are linked by the ANZUS pact,
    a separate mutual defense agreement. The three countries continued
    their close and effective military collaboration during fiscal year 1960,
    including further discussions concerning the standardization of
    weapons.
    Western Hemisphere
    The framework for Western Hemisphere security is provided by
    the Inter-American Treaty of Reciprocal Assistance concluded at Rio
    de Janeiro in 1947. Under this treaty, the American republics, including
    the United States, participate in the work of the InterAmerican
    Defense Board, which is charged with preparing and
    keeping up-to-date the joint defense plans of the signatories.
    Under the guidance established by these plans, the United States
    provided military assistance totaling over $48 million to Latin
    American countries during fiscal year 1960. This total included $43
    million charged to appropriated funds and $5 million in excess stocks.
    The aid involved the delivery of materiel to units having hemisphere
    defense missions, the training of almost 2,500 students in military
    Service schools in the United States and the Panama Canal Zone, the
    rehabilitation of naval vessels being loaned to Latin American republics,
    and credit for the purchase of military equipment in the United
    States.
    In addition, U.S. armed forces maintained military advisory and
    training missions in 18 Latin American countries and facilitated the
    direct purchase of military equipment to strengthen Western Hemisphere
    security. Such direct purchases amounted to $10 million in
    fiscal year 1960.
    Close cooperation between the republics of the Western Hemisphere
    has become increasingly important in view of the new interventionist
    policies followed by the Communist bloc. The rising tensions in the
    Caribbean area during the past year illustrated the dangers to the new
    world inherent in these policies. Military assistance is helping to
    96 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    counter these clangers by contributing to the establishment of more
    effective defenses, the training of personnel in current military concepts
    and in the use of modern equipment, and the development of
    closer ties between military forces dedicated to a common objective.
    As in previous years, the United States extended its help to Latin
    American countries struck by natural disasters. In the spring of 1960,
    emergency supplies, helicopters, and life rafts were rushed by aircraft
    and ship to flooded areas in northeastern Brazil. In late May, when
    Chile was rocked, by earthquakes, two 400-bed Army field hospitals
    and 540 medical personnel were immediately dispatched by air to help
    the victims, and additional relief was supplied in the following weeks
    by the Army, Navy, and Air Force. The good neighbor policy of the
    United States was also reflected in the visits of naval ships to South
    American ports in February and March 1960.
    To the north, the close relationship between Canada and the United
    States continued to provide increased security to both countries. The
    Canada-United States Ministerial Committee on Joint Defense, established
    in 1958, and the Permanent Joint Board on Defense, which
    has been in existence since 1940, bring Canadian and United States
    authorities together to consider common problems in the defense
    field. The continental defense forces of Canada and the United
    States are operating under the single direction of the North American
    Air Defense Command, and the regional interests of both countries
    in NATO are being coordinated by the Canada-United States Regional
    Planning Group.
    In support of the common effort, integrated military programs were
    carried out with increased effectiveness during the year. Particular
    attention was devoted to the logistic field to promote closer coordination
    of military production activities and the standardization of
    components and end-products. The agreement concerning cooperation
    on the use of atomic energy for mutual defense purposes, approved
    in the spring of 1959, has permitted Canadian forces to share
    with the United States classified information on military reactors and
    the employment of and defense against nuclear weapons. The continuing
    work of joint agencies and the daily cooperation of Canadian and
    U.S. military personnel assure that common problems will receive
    prompt solutions mutually beneficial to both countries.
    Thomas S. Gates, Jr.,
    Secretary of Defense.
    Annual Report
    of the
    RESERVE FORCES POLICY BOARD
    July 1, 1959, to June 30, 1960

    ANNUAL REPORT
    of the
    RESERVE FORCES POLICY BOARD
    June 30, 1960
    Section 171(a)-!, title 5, U.S. Code, stipulates that the Reserve Forces Policy
    Board render an annual report as a chapter of the Secretary of Defense report
    on the status of the reserve programs of the Department of Defense. Accordingly,
    the following report for the period July 1, 1959—June 30, 1960, is submitted.
    The Reserve Forces Policy Board met on three occasions during the reporting
    period for the purpose of reexamining and studying pertinent aspects of the
    reserve components programs. As a result, recommendations pertaining to current
    policy and legislative matters affecting the reserve forces were forwarded to
    the Secretary of Defense, with other matters being held pending future developments,
    evaluation, and study. Members of the Board and the Board's staff made
    on-site and on-board visits to reserve activities and facilities and attended conferences
    of the various reserve associations to obtain factual information to be
    used in the discharge of their duties to the Secretary of Defense.
    Changes in Board membership occurred on July 1, 1959, when Maj. Gen. Ralph
    A. Palladino, US AR, replaced Rear Adm. Irving M. McQuiston, USNR, and Rear
    Adm. Herman Reich, USNR, replaced Rear Adm. Leon J. Jacobi, USNR. On
    August 3, 1959, the Honorable Dudley C. Sharp replaced the Honorable Malcolm
    A. MacIntyre who resigned as Under Secretary of the Air Force. On November
    18, 1959, Maj. Gen. James E. Rudder, US AR, replaced Maj. Gen. Frederick M.
    Warren, USAR. On March 10, 1960, Rear Adm. Henry J. Wuensch, USCG, replaced
    Rear Adm. Richard M. Ross, USCG. On March 26, 1960, Maj. Gen. Earle
    M. Jones, NGUS, replaced Maj. Gen. Carl L. Phinney, NGUS. On March 31,
    1960, Dr. Joseph V. Charyk, Under Secretary of the Air Force, replaced the
    Honorable Dudley C. Sharp. On May 12, 1960, Brig. Gen. William W. Spruance,
    ANGUS, and Brig. Gen. John H. Foster, USAFR, replaced Maj. Gen. Stanford
    W. Gregory, ANGUS, and Maj. Gen. Theron B. Herndon, USAFR, respectively.
    On May 26, 1960, Brig. Gen. William T. Fairbourn, USMC, replaced Rear Adm.
    Robert T. S. Keith, USN.
    General
    The reserve components are charged with the mission of providing trained
    and qualified individuals and units for active duty in the armed forces of the
    Nation to augment the regular components in time of war or national emergency
    and at such other times as dictated by the national security. It is intended
    that this report reflect the actual mobilization potential and readiness of the
    reserve components versus their assigned mission.
    Personnel
    The changes in numbers of Ready Reserve officers and enlisted men enrolled
    in drill-pay status are indicated for each component in figure 1.
    The numbers of men participating in the special 6-month active duty training
    program, officers and enlisted men, are indicated by component in figure 2.
    99
    100 ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    The 5 years’ operation under the provisions of the Reserve Forces Act of 1955,
    during which time varying degrees of reorganization were effected, has enabled
    the reserve components to show a continual increase in their training readiness
    principally because units are freed from conducting basic individual training
    and thereby are permitted to progress to unit training.
    Implementation of the provisions of this act as it pertains to screening and
    utilization of obligors and the control of enlistments has resulted in qualitative
    improvements in the reserve establishment to a degree beyond that ever before
    achieved.
    Personnel
    Ready Reserve (not on active duty)
    » Excludes personnel undergoing 3-6 month active duty training.
    b Includes Inactive National Guard.
    «Includes officer candidates.
    June 30, 1958 June 30, 1959 June 30, 1960
    Total Drill-pay
    status *
    Total Drill-pay
    status “
    Total Drill-pay
    status a
    Army National
    Guard________ b442, 369 372, 921 b 404, 036 370, 354 b 401, 765 367, 840
    Officers_____ 42, 755 37, 942 40, 156 37, 884 37, 142 37, 142
    Enlisted____ 399, 614 334, 979 363, 880 332, 470 364, 623 330, 698
    Army Reserve___ 955, 462 272, 683 1, 008, 837 298, 642 1, 024, 549 276, 992
    Officers_____ 157, 825 49, 584 167, 486 47, 365 168, 209 47, 697
    Enlisted____ 797, 637 223, 099 841, 351 251, 277 856, 340 229, 295
    Naval Reserve___ 530, 440 129, 632 541, 036 120, 350 503, 020 120, 232
    Officers_____ 82, 408 26, 513 81, 442 25, 454 82, 991 26, 092
    Enlisted____ °448, 032 103, 119 0 459, 594 94, 896 c 420, 029 94, 140
    Marine Corps
    Reserve_______ 215, 749 42, 735 204, 876 42, 356 208, 939 41, 562
    Officers_____ 13, 434 4, 143 13, 421 3, 537 13, 996 3, 568
    Enlisted____ 202, 315 38, 592 191, 455 38, 819 0 194, 943 37, 994
    Air National
    Guard________ 69, 995 64, 611 70, 994 67, 620 70, 820 68, 021
    Officers_____ 8, 354 8, 354 8, 473 8, 473 8, 570 8, 570
    Enlisted____ 61, 641 56, 257 62, 521 59, 147 62, 250 59, 451
    Air Force Reserve- 214, 809 48, 287 225, 819 54, 744 202, 506 56, 425
    Officers_____ 42, 819 19, 522 42, 382 21, 209 40, 542 21, 543
    Enlisted____ 171, 990 28, 765 183, 437 33, 535 161, 964 34, 882
    Figure 1
    The process of screening Ready Reservists during fiscal year 1960 involved the
    review of 1,887,484 records. The Services report that of the 528,453 released,
    358,298 were transferred to the Standby Reserve and 170,155 discharged from
    reserve status. The process is keeping the Ready Reserve fully manned with
    qualified, available personnel and removing all nonready or excess personnel.
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD 101
    Summary of 3-6 month active duty reserve training programs, fiscal year 1960
    (Data cumulative from 10 August 1955)
    a Revised plan data from Tables 1-D dated October-December 1959 agree with programs presented in
    President’s Budget for fiscal year 1961.
    b Includes “9-Week Basic” program.
    ° Estimated.
    Note, n.a.—not applicable.
    Actual Planned
    30 Jun 1959 31 May 1960 30 Jun 1960 30 Jun 1961a
    ENLISTED
    Army National Guard:
    Enlistments______________ 136, 361 199, 497 205, 491 202, 861
    Entered AD Training_____ 119, 755 176, 273 183, 358 182, 755
    Completed AD Training___
    Army Reserve:
    85, 529 140, 515 140, 637 140, 829
    Enlistments______________ 139, 680 175, 300 177, 712 179, 480
    Entered AD Training-------- 137, 127 170, 457 173, 904 172, 927
    Completed AD Training-----
    Naval Reserve:
    119, 569 145, 650 145, 885 147, 757
    Enlistments______________ 884 n.a. n.a. 2, 670
    Entered AD Training_____ 850 c 1, 080 ° 1, 088 1, 136
    Completed AD Training___
    Marine Corps Reserve:
    828 ° 985 c 1, 026 1, 106
    Enlistments______________ 28, 752 35, 026 35, 981 36, 612
    Entered AD Training_____ 22, 064 29, 035 30, 380 30, 074
    Completed AD Training-----
    Air National Guard: b
    16, 404 23, 010 23, 267 22, 921
    Enlistments______________ n.a. n.a. n.a. n.a.
    Entered AD Training b------ 29, 071 35, 857 37, 516 37, 571
    Completed AD Training b__
    Air Force Reserve:
    25, 697 33, 649 34, 333 34, 756
    Enlistments______________ 10, 012 13, 029 13, 299 13, 427
    Entered AD Training-------- 9, 613 12, 625 12, 887 12, 993
    Completed AD Training___
    OFFICERS
    Army Reserve:
    7, 435 10, 737 10, 981 10, 995
    Entered AD Training_____ 25, 141 30, 417 30, 681 31, 181
    Completed AD Training___
    Air Force Reserve:
    19, 993 25, 792 25, 864 25, 957
    Entered AD Training_____ 159 224 224 309
    Completed AD Training----- 153 216 216 153
    Figure 2
    Reserve Officers Personnel Act
    On the last day of this reporting period, the President signed into law as
    Public Law 86-559, Reserve Officers Personnel Act amendments which will effect
    changes in promotion and retention policies with respect to reserve commissioned
    officers of the armed forces. ROPA, as now amended, sets up a new pattern of
    accelerated promotions and forced attrition. Two undesirable provisions are
    102 ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    eliminated: (a) “The pusher clause,” or the mandatory promotion system which
    caused a large number of reserve officers, especially in the Air Force, to be
    promoted to the grades of major and lieutenant colonel much earlier than was
    intended, thus creating overages in these grades, and (b) a procedure whereby
    20-year reservists retired from active duty were subsequently assigned to the
    Ready Reserve enabling them, at a later date, to re-retire in a higher grade. The
    over-all effect of ROPA as now amended should prove very beneficial and revitalizing
    to the officer corps of the reserve components.
    The Army National Guard
    Reorganization of the Army National Guard under the new troop basis was
    completed early in the second quarter of fiscal year 1960, 1 year ahead of
    schedule. The consolidation of Special Forces Detachments and other troop
    basis changes have reduced the number of troop units from 4,497 on June 30, 1959,
    to 4,423 as of the end of this reporting period.
    The cumulative total of Army National Guardsmen entering 6-months’ training
    during fiscal yeai- 1960 was 63,603. This was 603 in excess of the number programed.
    Since the beginning of the 6-months’ training program, 183,358 Army
    National Guardsmen have entered training with 140,637 graduating. Attrition
    has been approximately 4.9 percent of the total input.
    Total new Army National Guard enrollment in Army service schools for fiscal
    year 1960 was 8,132. This was 11 percent in excess of the 7,308 set as the fiscal
    year 1960 objective. The recent reorganization which necessitated branch
    changes has increased participation in these schools. New enrollments in Army
    area schools continued ahead of schedule due to the Army commanders’ increased
    emphasis on Army National Guard participation, particularly in the
    NCO courses. Fiscal year 1960 enrollment was 1,425 against an objective of
    600. In addition, during fiscal year 1960, approximately 31,000 officers and warrant
    officers were enrolled in extension courses administered by the Army service
    schools. One additional State Officer Candidate School was established during
    this reporting period, bringing the total to 43. These schools produced 1,112
    second lieutenants during fiscal year 1960.
    Annual general inspections were completed in 4,344 units during this reporting
    period. Of these, 4,307 were rated satisfactory or better. Less than 1 percent
    (0.9 percent) were rated unsatisfactory. During the preceding reporting period
    0.5 percent of the units were rated unsatisfactory.
    As of the closing date of this report, the Army National Guard has 52 NIKEAJAX
    batteries, equivalent to 13 battalions, operational on sites in 11 of the
    Nation’s key defense areas. Two additional NIKE-AJAX battalions had completed
    training at the U.S. Air Defense Center and were on-site, preparatory
    to becoming operational. In addition, one NIKE-HERCULES battalion had
    completed training at the U.S. Air Defense Center and was conducting unit
    training and maintaining a limited operational capability on temporary sites in
    Hawaii. The remaining units organized in the Army National Guard’s 32
    NIKE-AJAX and 2 NIKE-HERCULES battalions were in preparatory or school
    training phases of the program which will ultimately provide 82 firing batteries
    full-time in 16 defended areas.
    Army National Guard aviation gained 10 percent, or 122 Army aviators, during
    this reporting period, making a cumulative total of 1,382. A shortage of 118
    aviators below the 1,500 programed for fiscal year 1960 nevertheless existed,
    caused mainly by the lack of graduates from primary flight courses because of
    quota suspension in the second half of fiscal year 1959. The suspension was
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD 103
    necessitated by a change in location of the primary flight school, lhe 160,342
    flying hours for fiscal year 1960 represents 100.2 percent program accomplishment.
    Aircraft flying hours were 19,610 greater than in fiscal year 1959.
    Equipment (ARNG)
    The Army National Guard received some new types of equipment during this
    reporting period. However, shortages in several areas continue to impair
    training. Aircraft and field maintenance tools sets remain in short supply, due
    to nonavailability in the Transportation Corps supply system. Receipt of a limited
    number of observation-type helicopters produced some increase in the
    aircraft inventory. Shortages of authorized and substitute signal items remain
    the most serious training equipment problem facing the Army National Guard,
    especially in those States to which new signal units have been allotted. Limited
    quantities of World War II radio relay and terminal electronic items were made
    available as substitutes for authorized communications equipment.
    Other shortages which adversely affected training were in armed personnel
    carriers, recoilless rifles, self-propelled artillery, HONEST JOHN rockets, and
    certain types of wheeled vehicles.
    Facilities (ARNG)
    Under the provisions of the National Defense Facilities Act of 1950, as amended
    (as restated in sections 223-2233 of title 10, U.S.C.), the Army National Guard
    placed 128 armory projects under contract during this reporting period. This
    exceeded the fiscal year 1960 objective by 34 projects, and required an expenditure
    and/or obligation of Federal funds amounting to approximately $15.6
    million.
    Under the law, the Federal Government contributes up to 75 percent of the
    cost of construction calculated on the basis of approved criteria. Since 1952
    when funds were first made available under the NDFA, Congress has appropriated
    a total of $143.18 million for the construction of armory and nonarmory
    facilities. The States have furnished more than $60 million as their contribution.
    U.S. Army Reserve
    During this reporting period substantial progress has been made by the U.S.
    Army Reserve toward attaining a state of readiness for their units and individuals
    that will assure minimum postmobilization training, and will permit
    their immediate commitment to action when necessary. The reorganization of
    U.S. Army Reserve units was completed in December 1959, one full year ahead
    of schedule, and resulted in about 5,400 World War H-type company-size units
    being converted to about 4,350 company-size units patterned to fit our modern
    pentomic Army. Although the reorganization resulted in a smaller number of
    units, the over-all strength remained the same and, as of the closing date of this
    report, has resulted in increased effectiveness.
    In December 1959 the Secretary of the Army announced the establishment of
    the U.S. Army XIX Corps, bringing the total to 14 Army Corps Headquarters,
    located throughout the six Zone of Interior Army Commands. These Corps
    headquarters consolidated and replaced the headquarters of 49 military districts.
    The U.S. Army Corps Headquarters now have the responsibility for the administration
    of the personnel strength of the Army Reserve, totaling some 2,217,000
    officers and enlisted men.
    Approximately 98.5 percent of the U.S. Army Ready Reserve are well trained
    individuals, having had either a minimum of 6 months of active duty for train104
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    ing or 2 or more years of active duty training. Because such a high percentage
    of the Ready Reservists are basically trained, many U.S. Army Reserve units will
    be ready to be tested in platoon-level tactics during their annual active duty for
    training foi" fiscal year 1961. U.S. Army Reserve units are now required to
    conduct six multiple drills each year, of at least 8 hours duration, during their
    inactive duty training.
    As of the end of fiscal year 1960, the need for technicians (administrative
    assistants, storekeepers, and maintenance personnel) continues to plague U.S.
    Army Reserve units. Against a recognized need for 5,100 such personnel, 3,046
    had been authorized and 2,843 had been hired. The latter represents an increase
    of 450 technicians during fiscal year 1960.
    During fiscal year 1960, 4,390 officers and 442 enlisted men trained at Army
    service schools in courses varying in length from 2 weeks to several months.
    To test the effectiveness of the Ready Reserve Mobilization Reinforcement
    System, Exercise READY FREDDY was conducted during July and August 1959.
    Some 3,000 reservists of the Reinforcement Pool, to satisfy their required
    summer training, were assigned to selected US AR units in the First Army, the
    28th Infantry Division (ARNGUS) in Second Army, and the 4th Infantry
    Division of the Sixth Army. Exercise objectives were: (1) To evaluate the
    ability of the Ready Reserve Mobilization System to function properly during
    an emergency, (2) to provide realistic training in mobilization procedures, and
    (3) to identify problem areas and recommend corrective action. The results of
    the test showed: (1) Certain administrative weaknesses, most of which have
    been corrected, (2) the Army concept of mobilization usage of individual reinforcement
    is sound, and (3) the need for decentralized testing of the system
    during calendar year 1960, which is now being accomplished.
    Equipment (USAR)
    During this reporting period authorized individual clothing and equipment for
    assigned personnel of U.S. Army Reserve Troop Program units reached an average
    of about 77 percent of allowance. This clothing and equipment includes
    items common to all individuals regardless of service. In this group the class A
    uniform items stand at about 95 percent. TOE equipment is about 41 percent
    of actual allowance. This includes the major hardware items such as weapons
    and vehicles. Organizational equipment and clothing, items which fall in the
    category of field or combat essentials, are about 80 percent issued on an over-all
    basis.
    The supply goal for fiscal year 1960 was to achieve an over-all average of 30
    percent of authorized TOE equipment and 100 percent of authorized individual
    and organizational clothing and equipment issued. The percentage goal for
    TOE equipment was approached, however the figure attained, does not represent
    nor indicate that the distribution of equipment is in accord with unit priorities.
    This situation exists primarily as a result of the reorganization of the U.S. Army
    Reserve Troop Program. Progress was made toward adjusting assets so that
    available equipment will be utilized to first equip the higher priority units. The
    U.S. Continental Army Command has developed and published organization and
    equipment guides which, when implemented, should provide a more realistic
    yardstick than a predetermined percentage to measure the adequacy of the
    equipment stock position.
    The majority of the U.S. Army Reserve units can now conduct platoon-level
    basic unit training with the quantities of equipment on hand. Maintenance of
    all levels continues to be a pressing problem.
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD 105
    Facilities (USAR)
    Under the authority of section 133, title 10, U.S.C. (formerly Public Law
    783, as amended) each reserve component is set forth by name as to authorization
    for construction of facilities for the administration and training of the
    reserve components of the armed forces.
    The total requirement for reserve centers for the U.S. Army Reserve has been
    established at 1,103. As of the closing date of this report, 446 centers had been
    built or were under construction, leaving a balance of 657 to be constructed in
    future years.
    The rated personnel capacity of the 446 reserve centers is approximately
    162,000, accommodating 54 percent of the total authorized drill pay strength of
    300,000 Ready Reservists.
    The Naval Reserve
    During this reporting period the state of training and readiness of the Naval
    Reserve have continued to show improvement. The key factor in achieving
    this progress was the leadership exercised by the active duty officers responsible
    for Nava] Reserve training and by inactive duty reservists engaged in the training
    programs.
    During fiscal year 1960 the Ready Reserve was maintained near the 530,000
    ceiling imposed by the Secretary of Defense. Adequate numbers in the Ready
    Reserve will be available throughout fiscal year 1961. However, starting in
    fiscal year 1962 with the concurrent expiration of obligated service of 6- and 8-
    year obligors, it is estimated that enlisted Ready Reserve strength will decline.
    The Selected Reserve established in 1958 continues to be the most significant
    element of the Naval Reserve. Selected Reserve forces of personnel with assigned
    ships and aircraft are available for immediate assignment to the active
    forces when needed.
    The training of Ready Reservists assigned to the Selected Reserve billets is
    designed to achieve individual and unit readiness to a degree insuring over-all
    maximum responsiveness to emergency or war requirements. Selected Reserve
    personnel in drill pay status totaled 120,232 on June 30, 1960, and during each of
    the last 8 months of this reporting period showed an average gain of 875 men
    over the preceding month. Plans for fiscal years 1961—62 contemplate continued
    growth toward the total of 135,000 presently authorized by the Secretary of Defense
    to be in drill-pay status. Attainment of this strength will provide the following
    elements within the Selected Reserve: (1) An antisubmarine warfare
    component to man and deploy 44 ASW ships and 27 ASW squadrons; (2) a mine
    warfare component to man 11 minesweepers for harbor defense; (3) a fleet augmentation
    component for immediate assignment to ships and aviation units of the
    active fleet to bring these elements to full war strength; (4) a fleet support activities
    component to activate or augment activities which directly support the
    fleet; (5) a shore establishment component to activate or augment activities and
    functions of the shore establishment vital to fleet support, security, and mobilization
    processing; and (6) a program support component to provide specialized
    services to Naval and Marine Corps Reserve programs. The Selected Reserve
    will also contain 117,000 reservists in nondrill-pay status who are being preselected
    to man reactivated reserve fleet ships and to provide additional fleet and
    shore establishment support. Total Selected Reserve planned in drill-pay and
    nondrill-pay status is 252,000.
    Major emphasis in the Naval Selected Air Reserve has continued to be in the
    field of antisubmarine warfare, and in the continued development of a capability
    106 ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    to respond to fleet requirements for trained squadrons, with aircraft, in either
    a limited emergency or full mobilization. This capability is in being and, within
    the limitation of the aircraft assigned, can be instantly responsive to fleet requirements
    for long-range patrol (VP), inshore patrol (VS), and for helicopter ASW
    squadrons to immediately assume operational tasks.
    The ASW capability of the Selected Naval Air Reserve is balanced by a strong
    capability in the area of fleet tactical support and by a jet fighter and light jet
    attack capability. The Commander-in-Chief, Pacific Fleet, stated that the integration
    of the Selected Air Reserve squadrons in fleet operations and training
    along the west coast during the past 2 years was one of the most significant single
    operational program achievements in ASW during this time span.
    Equipment (USNR)
    The nature of shipboard and shore station facilities makes issuance of equipment
    on an individual basis unnecessary, therefore Naval Reservists are not
    supplied with equipment other than uniforms to accompany them on mobilization.
    Equipment for training is assigned to training centers and facilities. Over-all,
    this equipment is not as modern as similar equipment in the newer ships of the
    Fleet but does serve to demonstrate the basic principles and functions involved
    and is adequate for training. The equipment presently being utilized at
    electronic installations is urgently in need of modernization and although effort
    is being made in that direction, the progress is very slow because of budgetary
    limitations. The greatest need for modern electronic equipment is in the ASW
    field.
    Facilities (USNR)
    A continuing program is maintained which enumerates the facilities requirements
    of the Naval Reserve for 5 years in advance. These requirements consist
    of replacement of inadequate and overage training facilities, and the rehabilitation
    of facilities where it is indicated that such action is feasible and desirable
    from an economic viewpoint. At present there are 141 Naval Reserve trainingcenters,
    160 Naval and Marine Corps reserve training centers, 15 Naval Reserve
    training facilities, 137 Naval Reserve electronic facilities, and 9 Naval Reserve
    communications stations. Effort has continued during fiscal year 1960 toward
    replacing and modernizing some of the older and more inadequate training
    centers. In this category fall World War II converted temporary barracks,
    World War II surplus metal buildings, and wooden buildings, all of which have
    exceeded their life expectancy and will require more maintenance expenditures
    and eventual replacement as rapidly as such a program can be funded.
    The Marine Corps Reserve
    The objectives of the Marine Corps Reserve are to maintain in the Organized
    Reserve (drill-pay status) sufficient numbers to meet the first month’s mobilization
    requirement of the Fleet Marine Force, and to maintain in the Volunteer
    Reserve (nondrill-pay status) the personnel required to meet the balance of the
    M+6-month requirement.
    To enhance the position from which these objectives can be achieved the
    Marine Corps Reserve reorganized its Organized Reserve in November 1959 to
    more closely parallel their counterparts in the regular establishment. They have
    since completed one annual training period and are now receiving the last of
    their organic equipment. Further, the requirement imposed on all units to conduct
    multiple drills has materially increased training time. The multiple drills
    consist of a minimum of two successive 4-hour periods. The former single drill
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD 107
    permitted a drill period as short as 2 hours. Finally, all members of the
    Organized Reserve who have been assigned a physical risk classification have
    been screened. Individuals with a questionable mobilization potential have been
    removed.
    During this reporting period the Marine Corps Reserve maintained sufficient
    trained personnel to meet initial mobilization requirements. All officers have
    completed a tour of active duty, and about 180,000 enlisted reservists are eligible
    for immediate deployment overseas. However, the decline in the enlisted
    strength which began in 1959 will continue through 1963. This decline in
    strength will render the Marine Corps Reserve unable to meet the currently
    projected mobilization requirements. Manpower guidelines have been raised in
    order to permit the Organized Reserve to meet the M+l-month requirement of
    the Fleet Marine Force. Deficiencies in planned mobilization requirements,
    though small, continue to be a problem.
    During fiscal year 1960 a new high of 82.8 percent was achieved in the drill
    attendance. However, the resulting additional costs necessitated, for the third
    consecutive year, a reduction in the number of paid drills from 48 to 45.
    Availability of funds remained the limiting factor in reaching desired training
    goals for the Volunteer Reserve.
    Equipment (USMCR)
    During fiscal year 1960 the status of unit and individual equipment of the
    Ground Reserves continued to be satisfactory. Unit manning levels, which are
    necessary due to personnel ceilings imposed, have largely eliminated the need
    for maintaining full allowances of unit equipment on hand; however, full allowances
    are available for requisition when required to support training. The
    increased amount of field training made possible by utilization of the multiple
    drill created a greater requirement for the issuance of organizational equipment
    to units. Previously this type of equipment had been maintained in pools for
    issue to units as needed.
    Token allowances of modern equipment were received during this reporting
    period. In this category fell the Ontos self-propelled 106-mm. antitank weapon
    and the 106-mm. recoilless rifle.
    Individual equipment and the over-all supply status for the aviation component
    of the Marine Corps Reserve are considered to be satisfactory. The 12 air
    reserve control squadrons are operating the same type of equipment as used by
    the regular Fleet Marine Force squadrons. The majority of fighter and attack
    squadrons are equipped with jet aircraft. In most cases these aircraft are not
    the latest types, but at least they permit a satisfactory level of flight training
    to be maintained.
    The very low percentage of availability of suitable helicopters continued to
    restrict the training of reserve helicopter squadrons, and limited their participation
    in air-ground exercises.
    Facilities (USMCR)
    As of the end of fiscal year 1960 the Marine Corps Reserve occupied a total
    of 226 facilities as opposed to 228 a year ago. Adhering closely to the policy
    of joint utilization as specified by the National Defense Facilities Act of 1950,
    occupancy of the 226 facilities is shared as follows: 159 joint Naval and Marine
    Corps Reserve training centers, 2 joint Army and Marine Corps Reserve training
    centers, 1 joint Air Force and Marine Corps Reserve training center, and 2
    595308—61-------8
    108 ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    Armed Forces Reserve training centers (serving all of the reserve components).
    Of the remainder, 45 are federally owned Marine Corps Reserve training
    centers, and 17 are commercially leased. Five commercial leases were terminated
    during fiscal year 1960.
    During this reporting period improvements were made to training centers to
    provide more adequate facilities for the accomplishment of training. These
    improvements include (a) construction of four indoor rifle ranges, (b) construction
    of one artillery equipment maintenance shed, (c) alteration to nine existing
    training centers to increase the training potentials of the available space,
    (d) paving of six drill/vehicle parking areas, (e) completion of six new training
    centers to replace inadequate installations (of these, five were constructed jointly
    with the Naval Reserve), and (f) the construction of a Marine Corps wing to
    an existing Naval Reserve training center to allow the return of high priority
    space to the Department of the Army.
    Marine Aviation Reserve units are based at naval air stations and receive
    logistical support from the Navy. The facilities available and used in fiscal
    year 1960 were adequate.
    Air National Guard
    The Air National Guard made important improvements in readiness during
    fiscal year 1960 in spite of extensive aircraft conversions and mission changes.
    In February 1960 the Secretary of the Air Force approved a plan for revised
    management of the reserve forces. This plan provides for closer peacetime integration
    of units of the reserve forces into the active establishment than ever
    before. This was accomplished by transferring the responsibility for supervision
    of training and inspection of Air National Guard and Air Force Reserve flying
    and certain other units from Continental Air Command to the major air commands
    that would command the units in a national emergency. The plan also
    calls for reservists to assume a large share of the responsibility for managing the
    reserve program. Execution of this plan causes no change in the relationship
    of the Air National Guard to the States or to the National Guard Bureau.
    As of the closing date of this report, the 546 units of the Air National Guard
    were organized into 24 tactical flying wings and 104 nonflying support units,
    including communications, aircraft control and warning, tactical control, and
    weather units. The tactical flying wings include 22 combat wings (11 fighterinterceptor,
    7 tactical fighter, and 4 tactical reconnaissance) and 2 air transport
    wings (heavy). Other Air National Guard flying units include 1 aeromedical
    transport group with 5 aeromedical transport squadrons (light), 4 troop
    carrier squadrons (medium), and 1 air transport squadron (medium).
    This period was marked by the relatively large number of conversions to higher
    performance aircraft, the continued decline in the aircraft accident rate, and
    the shift to a more balanced over-all force. Six fighter squadrons were converted
    to heavy transport, bringing the C-97 type aircraft into the Air National Guard
    for the first time.
    During the 1960 fiscal year, 20 Air National Guard squadrons participated in
    the Air Defense Alert Programs by maintaining 5-minute runway alert schedules
    to investigate unidentified and potentially hostile aircraft. Alert coverage was
    performed by 7 squadrons on a 24-hour schedule and by 13 squadrons on a 14-hour
    daylight schedule. All of the squadrons except one in Hawaii were located in
    the continental United States. In addition, four aircraft control and warning
    squadrons of the Air National Guard continued their round the clock participation
    in the active air defense network of the Nation. Two of the squadrons provided
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD 109
    the sole radar air defense in Hawaii and the other two were located in the continental
    United States.
    During this reporting period the Air National Guard met its flying training objectives
    although poor flying weather in January and February as well as aircraft
    conversions held the total number of flying hours to 442,101 or 97.1% of the number
    programed. During the year the aircraft accident rate dropped to a new low
    for the fifth consecutive year as the Air National Guard recorded only 11.7 major
    aircraft accidents per 100,000 flying hours.
    A high rate of utilization of Air Force service schools continued as a total of
    11,312 Air National Guardsmen completed courses offered by these schools.
    Continued use was also made of supplemental training exercises such as tactical
    mission employment to further individual and unit readiness.
    A new communication-electronics force structure was established during this
    year in order to make possible a more realistic alignment with USAF requirements.
    The old structure was changed by deleting one tactical control group and
    adding one communication group and four GEEIA (Ground Electronics Engineering
    Installation Agency) units. GEEIA units were formerly AACS E&I (Air
    ways and Air Communications Service, Engineering and Installation) squadrons
    and CC (Communications Construction) squadrons, and are now placed under
    Headquarters GEEIA of the Air Materiel Command. The new structure will
    total 75 units, including a detachment at a location within the same State as its
    parent squadron.
    At the end of the 1960 fiscal year the Air National Guard had on hand 87
    percent of its training mission equipment. Although this represents a drop of
    3 percent from last year, the decrease is to be considered small in view of the
    many aircraft conversions and mission changes which occurred during the year.
    No significant curtailment of flying due to equipment shortages was evident.
    However, a limited number of jet engine field maintenance items and special
    testing equipment were in short supply and as of the closing date of this reporting
    period were on procurement. Communications-electronics and warning units
    had 80 percent of their authorized unit mission equipment. A significant amount
    of communications-electronic equipment was added to the Air National Guard
    inventory from other Air Force components, and most units either received
    additional equipment or had existing assets modernized.
    The Air National Guard is now almost 100 percent equipped with first line
    aircraft. Included in the new aircraft are F-lOO’s, F-102’s, and F-104’s. The
    C-97 aircraft of the six new heavy transport squadrons are the first four-engine
    aircraft ever received by the Air Guard.
    On June 30, 1960, the Air National Guard was assigned 2,269 of its 2,447
    authorized aircraft. The jet aircraft inventory of 2,010 consisted of 1,566
    fighters, 218 trainers, and 226 reconnaissance aircraft. Propeller-driven aircraft
    totaled 259.
    Facilities (ANG)
    At the close of the 1960 fiscal year, the Air National Guard was utilizing 93
    flying fields and 41 nonflying installations. Of the 93 flying fields, 74 are located
    on municipal or State airfields, 1 is on a private airfield, 1 belongs to the Air
    Modernization Board (Atlantic City, N.J.), and 17 are located on Air Force and
    Navy bases. A total of 38 of the flying fields are used jointly with other reserve
    components.
    During this reporting period a total of $11,453,802 in Federal funds were obligated
    for the construction of new Air National Guard facilities. Among the
    construction projects placed under contract were six runways to meet the re110
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    quired runway lengths for high-performance aircraft. Two aircraft control and
    warning buildings were placed under contract in order to insure operational
    capability of the flying support unit. The remaining obligations provided for
    the construction of five hangars, two apron expansions, two runway overruns,
    two engine build-up shops, one control tower, one general purpose shop, one
    automotive maintenance shop, one runway barrier, and one paint, oil, and dope
    storage building. In addition, advanced planning was authorized for future
    projects including the design of two runway extensions, three runway overruns,
    two apron expansions, one control tower, one taxiway expansion, the rehabilitation
    of one apron and one runway, and complete new facilities at one base.
    Also during the year, $2,882,482 in major repairs and modification funds were
    obligated for 442 projects at 107 installations. The projects were the result of
    requirements for more complete equipment, for establishing more efficient
    methods of operation, and for repairing or modifying aging facilities.
    U.S. Air Force Reserve
    At the close of fiscal year 1960, units of the Air Force Reserve included 14
    troop carrier wings (medium), one troop carrier wing (assault), 5 air rescue
    squadrons, and some 56 nonflying support units including medical, communications,
    air terminal, aerial port, and censorship types.
    The Air Force Reserve troop carrier units’ readiness was, and still is, the
    highest it has ever been in peacetime. An over-all summary of the capabilities
    of the 45 assigned squadrons indicate that 43 are operationally ready. Most
    of the units had arrived at such a degree of capability they had been assigned
    specific D-day tasks. All other units had been assigned more general D-day
    missions. Periodic readiness tests confirm that these units can assume their
    wartime tasks. Additionally, unannounced tests conducted to determine their
    reaction time demonstrated that within 3 hours 50 to 80 percent of the total
    combat capability can be assembled. This response is well above the criteria
    established by the Air Force for the type of mission assigned.
    During this period a thorough study of the Air Force Reserve air terminal
    squadrons program was completed. As a result, 13 of these squadrons have
    been discontinued at their present location and 12 reorganized as units and
    redesignated at other locations. The mission of an air terminal squadron is
    to process passengers, cargo, and mail for air transportation. Realistic training
    for this type of unit could only be obtained at flying bases of the Air Force
    Reserve troop carrier units and the active Air Force. Consequently, effective
    in June 1960, these air terminal squadrons were relocated at flying locations
    throughout the United States.
    The first oversea ferrying of aircraft by reserve force crews took place in
    June 1960 with the delivery of 21 C-119’s to India. All schedules were met
    and crews were reported to have performed in a professional manner throughout
    the operation. The Indian Defense Minister, Indian Air Force, and United
    States officials in India were highly complimentary of the entire operation.
    Over 100 Reserve instructors attended the Air Force Reserve academic instructors
    course at the Air University. Approximately the same number of
    personnel attended special Air Training Command exercises designed to improve
    the quality of technical instruction throughout the Air Reserve complex.
    During this period more than 4,000 officers and airmen attended active duty
    courses covering a wide range of technical and professional fields. Also there
    was a significant increase in enrollment in the Extension Course Institute
    (ECI) of the Air University. Over 60,000 Air Force Reserve officers and airmen
    participated in this type of training.
    ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD 111
    Policies and procedures by which Continental Air Command might program
    requirements for special tours of active duty for training were formalized,
    in Air Force Regulation 50-41, for the first time during fiscal year 1960. This
    regulation also authorizes major commands to request special tours as training
    needs arise which cannot be accomplished through other types of training.
    Equipment (AFRes)
    The Air Force Reserve troop carrier units obtained nearly all of the number
    of aircraft needed for their 45 squadrons. Over-all, as of the last day of this
    reporting period, of the 720 airplanes authorized, 667 were assigned and in a
    high state of combat readiness. The wings also possessed from 70 to 90 percent
    of their authorized equipment other than aircraft.
    Facilities (AFR.es)
    During the 1960 fiscal year a total of $4 million was appropriated by Congress
    for the construction of operational facilities on Reserve flying bases.
    As of June 30, 1960, $3 million had been obligated and the remaining $1 million
    was expected to be obligated by the end of October 1960.
    Flying facilities are jointly utilized with the other Services as far as possible
    in the interest of economy. As of the close of this reporting period, the
    joint utilization of flying facilities was as follows:
    Number of bases Jointly used with
    17----------------------------------------------------------- Regular Air Force
    3-------------------------------------------------------------Navy
    17----------------------------------------------------------- Civil Aviation
    There were 82 Air Reserve centers (nonflying) operational during this period,
    where technical nonflying training is conducted. There were six facilities
    constructed in areas where Reserve participation and high rent cost warranted
    such action. The remaining 76 centers were located in either Governmentowned
    or leased facilities. Additional construction of this type of facility
    will depend on comparisons of construction costs with available adequate commercial
    or Government-owned facilities to determine which is in the best interest
    of the Government, provided participation meets the prerequisites for
    such construction.
    Every effort is being made to reduce the cost of leased facilities for Air
    Reserve center training. Continuous screening is being effected by the Continental
    Air Command in order to relocate Air Reserve center units to air bases,
    Army and Navy installations, and other more desirable facilities. Also, at
    many locations, an appreciable amount of leased space has been and is being
    declared excess in order to effect maximum utilization of classroom and administrative
    space. This action was initiated as a result of revised leasing
    criteria contained in a Department of Defense directive published in September
    1959.
    Reserve Officers Training Corps Program
    The mission of the Reserve Officers Training Corps program is to provide
    junior officers for the active forces and their respective reserve components.
    The Reserve Forces Policy Board, through its Advisory Panel on ROTC Affairs,
    continually examines and studies this program. Based on the results of these
    studies, the Board makes pertinent recommendations to the Secretary of Defense
    on policy and legislation affecting the ROTC program.
    112 ANNUAL REPORT OF THE RESERVE FORCES POLICY BOARD
    The Advisory Panel on ROTC Affairs is composed of seven civilian educators
    appointed by the Chairman, Reserve Forces Policy Board, who participate as
    individual advisors to the Board and not as representatives of any organization.
    The present membership of the panel is as follows: Chairman, Dr. George
    C. S. Benson, President, Claremont Men’s College, Claremont, Calif.; Dr. E. R.
    Durgin, Dean of Students, Brown University, Providence, R.I.; Dr. C. Clement
    French, President, Washington State University, Pullman, Wash.; Dr. A. N.
    Jorgensen, President, The University of Connecticut, Storrs, Conn.; Col.
    Charles B. Richmond, President, Kentucky Military Institute, Lyndon, Ky.;
    Dr. Robert W. Van Houten, President, Newark College of Engineering, Newark,
    N.J.; and the Rev. Robert W. Woodward, C.S.C., Director of Military Affairs,
    University of Notre Dame, Notre Dame, Ind.
    During this reporting period the panel met three times and continued reexamination
    of the ROTC programs, to clarify objectives, and to determine
    areas where changes appear necessary to meet present trends and future requirements.
    In these meetings the panel developed 15 recommendations
    designed to provide greater flexibility in conducting ROTC programs and to
    achieve more efficient operation and higher quality training.
    At its June 1960 meeting the Board was informed of these 15 recommendations
    and, following usual procedure, the Board Chairman sent them to the military
    department Secretary members of the Board for comment. Such comments
    were to be referred to the panel for consideration, after which the panel’s
    recommendations, with any changes made in the light of the comments referred
    to, would come before the Board for action.
    The panel hailed with enthusiasm the efforts by the Army and Air Force in
    proposing changes to their respective ROTC curricula so they might be more
    responsive to the requirements of a modern education, the pressure of time on
    the student, and the need for equitable academic credit. However, because of
    the widely divergent nature of the proposed changes, it was felt that, especially
    at 99 institutions which offer both Army and Air Force ROTC programs, interService
    rivalries and inequities unfavorable to the ROTC program could develop.
    Further, the administrative difficulty created for the institutions concerned
    could be considerable. The panel, through the Chairman, Reserve Forces Policy
    Board, promptly called to the attention of the Secretary of Defense some of the
    problems that could possibly result if the proposed revised curricular changes
    were put into effect in their original concepts. As of the closing date of this
    report, action had been initiated at the Department of Defense and Service
    levels to align the programs of the Army and Air Force in order to make them
    as closely similar as practicable.
    John Slezak,
    Chairman, Reserve Forces Policy Board.
    Annual Report
    of the
    SECRETARY OF THE ARMY
    July 1, 1959, to June 30, 1960
    Contents
    Page
    Chapter I. Introduction_________________________________________ 115
    II. Operations and Training_____________________________ 119
    III. Personnel__________________________________________ 143
    IV. Logistics__________________________________________ __ 157
    V. Research and Development__________________________ 179
    VI. Civil Works_________________________________________ 209
    VII. Management_______________________ ■._____________i______________ 211
    VIII. Budget______________________________________________ 216
    IX. Conclusion__________________________________________ 221
    114
    I. Introduction
    Over the past few years, the important role of the Army as an essential
    military foundation for supporting national policy has become
    more clearly understood by the Nation. In time of peace, America
    traditionally has been reluctant to support large military forces.
    However, in the uneasy peace of our times, the Nation willingly has
    supported a powerful Army and gives evidence of increasing recognition
    of the continuing need for strong and flexible joint military
    forces to counter the full spectrum of the Communist threat and to
    provide full support for its national policies.
    The Army has made the most of this trust of the people and I am
    able to report that, in fiscal year 1960, the Army was qualitatively—
    in terms of its manpower, its equipment, its training, and its combat
    readiness—the strongest land force the Nation has ever had while not
    at war.
    The Army’s capabilities and progress in fiscal year 1960 can be
    assessed most effectively when viewed in the context of the developments
    and changes which have occurred over a period of several
    years. Therefore, this report summarizes Army progress since the
    Korean war, but with emphasis on fiscal year 1960 advances.
    The civilian and military leaders of the Army are well aware that
    the strength of the Army must be evaluated both in broad terms of the
    interests and objectives of the United States and in terms of the
    Army’s ability to carry out its assigned missions, particularly those
    involving sustained land combat against the forces of our potential
    enemies. So, in strengthening the Army over the past few years, we
    have attentively kept attuned to the worldwide commitments and needs
    of the Nation, and, at the same time, we have kept our eyes focused
    on the armed forces of the other world powers. We have been well
    aware of the massive Communist ground forces. We also have been
    aware of the Communists’ pursuit of the latest developments in science
    and technology for military purposes, their willingness to expend
    vast resources to reequip their ground forces with the latest developments
    in weaponry, and their rapidly emerging capability to launch
    devastating thermonuclear attack against the continental United
    States.
    115
    116 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    During the post-Korean period, the Army has been characterized
    by forward movement and improvement. At no point along the line
    have we “dug in” or settled for the comfort or stability of a status
    quo. Constantly we have forged ahead, searching for new ideas and
    techniques, not only in the area of weapons, but also in the concepts
    of organizing and employing land forces, in personnel management,
    in training, and in logistics.
    During this period, we have completely reorganized our divisions
    and supporting forces for modern warfare. We have provided a
    variety of missile organizations to support these troops with firepower
    of longer ranges and more explosive effects than ever before possessed
    by an army in the field. In striving for “One Army” in fact as well
    as in name, we have made great strides in more closely integrating our
    active and reserve forces. We have established a Strategic Army
    Corps here at home as the first priority element of our strategic reserves,
    ready instantly to reinforce our troops around the globe. We
    have provided a vast air defense system of extremely accurate and
    dependable NIKE missiles to protect the United States and our
    forces overseas. These and other notable actions have been taken
    since the end of the Korean war to make our combat forces more responsive
    to the needs of our times.
    In logistics we have made considerable progress also: We have
    procured and issued to troops in significant quantities operational
    missiles (both surface-to-surface and surface-to-air), new models of
    recoilless rifles, personnel and weapons carriers, and communications
    equipment. In addition to this equipment now in the hands of troops,
    we have developed and have started equipping the Army with new
    models of light tactical aircraft and light transport aircraft, new
    lightweight rifles and machine guns, tank-launched bridges, and
    newer and better armored vehicles such as lightweight personnel
    carriers and new main battle tanks.
    We have been given six Department of Defense Single Manager
    assignments through which we have become responsible for furnishingfood;
    clothing; automotive, construction, and general supplies; and
    traffic management services to all of the military Services.
    We have expanded research and development to include more basic
    research and additional research into tactical operations. By building
    Camp Century entirely under the snow in Greenland with the consent
    of Denmark, we have expanded and stabilized our Arctic research
    programs.
    We have improved housing both for troops and dependents and
    have firmly programed housing improvements for the future. We
    instigated and refined Medicare, proficiency pay, 6-month reserve
    enlistments, and other programs for the benefit of personnel.
    INTRODUCTION 117
    Also, we have constantly improved business management practices
    at every level throughout the Army to insure the most efficient use
    of resources for combat power.
    It is true that, throughout this period of rebuilding and modernization,
    the Army, like the other Services, has had problems—some of
    them deep and difficult of solution. Among these are the problem of
    timely modernization of equipment; the problems of airlift, sealift,
    and tactical air support; the low manpower ceiling; the vexing and
    far-reaching difficulty of maintenance of equipment and plant; and
    the ever-present restrictions of budgetary pressures.
    Some improvements have been made in many of these problem areas.
    However, more rapid improvements will be necessary in the future if
    the Army is to be prepared to carry out effectively its role in safeguarding
    national security. This is emphasized by world trends today,
    particularly by the so-called approaching nuclear parity or mutual
    nuclear deterrence which will tend increasingly to reduce the likelihood
    of general nuclear war and to force the power conflict increasingly
    to the limited war and cold war stages—stages in which the
    capabilities and roles of the land forces of the United States and its
    free world allies are of decisive importance.
    Army forces constitute a major element of the Nation’s capability
    to deter or to wage all forms of war. The flexibility and versatility
    of these forces offer a variety of military measures from which to select
    a course of action that is appropriate to the varied forms of aggression
    and at the same time is compatible with our national security
    interests.
    During fiscal year 1960, some 40 percent of the total Army strength
    and more than half of the Army’s operating forces have been poised
    overseas on the borders of freedom. These deployed forces, together
    with the Army’s strategic reserve and the airlift and sealift which must
    be provided by the other Services to make it capable of rapid deployment,
    are an essential element of our forward strategy and constitute
    the backbone of our capabilities for limited war. They provide tangible
    evidence that any aggression will be met and dealt with immediately
    and that the United States and the free world cannot be
    blackmailed into accepting marginal or creeping aggression.
    Army forces also play a major role in the deterrence of general war,
    and should a general war come, Army contributions would be vital in
    the retention of key areas overseas and in the defense of the continental
    United States. While effectiveness in the thermonuclear exchange of
    a general war is tremendously important, it is not conclusive. Whatever
    advantage might be gained initially would evaporate should the
    United States be unable to capitalize upon it. The Communists appear
    to visualize general war as a protracted struggle to the finish.
    118 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    Under this concept, unless there exists a manifest ability to conduct a
    long general war, the United States deterrent might not be adequate,
    for a potential enemy might come to believe that he could recoup or
    counterbalance first phase losses through relatively unopposed conquest
    in the subsequent phase.
    Though in this annual report of fiscal year 1960,1 portray the Army
    as ready, strong, and modern, it must be constantly borne in mind that
    the true measure of its ability to perform assigned missions is how well
    it compares with the armed forces of our potential enemies. In this
    period of rapidly advancing science and technology, we cannot afford
    to stand still. The process of strengthening and modernizing our
    land forces not only must continue, but also must be accelerated in
    order that the Army may be capable of providing the required level
    of effective support of our national security policies.
    II. Operations and Training
    The principal operational missions of the Army in discharging its
    responsibilities in support of national policy are to maintain forces
    overseas capable of deterring or defeating aggression; to maintain
    highly mobile, combat-ready, strategic reserves to reinforce deployed
    forces or to meet other threats; to assist allied and other free world
    forces; to provide forces to assist in defending the United States
    against air attack; and to maintain strong combat-ready reserve forces
    and related facilities for rapid mobilization.
    The following are among the most significant actions relating to
    operations and training which were taken by the Army during fiscal
    year 1960:
    — providing continued support to Army forces deployed in
    strategic areas overseas which included six infantry divisions,
    two armored divisions, three armored cavalry regiments, six battle
    groups, one medium missile command, one air-transportable
    missile command, and various combat support units including
    surface-to-surface and surface-to-air missile battalions;
    — strengthening the combat forces in the Caribbean area by
    increasing the number of battle groups from one to two;
    — strengthening the combat forces in the Pacific area by the
    deployment of an airborne battle group to Okinawa, the activation
    of a logistical command on Okinawa, the deployment of
    a LACROSSE battalion to Korea, and a 15 percent increase in
    the authorized U.S. troop strength in the two U.S. divisions
    in Korea;
    —training 195,000 replacements for the active Army and
    100,000 enlisted trainees for the reserve components in the 3-6-
    month training program;
    - —conducting Exercise BANYAN TREE II, during which
    a reinforced airborne battle group was airlifted from North Carolina
    to Panama for a direct parachute assault on a simulated
    enemy objective in conjunction with forces from Latin American
    countries;
    — airlifting 21,000 troops and 11,000 tons of equipment from
    the United States to and from Puerto Rico in Exercise PUERTO
    PINE/BIG SLAM; and
    119
    120 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    —deploying field hospitals and supporting units rapidly to
    Chile for assistance in earthquake disaster relief, and movement
    of an engineer company to Morocco to assist in earthquake
    recovery.
    Deployment of Forces
    Large-scale oversea deployments place American soldiers in the
    forefront of those United States and allied forces provided to deter
    and to wage war. These Army troops who patrolled the borders
    of the free world during the past year, together with the strategic
    reserves in the United States and the forces of the other Services,
    provided concrete evidence of the Nation’s intent to implement its
    forward strategy. This strategy has undoubtedly been a significant
    element of our deterrent to both limited and general war. It was
    visible and unmistakable evidence of the willingness and ability of
    the United States to carry out its commitments to the free nations of
    the world.
    The Army in Europe
    United States Army, Europe (USAREUR) is a part of the United
    States European Command (EUCOM). EUCOM is a U.S. unified
    command whose responsibilities extend geographically from the
    northern tip of Norway to the eastern extremity of Pakistan.
    EUCOM has the task of welding together the assigned joint combat
    forces of the United States—Army, Navy, and Air Force—as part
    of the North Atlantic Treaty Organization (NATO) defensive
    alliance and of administering the military assistance program in this
    area.
    A strong Army force with five divisions as its principal combat
    elements has been maintained in Europe since the end of the Korean
    war. During fiscal year 1960 Army combat ready forces in Germany
    continued to include three infantry divisions, two armored divisions,
    three armored cavalry regiments, two battle groups in West Berlin,
    surface-to-surface and surface-to-air missile battalions, and other
    supporting units.
    In the northeastern plain of Italy between the Alps and the Adriatic
    Sea is the Southern European Task Force (SETAF) whose major
    combat element is a medium missile command. SETAF is a combined
    United States-Italian force in support of the North Atlantic
    Treaty Organization. Italy continued during fiscal year 1960 to man
    two HONEST JOHN missile battalions and other supporting units
    in SETAF.
    At the end of fiscal year 1960 there were 3,500 United States civilians
    and 89,000 non-United States civilian employees in support of the
    United States Army, Europe.
    OPERATIONS AND TRAINING 121
    The Army in the Pacific
    The United States Army, Pacific (US ARP AC) is the Army component
    of the Pacific Command (PACOM), a unified command.
    USARPAC has the responsibility of providing U.S. Army forces to
    PACOM and to the United Nations Command in Korea.
    The number of U.S. Army divisions in the Pacific was reduced
    from eight at the end of the Korean war to three at the end of fiscal
    year 1960—two in Korea and one in Hawaii. However, the Army
    strengthened its forces in the Pacific during fiscal year 1960 by deploying
    an airborne battle group from the United States to Okinawa, by
    activating a logistical command on Okinawa, by deploying a
    LACROSSE battalion to Korea, and by increasing the authorized
    U.S. troop strength in the two U.S. divisions in Korea by 3,000 men.
    In support of USARPAC there were approximately 7,900 United
    States civilians and approximately 53,000 non-United States civilian
    employees at the end of fiscal year 1960.
    Other Army Oversea Forces
    In Alaska two reinforced battle groups and two NIKEHERCULES
    battalions were provided for the defense of the area at
    the end of fiscal year 1960.
    In the Panama Canal Zone two battle groups and an air defense
    battalion were maintained for local security and defense of the area
    at the end of fiscal year 1960.
    By agreement with Denmark a NIKE-HERCULES battalion and
    the Polar Research and Development Center were maintained in
    Greenland.
    In support of United States Army, Alaska, there were 1,800 civilian
    employees at the end of fiscal year 1960, while there were 2,500 United
    States civilian and 2,600 non-United States civilian employees in
    support of United States Army, Caribbean.
    The Strategic Army Force (STRAP)
    The STRAP is that part of the Army normally located in the continental
    United States which is trained, equipped, and maintained for
    employment at the national level in accordance with current Army
    plans or approved emergency deployment schedules.
    A major grouping of STRAP is the Strategic Army Corps
    (STRAC) which was organized in 1958 to provide quick ground support
    for U.S. Army forces in oversea areas and for the armies of the
    free world.
    At the end of fiscal year 1960 these elements constituted the major
    forces in the STRAC: Headquarters XVIII Airborne Corps, the 101st
    122 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    Airborne Division, the 4th Infantry Division, the 82nd Airborne Division,
    the 1st Logistics Command, the 2nd Infantry Brigade, two
    missile commands, and Combat Command “A” of the 1st Armored
    Division.
    STRAC units are designed for quick movement against any kind of
    aggression around the world. The high level of combat readiness
    necessary for this mission requires troops who are fully trained to use
    a wide range of weapons and equipment so that they may be prepared
    to apply whatever degree of force is necessary to stabilize any combat
    situation.
    To provide the degree of responsiveness required if STRAC is to be
    effective, it is essential that modern airlift and sealift be provided in
    sufficient quantities. This requires the airlift necessary to deploy
    strong combat forces by air to trouble spots worldwide within a matter
    of hours, to close a reinforced 2-division corps force anywhere on the
    Eurasian land mass within 2 to 4 weeks, and to continue buildup and
    support as required.
    During fiscal year 1960 the Congress carefully reviewed the problem
    of available airlift and incorporated in the military appropriation
    act for fiscal year 1961 a separate airlift modernization account which
    included providing the Air Force with some $200 million for the
    procurement of appropriate strategic transport aircraft.
    Air Defense
    When the Korean war ended, guns and automatic weapons were
    used by the Army to provide air defense for both the continental
    United States and oversea forces. In December 1953 the Nation’s
    first supersonic, surface-to-air guided missile—the NIKE-AJAX—
    was placed on site. Since that date the more than 1,000 guns then
    utilized in air defense have been withdrawn. In fact, considerable
    progress has been made in replacing the NIKE-AJAX with the second
    generation NIKE-HERCULES.
    With the interjection of surface-to-air missiles into air defense systems,
    the Army undertook a project which involved much more than
    just developing missiles and radars. It also involved the establishment
    of administrative and logistical organizations to support these
    missile systems and the facilities needed in the training of competent
    missile men.
    Organization of the Air Defense System
    At the end of fiscal year 1960 the Army force structure included 264
    NIKE batteries, 172 of which were NIKE-AJAX and 92 NIKEHERCULES.
    These figures included 52 operational NIKE-AJAX
    batteries of the Army National Guard. Some 35,000 officers and enOPERATIONS
    AND TRAINING 123
    listed men manned these batteries and were deployed in defense of 23
    vital areas consisting of about 250 communities in 30 States of the
    Union. Defenses varied in size, depending on the nature and importance
    of the areas to be protected. Some defenses had as few as 2
    batteries while others had more than 20 batteries. A single Army air
    defense commander was provided at each defense area, directly responsible
    through the North American Air Defense Sector or Region
    to the Commander-in-Chief, North American Air Defense Command,
    in Colorado Springs, Colo.
    Readiness of the Air Defense System
    All defenses were manned 24 hours a day every day with frequent
    alert practices ranging in duration from 15 minutes to 3 hours. The
    combat effectiveness of NIKE defense units was maintained at a high
    level through air defense exercises, on-site training, and annual missile
    firings on the ranges of the Army Air Defense Center at Fort Bliss,
    Tex.
    Program for Conversion to NIKE-HERCUDES
    NIKE-HERCULES, the second generation of the NIKE family,
    greatly exceeds the capacity of the AJAX. It can attack a target
    traveling at speeds of more than 2,000 miles an hour, has a range of
    more than 80 miles, and can reach altitudes well over 100,000 feet.
    The warhead of the missile can be either explosive or nuclear.
    The first NIKE-HERCULES became operational on site in June
    1958. Today, Army troops are manning NIKE-HERCULES in the
    United States (including Alaska), Western Europe, Okinawa, and
    Greenland. Other nations manning NIKE-HERCULES systems at
    the end of fiscal year 1960 were: Italy, Denmark, Norway, France,
    Belgium, Netherlands, West Germany, Turkey, Nationalist China,
    and Greece.
    While original expansion plans for NIKE-HERCULES were
    somewhat curtailed, 29 NIKE-AJAX batteries were converted in the
    United States during fiscal year 1960. Nine additional batteries will
    be converted at present defense sites in fiscal year 1961 and 13 will be
    converted in fiscal year 1962. New NIKE-HERCULES defenses
    will be established at certain Strategic Air Command bases and various
    other installations both in the United States and overseas.
    During the past year new developments have increased the effectiveness
    of the NIKE-HERCULES. Its mobility was improved by the
    adoption of a new “Ready Round” transport trailer. Also, an improved
    radar has considerably increased the system’s effectiveness in
    combating smaller and faster targets. On June 1, 1960, under test
    conditions, the NIKE-HERCULES intercepted and destroyed a
    595308—61------ 9
    124 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    CORPORAL ballistic missile flying at more than 1,000 miles an hour.
    The new radar and the test against the CORPORAL confirmed earlier
    estimates that the NIKE-HERCULES has the additional technical
    capability to acquire and destroy enemy tactical missiles.
    Employment of HA WK in Air Defense
    HAWK, a homing missile which can destroy air vehicles traveling
    at supersonic speeds and from treetop level to approximately 60,000
    feet, became operational during 1959. The first training unit was
    organized during that year.
    Training facilities at the Air Defense School, Fort Bliss, Tex., and
    the ‘Ordnance Guided Missiles School, Redstone Arsenal, Ala., were
    expanded during fiscal year 1960, and cadres for tactical units were
    in training at the end of the year. Early in fiscal year 1961, operational
    units will be deployed to Panama and to Korea.
    The HAWK is the first surface-to-air missile system to employ the
    unique radars which provide its low altitude capability- From the
    mass of radar echoes reflected by ground objects, such as hills, buddings,
    trees, or vehicles, the HAWK acquisition radar picks out the
    echo from an aircraft. An illuminator radar tracks it automatically
    and the missile is launched, homing on reflected radar energy from the
    target. The system is highly mobile and can be emplaced rapidly.
    Installation of MISSILE MASTER and MISSILE MONITOR
    MISSILE MASTER is an automatic antiaircraft artillery fire distribution
    and direction system developed by the Army to integrate
    all elements of Army air defense in a defense area—from target detection
    to target destruction.
    The first MISSILE MASTER system was placed in operation in
    fiscal year 1958 in the Washington-Baltimore defense area. Construction
    of nine additional systems was started in 1959, for completion
    by the end of calendar year 1960.
    MISSILE MONITOR, designed to integrate air defense for NIKE
    and HAWK units assigned to tactical forces, was developed concurrently
    with MISSILE MASTER. The difference between the two
    systems is principally the mobility of the MISSILE MONITOR and
    its greater flexibility for Army air defense in the theater of operations.
    MISSILE MONITOR is now operational with Army forces overseas.
    Additional units are on order for early deployment.
    MISSILE MASTER and MISSILE MONITOR combine speed,
    reliability, and flexibility. They link together all elements of Army
    air defense—from detection of an air invader to its destruction—and
    they will enable air defense commanders to make full use of missile
    system capabilities.
    OPERATIONS AND TRAINING 125
    Development of NIKE-ZEUS
    NIKE-ZEUS, the only antiballistic missile weapon system now
    under development and the only system which appears to be capable
    of operational deployment during the 1960-70 decade, is the logical
    progressive outgrowth of the Army’s accomplishments in the field of
    surface-to-air missiles. (See fig. 1.) The greatest threats facing
    the Nation in the immediate future will be those of the intercontinental
    ballistic missile and the submarine-launched ballistic missile. The
    Figure 1. NIKE-ZEUS anti-ICBM missile system.
    126 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    NIKE-ZEUS is the only available key to active defense of the Nation
    against this swift-moving threat. NIKE-ZEUS will be a vital element
    in creating the strongest possible deterrent posture, and, in conjunction
    with a national civil defense program, provides the best
    assurance for national survival in the event of a nuclear exchange.
    Army National Guard P anticipation in Active Air Defense Program
    Since the Korean war the role of the U.S. Army National Guard
    in the air defense of the United States has increased in scope and
    importance. Prior to termination of the on-site gun program in October
    1957, at which time 25 Army National Guard gun battalions were
    deployed in the continental United States and 1 in Hawaii, plans
    were made for transition of these units to the NIKE missile system.
    The present on-site program of National Guard participation provides
    for 76 Army National Guard NIKE-AJAX missile batteries for
    the continental United States and 6 NIKE-HERCULES batteries for
    Hawaii by the end of fiscal year 1961. At the end of fiscal year 1960,
    52 Army National Guard NIKE-AJAX batteries were on-site in the
    continental United States under operational control of active Army
    air defense commanders, and 4 Army National Guard NIKE-HERCULES
    batteries were being trained at two training sites in Hawaii
    pending completion of construction of tactical sites.
    By using Army National Guard on-site air defense units, it is estimated
    that the active Army realizes a savings of $403,000 per year for
    each battalion. The 82 NIKE batteries programed for the Army
    National Guard on-site program for the United States at the end of
    fiscal year 1961 will also provide the active Army with a savings of
    8,836 personnel spaces.
    Disaster Aid
    On May 25, 1960, the Army was ordered to move field hospitals to
    Chile by air for assistance in earthquake disaster relief. Two STRAC
    field hospitals and two helicopter ambulance detachments, plus supporting
    elements consisting of water purification, signa], and laundry
    units, were formed into Task Force Amigo. Airlift was provided by
    the U.S. Air Force. In spite of the great distance, weather conditions,
    limited capacity airfields en route, and destruction of railroads and
    roads in the disaster area, the first hospital became operational in
    Puerto Montt, Chile, on May 30, 1960. The other hospital, after
    arrival in the objective area, traveled south over 500 miles of badly
    damaged single track railroad and became operational at the city of
    Valdivia on May 31, 1960. The hospitals completed their mission by
    June 7, 1960, and United States personnel returned to their home staOPERATIONS
    AND TRAINING 127
    tions. Hospital equipment was donated to Chile. The helicopter
    ambulance detachments completed their mission on June 17, 1960, and
    returned to the United States. (See fig. 2.)
    Urgent requests from the Government of Morocco for assistance to
    victims of the Agadir earthquake resulted in the movement of an engineer
    company from United States Army, Europe, to the disaster areas
    in Morocco on March 3, 1960. This unit utilized its heavy equipment
    to clear access routes through rubble and to assist in rescuing trapped
    victims. Food, blankets, tentage, and other related items were also
    provided by USAREUR.
    Figure 2. Army nurse treating Chilean earthquake victim.
    ANNUAL 128 REPORT OF THE SECRETARY OF THE ARMY
    Training in the United States
    Replacement Training
    During fiscal year 1960, 195,000 active Army replacements completed
    basic training in Army training centers and in units of the
    Strategic Army Force (STRAP). After completion of 8 weeks’ basic
    training, the majority of the trainees were assigned to advanced individual
    training either in Army service schools or at Army training
    centers. A small percentage was assigned immediately to active Army
    units.
    In the years since the Korean conflict, greater emphasis than ever
    before has been placed on finding means and methods to improve the
    training of the individual soldier and to reduce the leadtime which is
    necessary to bring him to a state of combat readiness and to maintain
    him in a ready posture. In addition to new training techniques
    developed within the Army, human research has been employed and
    techniques developed to apply what is known about human behavior
    for improving methods of military instruction. These combined
    efforts have reduced training time for some military and technical
    skills by as much as 40 percent. Over-all, the estimated time required
    to prepare a newly activated division for combat has, likewise, been
    reduced from the 10 to 12 months required in World War II and
    generally for the Korean war, to a period ranging from 7 to 10 months
    today, depending on whether soldiers sent to a division have already
    received individual training.
    This has been achieved in spite of the involved training problems
    associated with new and complex weapons. The Army anticipates
    further progress in improving training methods, particularly as a
    result of human research. However, there is an irreducible minimum
    of time needed to prepare a soldier for combat. This emphasizes the
    need for well-trained men in the active Army and in the civilian
    components to be prepared for rapid deployment in the event of a
    sudden outbreak of hostilities.
    Exercise BANTAN TREE II
    BANYAN TREE II was a joint Army-Air Force-allied force
    exercise during fiscal year 1960 to demonstrate the ability to conduct a
    rapid reinforcement of the Caribbean Command in Panama with
    forces from the United States and from other American countries.
    Other nations represented were Brazil, Colombia, Panama, Peru, and
    Chile. Approximately 5,000 Army, Air Force, and allied personnel
    participated in the exercise, using 130 aircraft. The airborne assault
    itself was executed by 1,450 United States and allied troops.
    BANYAN TREE II was the first field exercise in Panama in which
    OPERATIONS AND TRAINING 129
    the tactical roles were assigned to ground and air units of other American
    republics. It was the second exercise in which U.S. Army troops
    have marshalled in the United States and executed a direct parachute
    assault on a simulated enemy objective overseas—in this instance almost
    2,000 miles from home stations. BANYAN TREE II vividly
    demonstrated that forces from widely separated locations in the Western
    Hemisphere and representing six countries can be integrated and
    coordinated to apply military force in a specified objective area.
    Exercise LITTLE BEAR
    Exercise LITTLE BEAR, conducted in Alaska during the past
    year, provided unit and individual training in cold weather operations,
    enabled the operational testing of certain plans of STRAC units,
    and practiced reinforcement of the Alaskan Command. A reinforced
    battle group was airlifted from Fort Lewis, Wash., to Alaska, utilizing
    U.S. Air Force aircraft. This exercise proved to be an excellent
    means for training troops in tactics and techniques unique to cold
    weather operations. The extensive use of light helicopters to provide
    improved tactical air mobility and logistical support emphasized
    the great need for this type of mobility on a battlefield in primitive
    Arctic and sub-Arctic areas. Approximately 5,300 troops participated
    in the exercise. (See fig. 3.)
    Figure 3. Field exercise in Alaska.
    Exercise PUERTO PINE/BIG SLAM
    Exercise PUERTO PINE/BIG SLAM was developed by the U.S.
    Army and the U.S. Air Force as a joint strategic airlift operation
    from the United States to Puerto Rico and return during the past
    fiscal year. This exercise was the largest peacetime airlift operation
    ever conducted. Approximately 21,000 U.S. Army troops and 11,000
    130 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    tons of equipment and supplies—from 80 units and 29 Army stations—
    were airlifted from 14 Air Force bases in the United States. As a
    manifestation of the “One Army” concept, units involved in the
    exercise included an Army National Guard artillery battalion from
    Utah and an Army Reserve artillery battalion from Pennsylvania.
    Although both the STRAC and the organizations of the Air Force
    conducted the operation with superior skill and with an outstandingrecord
    for safety and continuity, Exercise PUERTO PINE/BIG
    SLAM highlighted the limitations of the presently available Air
    Force transport fleet to meet requirements for strategic airlift.
    The following important lessons relating to STRAC operations in
    the future were drawn from this exercise: Exercises should include
    strategic air movement, staging for assault operations, and the conduct
    of airborne and airlanded assault operations in the objective
    area; Army units trained in accordance with current doctrine can
    assemble rapidly and effectively at locations other than their home
    stations; STRAC can integrate into a large joint force with minimum
    delay; and STRAC is in constant readiness to be deployed to a
    temperate or tropical part of the world without extensive special
    environmental training.
    Army Schools
    Since the Korean war, the Army service school system has been
    subjected to a continuing review to make it responsive to the changing
    requirements of the Army. A great many changes have been made
    both in officer and in enlisted men’s schools affecting student requirements
    and quotas, curricula, and techniques. The most recent change
    came as a result of a reevaluation of officer education in the Army
    started in fiscal year 1959. Directly related to the officer career
    program, this fiscal year 1960 change provided for 8-week branch
    orientation courses in lieu of 16-week basic branch orientation courses
    for newly commissioned officers, and for the elimination of all company
    or battery officer courses.
    During fiscal year 1960, 56,000 officers and 79,000 enlisted personnel
    from the active Army, reserve components, other Services, and allied
    countries attended Army service schools. Because of the need for
    highly trained personnel to man the modern and complex weapons of
    today’s Army, the Army service school system is increasingly essential
    to the Army’s training effort.
    During fiscal year 1960, approximately 1,800 officers and enlisted
    personnel were trained in civilian institutions and industrial organizations.
    Such training is provided under the following circumstances:
    When the required training can be accomplished to meet desired
    standards at reduced cost to the Government; when comparable essenOPERATIONS
    AND TRAINING 131
    tial training is not available within the Army service school system;
    and when the expected retention of the individual in the Army justifies
    the cost of the training. Training in civilian schools, colleges, and
    universities and in commercial and industrial institutions is aimed
    specifically at Army needs and not at raising the general educational
    level of the Army, although it contributes to the latter as a derivative
    benefit.
    Officials of the U.S. Military Academy, assisted by a committee
    of the Commission on Institutions of Higher Learning of Middle
    States Association of Colleges and Secondary Schools, recently completed
    a survey of the educational system of the Military Academy,
    and, as a result, introduced a number of changes in the Academy’s
    curriculum in fiscal year 1960. Purely military training has been
    moved almost entirely into the summer training period, while being
    improved and made more realistic. In the summer period starting
    with the close of fiscal year 1960, for example, members of the class
    of 1961 were transported to Europe, where they were given the opportunity
    to serve as platoon leaders with combat elements of the
    Seventh Army.
    The regular school year academic program at the Military Academy
    was revised to provide a broader base, in order to allow cadets of
    varying backgrounds, abilities, and desires to undertake courses best
    suited to their individual capabilities and motivations. Cadets who
    have studied standard university courses in prescribed subjects prior
    to entry into the Academy are now permitted to take related or advanced
    courses in the subject area, rather than to repeat the standard
    courses. Also, the policy of allowing cadets to progress at an accelerated
    pace in courses in which they are adept has been extended to
    include courses in mathematics, electricity, government, and civil
    engineering. Finally, in their last year, cadets are authorized to take
    three elective courses. Adjustments in the curriculum now provide
    courses which are about 60 percent pure or applied science and about
    40 percent in the social sciences and the humanities. The total 4-
    year curriculum presently approximates 160 semester hours of a
    civilian college.
    Army Aviation
    Operations in the Korean war reemphasized the need for versatile
    light aircraft to perform various tasks in close conjunction with infantry,
    artillery, and armor forces. Since that time, development of
    new forms of air vehicles and developments in the organization and
    employment of Army forces in modern warfare have pointed increasingly
    to the need to exploit the unique capabilities of modern air
    vehicles to attain improved tactical mobility.
    132 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    During fiscal year 1960, the aviation companies organic to the
    Army’s divisions were reorganized to provide division commanders
    with a greater airlift capability for the conduct of air-mobile operations,
    that is, the use of organic air vehicles to move combat units
    wherever required in the combat zone, for the conduct of varied
    operational tasks.
    The use of armed helicopters to perform ground reconnaissance
    and to conduct minor combat patrols was tested successfully during
    fiscal year 1960. (See fig. 4.) Studies were made analyzing the
    use of this form of air cavalry as an essential element of modern
    land warfare.
    During fiscal year 1960 the active Army maintained 6,400 aviators
    supported by 12,000 enlisted mechanics. Aircraft—ranging from
    two-place observation planes to 3-ton transport aircraft—totaled
    4,500. These were assigned to 53 company-size aviation units distributed
    throughout the Army.
    Figure 4- Iroquois helicopter armed with SS-11 missiles.
    Military Assistance to Allies
    The forward strategy of the United States is strongly bolstered
    by the armies of the allies of the United States around the world.
    Free world ground forces supported by the Army represent 80 percent
    of the ground force strength of the free world.
    United States military assistance to allied armies accomplished
    two vital functions. First, by equipping and training local forces
    OPERATIONS AND TRAINING 133
    in those areas most vulnerable to Communist encroachment, a significant
    bulwark to aggression is created. During fiscal year 1960 the
    Army delivered over a half a billion dollars’ worth of military materiel
    to allied nations. Second, the materiel and training assistance
    provided to national armies by the United States contributes greatly
    toward freeing the limited industrial capacity and strained fiscal
    resources of many struggling nations in underdeveloped areas. This
    serves to assist local governments in meeting the pressing requirements
    of their civilian economies and thus aids in the development of internal
    stability and strength.
    The basic organizations for planning for the provision of military
    assistance to foreign countries are Military Assistance Advisory
    Groups (MAAGs) or Military Missions. In fiscal year 1960 the Army
    had 4,500 of its best-trained officers and men in these activities in more
    than 40 foreign countries—not only to aid in the deliveries of materiel,
    but also to train or arrange for training of members of foreign armies.
    This training includes both officers and enlisted men and ranges from
    basic tactical training to complex technical instruction. For example,
    in fiscal year 1960 6,300 foreign students were trained in Army schools
    in the United States and 2,000 additional foreign students were trained
    in oversea Army schools.
    With assistance and advice from MAAGs, military schools are
    established by other free world nations for the training of their officers
    and noncommissioned officers. In many cases where it is determined
    desirable, the schools established by these allied armies are patterned
    directly on their United States counterparts. For example, Iran,
    Turkey, Vietnam, the Philippines, and Korea—to name but a few—-
    have developed counterparts of the schools at Forts Leavenworth,
    Benning, Sill, Knox, and at West Point. These schools are not
    counterparts in terms of physical plant, but in curricula, methodology,
    and in the spirit of learning. Frequently, the commandant and key
    faculty members of these schools are themselves graduates of corresponding
    U.S. Army schools.
    Thus, from a relatively small group of U.S. military personnel, the
    security of the free world has gained strength and cohesiveness in
    many critical areas, especially those about the periphery of the Sino-
    Soviet empire.
    The Army’s Role in Civil Defense
    During fiscal year 1960, the Army took steps to improve its preparedness
    to render support to the Nation in a civil defense role in the event
    of general war. Realistically evaluating the dangers arising from a
    massive nuclear attack on the United States and the widespread devastation
    which would exist, the Army recognized that its responsibility
    134 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    to offer effective assistance would be second only to its combat responsibility.
    Sizable military forces may be required for employment
    in civil defense and substantial military resources may be necessary
    to assure national survival. While the Army emphasizes that military
    participation in civil defense is not a substitute for civil action or civil
    authority, realistic analysis dictates that all elements of national
    strength be prepared to participate in the national recovery effort in
    the event of general nuclear war, consistent with their capabilities and
    other missions.
    To this end, the Army’s position is that assistance to civil authorities
    in case of a natural disaster or a nuclear attack on the United States is
    a secondary task within the mission of all Army forces, both active and
    reserve. Reserve component units have a ready capability in this connection
    because of their wide geographical distribution, their possession
    of arms and equipment, and because of their trained manpower
    organized within the military structure.
    Reserve Components
    The over-all mission of the reserve components is to provide trained
    units and individuals to the Army in the event of war or national
    emergency. In the case of units, they must be of proper strength,
    be sufficiently advanced in training, and have sufficient equipment to
    enable them to be deployed with a minimum of postmobilization time.
    In a like manner, individuals designated as reinforcements to active
    Army and reserve component units must be in a state of training equal
    -to that in the units they are to reinforce.
    In the Korean war, the importance of the reserve components during
    an emergency was illustrated by the ordering to active duty of 124,500
    enlisted men and 14,100 officers of the Army National Guard and 78,500
    officers and 165,000 enlisted personnel of the Army Reserve.
    In the past, many have thought of the reserve components as being
    an adjunct of the regular Army, something added to the peacetime
    forces during an emergency. Today, such a viewpoint distorts the
    purposes of the reserve components. In the last 7 years, the regular
    establishment has been reduced from a 20-division force to a 14-
    division force. As these regular forces were reduced, reserve components
    forces have been designated for mobilization in the event of an
    emergency to assist in accomplishing the Army’s broad mission.
    During fiscal year 1960 the Army’s continuing program to bring the
    active Army and the reserve components into more effective relationship
    was carried on at an accelerated pace. Today, under the quasiwartime
    conditions of the cold war, the Army has closed the ranks
    between its active and reserve forces more tightly than ever before in
    peacetime, administratively and operationally. Active forces and reOPERATIONS
    AND TRAINING 135
    serve components are closely linked into “One Army.’ The “One
    Army” program, which has been expressed as the development to the
    fullest of the spirit of unity among all branches and components of
    the Army, recognizes the importance of highly ready reserve forces
    in deterring war and the very real military power which they represent—
    a power whose potential can be realized only through the closest
    of associations with the active forces. This potential, with the industrial
    mobilization base which supports it, is essential so far as
    dealing with limited war is concerned. It is also essential to the
    accomplishment of the tasks a general war would bring—recuperation
    and civil defense, active air defense, and the ultimately decisive land
    operations of a prolonged war.
    Organization and Strength of Reserve Components
    Beginning in 1956, the active Army reorganized its combat divisions
    and supporting forces for modern warfare under the pentomic
    concept. This reorganization brought about changes in tactical employment,
    weapon systems, and the size and number of units. The
    reorganization of the reserve components to the pentomic structure
    was completed in fiscal year 1960.
    They are now organized into 37 combat divisions, 27 of which are
    Army National Guard and 10 Army Reserve. In addition, provision
    is made for 13 Army Reserve training divisions to operate training
    centers as part of the mobilization base and for numerous combat support
    and service support units of both the Army National Guard and
    the Army Reserve.
    At the end of the Korean war various committees began studies of
    the means by which the manpower requirements of the reserve components
    could be met. The Korean experience and the results of
    committee studies laid the foundation for the National Reserve Plan
    and the legislative proposals which culminated in the Reserve Forces
    Act of 1955. This act provided trained manpower for the reserve
    components by establishing the legal authority for the 6-month active
    duty for training and by requiring active duty veterans to participate
    in the reserve programs. This influx of trained manpower has permitted
    the reserve component units to progress into unit training,
    thereby reducing their requirement for postmobilization training by
    almost half. Incident to this progress has been the maintenance of
    unit strengths adequate for the conduct of unit training.
    To assure the continued availability of qualified personnel in the
    Army Reserve, a screening program was initiated in fiscal year 1956
    to refine the Ready Reserve by discharging or transferring to the
    Standby or Retired Reserve individuals who did not meet retention
    criteria or who did not wish to remain after the initial quantitative
    136 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    screening. Activities now emphasize qualitative screening. (See
    fig. 5.)
    The total strength of the Army’s reserve components at the end of
    fiscal year 1960 was 2,625,021, of whom 1,432,098 were in the Ready
    Reserve and the remaining 1,192,923 were in the Standby and Retired
    Reserve.
    The actual paid drill training strength of the reserve components
    at the end of fiscal year 1960, including Ready Reservists undergoing
    3 to 6 months’ training, totaled 702,846.
    RESERVE STRENGTH
    The Army National Guard portion of the 702,846 strength was
    401,765; the Army Reserve portion was 301,081. Undergoing 3 to 6
    months’ training on June 30, 1960, were 58,014 Ready Reservists,
    33,925 Army National Guard, and 24,089 Army Reserve.
    Readiness of the Reserve Components
    In the reorganization of the reserve components, a concept of relative
    priorities was developed. The substance of this concept is that
    OPERATIONS AND TRAINING 137
    those units which are required for mobilization and deployment first
    will attain a higher level of training prior to mobilization. This in
    turn will require in the premobilization period relatively higher manning
    and equipment levels. As a consequence, such units must be
    specifically designated in advance and receive priority treatment
    prior to mobilization. Units in Priority I include nondivisional units
    to round out the active Army, the on-site National Guard units, and
    other units and individuals to expand the mobilization base of the
    active Army.
    Priority II units include a group of balanced division forces known
    as Ready Reserve STRAP and additional units for the phased expansion
    of the mobilization base. Remaining reserve forces are
    placed in Priority III.
    School Training
    During fiscal year 1960 further efforts were made to bring the
    members of the reserve components more realistically into the school
    system of the active Army without detracting from the active Army
    need for school graduates for current operations.
    To assure the civilian soldier the same proficiency level of training
    as the man in the active Army, the Army Signal Training Center at
    Fort Gordon, Ga., undertook an experimental training program for
    reserves. Nearby reserve signal units, particularly those from
    Georgia and South Carolina, were invited to send their signal specialists
    to Fort Gordon for training on Sundays. Because of the distance
    involved for the Alabama signal units, a mobile instructor team with
    selected equipment visited the units. These and other unique experiments
    in training were made during the year to make the “One Army”
    concept a working reality.
    Since the Korean war, the Army National Guard has developed a
    system of officer candidate schools that is almost nationwide, increasing
    from 4 to 43 at the end of fiscal year 1960, with enrollments
    jumping from 500 to 2,600.
    Nearly 8,200 members of the Army National Guard attended Army
    service schools during fiscal year 1960. This was a 35 percent increase
    over the rate of attendance at the end of the war in Korea.
    During fiscal year 1960, 4,390 officers and 442 enlisted personnel of
    the Army Reserve were trained at Army service schools in courses
    varying in length from 2 weeks to several months.
    Training Exercises
    Elements of the reserve components participated in two major
    training exercises during the past year—Exercise READY FREDDY
    and Exercise PUERTO PINE/BIG SLAM.
    138 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    Exercise READY FREDDY involved 3,000 members of the Army
    Reserve who were assigned to units in the First, Second, and Sixth
    Armies. This exercise evaluated the capabilities of the Ready Reserve
    mobilization reinforcement system and provided realistic training
    in mobilization procedures.
    In Exercise PUERTO PINE/BIG SLAM, 300 Guardsmen of the
    2d Howitzer Battalion, Utah National Guard, and 200 Army reservists
    of the 3d Howitzer Battalion, 15th Artillery, of the 79th Infantry
    Division participated. The reserve component units were airlifted
    from the United States to Puerto Rico for 2 weeks’ training and
    were then returned by air.
    Reserve Officers’’ Training Corps
    The primary mission of the Army Reserve Officers’ Training Corps
    (ROTC) program is to provide junior officers for the active Army, the
    Army Reserve, and the Army National Guard. The Army is dependent
    upon the ROTC as the principal source of its officers in peace
    and war. The Army ROTC program not only produces several
    thousand officers each year for the active Army, but also supplies
    several thousand officers annually for troop units of the Ready Reserve
    and for assignment to leadership positions in all components
    of the Army in the event of emergency.
    Currently participating in the program are 233 ROTC units at
    248 institutions in the senior division of colleges and universities, 40
    units at 40 institutions in the military schools division, and 92 units
    at 258 secondary schools in the junior divisions. Enrollments in the
    ROTC program during fiscal year 1960 totaled 231,381 cadets.
    The Department of the Army has reexamined the ROTC program
    to redefine its objectives and to determine areas where changes may
    be necessary in view of future requirements. Following almost 2
    years of study and research by the Army, a revised curriculum for
    ROTC was approved during fiscal year 1960. This revised ROTC
    curriculum authorized the substitution of 90 hours in universitytaught
    courses in the advanced course, in the areas of science comprehension,
    effective communication, general psychology, and political
    institutions.
    As a result of a divergency in hours between the Army and Air
    Force ROTC basic courses, an administrative difficulty developed at
    the institutions sponsoring both programs on the campus. This difficulty
    was resolved when both Services agreed to conduct a basic
    ROTC program which would authorize the substitution of 30 hours
    in university-taught courses. This revised basic course was approved
    by the Secretary of the Army for implementation in school year 1961-
    62, and will be applicable to all institutions sponsoring Army ROTC
    OPERATIONS AND TRAINING 139
    who desire to adopt this modified basic course. Authority was granted
    those institutions having Army and Air Force compulsory ROTC
    units to implement the revised basic course curriculum during school
    year 1960-61, if desired.
    A great deal of pressure has recently been focused on educational
    institutions by student and faculty groups to change from a policy
    of requiring the student to pursue a course in military science and
    tactics during his first 2 years of college to a policy of an elective
    program. This pressure has resulted from, among other causes, the
    increase in college enrollments (requiring additional classroom space),
    the demands by accrediting associations for increased emphasis on
    academic subjects leading to degrees, and in some cases, to opposition
    to military training on the college campus. Although the decision
    on compulsory versus elective ROTC is one to be decided by school
    authorities or State legislatures, the Army has consistently advanced
    its support of the required system. The Army has based its position
    upon the necessity of a broad base from which to select students for
    the advanced course, the need to insure qualitative production, and
    the desire to further the schools’ efforts to instill within the student
    a sense of patriotism and responsibility. The Army’s position has
    been further predicated upon the observed decline in enrollment within
    the ROTC when a school permits the student to take the course on
    an elective rather than a required basis.
    At the end of fiscal year 1960, the University of California, Ohio
    State University, and Washington State University were considering
    changes to an elective system. Massachusetts Institute changed to an
    elective system in September 1959; the University of Wisconsin, Rutgers
    University, Cornell University, and the University of Puerto
    Rico changed to elective systems effective with academic year 1960-61.
    The ultimate result of these changes cannot be predicted at this time.
    However, the Army experience factor in this matter indicates that,
    should the trend toward an elective basic program continue, the annual
    production goal of 14,000 junior officers of high quality for the ROTC
    may not be capable of attainment.
    Army Intelligence Reserve
    Reorganization of the Army Intelligence Reserve into 127 detachment-
    and company-size units was completed during fiscal year 1960.
    The consolidation resulted in eliminating many small teams located
    in smaller communities throughout the United States. Every effort
    was made to salvage the trained intelligence personnel by transferring
    them to other units as intelligence specialists or by forming them
    into training detachments.
    595308—61------ 10
    140 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    Fifty percent of the units of the Army Intelligence Reserve are
    Strategic Intelligence Research and Analysis Detachments. These
    detachments, with only 11 percent of the personnel of the Army
    Intelligence Reserve, contribute to the over-all Army intelligence
    effort by working on research and analysis projects during their training
    periods. The projects are incorporated into the national intelligence
    effort.
    Tactical support intelligence units of the Army Reserve are located
    in metropolitan areas of the United States so that they may more
    easily recruit linguists, which constitute approximately 50 percent of
    their military occupational specialties.
    Combat Intelligence
    Knowledge of an enemy, the weather, and the geographic features
    used in the planning and conduct of tactical operations within a given
    area are of great importance in the operations of the field Army.
    The requirements of modern warfare—which demand wide dispersions
    of troops and great mobility—have resulted in major changes
    both in the role of combat intelligence and the means employed. The
    combat intelligence system has been modernized to emphasize more
    highly developed means in the search for, the detection of, and the
    identification of targets. Rapid collection of information has remained
    critically important. A great deal more responsibility has
    been placed both on the individual soldier and on the whole collection
    network in the field army. Increased emphasis has been placed on
    intelligence training in individual and unit training and in field
    exercises. Programs of instruction of service schools have been reviewed
    and changes made, where applicable, to insure that combat
    intelligence instruction continues to keep pace with new requirements.
    During fiscal year 1960 the organization of intelligence units in the
    field army was revised to meet the changes required by modern
    warfare.
    New advances have been made in the employment of patrols, in
    the field of flash detection devices, and in ground surveillance devices
    at the battle group and battalion level. The division commander now
    has available aerial surveillance drones, aircraft, and communication
    and electronic intelligence collection means. The corps and field army
    commanders also have been provided more elaborate technological
    means for intelligence.
    A new organization has been provided at field army level-—the Air
    Reconnaissance Support Battalion—which gives the Army commander
    an improved operational link to the Air Force tactical air
    reconnaissance effort. This new unit receives, reproduces, interprets,
    OPERATIONS AND TRAINING 141
    annotates, and delivers air photography provided by tactical air
    reconnaissance.
    Because of the great mass of information expected to flow through
    intelligence channels in any future war, great emphasis has been
    placed on adapting automatic data processing equipment for field use
    in intelligence production. In fiscal year 1960 significant progress
    was made in this field.
    Mapping and Geodesy
    In fiscal year 1960 a revised worldwide command requirement for
    mapping and geodesy in support of current plans of the Department
    of Defense was published, and programs and production planning
    were designed to reflect the changes. The fact that only 27 percent of
    the world is considered adequately mapped for Department of Defense
    purposes is an indication of the magnitude of the mapping job that
    lies ahead. (See fig. 6.)
    During fiscal year 1960 approximately 500,000 square miles of largescale
    and 1,000,000 square miles of medium-scale maps were produced
    through the combined efforts of the Army Map Service, U.S. Army,
    Pacific, and U.S. Army, Europe. In addition, the Inter-American
    Figure 6. Operation of stereo-plotting device in mapmaking.
    142 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    Geodetic Survey, an Army agency in the Caribbean area, continued its
    extensive survey efforts in cooperation with Latin American countries.
    In the Far East, approximately $700,000 in yen was made available to
    the Japanese Government for the improvement of large-scale maps of
    Japan, copies of which will be made available to this country. In the
    Middle East, U.S. Army topographic troop units continued survey
    operations in Iran and Libya.
    Throughout the year, liaison was maintained with foreign countries
    in which the United States has a mapping interest. No new collaborative
    mapping or exchange agreements were made during fiscal year
    1960.
    In the new technology of using satellites for topographic and geodetic
    measurements, a project was initiated to procure SECOR
    (Sequential Collation of Range) electronic range measuring equipment
    to be used for obtaining intercontinental and interdatum ties by
    observation of signals from the SECOR, which is scheduled to be
    placed in orbit in the Navy’s TRANSIT satellite. Also, the Army
    continued operation of three Minitrack Mark II stations for observation
    of the VANGUARD Beta satellite for geodetic purposes.
    Prototypes of a new 1: 250,000-scale topographic map-aeronautical
    chart, the only coordinated map-chart series available to the Services,
    were produced and delivered to field units for Service testing and
    evaluation.
    Developmental studies in automation of certain mapping and surveying
    operations and in advanced systems for mapping were made.
    The Army Map Service began preparation of a 1: 5,000,000-scale
    topographic map of the moon during fiscal year 1960.
    Army Attache System
    The primary mission of the U.S. Army Attache System, through its
    attaches worldwide, is the overt collection of all information of value
    to the Department of the Army in the country to which accredited.
    This is an internationally accepted attache mission. The Army
    attache represents the Chief of Staff of the Army and serves as advisor
    to the chief of a diplomatic mission on Army matters.
    During fiscal year 1960 there were some 70 Army attache stations
    in operation in countries around the world.
    III. Personnel
    Since the end of the Korean war the Army has made outstanding
    progress in its total management of personnel—in the procurement,
    allocation, and utilization of manpower in bulk and in the management
    of its people as individuals.
    Strength and Distribution
    The authorized military strength of the active Army for the whole
    of fiscal year 1960 was 870,000. This was continued as the ceiling for
    fiscal year 1961.
    At the end of fiscal year 1959 actual active Army strength had
    dropped 8,036 below the programed strength of 870,000. This variation
    below the authorized ceiling was filled early during fiscal year
    1960 and a fairly level strength was maintained throughout the year.
    Actual strength on June 30, 1960, was 873,078, consisting of 770,112
    enlisted men, 87,327 officers, 10,180 warrant officers, 3,729 nurses and
    Army Medical Specialist Corps personnel, and 1,730 cadets.
    Actual distribution of Army personnel by the type of function performed
    at the end of fiscal year 1960 follows, with a percentage comparison
    with the distribution at the end of fiscal year 1953.
    Numbers
    30 June 1960
    Percentages
    30 June 1953 30 June 1960
    Operating Forces______________ 562, 277 58. 8 64. 4
    Training Forces_______________ 148, 069 24. 9 16. 9
    Support Forces________________ 89, 019 6. 4 10. 2
    Special Activities____ _________ ____ 58, 366 2. 2 6. 7
    Transients and Patients________ 15, 347 7. 7 1. 8
    Total__________________ ____ 873, 078 100. 0 100. 0
    The Army’s significant improvements in personnel management are
    reflected in these figures—the proportion of operating forces increased
    significantly, and major reductions were achieved in the percentage of
    personnel engaged in training and nonproductive as transients and
    patients. The increased percentage of support forces reflects both the
    smaller size of the Army as a whole (with minimum essential support
    applied to a smaller base and, therefore, reflecting a higher percentage)
    and the increasing technical complexity of the equipment in the
    hands of troops. It is unlikely that any significant reductions will be
    143
    144 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    achieved in the relative proportion of support forces in the future.
    Special activities include international, joint service, diplomatic, and
    liaison functions. Here, as in the support function, the increases are
    readily explained, and it is unlikely that significant reductions will be
    achieved in the future. Nevertheless, it is the aim of the Army to
    continue to achieve the best attainable balance within the resources
    made available and, at the same time, to continue the trend toward an
    even larger percentage of operating forces. (See fig. 7.)
    An Army strength of 870,000 is hardly adequate for all the functions
    the Army must fulfill. While Army roles and missions have remained
    basically unchanged, its worldwide commitments have increased and
    the personnel requirements to support them have increased since the
    establishment of the 870,000-man strength ceiling during fiscal year
    1959. These increased requirements include increased trainers for
    support of reserve forces, personnel for the support of the non-Unitecl
    States NATO atomic weapons stockpile, personnel for organizations
    employing new weapon systems, new attache offices, and several other
    new manpower obligations.
    ALLOCATION OF MILITARY PERSONNEL
    Figure 1
    PERSONNEL 145
    Personnel Management Program
    Personnel management—a principal effort in the personnel field
    since the end of the Korean war—deals with those matters affecting
    people as individuals. It is concerned not only with raising the quality
    of the Army personnel, but also in making the Army system more
    responsive to individual needs. Manpower management, on the other
    hand, has as its object the efficient handling of men in bulk—their
    procurement, their allocation, and their utilization.
    Programs to raise the quality of Army personnel in recent years
    have been most successful, with the result that in fiscal year 1960 the
    over-all quality of enlisted personnel was higher than at any time since
    the end of the Korean war. The final test of this quality is, of course,
    in the Army’s combat readiness. However, a further indication of
    high quality is the fact that 7 years ago the Army operated five
    disciplinary barracks while today it has only one. The rate of
    prisoners in confinement has dropped from 11.1 per 1,000 Army
    strength on June 30, 1953, to 4.5 on June 30, 1960. (See fig. 8.) The
    rate of absences without leave has also dropped markedly. There are
    many reasons for the improvements in discipline which these figures
    indicate. Among them are the over-all higher quality of Army personnel
    and a better system of allowing them to fulfill their ideals and
    desires as individuals within the Army system.
    Since January 1, 1959, the Army has raised the acceptance score in
    the armed forces qualification test to a higher level than ever before
    established. Draftees have been accepted who score below the higher
    norm established for enlistees only if they can qualify in at least two
    aptitude areas of the Army classification battery of tests. Under
    these criteria there is a reasonable assurance that the men coming into
    the Army can absorb and profit by the training they receive and that
    they can contribute materially to Army programs. By keeping out the
    less apt, the Army also eliminates to a great extent a group that
    accounts for a disproportionate share of disciplinary problems. As
    indicated in the attached chart, both the educational level and the
    intelligence level of the Army greatly increased between June 30,1953,
    and June 30,1960. (See fig. 9.)
    General Educational Development
    The Army’s general educational development program is an important
    personnel management activity which contributes directly
    toward improving the quality of military personnel.
    Throughout fiscal year 1960, there was constant participation by
    some 125,000 officers and enlisted personnel in this program. More
    than 420,000 courses of all kinds were completed during the year in
    146 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    PRISONERS IN CONFINEMENT - PER 1000 STRENGTH
    ENLISTED PERSONNEL GOING ABSENT WITHOUT LEAVE
    (Fiscal Years)
    Figure 8
    PERSONNEL 147
    PERSONNEL CHARACTERISTICS
    E M INTELLIGENCE
    Figure 9
    148 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    off-duty attendance at civilian colleges and universities, in group study
    classes in Army Education Centers, and in correspondence courses
    monitored by the U.S. Armed Forces Institute. Although the subject
    matter is of a general nonmilitary nature ranging from elementary
    to postgraduate levels, the general educational development program’s
    support of military training has been increased by providing courses
    related to military occupational specialties and by assisting enlisted
    personnel in preparing for job proficiency tests. Emphasis is also
    placed upon foreign language instruction in view of the Army’s worldwide
    commitments and in support of the President’s people-to-people
    program. In fiscal year 1960 there was participation in off-duty foreign
    language study by an average of 16,000 individuals at any one
    time. More than 20,000 courses were completed in 27 languages.
    Together with higher standards for induction, enlistment, and reenlistment,
    the general educational development program has contributed
    to the appreciable increase in the quality of Army military
    personnel. For example, during fiscal year 1960, 49,496 Army enlisted
    personnel attained high school equivalency through successful
    completion of general educational development tests recognized by
    departments of education in 49 States, the District of Columbia, Puerto
    Rico, and the Canal Zone. In addition, more than 5,000 Army officers
    and enlisted personnel attained 1-year college equivalency, and almost
    600 achieved baccalaureate or graduate degrees through the program.
    The Army led the military Services in its response to the appeal by
    the President’s committee for assistance in recruiting high quality
    personnel for the teaching profession. Following the Army’s endorsement
    of the postretirement careers in teaching program in 1958,
    thousands of Army personnel have been motivated to consider postretirement
    teaching careers. During fiscal year 1960, approximately
    4,000 officers and enlisted personnel completed off-duty courses toward
    meeting teacher certification requirements. This action also benefits
    the Army directly by improving the quality of its personnel at no
    expense to the Government.
    In June 1960 the Army expanded its plan to enable commissioned
    officers to finish college by authorizing leaves of absence of up to 12
    months to complete requirements for baccalaureate degrees. Provisions
    were made for 600 officers a year to participate in this program.
    Under the degree completion program, officers are permitted to attend
    college full-time, provided they pay their own educational expenses
    and travel. During fiscal year 1960, 350 officers received baccalaureate
    and advanced degrees. This represented a 65 percent increase over
    fiscal year 1959.
    PERSONNEL 149
    Enlistments and Reenlistments
    During fiscal year 1960 initial enlistments for the Regular Army
    totaled 102,114 despite higher mental criteria for enlistment and a very
    healthy economy. This total compares very favorably with the highest
    enlistment year since the end of the Korean war, which was fiscal year
    1955, when 119,778 initial enlistments were obtained under less restrictive
    mental standards. During fiscal years 1957 and 1958 initial enlistments
    totaled 68,944 and 78,521, respectively. Success in obtaining
    the higher number of initial enlistments in fiscal year 1960 was due to
    the combined impact of revitalized recruiting programs, better selection
    and assignment criteria for recruiting personnel, and the granting
    of status to the recruiter by establishing his occupation of career
    counselor as a primary military occupation specialty. Constant refinement
    of the enlistee’s right to choose his occupational area has undoubtedly
    helped recruitment also, as have the community relations
    programs of the Army.
    Army reenlistment rates continued to improve during fiscal year
    1960. While the reenlistment rate of career soldiers remained approximately
    the same as for fiscal year 1959—83.9 percent for fiscal
    year 1959 as against 83.2 percent for fiscal year 1960—the first-term
    rate improved.
    The enlistment rate of draftees upon termination of their compulsory
    service almost doubled in fiscal year 1960 as compared to fiscal
    year 1959 (9.1 percent as against 5.1 percent). This improvement was
    due primarily to stronger command support of the reenlistment program
    throughout the Army.
    The success of the recruiting program together with improved reenlistment
    rates is resulting in a continuing growth of the Regular
    Army content of Army personnel. At the end of fiscal year 1960,
    76.6 percent of active Army enlisted strength was Regular Army, as
    compared with 72.9 percent at. the end of fiscal year 1959 and 64.7
    percent at the end of fiscal year 1958. (See fig. 10.)
    Enlisted Evaluation System
    Many of the policies designed to improve and retain the best enlisted
    personnel are included in the enlisted evaluation system, which
    provides for evaluation of each soldier’s proficiency against Armywide
    standards.
    Fiscal year 1960 was the first full year in which the Army enlisted
    evaluation system was used. Although actual testing under the system
    began in the last half of fiscal year 1959, it was not until fiscal
    year 1960 that the effects of the program were felt throughout the
    Army.
    150 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    In addition to identifying personnel for proficiency pay purposes,
    plans were made during fiscal year 1960 to expand the system to serve
    as a means of determining the qualification of individuals in their
    military occupational specialties. Eventually, the evaluation system,
    in combination with other factors such as length of service, may be
    used in additional personnel actions—promotions, for example.
    In fiscal year 1961 the Army has for its aim the evaluation of
    216,000 enlisted personnel in 293 military occupational specialties.
    Proficiency Pay
    Fiscal year 1960 was the second year of the Army’s program for the
    award of proficiency pay to enlisted personnel. This special pay
    award program was designed to provide extra pay to enlisted personnel
    who possess special proficiency in military skills. There were
    60,653 monthly payments of $30 a month in effect at the close of fiscal
    year 1960. This was 46,860 more than were awarded in fiscal year
    1959.
    PERSONNEL 151
    Individuals who held primary military occupational specialties
    designated as critical for Army operations received 98.2 percent of the
    total proficiency pay awards. The criteria which determine whether
    or not occupational specialties are critical are: Length of training
    time, reenlistment rate, and shortage of personnel. Payments to individuals
    in noncritical specialties under a provision in the program
    for outstanding effectiveness amounted to 1.8 percent of the total
    awards.
    Individuals holding military specialties which were designated for
    proficiency payments competed on a worldwide basis under the enlisted
    evaluation system during the past year to attain eligibility for
    proficiency pay awards. Annual requalification for retention of proficiency
    pay was initiated during fiscal year 1960.
    Personnel Movement
    The policy of reducing the number of permanent changes of station
    for officers and enlisted men, which was adopted shortly after the end
    of the Korean war, was heavily emphasized in fiscal year 1960. However,
    other actions, such as the deployment of an airborne battle
    group to Okinawa, the divisional reorganizations, both overseas and
    within the United States, and continuing steps to provide the Army
    with the most up-to-date weapons and organizations, served to counteract
    the over-all effort to reduce movement of individuals.
    In order to minimize movements occasioned by activation, inactivation,
    and organization and reorganization of units, provisions for inplace
    utilization of personnel and for early release of personnel due
    for separation and rendered surplus by organizational shifts were
    enforced.
    Further, in order to detect more readily the causes of movement so
    that reductions, where possible, might be made, a new report system
    was established to provide actual monthly permanent change-ofstation
    performance data on military personnel.
    In May 1960, when it became apparent that travel funds for fiscal
    year 1961 would be insufficient for what was considered a reasonable
    rate of movement, additional restrictions on movement of personnel
    within the United States were imposed. Still further restrictions to
    be imposed on the movement of personnel during fiscal year 1961 to
    cope with fund limitations were under study.
    Two major improvements were effected during the year in the
    Army replacement system—one, the carrier company replacement
    system; the other, the unit-to-unit replacement system.
    The carrier company replacement system is a means whereby replacements
    are formed into units for shipment to specific oversea or152
    ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    ganizations in Europe. Under this plan all personnel entering into
    advanced individual training are formed into 4-man teams. The
    composition of each team primarily arises from the desires of individuals
    to team up with others from the same home town, from the
    same civilian school, from the same basic training group, or from
    other associations. Individuals are given the opportunity of selecting
    those with whom they wish to be closely associated during the 8-week
    advanced training period and during the first subsequent assignment.
    The 4-man team formation is not a guarantee that the four men
    will be assigned to their first station together, but, insofar as Army
    requirements permitted during fiscal year 1960, planned team assignments
    were carried out. The 4-man team system proved beneficial
    during the past year in raising the morale of trainees and retaining
    it to the point of assignment where the esprit and morale-building
    procedures of each unit come into play.
    The unit-to-unit assignment system is a program for assignment of
    individual enlisted personnel from their duty stations in the United
    States directly to oversea units. Procedures were published during
    fiscal year 1960 providing for the worldwide assignment of individuals
    in grades E8 and E9 under the system, and for all El through E7
    personnel who are ordered overseas upon completion of advanced
    individual training or schooling. This did not include certain training
    personnel who will come under this system in fiscal year 1961.
    Women’s Army Corps
    The strength of the Women’s Army Corps increased by about 500
    during fiscal year 1960 to a total strength of 9,053. Improved recruiting
    procedures, the retention of newly commissioned officers, and
    higher reenlistment rates accounted for the rise. Officer strength was
    improved with officer gains exceeding officer losses during fiscal year
    1960 for the first time since the end of the Korean war.
    A new Women’s Army Corps detachment was activated at Headquarters,
    U.S. Army, Pacific, during the year.
    Several advances in personnel management of enlisted women were
    made during fiscal year 1960 such as a more valid basis for assignment
    of enlisted women to school training, better promotion opportunities,
    and more satisfactory assignment procedures.
    The number of military occupation specialties in which enlisted
    women may be assigned has been expanded to provide a broader range
    of school training and utilization. At the end of the year, 465 enlisted
    women were receiving proficiency pay; 33 women had been
    promoted to pay grade E8 and 1 to E9.
    PERSONNEL 153
    Civilian Personnel
    The trend in Army civilian personnel management since the end
    of the Korean war has been toward a smaller, more highly skilled,
    and more efficient civilian work force. This has resulted partly from
    changing missions and partly from an intensive effort by the Army
    to reduce the number of civilians required through training and
    utilizing each employee to his full capacity. During the Korean
    war a large proportion of Army civilian employees was directly engaged
    in the production of military supplies. Most of these manufacturing
    activities ceased with the end of the fighting, so that today
    fewer than 5 percent of civilian employees are engaged in manufacturing
    activities. On the other hand, other missions, notably research
    and development, have expanded. Today 10 percent of all
    civilian employees are engaged in research and development activities.
    To make possible the expansion of research and other vital new
    activities, unremitting efforts have been devoted to increasing efficiency
    in all operations by improving the training of employees; by
    introducing labor-saving devices, especially automatic data processing
    equipment; by improving work methods and procedures; and by eliminating
    unnecessary administrative procedures. The success of these
    efforts is demonstrated by the fact that Army civilians today are doing
    a larger, more complex, and more difficult job than they were 5 years
    ago, even though their number is smaller.
    Strength
    At the end of fiscal year 1960, 503,000 civilians were employed by
    the Department of the Army. Of this total, 390,000 were direct hire
    employees working in the continental United States, its Territories
    and possessions, and in foreign countries; the remaining 113,000
    were local national employees who support the Army in France,
    Germany, Korea, and Japan.
    Since the end of the Korean war, total civilian employment in
    the Army has declined by 408,000 employees, or 45 percent. Almost
    70 percent of this reduction has resulted from the elimination of
    direct and indirect hire of local national personnel in foreign countries.
    In the continental United States the reduction has amounted
    to 119,000 employees, or 26 percent of the 1953 work force. (See
    fig- H-)
    During fiscal year 1960 the total strength of civilian employees of
    the Army was reduced by 23,000, or almost 5 percent. Although
    this reduction was less than those of recent years, there was considerable
    shifting of civilian manpower as some old activities were reduced
    or closed down and new activities initiated. In the area of logistical
    154 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    functions, for example, there was a total increase in civilian personnel.
    Although several ordnance depots and maintenance activities
    w’ere closed down, causing a net reduction of logistical personnel
    of 3,500, at the same time expanded responsibilities—particularly in
    improvement and maintenance of missiles, electronic devices, and aircraft—
    required the hiring of 10,000 civilians.
    CIVILIAN EMPLOYMENT WORLD WIDE
    (End of Fiscal Year)
    Figure 11
    Career Programs
    One of the most important projects for long-range improvement
    of the civilian work force is the development of career programs to
    provide for the training, evaluation, and best placement and use of
    employees throughout their careers. Long preliminary work in this
    area began to bear fruit in fiscal year 1960 as a result of the supply
    management career program and the civilian personnel administration
    and the comptroller career programs. More than 32,000 employees
    are covered by these three programs in which specific training
    plans and career patterns are laid out for a wide variety of occupaPERSONNEL
    155
    tions. Army-wide career programs are being developed for seven
    additional career fields.
    A preliminary report of the use of civilian career programs to develop
    and select executives was submitted to the Civil Service Commission
    in the past year. Although the Army at present has no
    great problem in replacement, there is a need for selecting, developing,
    and advancing highly qualified persons in the younger age groups.
    Health Benefits Program
    A major employee benefit was established during the past year
    by the Federal Employees Health Benefits Act. This act provides
    a voluntary health benefits program with the Federal Government
    defraying a substantial part of the cost. While the Civil Service
    Commission was given over-all responsibility for the administration
    of the act, the Army conducted orientations for its employees, so that
    they might choose intelligently and freely from the available health
    plans.
    Oversea Work Force
    During fiscal year 1960, as in the past, the Army emphasized raising
    the efficiency and productivity of its oversea work force. With
    respect to the local national worker, efforts have been pointed toward
    extending the capability of each worker in order to reduce the
    size of the work force while increasing its efficiency. Well-established
    training programs prepare local nationals to fill more difficult jobs
    and supervisory jobs, thereby decreasing the number of U.S. citizens
    required overseas.
    A good start has been made on extending Army-wide career programs
    to oversea employees. In addition, mandatory reemployment
    rights have been extended to persons accepting oversea assignments.
    These actions will help to assure that responsible jobs overseas will
    be filled by experienced and highly qualified employees and will aid
    in orderly rotation of civilian employees between the United States
    and foreign duty stations.
    Requisitions on hand for oversea jobs at the end of the year reflected
    a satisfactory situation, with a decrease from 264 at the end
    of fiscal year 1959 to 195 at the end of fiscal year 1960. Of the 195
    requisitions on hand, 115 were for employment in Korea, which indicates
    a need for special emphasis on recruiting for that area during
    fiscal year 1961.
    Placement in Army jobs within the United States of returning
    oversea employees increased substantially in 1960. This has worked
    particularly well in direct exchanges of employees between oversea
    595308—'61------11
    156 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    areas and the United States. The Army has acted to stimulate rotation
    of employees with extended oversea service. Results of this
    action have been reflected in increased placement activity.
    Incentive Awards
    Substantial advances made in the Army’s incentive awards program
    in recent years continued in fiscal year 1960. The number of suggestions
    submitted increased 31 percent over fiscal year 1959, and
    there was a 22 percent increase in the number of adopted suggestions.
    Operation SEARCHLIGHT—an Army-wide suggestion campaign—
    during fiscal year 1960 related suggestion activity more directly to
    areas for possible improvement which had been identified and publicized
    by management. The fiscal year 1960 objective of 250 suggestions
    per 1,000 employees was exceeded, with a fiscal year 1960
    achievement of 270 suggestion submissions per 1,000 employees; the
    adoption rate was 66.7 per 1,000 employees. First year dollar benefits
    accruing to the Government as the result of this activity approximated
    $18 million. In addition, military suggestion activity increased
    substantially.
    The biggest single award of the year, amounting to $5,000, was made
    to eight employees of the Army Audit Agency for ingenuity in an
    audit procedure.
    Recognition of achievements of Army personnel by authorities
    outside the Department of the Army included the award of the
    Department of Defense Distinguished Civilian Service Medal to
    two outstanding members of the Army’s scientific staff, and the
    Arthur S. Flemming Award to a third outstanding Army scientist.
    Safety
    The Army received the President’s Safety Award for calendar
    year 1959 and thereby became the only Federal agency employing
    more than 50,000 persons to win it for the second time.
    The National Safety Council awarded its seventh consecutive
    annual Award of Honor (for fiscal year 1960) to the Army.
    The reduction in accidents during fiscal year 1960, in comparison
    with projected averages, resulted in saving 98 lives, 2,300 injuries,
    68,900 duty days, and $1,656,000 in costs.
    Accident prevention is an integral part of the development of new
    weapons and methods of warfare—in planning, testing, production,
    storage, movement, and utilization.
    Continued coordination -with National, State, and local authorities
    in the United States has resulted in a 17 percent improvement in
    the private vehicle military fatality rate in fiscal year 1960 over 1959
    and a 44 percent decrease from the peak year of 1952.
    IV. Logistics
    In the 7 years since the end of the Korean war intense logistical
    planning and reorganization has been carried on in the Army with the
    same vigor and imagination as in the realignment of the combat forces
    of the Army. For this reason the true picture of logistical accomplishment
    in fiscal year 1960 cannot be portrayed merely in statistical terms
    of what was procured, what was distributed, what was disposed of,
    and what was maintained. These physical accomplishments are important
    because they are the positive measure of the materiel support
    provided for the Army during the past 12 months. But, equally
    important, although not so easily measured within the cut-off dates
    of the beginning and the end of fiscal year 1960, are reorganization
    within the logistical system and improvements in managing the system
    so that it might be capable of rapid and sustained support of the
    flexible strategic and tactical forces of today’s modern Army.
    Requirements
    Army materiel requirements are closely related to the schedules
    for mobilization and deployment of forces as outlined in the Joint
    Strategic Objectives Plan. When the Korean war ended, the Army
    materiel program called for $33.6 billion in major items of equipment
    as the requirement for general war. The inventory on hand to meet
    this requirement was valued at $12.6 billion and had been accumulated
    partly as a result of crash procurement of items available and needed
    for the conduct of the Korean war. Both the items procured and the
    industrial facilities which produced them were largely the remnants
    of World War II production.
    This poor position in equipment was further accentuated by the
    development of new and complex weapons made available by technological
    progress and, at the same time, modern concepts of nuclear
    and nonnuclear warfare. Requirements for Army equipment thus
    involved both the problem of quantity and the problem of quality.
    The groundwork for research and development in missiles, battlefield
    nuclear explosives, improved communications, off-the-road vehicles,
    and other arms and equipment of today’s Army was laid shortly
    after World War II but it was not until the early 1950’s that the
    urgency of rearmament with new and awesome weapons became
    apparent.
    157
    158 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    The extent to which the Army could modernize its equipment has
    been limited, however, because of funding limitations. In the past few
    years only the highest priority items could be procured. Recently,
    the Army has been devoting an increasing share of its procurement
    funds to the procurement of missiles, which in numbers actually account
    for only a small percentage of the more than 100 new or improved
    items which have been developed, standardized, and made
    ready for purchase since the end of the Korean war. Some 300 additional
    equipment items are in various stages of development or testing
    and will be ready for procurement in the near future.
    The NIKE-AJAX, NIKE-HERCULES, REDSTONE, CORPORAL,
    and HONEST JOHN missiles, the M-48 tank, the M-59
    personnel carrier, and a new family of conventional artillery are a
    few examples of new equipment items that have given the Army a
    far greater potential to wage successful war than it had 7 years ago.
    The beginning of procurement of the M-60 tank, the M-113 personnel
    carrier, the M-14 rifle, the new Army aircraft, and other newly developed
    items of equipment is further increasing the combat power
    of the Army at an accelerating pace.
    Prior to 1956 the Army had no significant electronic, photographic,
    or infrared capability for conducting surveillance behind the enemy’s
    lines. Today special aircraft and extremely fast and reliable drones
    have been developed which carry side-looking radars, infrared detectors,
    and photographic sensors. Surveillance devices now in the
    hands of troops, although significantly better than those of Korean
    war days, provide only a fraction of the capability for behind-thelines
    surveillance which is expected to be available within the next
    few years.
    Because of stringent peacetime funding for Army procurement, the
    Army, at the end of fiscal year 1960, had replaced only approximately
    38 percent of its World War II and Korean war equipment with
    relatively late models. In addition, some of the equipment on hand
    was not qualitatively the best available, because the Army was short
    of the most modern items needed for equipping forces in both the active
    Army and the reserve components.
    Procurement
    The accelerated pace of scientific and technical developments in
    military equipment since the end of the Korean war continued to have
    a great effect on production of new items during fiscal year 1960. The
    need for engineering improvements and design changes to exploit new
    technological developments in some cases resulted in extending production
    cycles and tended to slow down programed delivery schedules.
    LOGISTICS 159
    Nevertheless, during the past year deliveries from production exceeded
    previous year-end forecasts.
    During fiscal year 1960 the value of major equipment deliveries
    from procurement contracts, including materiel procured for customers
    outside the Army, totaled $1,750 billion. This total represents a
    decrease of $307 million, or 15 percent, below fiscal year 1959 deliveries.
    Deliveries in fiscal year 1961 are expected to reach a total of
    $1.8 billion.
    During the past few years, missiles have made up an increasing
    portion of total materiel deliveries. In fiscal year 1958 they amounted
    to $330 million, which was 24 percent of total deliveries; in fiscal year
    1959, $1,018 billion, or 50 percent of total deliveries; and in fiscal
    year 1960, $910 million or 52 percent of the total. However, the forecast
    for fiscal year 1961 indicates missile deliveries will not be much
    more than one-third of the total. This is due not only to a leveling off
    of missile deliveries but also to increases in the deliveries of combat
    vehicles, ammunition, and electronics and communications equipment.
    (See fig. 12.)
    Production and introduction into the inventory of new equipment
    items which provide significant operational improvement—such as
    the M-60 (105mm. gun) main battle tank, the M-113 armored personnel
    carrier, the M—14 (7.62nun.) rifle, the M-60 (7.62mm.) machine
    gun, and the HU-1A Iroquois helicopter—began during the
    past year. The Army plans increased production and distribution of
    these items in fiscal year 1961.
    Procurement Procedures
    The lowest price is not the only consideration in Army procurement.
    The Army is also obliged to reduce concentration of production
    in the facilities of large prime contractors. Two basic methods
    for accomplishing this are the breakout program and the control of
    subcontracting.
    Under the breakout program, components and subassemblies, originally
    obtained from a prime contractor responsible for a major
    weapon system, are purchased by the Government directly from suppliers
    on a competitive basis. For the larger and more complicated
    weapon systems the Army has found it necessary to place the responsibility
    for development and initial production on a single company
    with outstanding engineering and management capabilities in order
    to insure the success of the system. However, from the first phase
    of research and development on, the Army never loses sight of the
    goal to widen the circle of participating companies progressively.
    Among the factors considered in selecting a company as prime contractor
    responsible for a major weapon system are the company’s
    160 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    MAJOR EQUIPMENT DELIVERIES
    Figure 12
    LOGISTICS 161
    purchasing policies and its planned use of subcontractors. A critical
    examination is made of the items that the company plans to make
    in its own facilities and those which are planned for production by
    subcontractors. Prime contractors are especially encouraged to
    broaden their subcontracting base by obtaining the widest possible
    competition. If costs are reduced by broadening the base, such efforts
    are recognized during price redeterminations and when future contracts
    are placed. Provisions on subcontracting and on the use of
    small businesses are now incorporated not only into prime contracts
    but also into major subcontracts in order to avoid overconcentration
    of production in the hands of major subcontractors.
    These policies are presently being applied to the MAULER, REDEYE,
    HAWK, LACROSSE, NIKE-HERCULES, NIKE-ZEUS,
    SERGEANT, PERSHING, and MISSILE A missile systems, to
    drone systems, to surveillance systems, to radar and communication
    systems, and, insofar as possible, to other items. For example, the
    system prime contractors on the HAWK, LACROSSE, and PERSHING
    missiles are subcontracting 40 to 55 percent of their work and
    are placing up to 94 percent of this subcontracted work through competitive
    methods. There are many examples, also, which show that
    by breaking out components or subsystems, instead of procuring them
    from the system prime contractor, the resulting competition is bringing
    about reduced prices. In a number of instances, subassemblies of
    complex missile systems are of such unusual design and so difficult to
    produce that relatively high prices have to be paid for their initial
    procurement. However, as soon as design is sufficiently stabilized,
    the items are broken out and procured on a broader competitive basis.
    As examples of the effect of these policies, it was possible in fiscal
    year 1960 to reduce the prices for cable assemblies used in HAWK
    ground equipment by 59 percent, for adaption kits for the NIKEHERCULES
    system by 35 percent, and for warhead metal parts for
    the LACROSSE system by 39 percent. The Army will continue to
    push its breakout program during fiscal year 1961 to increase competition
    and to extend participation by a diversity of industrial firms,
    with emphasis on the inclusion of small business.
    Contracting teams made up of engineering, legal, accounting, and
    other specialists are one of the means used in the Army’s continuing
    effort to improve procurement. These teams place great emphasis
    on the soundness of procurement actions at the time when a new contract
    is made. Their efforts, however, do not end at this point. During
    the entire life of a contract, careful reviews and, where
    appropriate, policing actions continue, to safeguard the interests of
    the Government and to assure fair treatment of the contractor and
    subcontractors involved. Only in this manner is it possible to arrive
    162 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    at the favorable results in the breakout and subcontracting programs
    mentioned above.
    Watchful administration and continuing controls of performance
    have also contributed to the establishment of fair and just price contracts.
    Procurement by formal advertising and fixed-price contracts
    are the preferred contracting methods. In some cases, however, when
    entirely new and complicated items with no cost-of-production data
    available are being procured, it becomes necessary to use contracts
    with price redetermination clauses or cost-plus-a-fixed-fee-type contracts.
    In the former case, a cost statement is submitted by the contractor
    at a specified time. In both cases, expert audits of actual cost
    are undertaken. These enable Army procurement teams to reach
    agreement on redetermined prices or approved contract costs which
    are fair to both the Government and the contractor.
    Storage and Distribution
    Reorganization of combat elements in order to achieve the mobility
    and flexibility required to meet the threat or actuality of modern
    nuclear and nonnuclear war has created demands not only for modern
    vehicles, weapons, and equipment, but also for a logistical system
    capable of rapid and sustained support of these forces. Since the
    advent of long-range nuclear bombers and missiles, the Army has
    been particularly aware that the logistical base in the continental
    United States will not enjoy the relative invulnerability which it
    has enjoyed in the past. In view of this, the Army has adopted
    a plan to disperse its reserve stocks of items essential for combat
    on a widespread regional basis within the United States.
    At the operational level the trend of logistical organization within
    combat units is toward small, composite organizations capable of
    performing several missions. For example, within the airborne division
    all supply functions are combined in the supply and transport
    company, and signal, engineer, and ordnance maintenance are combined
    in the maintenance battalion. Emphasis in technical service
    unit organization is on development of a versatile and balanced
    service troop structure adaptable with a minimum of change to any
    combat environment. Plans for the future provide for direct support
    logistical units behind each division, backed up by general support
    echelons further to the rear. These direct support and general
    support units will also be composite units capable of providing onestop
    service to users. Progress along these lines is exemplified in
    the table of organization and equipment for Quartermaster direct and
    general support companies, which was developed in fiscal year 1960.
    The Korean conflict pointed up the desirability of having an
    on-the-ground logistical planning and management capability in
    LOGISTICS 163
    areas where U.S. forces are likely to become engaged. In the past
    few years logistical commands have been included in the troop bases
    of all major oversea commands. These units proved invaluable during
    the past year for the day-to-day logistical support of deployed
    forces.
    A logistical command is also part of the Strategic Army Corps
    (STRAC). The composition of the STRAC is such that a part of
    it, to include logistical support elements, can be deployed without
    destroying the effectiveness of the remainder. In anticipation of
    the need to deploy all or part of this force in support of U.S.
    forces or to assist allied nations in various areas, forward depots
    have been established on Okinawa and in Italy. Stockage at such
    forward depots of materiel needed in the initial stages of combat
    will reduce the impact on logistical stocks in a theater to which the
    STRAC might be deployed and would achieve a significant reduction
    in the time required to deploy this force by reducing its requirements
    for airlift and sealift. Forward depots also provide the
    nucleus for a larger logistics base to support expanded operations
    or to permit greater aid to allies.
    Probably the best example of modernization of a large operating
    supply system was the establishment in Europe over the past few years
    of the U.S. Army’s European supply line (called USAREUR (Rear)
    ComZ), which stretches from the Bay of Biscay to Germany in support
    of the U.S. Seventh Army. It is a vast operation in which
    74,000 people handle an average of 50,000 weekly supply requests and
    control a 2 million ton inventory spread widely over Europe in 25
    separate depots. In addition, 540 miles of petroleum pipelines are
    operated and 9.4 million barrels of oil were distributed last year in
    this system.
    Dispersed though this supply line in Europe is, efficient central control
    has been maintained and the whole system is very responsive to
    troop demands.
    The over-all Army supply system, which stocked 608,000 different
    items on June 30,1960, is one of the largest supply systems in the world
    today. It also is one of the most complex, due to the constant introduction
    of new weapons, communications systems, and transportation
    systems. The simplification of this supply system and the reduction
    of its administrative costs received constant attention during fiscal year
    1960. Some of the most outstanding accomplishments along these
    lines were:
    a. Deletion of 157,000 line items. Although 108,000 new
    items were introduced into the supply system, there was a net
    reduction of 49,000 items. (See fig. 13.)
    164 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    LINE ITEMS
    30 JUNE 1959
    ADDITIONS
    DELETIONS
    30 JUNE I960
    Figure 13
    b. Single line item punch card requisitioning was started by
    oversea commands and in 12 installations within the United States.
    This segment of the supply system is designed to expedite supply,
    simplify processing, and cut administrative costs by utilizing electrical
    accounting machines, automatic data-processing machines,
    and high-speed data transmission equipment.
    c. Monetary accounting procedures were developed and
    placed in operation at Quartermaster clothing sales stores within
    the United States. These procedures eliminate item accounting
    and attendant administrative costs and provide simpler, faster
    service to customers.
    d. Distribution of inexpensive expendable items was simplified
    by stocking selected repair parts in self-service supply centers
    and by authorizing Army Reserve and ROTC units to purchase
    selected items from local commercial sources.
    e. Stockage of repair parts at installation level was reduced
    by restricting it to fast-moving items and those essential for
    assigned missions. Slower moving items are stocked only at
    LOGISTICS 165
    Army distribution depots and may be requisitioned only as the
    demand is generated.
    In its search for more efficient supply methods, the Army tested
    a new system during the past year and expanded the test for fiscal year
    1961. This system, known as the economic inventory policy, provides
    for stockage of low-cost, fast-moving items in larger quantities than
    in past practice at installation level, thereby reducing the number of
    requisitions to higher echelons for resupply and assuring more timely
    supply support for the maintenance of equipment. Stockage of more
    expensive items is restricted to those echelons which have shown the
    most rapid turnover based on their missions. Because supply of
    repair parts represents over 80 percent of the Army’s supply transactions,
    it is essential that they be readily available to maintain
    missiles, conventional weapons, rolling stock, and other major items
    of equipment. The economic inventory policy has demonstrated a
    great potential for economy of operations in supply support during
    the past fiscal year.
    Maintenance of Equipment
    The fact that the Army acquires newer and more effective weapons
    and equipment does not by itself indicate the extent of the Army’s
    improved capability. Many more elements are involved, one of the
    most important of which is maintenance. Complex weapons and
    equipment usually demand complex and expensive maintenance,
    involving in many cases costly special tools, new catalogues of repair
    parts, and specially trained maintenance technicians. Although
    these are support factors they are essentially connected to combat
    power.
    Army missile and aircraft inventories continue to grow at a rate
    of approximately $300 million per year, and maintenance of this equipment
    is taking a high proportion of the maintenance dollar. In fiscal
    year 1960, 51 percent of Army maintenance funds was required for
    missiles and aircraft; 55 percent is planned for this purpose in fiscal
    year 1961. This has been a continuing trend in maintenance since the
    end of the Korean war, with the result that a progressively lesser portion
    of the maintenance money has been available for maintaining
    conventional equipment.
    The Army entered fiscal year 1960 with a depot overhaul backlog of
    conventional equipment valued at $1.2 billion. Maintenance funds
    available for this purpose were $60.2 million.
    The Army vigorously attacked this very serious maintenance situation
    by purging from the inventory a great amount of obsolete equipment,
    by strict observance of economic repair criteria, by improved
    maintenance techniques at depots, and by insistence on maximum
    166 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    authorized maintenance in field maintenance facilities. These measures
    reduced the maintenance backlog by $500 million during fiscal
    year 1960. Great though this accomplishment was, the Army still had
    a very serious maintenance problem as it entered fiscal year 1961.
    In order to keep maintenance within reasonable limits in the future,
    the Army placed great emphasis on product improvement, with the
    objective of developing equipment that will have capabilities for longer
    nonmaintenance periods, for reduced requirements for skilled maintenance
    personnel, and for reduced time required for maintenance.
    This program has resulted in :
    a. The teaming of the maintenance engineer with design engineers
    to insure that simplicity of maintenance is built into equipment
    while it is still on the drawing board.
    A The reorienting of missile system design to provide easier
    maintenance by plug-in units rather than by piece-part
    replacement.
    c. The design of equipment components and assemblies for
    “throw away” under certain conditions when such action is
    determined to be more economical than repair.
    d. The modification of equipment to facilitate maintenance
    procedures.
    Property Disposal
    At the conclusion of the Korean war, the Army was confronted with
    the serious and difficult problem of cleaning out of its inventories
    great masses of equipment used in two wars. From the beginning of
    1954 to the end of fiscal year 1960 equipment with an original cost of
    $20.1 billion was either sold, transferred to other Government agencies,
    donated to schools, hospitals, and civic organizations, or disposed of
    otherwise.
    The Federal Government does not depreciate the value of property
    on its books, as is the normal practice in business, despite the length of
    time it is used or its condition. Nevertheless, this great mass of Army
    property had served its useful purpose and its residual value at the
    time of disposal was only a very small percentage of its original cost.
    In fiscal year 1960 the Army disposed of property whose acquisition
    value was $3.3 billion.
    Rapid introduction of new equipment items into the Army’s inventory
    makes necessary the disposal of the older items being replaced.
    Therefore the Army expects to have a large disposal program for the
    foreseeable future. As has been the practice in the past, every effort
    will be made to reuse or redistribute excess items within the Army,
    the other military Services, other Government agencies or among the
    nations of the free world.
    LOGISTICS 167
    Military Assistance Program
    During fiscal year 1960 the Army discharged its responsibilities
    under the Department of Defense Military Assistance Program by
    providing logistical support to 42 nations of the free world eligible
    for grant-aid military assistance and to 66 nations eligible to make
    purchases under the military sales program.
    During fiscal year 1960 the Army made deliveries under the grantaid
    program of $88 million in tanks and general- and special-purpose
    combat vehicles, $55 million in artillery and conventional weapons
    of other types, $121 million in rocket and missile systems, and $157
    million in ammunition. In the mutual security military sales program
    the Army made deliveries of approximately $100 million. As
    a result of recommendations by the President’s committee to study
    the U.S. Military Assistance Program, procedures for managing this
    program have been improved. In the future, military assistance
    plans will be developed for a 5-year period rather than for 1 year,
    and they will be integrated into Army long-range plans. This change
    will bring many advantages to the program, including more timely
    supply action. Decentralization of the management of the Military
    Assistance Program will also increase the efficiency of the program.
    Inter-Service Support
    The Army supports the other military departments in a great
    variety of logistic functions on a worldwide basis. Some of these
    functions relate to peculiar capabilities of the Army, and the Army
    generally has responsibility for performance wherever the service
    must be rendered. Other activities are not the special province of
    the Army, but the Army frequently performs them when it is the
    dominant user or where it is host to tenants from other departments.
    The support the Army provides other departments includes such
    diverse logistical services as procurement and supply, real estate
    administration, maintenance of reserve industrial facilities, transportation
    services, military traffic management, operation of ports
    and terminals, medical services including dental care and laboratories,
    maintenance of combat support vehicles, military construction, and
    operation and maintenance of facilities including such local services
    as building maintenance, commissary operation, and laundry and
    drycleaning.
    The Army’s objectives with regard to inter-Service support have
    been in consonance with the Department of Defense goal of gaining
    greater military effectiveness from available resources—manpower
    and funds. The Army pressed for the early publication of a Department
    of Defense policy directive for inter-Service support. The di168
    ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    rective was published in fiscal year 1960 and on June 29, 1960, the
    military Services agreed to establish a Joint Working Group for
    Inter-Service Support to coordinate its implementation.
    The new policies for inter-Service support promise greater efficiency
    for the entire Department of Defense. Implementation of these
    policies should result in improved allocations of men and money to
    the Services for inter-Service support functions and in equitable
    agreements among the Services concerning their activity.
    The Single Manager Activities
    Integration of the logistic systems of the military Services, to
    effect economies through the elimination of unnecessary duplication
    and overlapping of effort among the military Services, has been one
    of the most perplexing problems faced by the Department of Defense
    since its inception. The Single Manager system, under which
    the Secretary of one military department becomes responsible for
    the supply of a certain group of items or for performing a service for
    all the military Services, is generally recognized as the outstanding
    contributions to the solution of this problem. It was initiated by
    the Department of Defense in 1955 when the Secretary of the Army
    was made the Single Manager for subsistence. In 1956, six additional
    Single Manager assignments were made. Of these the Army
    received two: Clothing and textiles and traffic management. Four
    additional assignments were made in late 1959 and in 1960. Of these,
    the Army received three: Military general supplies, automotive supplies,
    and construction supplies.
    The Single Manager system has proved to be effective and economical.
    As of June 30, 1960, the Single Managers had established the
    creditable record of satisfying 95 percent or more of their customers’
    requirements within the time limits specified by the customers. While
    achieving this high rate of supply effectiveness, they also achieved
    identifiable one-time savings of approximately $425 million and
    annual savings of almost $20 million per year. Only the savings
    achieved in the original 1955-56 assignments are reflected in these
    figures. No savings attributable to the 1959-60 assignments are
    included since these are still in the process of implementation.
    Neither can such transportation savings be included as those resulting
    from reduction of backhauling and crosshauling, since there is no way
    of measuring these savings. It is worthy of note that these things
    were achieved within the existing Defense structure, utilizing existing
    channels of command and communication and exploiting the capabilities
    and know-how of the military Services.
    LOGISTICS 169
    Examples of accomplishments in the Army-managed assignments
    as of June 30, 1960, are: 40,000 clothing and textile back orders
    inherited from the separate Service systems had been reduced to less
    than 1,000 back orders; 58 locations previously used for storage of
    clothing and textiles had been reduced to 13 locations; personnel
    savings of over $2 million per year in the subsistence field and $1 million
    per year in the clothing and textile field had been achieved; a
    net reduction in inventories of approximately $400 million had been
    achieved; and procurement delinquency rates had been reduced
    approximately 90 percent.
    The Army is devoting a great deal of effort to insure that its single
    manager assignments are managed efficiently so that they serve the
    customer well and conserve the defense dollar. Studies are continuing
    to determine the applicability of the single manager technique to
    additional areas. In any extension of the single manager concept
    into additional commodity and functional areas the Army, by reason
    of its logistics capability, experience, and demonstrated effectiveness in
    carrying out these assignments, should continue to play an outstanding
    role.
    Installations
    Construction
    Replacement of outmoded, inefficient, and uneconomical temporary
    structures constructed before or during World War II is a vital part
    of the Army’s over-all program of modernization. Since the end of
    the Korean war the program of building durable low maintenance
    structures at Army installations has progressed at a steady pace.
    This is illustrated by the completion of permanent barracks sufficient
    to house 150,000 soldiers, service school buildings, chapels, hospitals
    and other structures necessary for the wide variety of Army functions.
    Despite tins progress the Army has been able to construct in recent
    years only about 60 percent of its desired long-range program for
    modernization of facilities.
    Construction was started in fiscal year 1960 on a total of $200 million
    of new facilities to support the worldwide operations of the active
    Army. A major part of this program, 47 percent, was devoted to
    air defense construction. Requirements in the United States and its
    possessions for construction other than air defense accounted for 43
    percent of the program, while 10 percent went for foreign base construction
    in support of oversea operations.
    Contract awards for construction of permanent plant in fiscal year
    1960 amounted to $85 million. Although this was only 50 percent of
    170 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    that required by the long-range plan, the most urgent operational,
    logistical, and training requirements were met. Among the major
    new starts in the year’s program were $10 million for new support and
    technical facilities at Fort Bliss, Tex., and White Sands, N. Mex.,
    (two of the Army’s centers of missile activity) ; four major hospital
    facilities; and $11 million for training facilities and housing at the
    U.S. Military Academy.
    The air defense construction was designed to up-date the defenses
    of major metropolitan areas and strategic installations in the United
    States, to provide protection of critical oversea areas, and to support
    development of NIKE-ZEUS, the antimissile missile. The work included
    facilities for new NIKE-HERCULES and HAWK deployments,
    continued conversion from NIKE-AJAX to NIKEHERCULES
    at selected sites, MISSILE MASTER control centers,
    and support and technical facilities for NIKE-ZEUS research and
    development. Late in the year additional deployment of NIKEHERCULES
    batteries to metropolitan areas was planned, but work
    on the installations had not started by the end of the year.
    Foreign base construction in fiscal year 1960, which totaled $20
    million, provided necessary support for U.S. troops overseas, for
    worldwide communications facilities, and for Army Security Agency
    stations in oversea areas.
    The Army also started construction on approximately $6.5 million
    of new industrial-type facilities for production of items not available
    from private industry.
    Additional facilities for the reserve forces, totaling $32 million,
    were started during fiscal year 1960. This included $16 million for
    Army Reserve training centers and supporting facilities and $16
    million of Federal funds for the construction of National Guard
    armories and related facilities.
    Family Housing
    Since the end of the Korean war the Army has made most outstanding
    progress in constructing almost 30,000 houses for dependents.
    (See fig. 14.)
    During the past year, 7,147 Capehart family housing units and 274
    units financed by military appropriations were completed. Another
    2,772 family housing units were started, of which 2,576 were Capehart.
    The Army acquired 1,596 units of Wherry housing at three installations^
    bringing acquisitions to 16,560 out of a total 22,249 units constructed
    under Army sponsorship.
    LOGISTICS 171
    FAMILY HOUSING CONSTRUCTION
    NEW PERMANENT HOUSING UNITS COMPLETED
    Figure It
    Management and Maintenance of Facilities
    The Army had 931 million square feet of building space for use at
    active facilities at the end of fiscal year 1960 as compared to 955
    million at the end of fiscal year 1959.
    Since the end of the Korean war over 100 installations and activities
    have been inactivated, including 5 during fiscal year 1960.
    The five inactivated during the past year were the Branch U.S. Disciplinary
    Barracks in California, Camp Lucas in Michigan, the Army
    Navy Hospital in Arkansas, and Camp Gary and the San Jacinto
    Ordnance Depot in Texas. The Army has carried on extensive
    and comprehensive studies since the end of the Korean war to effect
    the fullest and most economical utilization of installations while
    at the same time maintaining the Army’s maximum effectiveness in
    operational requirements and training. Many factors are considered
    in determining the inactivation of installations. Some of these are:
    Tactical and strategic considerations; maximum use of installations
    having permanent construction; logistical factors involved in the
    595308—61------ 12
    172 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    transportation of personnel and materiel; present state of development,
    and the feasibility and costs of future development; economy
    of operation and maintenance; and the impact on the civilian economy
    in the particular locality.
    Maintenance of the Army plant is complex and costly, not only
    because of the vast floor space in buildings all over the world, but because
    of the many old temporary buildings still in use. As time
    goes on and the buildings get older, the amount of maintenance necessary
    to assure minimum standards for occupancy increases. As the
    need for maintenance has become greater, the basic cost of performing
    it has increased steadily.
    The money allocated for over-all real property maintenance, including
    the provision of all utilities, has increased about 25 percent since
    the end of the Korean war. However, the higher maintenance expenditures
    have been more than offset by inflationary trends. As a result,
    there has been some deterioration of the capital plant. Today the
    backlog of essential maintenance required to attain reasonable working
    and living standards amounts to an estimated $110 million. In
    fiscal year 1960, expenditures for maintaining active facilities totaled
    $544 million. This included all utility bills such as heat, water,
    electricity, and refuse disposal.
    C onstruction for the Air Force
    For the Department of the Air Force the Army awarded construction
    contracts for facilities of all types totaling $698 million during
    fiscal year 1960. Approximately two-thirds of this total was for
    missile projects, including seven ATLAS and four TITAN missile
    bases. The remaining one-third, amounting to $228 million, was for
    facilities for air bases such as runways, utilities, dormitories, hospitals,
    hangars, shops, and other operational and training structures and for
    air warning, communications, and tracking systems with their related
    support items.
    Major active Air Force projects in the intercontinental ballistic
    missile program currently under construction included 13 ATLAS
    squadrons at 11 bases and 6 TITAN I squadrons at 5 bases, with
    a total estimated cost of $640 million. Other major active projects
    included the Ballistic Missile Early Warning System project
    (BMEWS) at Thule, Greenland, which was essentially completed,
    and the eastern extension of the DEW line across the Greenland ice
    cap, which should be ready for occupancy in October 1960.
    Anticipated construction for the Air Force in fiscal year 1961 will
    cost $640 million. The major portion costing $382 million will be for
    missile base construction.
    LOGISTICS 173
    Because the national urgency of the intercontinental ballistic missile
    program required very close relationships between Army Engineer
    personnel and their counterparts in the Ballistic Missile Division of
    the Air Force, the Army expanded its Los Angeles field office to better
    assist the Air Force in this complex construction program. Plans
    for further reorganization of the Army Engineer effort in the interests
    of greater efficiency in this program were being made as fiscal year
    1960 closed.
    Army Medicine
    The health of Army personnel in the United States and in oversea
    areas was excellent in fiscal year 1960. The hospital and quarters
    admission rate for disease and injury declined to near the record low
    set shortly after the end of the Korean war. The noneffective rate,
    which is the average number per day of Army personnel per 1,000
    strength who are excused from duty because of illness or injury, also
    declined and reached a record low.
    The rate of admission for diseases dropped from 326 per 1,000
    average Army strength to 293 in fiscal year 1960. This is a 10 percent
    decline from the preceding year and more than a 30 percent drop from
    the rate in fiscal year 1958. The injury admission rate decreased
    slightly from 51 to 50 per 1,000 average strength. (See fig. 15.)
    The noneffective rate, which came down at the end of the Korean
    war to 15.8 per 1,000 per day, continued to drop through recent years
    except for a rise in fiscal year 1958 as a result of an Asian influenza
    epidemic. This rate had reached a then-record low of 12.3 persons
    noneffective per 1,000 strength on the average day in fiscal year 1959
    and dropped further to a new low of 11.7 per 1,000 strength in fiscal
    year 1960. (See fig. 15.)
    Besides reflecting good fundamental living conditions, a high level
    of training in field sanitation, a safety program of the first order, and
    good morale in today’s Army, this record health experience was due
    also to greater efficiency in Army medicine. Early diagnosis, quick
    evacuation, improved facilities, highly trained personnel, and bold
    exploitation of the most advanced medical practices contributed to this
    high efficiency and were indications that even under most adverse conditions,
    current practice is gauged to produce the best possible medical
    support for the Army.
    Many medical disorders which formerly required hospital care are
    now being treated in outpatient clinics. In many other conditions the
    period of hospitalization is being reduced by the judicious use of clinic
    services for prehospitalization care. As a result of these policies there
    were more than 25 outpatient visits for each hospital admission during
    fiscal year 1960.
    174 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    NON-EFFECTIVE RATES - WORLDWIDE
    FROM DISEASE AND NON-BATTLE INJURIES
    (Average Daily Non-Effectives - Per I, 000 Strength)
    Figure 15
    LOGISTICS 175
    During fiscal year 1960 there was an increased appreciation of the
    significance of diseases as a cause of lost manpower in military operations.
    In 1953 the virus responsible for the largest number of respiratory
    illnesses among recruits was isolated and described by a scientist
    at the Walter Reed Army Institute of Research. This virus has become
    known as the adenovirus. Following this discovery, a vaccine for prevention
    of adenovirus disease was developed and adopted for inoculation
    of Army recruits. Its first routine application was made late in
    fiscal year 1960 with very promising results.
    Aeuropsychiatric Program
    Since the end of the Korean war major emphasis has been placed
    upon improving the organization and function of the Army neuropsychiatric
    program toward a goal of prevention of noneffective military
    performance. The principal arm of this endeavor has been outpatient
    psychiatric units known as Mental Hygiene Consultation Services,
    which have been established gradually on almost all Army posts in the
    continental United States and in oversea divisions. These mental
    health services have implemented programs based upon the early
    recognition and prompt treatment or management of noneffective
    military personnel regardless of whether the manifestations are symptoms
    or behavioral abnormalities.
    Since 1956 there has been implemented with the close collaboration
    of the Military Police Corps a program in which mental health personnel
    evaluate all stockade admissions with a view toward administrative
    elimination of the recidivist offender and the psychiatric treatment
    and rehabilitation of those considered to have a high potential for useful
    military service.
    Coincident with the stockade screening program stated above there
    had been a steady decline of both stockade and disciplinary barracks
    population, contributed to by medical as well as other factors. Four
    of the five disciplinary barracks in use at the close of the Korean war
    have been closed and the present prisoner population represents the
    lowest rate in Army peacetime history.
    Fiscal year 1960 has seen a continuation of progress in the Army
    neuropsychiatric program in its many endeavors to prevent noneffective
    military behavior. The hospital and quarters admission rate for
    psychiatric conditions in the past year decreased for the third consecutive
    year to 7 per 1,000 average strength, a new low in rates
    recorded since 1938.
    Modernization for Coml)at Operations
    The first Medical Air Ambulance Company was activated as a
    standard Army organization during the past year. The company has
    176 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    the battlefield mission, of providing for aeromedical evacuation of
    selected patients, emergency movement of medical personnel and
    accompanying equipment and supplies to meet a medical requirement,
    and around-the-clock emergency delivery of whole blood, biologicals,
    and medical supplies. Twenty-five utility helicopters are
    authorized for this type of company.
    The USAMEDS Combat Development Group has evaluated several
    concepts to provide mobility to Army Medical Service organizations
    in the combat zone. Several factors influence developments
    in this area. The threat of use of nuclear, chemical, and biological
    weapons imposes many problems on the Army Medical Service. The
    necessity for rapid mobility and, at the same time, for protection of
    medical service personnel and patients is related to this development.
    The futuristic aspect of this work can best be depicted by the present
    requirement for the U.S. Medical Research and Development
    Command to develop a family of air transportable medical treatment
    facilities. These facilities or pods will include surgeries, X-ray
    units, evacuation pods, laboratories, wards, and similar elements.
    They will be self-sufficient with a power unit that will provide heating,
    lighting, air-conditioning, and filtering of outside air. The
    pods as an operating entity will be transportable by medical helicopter,
    on truck chassis, or by a varied combination of air and ground
    vehicles.
    Medical Personnel
    At the end of fiscal year 1960 the Army had 3,644 physicians, 1,747
    dentists, and 3,314 nurses. In addition to these groups there were
    some 35,500 other officers and men with a wide range of medical service
    support capabilities.
    The worldwide Army requirement for professional medical personnel
    is a continuing problem.
    The Army has over 600 medical officers on duty who have been
    certified by the various American specialty boards, which is more than
    double the number of board-certified doctors on duty at the end of
    the Korean war. Concerted efforts are being made to qualify more
    medical officers in the command and staff career field, and emphasis
    is being continued on chemical, biological, and bacteriological warfare
    and on preventive and field medicine.
    Dependents'1 Medical Care
    When the Korean war drew to a close, the widespread functions of
    the Army tended to disperse some 40 percent of its personnel in areas
    where Army medical facilities were not available. Congress passed
    LOGISTICS 177
    the Dependents’ Medical Care Act which became effective in fiscal
    year 1957. Medicare, as the civilian portion of the program was
    called, provided that civilian physicians and private hospitals would
    be used to supplement existing service facilities and staff in providing
    authorized care for spouses and children of active members
    of the uniformed Services.
    To assure optimum utilization of the uniformed Services’ medical
    facilities and to effect economy while providing care authorized by
    the Dependents’ Medical Care Act, certain restrictive changes in the
    program became effective in October 1958.
    The curtailment of benefits resulted in savings, but at the same
    time it created serious problems that had adverse effects upon the objectives
    for which the program was established. The favorable
    morale advantages evidenced initially through the establishment
    of the Medicare program were visibly affected by the cutback in
    services.
    During fiscal year 1960 most of the benefits were restored. Reinstatement
    of the program to its original coverage, with minor exceptions,
    has resulted in the promotion of morale and a more uniform
    program of medical care—the objectives for which the dependents’
    medical care program was established. Approximately 190,000 dependents
    were admitted to civilian hospitals during fiscal year 1960
    under Medicare.
    Army Hospitals
    As part of the Army’s long-range hospital replacement program,
    the following hospitals have been completed since the end of the Korean
    war: Ireland Army Hospital, Fort Knox, Ky.; DeWitt Army
    Hospital, Fort Belvoir, Va.; Okinawa U.S. Army Hospital; Irwin
    Army Hospital, Fort Riley, Kans.; Patterson Army Hospital, Fort
    Monmouth, N.J.; Martin Army Hospital, Fort Benning, Ga.; Womack
    Army Hospital, Fort Bragg, N.C.; and Walson Army Hospital,
    Fort Dix, N.J. The last was completed in fiscal year 1960.
    At the end of fiscal year 1960 work was progressing on new hospitals
    at Fort Leavenworth, Kans., Fort George G. Meade, Md., and
    Fort Lee, Va., all of which are expected to be completed and dedicated
    during the coming fiscal year. Contracts were awarded for
    construction of new hospitals at Carlisle Barracks, Pa., Fort Eustis,
    Va., and Fort McClellan, Ala.
    By the end of fiscal year 1960 the Joint Commission on Accreditation
    of Hospitals, which is a representative body of the four most
    influential groups dealing with health in the United States (The
    178 ANNUAL REPORT OF THE SECRETARY OF THE ARMY
    American College of Surgeons, The American College of Physicians,
    The American Medical Association, and The American Hospital Association)
    had surveyed and accredited 42 of 43 U.S. Army hospitals
    in the continental United States eligible for survey. The forty-third
    was accredited July 1960. All eligible oversea hospitals (15) have
    been accredited by the Joint Commission.
    V. Research and Development
    Outstanding accomplishments in Army research and development
    in fiscal year 1960 were:
    —Successful interception of HONEST JOHN and LITTLE
    JOHN missiles by HAWK and of a CORPORAL missile by a
    NIKE-HERCULES. These tests demonstrated a technical capability
    of current Army air defense weapons to defeat tactical
    ballistic missiles;
    — Successful firing of several prototype NIKE-ZEUS missiles,
    the Army’s and the Nation’s antimissile missile;
    — The initial firings of the new PERSHING missile, the
    solid propellant replacement for the REDSTONE;
    - —Operation of TIROS I, a meteorological satellite, developed
    under technical direction of the Army and under general
    supervision of the National Aeronautical and Space Administration
    (NASA) ; this satellite successfully televised thousands of
    pictures of the earth and its cloud cover to Army-developed
    stations;
    — The beginning of construction of Camp Century, an undersnow
    camp for 100 men on the Greenland ice cap;
    — The start of a nitrogen-cooled atomic reactor driving a
    gas turbine; and
    — Development of techniques for effectively freezing red
    blood corpuscles for transfusions for a period of 44 months.
    Army research and development efforts are directed toward
    adapting the advances and discoveries of modern science and technology
    to means of waging land warfare in order that man, the ulti- O AIR DIVISIONS
    O NUMBERED AIR FORCES
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    Figure 2
    COMBAT FORCES 321
    rated tape in the Pentagon, no other manual operation is required until
    the message reaches its destination. The complex of radio and wire
    facilities would henceforth interlace Air Force activities from the
    highest headquarters to the farthest tributary station.
    The Air Force command post moved into its new, improved facility
    in the Pentagon in May 1960. A prototype nuclear-blast alarm system
    installed in the command post covers only a few potential target areas
    at present, but it will be extended to a wide range of points in the
    United States and overseas.
    Political decisions required redeployment of USAF tactical forces
    from France during the year. By January 1960, three wings had been
    moved to Britain and Germany because the French Government
    wanted to share control of atomic weapons on French soil. The movement
    of the units, including 12,000 military personnel and dependents,
    did not require the opening of new bases; two bases in France were
    returned to NATO as excess.
    On December 22, 1959, President Eisenhower and King Mohammad
    V jointly announced that all American (including four SAC)
    bases in Morocco would be evacuated by the end of December 1963.
    A number of USAFE units were withdrawn in March 1960, and the
    316th Air Division at Rabat-Sale was inactivated in April 1960.
    Strategic Air
    The Nation’s primary long-range striking force, the Strategic Air
    Command (SAC), equipped with more than 1,000 B—47 Stratojets,
    nearly 500 B-52 Stratofortress bombers, and a force of tanker planes
    including nearly 400 KC-135 jet tankers, constituted the greatest
    peacetime fighting force in history. At the end of the year SAC operated
    approximately 70 bases throughout the world. Its 240,000 military
    personnel made SAC the largest single component of the U.S.
    defense structure. Although the B-47 medium bomber continued to
    provide the backbone of SAC striking power, its gradual elimination
    had already begun. Two B-47 wings and a number of tankers were
    cut from the force. One replacement for the B-47 is the B-58, the
    first American supersonic jet bomber, which is capable of a Mach 2
    dash over the target area. On December 1, 1959, the first operational
    B-58 was turned over to the Air Force by the manufacturer. The
    first B-58 wing was activated in March 1960.
    Deliveries of the longer range B-52G continued throughout the year,
    and modification of all B-52’s was also under way to increase their
    penetration capability. In September 1959, the Air Force announced
    plans to purchase more than 60 turbofan-powered B-52H bombers
    equipped with the latest penetration refinements. During the year
    SAC crews made operational tests of the GAM-77 HOUND DOG
    322 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    air-to-ground missile and the GAM-72 QUAIL diversionary missile,
    which will be carried by B-52’s. On June 8, 1960, a B-52 fired the
    QUAIL missile over the Eglin AFB, Fla., test range for the first time.
    On September 1, 1959, the ATLAS ICBM was formally turned
    over to SAC by Air Research and Development Command (ARDC).
    On September 9, 1959, a SAC combat crew launched the first operational
    ATLAS from Vandenberg AFB, Calif., and additional successful
    launches followed. On November 3, 1959, an ATLAS ICBM
    was airlifted from San Diego, Calif., to Francis E. Warren AFB,
    Wyo., by a C-133 demonstrating an airlift capability for the ICBM.
    By May 1960 Francis E. Warren AFB had acquired a limited capability
    to launch ICBMs in an emergency. The selection of 12 new
    SAC ICBM sites during the year raised the total number projected
    to 20. Construction neared completion at three sites and was well
    advanced at six more. On March 23,1960, the USAF announced that
    three MINUTEMAN squadrons would be sited at Malmstrom AFB,
    Mont., with construction scheduled to begin in January 1961.
    On January 7, 1960, at a National Security Council meeting a decision
    was taken to provide $1 billion extra to finance an additional 7
    ICBM squadrons, making a total of 27 (including 13 ATLAS and 14
    TITAN) squadrons authorized or under construction. In his state
    of the Union message, the President also announced that 14 test firings
    of the ATLAS ICBM had averaged hits within 2 miles of target, “well
    within the circle of total destruction.” To attain an initial operational
    capability as soon as possible, the first four ATLAS squadron
    complexes were being constructed in a “soft’’ configuration with no
    built-in protection against attack. The fifth, sixth, and seventh squadron
    launch facilities were to be hardened, with each missile dispersed
    and housed in a horizontal position underground in a concrete “coffin.”
    The missiles of the remaining ATLAS squadrons, and all of the
    TITAN and fixed MINUTEMAN squadrons, were to be housed
    vertically in underground shelters designed to withstand high overpressures.
    On June 20, 1960, SAC began field tests at Hill AFB,
    Utah, to determine the feasibility of keeping a part of the MINUTEMAN
    missile force highly mobile by mounting it on railroad trains.
    The program for placing all IRBMs in the hands of our allies continued
    to make steady progress. The major part of the SM-75 THOR
    force in England became operational following concerted efforts by
    the U.S. Air Force and the Royal Air Force to eliminate installation
    and maintenance problems. The fourth and final THOR squadron,
    trained by the U.S. Air Force, was accepted by the British in April
    1960. These were the last THORs off the production line designed
    for operational use. THOR boosters for space projects were still
    being manufactured.
    COMBAT FORCES 323
    One SM-78 JUPITER site in Italy reached operational capability
    in June 1960, and work on the remaining launch sites was progressing
    on or ahead of schedule. Political agreements and technical arrangements
    were completed for the establishment of a JUPITER IRBM
    squadron within the Turkish Air Force.
    During the fiscal year, SAC bombing tactics were directed toward
    increasing their effectiveness against Soviet air defenses. On November
    4, 1959, SAC and the Federal Aviation Agency (FAA) jointly
    announced the establishment of seven special air routes within the
    United States to provide for new low-level SAC training missions.
    Each corridor was to be 20 miles wide and up to 500 miles in length.
    Hying in them was placed under FAA instrument control during
    SAC training operations.
    On March 4, 1960, the Secretary of Defense approved a JCS recommendation
    to develop a capability to keep part of the SAC force
    airborne, if it should become necessary. Testing of the airborne alert
    concept, begun in 1959, continued. The Air Force secured permission
    to reprogram approximately $100 million from 1960 funds for the
    purchase of necessary spares if the alert were ordered, and it requested
    $85 million for the same purpose in 1961. SAC strongly
    supported the desirability of an alert to counteract a probable superiority
    in ICBM’s by the Soviet Union during the 1960—63 time period.
    In May 1960 SAC reached the important goal of keeping one-third
    of the bomber-tanker striking force on 15-minute ground alert. In
    addition, the program to disperse the strategic force over a larger
    number of bases proceeded on schedule. SAC also examined other
    means of surviving attacks.
    On June 9, 1960, it began to test the possibility of periodically
    deploying B-47 units to civilian airports and to air bases operated
    by other commands. During the spring SAC also carried out Project
    OPEN ROAD, which demonstrated that all alert aircraft at a base
    could be launched at a rate about four times as fast as previously
    thought possible. The new procedures were being implemented
    throughout the command. By the end of June 1960, SAC had almost
    completed preparation of an alternate command post airborne in
    KC-135’s.
    SAC greatly improved its control over its bomber force in March
    1960 when a new single sideband ground-to-air radio system went into
    interim operation. I he four control stations, each of which can
    control the bomber force in an emergency, are located at SAC Headquarters
    and at each of the three SAC numbered air forces in the
    United States. Each station consists of three 45-kilowatt transmitters,
    six 10-kilowatt transmitters, associated receivers, six single side324
    ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    band transceivers for backup, and high-gain directional antennas.
    The system provides instant voice communication between the SAC
    command post and combat aircraft in flight. Begun in 1958, the
    system was to be completed in October 1960.
    Tactical Air
    The major USAF tactical air components—the Tactical Air Command,
    the United States Air Forces in Europe, and the Pacific Air
    Forces—declined slightly in combat unit strength, but this will soon
    Figure 3. F-102A. in flight—overhead view.
    COMBAT FORCES 325
    be more than offset by the addition of new weapon systems in an
    advanced stage of development or testing. The most important of
    these—the F-105B—is a partially all-weather tactical fighter that
    can deliver atomic weapons. Deliveries of the F-105D, a later model
    which is a fully all-weather plane, began in February 1960. The
    backbone of tactical air strength continued to be the F-100 Supersabre.
    Beginning in 1962 a self-contained starter will improve the
    F-lOO’s combat capability and reduce the ground equipment required
    to support it. The GAM-83 BULLPUP air-to-surface missile is
    already being procured for installation on the F-100D and F-105D.
    During the year SAC and TAC (Tactical Air Command) developed
    joint plans for the emergency deployment of TAC’s composite air
    strike forces (CASF). The use of SAC KC-135 tankers will enable
    the TAC aircraft to refuel near their cruising altitude, thus conserving
    fuel and time. The high speed of the jet tankers will also enable
    them to reach rendezvous points sooner and assist TAC units in reducing
    their deployment times. The necessary adapter equipment has
    been procured and a realistic test of the plans was scheduled for the
    fall of 1960.
    The Air Force is converting its MATADOR short-range air-breathing
    missile groups to the TM-76 MACE, which has improved guidance
    and greater range. During the year, one USAFE group in Germany
    completed conversion to the TM-76A, and another was in process of
    conversion. Delivery of all the TM-76A missiles contracted for was
    completed in March 1960. Congress sharply curtailed funds for the
    TM-76B program. Delivery of the TM-76B, originally scheduled to
    begin in June 1960, was delayed by developmental difficulties.
    The USAF tactical air forces were tested in several large-scale exercises.
    On November 10-12, 1959, TAC carried out Operation
    SPEARHEAD after a surprise alert by Headquarters USAF. A
    CASF, refueling at night in bad weather over the Atlantic, moved
    from Myrtle Beach AFB, S.C., to France. Complete units were in
    place in France and ready for combat missions within 24 hours, and
    enough priority cargo was moved, with support from the Military Air
    Transport Service (MATS), to sustain operations for 30 days. In
    February 1960, a TAC force of 50 tactical fighter, reconnaissance,
    troop carrier, and tanker aircraft deployed to the Central Treaty
    Organization countries—Turkey, Iran, and Pakistan—where they
    conducted aerial demonstrations and presented static displays. The
    entire movement took place on schedule, and the demonstrations were
    witnessed by an estimated 150,000 persons. A much larger exercise
    during June 1960 tested TAC’s ability to support PACAF in the
    Southeast Asia Treaty Organization countries. A force of 120 aircraft
    and 1,100 men with support equipment deployed to the Philippines,
    326 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Taiwan, and Thailand. The movement was completely successful and
    was considered of great psychological value in the countries visited.
    In another exercise, BANYAN TREE II, executed in February 1960
    in cooperation with the Continental Army Command, TAC C-130’s
    airlifted Army paratroopers nonstop from Fort Bragg, N.C., to the
    Panama Canal Zone. F-lOO’s, operating from Florida and using
    aerial refueling, provided air cover.
    Air Defense
    Air defense programs were reoriented in March 1960 following a
    thorough review of air defense in the light of intelligence predictions
    of the threat to the United States. The review revealed that the parts
    of the system planned for defense against manned bombers would be
    completed too late and that the resources allocated to this system were
    excessive compared with those devoted to the development of systems
    to counter the ballistic missile threat, expected to become predominant
    after 1965. Accordingly, the Air Force took the following actions:
    It curtailed or eliminated antibomber programs that were lagging or
    appeared to require disproportionately heavy expenditures in the
    future; it began to modernize and improve the existing manned interceptor
    force; and it accelerated the construction or development of
    ballistic missile warning systems.
    This realignment of air defense will provide an earlier though lesser
    order of defense against manned bombers than originally planned, but
    it will be a substantial improvement over the present system. The
    BOMARC B program was drastically curtailed; the program for
    SAGE super combat centers was eliminated.
    Organizationally, the three regional air defense forces (Western,
    Central, and Eastern) of the Air Defense Command were eliminated
    and will be replaced by six combat air divisions. Because of the curtailment
    of the SAGE program, only three of these divisions will
    operate SAGE combat centers. In Europe all air defense activities
    were concentrated under USAFE with the transfer of the 65th Air
    Division, based in Spain, from SAC. In another area, however, the air
    defense reorientation delayed final agreements with Canada for the
    construction of Canadian Air Defense, North (CADIN).
    Missile reconnaissance, detection, and warning systems—BMEWS,
    MIDAS, and SAMOS—received increased emphasis and acceleration.
    BMEWS construction at Thule was complete at the end of the year,
    and excellent results were being obtained from test operations. The
    BMEWS station at Clear, Alaska, was expected to begin operations
    in the summer of 1961. On February 15, 1960, the United States
    and the United Kingdom signed an agreement to cooperate in the establishment
    of a third station at Fylingdales, in Yorkshire, England.
    COMBAT FORCES 327
    Construction was well underway by the end of the year. The
    BMEWS submarine cable linking Thule and Cape Dyer in Canada
    was completed in September 1959.
    The fighter-interceptor force improved in quality during the year.
    The Air Defense Command completed operational testing of the
    F-106 and F-101B, and 10 new squadrons of each were activated. By
    the end of June 1960 all but five ADC squadrons were equipped with
    Century series aircraft—the F-101, F-102, and F-106. The air defense
    training force of B-57’s, authorized in April 1959, was being
    equipped with the most modern electronic countermeasure equipment.
    The B-57’s provide the ground and airborne elements of the air defense
    system with realistic training in the detection and interception
    of high-performance aircraft equipped with advanced electronic penetration
    aids.
    On September 3,1959, a BOMARC-A missile intercepted a REGULUS
    II missile at a height of nearly 7 miles, the first successful interception
    of a supersonic target by the SAGE-directed interceptor. In
    the same month the first IM-99A BOMARC missile squadron became
    operational at McGuire AFB, N.J. Squadrons at three other sites also
    became operational by the end of the year. As a result of the air defense
    reevaluation, the IM-99B was reduced from 29 to 9 squadrons.
    The first operational capability for this advanced version of the
    BOMARC is scheduled for the spring of 1961.
    Air Transport
    The bulk of the MATS fleet is 8 to 10 years old. A congressional
    subcommittee, investigating the entire airlift problem, concluded that
    the obsolescence of the fleet was creating a serious deficiency in strategic
    airlift. Congress appropriated $50 million for development of a highperformance,
    turbine-powered cargo plane to be suitable for both
    military and civilian use. In April 1960 the Army, Air Force, and
    Federal Aviation Agency agreed on the requirements for this aircraft.
    Congress also authorized a $200 million program for limited procurement
    of aircraft already under development or in production to provide
    for an interim modernization of the MATS fleet. C-130E’s and
    the C-135 cargo aircraft were included in this program.
    The Department of Defense prepared a report on the role of MATS
    in peace and war in February 1960. After the President approved
    this report, the Air Force submitted to the Secretary of Defense in
    May 1960 a program stating the minimum essential strategic airlift
    force and the increased civilian cargo lift that will be needed as the
    MATS logistical airlift is reduced. The Secretary of Defense directed
    the Air Force to go ahead with the proposed program, including
    revision of procurement practices and negotiations with U.S. inter328
    ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Figure 4
    tjjfjPM USAF COMBAT WING STRENGTH
    TYPE 30 JUNE 57 30 JUNE 58 30 JUNE 59 30 JUNE 60
    STRATEGIC 50 44 43 40
    AIR DEFENSE 32 28 27 23
    TACTICAL 55 45 35 33
    TOTAL 137 117 105 96
    national air carriers. In preparing the operating budget for MATS
    airlift for fiscal year 1961, the Air Force left no excess capability. The
    fleet would average a 4.8-hour daily aircraft utilization rate, which
    would be consistent with the 5-hour rate deemed essential for D-day
    readiness.
    The Department of Defense decided in January 1960 that, beginning
    in fiscal year 1962, Army requirements for airlift for joint airborne
    training would be established by the JCS in time to provide for proper
    USAF programing and funding. The Army and the Air Force
    agreed that MATS would fly 40,425 hours in support of the Army
    during training exercises in fiscal year 1962.
    In conjunction with the Continental Army Command, MATS conducted
    its largest peacetime strategic airlift—Exercise BIG SLAM/
    PUERTO PINE—from March 14 to 28,1960. A primary purpose of
    this exercise was to determine the ability of MATS to move from its
    peacetime aircraft utilization rate to one of about 8 hours per day.
    The strategic airlift force lifted 21,095 troops and 10,949 tons of equipment
    and flew 50,496 hours. The daily aircraft utilization rate rose
    from 2.5 hours for troop carriers and almost 5 for transports to an
    average of 7.5 for all aircraft. The exercise demonstrated that the
    strategic airlift force could accelerate to wartime utilization rates if
    each aircraft were used 5 hours per day for training purposes. MATS
    and Army forces demonstrated that they could conduct large-scale
    movements of troops and equipment with great precision despite poor
    weather. Since this was a relatively short distance deployment and
    only one-third of the equipment needed was airlifted, the exercise also
    exposed the limitations of MATS aircraft—lack of speed, range, and
    carrying capacity.
    COMBAT FORCES 329
    Ill May 1960, MATS flew emergency supplies and equipment from
    the United States to Chile, where earthquakes had made hundreds of
    thousands homeless. MATS flew 69 sorties, airlifting 790 tons of
    cargo, including 2 Army field hospitals, 10 helicopters, food, clothing,
    and medical supplies. There were other important mercy flights to
    aid victims of a Japanese typhoon, earthquakes in Morocco, and a tidal
    wave in Hawaii.
    MATS continued its airlift for the Atlantic and Pacific Missile
    Test Ranges and helped cut critical delivery time by airlifting missiles
    from the manufacturer to the launching site. It also delivered
    intermediate-range ballistic missiles from the United States to Europe.
    Other special airlifts supported project DEEP FREEZE in the Antarctic
    and scientific stations in the Arctic.
    At the end of June 1960 the MATS fleet numbered 533 aircraft, including
    493 four-engine transports in the airlift service. MATS
    supported the three military departments by handling the movement
    of 993,209 passengers and 279,144 tons of cargo in channel traffic. Of
    these totals, commercial aircraft carried 424,912 passengers and 65,238
    tons of cargo. The number of passenger miles flown in channel traffic
    was 3,523,924,305 (including 1,710,364,390 in commercial carriers),
    and the total of passenger and cargo ton-miles flown was 945,273,808
    (including 259,010,884 in commercial aircraft).
    The success of the MATS mission depended a great deal on the
    activities of its four technical services, which also gave strong support
    to the U.S. space program. The Air Rescue Service handled not only
    the search for and rescue of people but also the recovery of materiel.
    During the year its aircraft flew more than 2,000 missions, saving 350
    people from certain death and some 1,700 who were in great danger.
    This agency also played an important role in both the MERCURY
    and DISCOVERER programs and in other aspects of missile and
    satellite recovery. The ability of the Air Rescue Service to perform
    these tasks in the future was greatly affected by the reduction in the
    number of air rescue squadrons from 17 at the beginning to 7 at the
    end of fiscal year 1960.
    The Air Weather Service analyzed television weather pictures
    transmitted by TIROS I and tested weather maps prepared from
    these pictures. The Air Photographic and Charting Service correlated
    geodetic launching positions with those of the potential targets,
    made electronic surveys for missile guidance systems, and flew almost
    83,000 scale-miles of aerial mapping photography. The Airways and
    Air Communications Service, designated to operate the ground environment
    of the communication satellite program, was also assigned
    responsibility for technical control and transmission engineering for
    BMEWS circuits.
    330 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    (AS OF JUNE 30)
    I ! AIRMEN
    III. M an power
    The predicament of greater requirements but fewer people to meet
    them intensified the manpower problems of the Air Force. The steady
    downward trend in manpower continued as USAF military strength
    dropped from 840,435 to 814,752 between July 1, 1959, and June 30,
    1960. At the end of fiscal year 1960 there were 129,689 officers and
    warrant officers and 685,063 airmen, with approximately 207,370 officers
    and airmen stationed overseas. The number of civilians employed
    directly by the Air Force fell from 313,466 to 307,449. This decrease
    of 6,017 was more than twice the reduction of the previous year and
    came largely toward the end of the year. The overall decrease in
    USAF manpower was 2.8 percent; in Headquarters USAF personnel
    strength declined 11.2 percent.
    The reduction of 25,683 in military strength between July 1, 1959,
    and June 30, 1960, following upon the successive reductions over the
    past few years, placed a severe strain upon the Air Force. Despite
    the numbers of men released for other jobs by the net reduction of nine
    combat wings, the Air Force in fiscal year 1960 had to meet the
    increased manpower demands growing out of the creation of new
    missile units, increased alert requirements, further dispersal of the
    heavy bomber force, modernization of equipment, and a substantial
    increase in the training program In addition, the equipment of
    certain bombardment squadrons with air-launched ballistic missiles
    would inevitably require more people.
    The Air Force carried on its major programs in spite of the loss of
    manpower, but expected to improve this situation during fiscal year
    1961 by raising military strength to the authorized level of 825,000.
    The manpower reduction was most apparent in the operating forces,
    where a decrease from 105 to 96 wings occurred. The only important
    increase was in the training forces. The following table shows the
    changes in utilization of USAF manpower during the year:
    includes hospital patients and personnel on special assignments.
    June 30, 1959
    Percent
    Operating Forces______ 557, 293 66. 3
    Supporting Forces_____ 141,451 16. 8
    Training Forces_______ 134, 848 16. 1
    *Miscellaneous ________ 6, 843 . 8
    Total______8_4_0_,_ 435 100. 0
    595308—61------ 22
    June 30,1960
    Percent
    530, 566 65. 1
    131, 101 16. 1
    145, 789 17. 9
    7, 296 . 9
    814, 752 100. 0
    331
    332 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Decorations
    Hereafter the Air Force will have three distinctive decorations to
    bestow upon its members who perform services above and beyond the
    call of duty. Legislation passed before the end of June 1960 established
    the Air Force Cross for combat bravery and the Airman’s
    Medal, both to replace medals previously shared with the Army.
    The third distinctive decoration is the Air Force Commendation
    Medal, which has been in use since March 1958.
    Changes in Enlisted Personnel System
    During the year the Air Force continued a gradual expansion of
    the proficiency pay and promotion programs authorized by the Military
    Pay Act. By the end of June 1960 about 51,000 airmen in 131
    USAF specialties had been granted proficiency pay. The Air Force
    completed plans to add a second proficiency pay step, probably in 1961
    or 1962.
    During fiscal year 1959, the Air Force promoted airmen only to the
    lower of the two new master sergeant grades of Senior and Chief
    Master Sergeant. The first promotions to the top grade of Chief
    Master Sergeant were made on December 1, 1959. By the end of
    MILITARY PERSONNEL OVERSEAS
    FY 1956- 1960
    ■ ..
    MANPOWER 333
    June 1960 there were 7,224 airmen serving in the grade of Senior
    Master Sergeant and 1,585 serving as Chief Master Sergeant.
    The greater attractiveness of a USAF career since 1957 has enabled
    the Air Force to be increasingly selective in manpower, has produced
    a notably improved average reenlistment rate, and has steadily raised
    the percentage of career men in the Service. By fiscal year 1960 the
    proportion of career airmen (those in their second or subsequent enlistment)
    exceeded 60 percent. Although this improved upon the
    old problem of retention of experienced personnel, the Air Force
    anticipated that a new one would soon arise—stagnation of promotion
    opportunities. This is the result of the presence of a large group of
    mature airmen with active service often dating back to World War II.
    To deal with this problem in terms of future manpower budgets,
    the Air Staff set as a goal an over-all optimum force ratio of 55 percent
    career men and 45 percent first-termers. Career men would include
    individuals with length of service from 4 to 30 years. In
    specialized career fields, electronics for example, 62-38 was the desired
    ratio; in others, 47 percent career personnel might suffice. At the
    end of June 1960 it was still too early to determine whether the
    desired ratios could be achieved.
    Officer Corps
    During fiscal year 1960, 9,526 new officers were appointed to the
    active Air Force. The Regular officer augmentation program had
    been largely completed during fiscal year 1959. In fiscal year 1960,
    the Air Force confined appointment of line officers in the Regular
    Air Force to junior officers with no more than 5 years of service.
    Other Regular appointments were given to professionally qualified
    personnel. By June 30, 1960, the number of Regular officers reached
    50,362, approximately 40 percent of the officers on active duty.
    The Air Force received 218 graduates from the Air Force Academy
    and 107 from the other Service academies. These new Regular
    officers constituted only 11 percent of the necessary annual increment.
    The Air Force ROTC remained the major source of active duty and
    potential Regular officers.
    The Air Force obtained legislation granting some temporary relief
    from the Officer Grade Limitation Act of 1954. As a result, the
    number of majors in the active force may exceed the legal ceiling
    by 3,000 during fiscal years 1960 and 1961, and promotions may continue
    while Congress and the military Services review the grade
    limitation provisions. Adoption of the “best qualified” system in
    all promotion programs above the grade of captain should result
    in greater selectivity.
    334 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    To resolve the “hump” problem remaining from the large buildup
    of officer strength during World War II, the Air Force began to apply
    a number of mandatory retirement procedures. These were expected
    to bring officer strength and grade structure into agreement with Air
    Force requirements in an orderly and equitable manner.
    Women in the Air Force
    At the end of June 1960 the WAF had 679 officers, 5 warrant officers,
    and 5,651 airmen serving on active duty—a loss of 54 officers and 720
    airmen since the end of the previous year. Before the beginning of
    the fiscal year the Air Force had set a goal for June 1960 of 750
    officers and 5,000 airmen. Failure to obtain the desired number of
    officers resulted from a shortage of entries into the Officer Training
    School and Officer Candidate School which together produced only
    31 officers by the end of June 1960. As a result of a decision made
    in 1958 the WAF ROTC program was discontinued after the last
    two young women graduated in June 1960.
    In April 1960 the Air Force authorized 550 WAF officer positions
    on the active list of the Regular Air Force. This authorization included
    a provision to appoint 35 WAF officers as permanent lieutenant
    colonels during the period 1960-64.
    In August 1959 the President signed into law’ a bill giving active
    service credit for service in the Women’s Army Auxiliary Corps from
    May 13, 1942, to September 30, 1943. This law, the result of 17 years
    of effort, benefited 544 WAF and 889 members of the Women’s Army
    Corps.
    Civilian Personnel
    The Department of Defense established a new ceiling of 310,500
    for directly hired USAF civilians, about 2 percent below the previously
    established objective of 314,693. This lower ceiling was to
    be reached, insofar as possible, by attrition, without using military
    personnel, or contracting for services normally performed by civilian
    employees.
    To bring its strength below this ceiling, the Air Force placed a
    partial hiring freeze on all commands. Most commands were permitted
    to fill only two out of each three vacancies. In December 1959
    the Air Force imposed specific strength limits for the commands
    when it became evident that attrition would not hold manpower
    within planned limits. Headquarters USAF and some commands had
    to apply reductions in force to reach assigned strength figures. Actually,
    the civilian personnel total fell more than 3,000 below the revised
    ceiling by the end of the fiscal year.
    There has been a steady trend in the past few years toward a
    MANPOWER 335
    higher ratio of salaried to wage board employees. Since 1955 salaried
    employees have risen from 42 to 49 percent; hourly wage earners
    dropped from 58 to 51 percent.
    The Air Force continued to employ a substantial number of foreign
    nationals indirectly through contracts or agreements with other governments.
    The general decline in strength applied here also, the
    number dropping to 47,479, a decrease of 3,149 since the end of June
    1959.
    432,659
    4--
    TOTAL CIVILIAN PERSONNEL
    FY 1956 1960
    416,585
    DIRECT HIRE
    HIRE
    372,689
    364,094
    348,230
    3-- 340,326
    (AS OF JUNE 30)
    354,928
    315,806
    2--
    313,466
    307,449
    0
    FY 56
    84,429
    59
    1,628 479
    60
    Figure 7
    The worldwide turnover rate of civilian employees changed little
    during fiscal year 1960. The monthly separation rate remained at
    1.6 percent, and the accession rate declined from 1.5 to 1.4 percent.
    About 57 percent of the separations were voluntary—50 percent were
    resignations and 7 percent transferred to other Government agencies.
    The Air Force continued its efforts to reduce the number of resignations,
    particularly among scientific, professional, and technical personnel.
    During the year the Air Force realized more than $38 million in
    first-year benefits from the employee incentive awards program.
    More than 29 percent of USAF employees made suggestions and
    336 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    21,111 were adopted. In addition, 17,148 employees received recognition
    for superior performance and special acts or services.
    The Air Force continued to use the services of many physically
    handicapped workers. About 7% percent of its employees in the
    United States have varying degrees of physical impairment, but their
    work records compare favorably with those of the unimpaired
    employees.
    IV. Military Training
    The Air Force had to devote a substantial proportion of its resources
    to military training, due principally to the acceleration of
    technological training.
    Flying Training
    During fiscal year 1960 the Air Force trained 2,342 pilots, 356 less
    than in the previous year. Among the 1960 graduates were 2,116 for
    the Air Force, 69 for the Air National Guard, and 157 for foreign
    countries in the Military Assistance Program (MAP). Navigator
    graduates increased slightly, from 1,587 to 1,615 including 1,557 for
    the Air Force, 45 for the Air National Guard, and 13 for foreign
    countries.
    Progress continued in modernizing undergraduate pilot training.
    Conversion to T-37 jet aircraft neared completion in the primary
    training schools. Flight-testing of the T-38 supersonic basic trainer
    advanced satisfactorily at Edwards AFB, Calif. The T-38 will replace
    the T-33 in basic flying schools by fiscal year 1964.
    The number of pilots being graduated has declined. Another drop
    in pilot graduations is expected to take place next year. By the end
    of June 1961 the Air Force will have discontinued the use of civilian
    contract flying schools for primary pilot training and will have
    consolidated all undergraduate pilot training on USAF bases, using
    only USAF pilot instructors.
    Modernization of advanced fighter-interceptor training began in
    the spring of 1960 when F-102’s and TF-102’s were assigned to Perrin
    AFB, Tex., to replace the obsolescent F—86L’s as training planes.
    This modernization program will continue until all F-86’s are replaced
    by newer fighter aircraft.
    The Air Force lacked modern navigator training planes. Newly
    graduated navigators who have been trained in reciprocating-engine
    aircraft require much additional training in first-line combat aircraft
    at high speeds and high altitudes. The primary factor restricting
    purchase of navigator trainers is limited funds. The Air
    Force plans to procure some jets to train officers in radar interception,
    but there is still a. critical need for electronic warfare and radar
    bombardment training.
    337
    338 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    AS OF JUNE 30
    Between July 1959 and June 1960 the USAF survival training
    school instructed about 4,000 individuals, including the astronauts and
    a number of Navy personnel.
    By special arrangement, employees of the Federal Aviation Agency
    received training in six types of USAF planes: The B-57, C-121,
    KC-97, KC-135, T-29, and T-33. The Air Force will be reimbursed
    for the cost.
    Technical Training
    To satisfy the demand for more highly skilled technicians, Air
    Training Command, at the beginning of the fiscal year, increased the
    length of 45 basic technical courses, some by as much as 20 weeks.
    As requirements for highly developed skills rose, courses became more
    difficult and a lower percentage of students completed their training.
    This meant that more students had to be enrolled to produce a given
    number of graduate technicians. The greatest demand for graduates
    generally was in the more complex skills, where the longest training
    time was required. By the end of fiscal year 1960 the number of
    students graduating from USAF technical schools included 47,234
    classed as highly technical, 17,597 technical, and 15,970 semitechnical.
    MILITARY TRAINING 339
    The total of 80,801 exceeded the previous year’s total by 14,305 and
    that of fiscal year 1958 by 4,357.
    During the year the Air Force enlisted more than 84,300 male
    airmen with no previous service, compared with 59,184 in fiscal year
    1958 and 62,106 in fiscal year 1959. Nearly 80 percent of these airmen
    were enrolled in basic technical courses before assignment to operational
    units. As a result of the increased training requirements the
    average student enrollment in the basic technical courses during the
    year was about 6,000 higher than during fiscal year 1959.
    Figure 9
    The higher training costs thus generated caused growing concern,
    especially since further increases were expected in fiscal year 1961.
    In renewed efforts to reduce these costs, training schools again examined
    each basic technical training course in an attempt to find and
    eliminate instances of “overtraining” or the teaching of subject matter
    not absolutely essential to satisfactory performance on the job. The
    possibility of shifting more of the responsibility to on-the-job training
    in operational units was also considered. As a result, 22 technical
    training courses were reduced in length, with a corresponding decrease
    in failure rates, by the end of fiscal year 1960. Furthermore, the Air
    Force expects to achieve further savings by continuing to give only
    340 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    minimum essential instruction to first-term airmen before they are
    assigned to operational units. The basic problem in this era of technological
    developments is to economize on training without reducing
    operational effectiveness in the combat units.
    Professional Education
    As the Air Force directed a greater proportion of its skills into
    technical channels, professional education reshaped its goals in order
    to provide the necessary leadership in these fields. In order to use the
    fiscal year 1960 quotas for the graduate engineering courses at the
    Air University’s Institute of Technology, the Air Force established
    a special quota of 30 in undergraduate engineering—20 for electrical
    and 10 for aeronautical engineering. The Air University expected to
    set up another undergraduate program for fiscal year 1961.
    The airman education and commissioning program, adopted last
    year to give airmen interested in a USAF career an opportunity to
    further their education and to earn a commission, encountered some
    difficulty. This plan stipulated that an airman must have 50 semester
    hours of college credit to qualify and that he was limited to 24 months
    in which to complete a degree. The Institute of Technology also
    set prerequisites in certain specified courses, particularly in mathematics
    and science, too high for most airmen to qualify. To obtain
    applicants the Air Force lowered the academic prerequisites to a minimum
    of 30 semester hours and eliminated the specific course or subject
    requirements. As a result, 59 airmen had entered academic
    study in eight colleges and universities by the end of July 1960. It
    is likely that more than 24 months may be allowed for completion
    of the degree.
    Beginning in fiscal year 1961, Air University will establish a new
    space systems orientation course, with an annual quota of 850 lieutenant
    colonels and civilians with comparable rank or higher. The
    new course will help key USAF personnel to keep abreast of the
    new and revolutionary in aerospace development.
    At the end of June 1960 the Air Force planned to increase attendance
    by officers of allied countries at Air University resident schools.
    This followed Department of Defense policy to increase allied participation
    in military schools in the continental United States.
    Responsibility for foreign language training was transferred to
    Air Training Command at the end of June 1960. The Air Force also
    decided to transfer all business school programs from Air University
    to civilian colleges and universities willing and able to take over this
    training, a decision expected to result in considerable savings.
    A total of 227 students graduated from the Air Force Academy’s
    second class on June 8, 1960. Besides the 218 who accepted comMILITARY
    TRAINING 341
    missions in the Regular Air Force, 6 were commissioned in the Marine
    Corps, 2 in the Navy, and 1 was disqualified for medical reasons.
    The Academy’s Board of Visitors in April 1960 recommended that
    legislation be enacted to allow the Academy to grant master’s degrees.
    This would be the culmination of an effort to encourage superior
    students to progress as rapidly as their individual talents permit.
    Enrollment in AFROTC rose slightly from 80,166 in fiscal year
    1959 to 81,415 in fiscal year 1960, including only 5,760 advanced
    students. AFROTC graduates totaled 3,496, of whom 1,611 applied
    for flying training—1,317 as pilots and 294 as navigators.
    AFROTC remained the principal source of new USAF active
    duty officers, but many of the 176 units in the participating colleges
    and universities were not graduating enough prospective officers to
    justify their cost to the Government.
    In early December 1959 representatives of 174 of the 176 institutions
    with AFROTC units met with top Air Force officials at Maxwell
    AFB, Ala., to discuss their problems. The discussions resulted
    in the establishment of an advisory panel of college educators with
    whom the Air Force could consult on matters of mutual interest.
    The panel met in March and April 1960, to consider such subjects
    as modification of the AFROTC curriculum, disestablishments of unit
    and compulsory basic ROTC courses.
    The Air Force agreed not to close any units except on request
    from the educational institutions involved, but it invited colleges
    and universities operating unproductive units to request their
    disestablishment.
    The Air Force also authorized participating colleges to modify
    the AFROTC curriculum in academic year 1960-61. In general,
    these changes permitted the colleges to accredit additional academic
    courses for air science. The decision was based primarily on the
    increased demand on students’ study time, the crowded conditions
    in college classrooms, and the reduction in ROTC teaching staffs.
    To encourage the colleges in financing ROTC, the Air Force is supporting
    a legislative proposal whereby the Federal Government
    would grant additional money—about $400 per commissioned graduate—
    to the institutions with active units.
    The Officer Training School, which supplements AFROTC, commissioned
    323 graduates during its first year of operation. OTS offers
    military training to college graduates who have already been schooled
    in subjects directly related to USAF requirements. The large number
    of applications for OTS has permitted the Air Force to be
    highly selective in accepting students. In the future the Air Force
    expects to make OTS one of its two major sources of exceptionally
    well-qualified young officers. The quota for fiscal year 1961 is 625.
    342 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Reserve Forces
    An indication of the current importance of the air reserve forces is
    the fact that two-thirds of the tactical reconnaissance units, nearly
    half of the tactical fighter units, and more than three-fourths of the
    troop carrier units available to the Tactical Air Command in an
    emergency belong to the Air National Guard (ANG) and Air Force
    Reserve (AFRes). In addition, a considerable portion of USAF interceptor
    units are in the Air National Guard.
    RESERVE FORCES
    FY 1956 - 1960
    The demonstrated ability of the reserve units to perform wartime
    missions requiring a high degree of combat readiness and the need to
    give them additional useful missions resulted in the initiation of a
    new plan for the management of the Air National Guard and Air
    Force Reserve. The new plan provided for closer integration of reserve
    units with the active establishment than ever before. Supervision
    of training and inspection of flying and certain other units was
    transferred from the Continental Air Command (CONAC) to the
    commands having operational control of the units in a national emergency
    on February 5, 1960. Reservists themselves will take over
    a large share of the responsibility of running the reserve program.
    CONAC, relieved of much of its training and inspection responsibilities,
    will be better able to carry out its functions of command, adminisMILITARY
    TRAINING 343
    tration, personnel and budgetary management, and logistical support
    of the AFRes.
    In September 1960 the three CONAC air forces will be replaced by
    six Air Force Reserve regions corresponding geographically to the
    six U.S. Army areas. Many of the activities at the regional headquarters
    will be carried on by inactive duty AFRes mobilization
    assignees. Troop carrier wings will report directly to regional headquarters,
    but nonflying and individual training units will be managed
    by 16 sector headquarters, also manned chiefly by mobilization
    assignees. Below sector level, the reserve program will be managed
    entirely by reservists, with general control exercised by active USAF
    advisers and training liaison personnel.
    New missions are being assigned to the reserve forces as the Air
    Force decides that such missions will add to its over-all capabilities.
    Specific missions already assigned include strategic airlift, postattack
    recovery, and base support. A test program scheduled for early in
    fiscal year 1961 will provide experience in training and equipping recovery
    and base support units to assist the Air Force in recovery from
    nuclear attacks in wartime. Personnel to man the recovery and base
    support units will generally come from the present AFRes individual
    training programs. Individual training will be continued for personnel
    needed to augment active USAF units in the event of an emergency.
    Reserve units continued to perform important peacetime tasks as
    a byproduct of training. AFRes troop carrier wings supported the
    Army by airlifting and airdropping troops and equipment during
    training exercises. The first ferrying of aircraft to oversea areas
    by the reserves occurred in June 1960, when the AFRes flew 21 C-119’s
    to Agra, India, meeting all schedules successfully.
    ANG air defense alert crews from 20 squadrons regularly stood
    runway alert under ADC control and four Aircraft Control and
    Warning (AC&W) squadrons operated 24 hours a day as part of
    the air defense radar network. The 199th Fighter-Interceptor Squadron
    and the 109th and 169th AC&W Squadrons of the ANG had
    charge of the USAF defense of Hawaii, operating under the Pacific
    Air Forces. ANG tactical fighter squadrons conducted firepower
    demonstrations at several Army bases, relieving TAC of this function.
    At the end of June 1960, ANG personnel totaled 70,820, all in the
    Ready Reserve. Of these 8,570 were officers and 62,250 airmen. The
    AFRes had a strength of 520,749 not on active duty, including 40,542
    officers and 161,964 airmen on Ready status. The AFRes had 56,425
    men in drill-pay status, of 63,000 authorized, and the ANG had
    70,820 of 72,000 authorized. The activation of AFRes postattack
    and base support units in fiscal years 1961 and 1962 will probably require
    the authorization of additional drill-pay positions.
    344 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    During the year annual inspections and operational readiness tests
    showed that both ANG and AFR.es units were receiving highly effective
    training and had the ability to react quickly in an emergency.
    This was also borne out by the flying safety record of both components.
    The AFRes had 2.9 accidents per 100,000 flying hours during
    calendar year 1959, and it cut this in half during the first 6 months
    of 1960. The ANG had an accident rate of lJf.3 per 100,000 flying
    hours during calendar year 1959 and only 7.6 for the first half of 1960.
    The air technician program contributed much to the more effective
    training record. On June 30,1960, the ANG had 13,158 air technicians
    and the AFRes had 3,971.
    Both the ANG and the AFRes continued to modernize their equipment.
    By the end of June the ANG had 87 percent of its required
    equipment, and the AFRes units had from 70 to 90 percent of theirs.
    To help them perform their new strategic airlift mission, six ANG
    squadrons obtained C-97 Stratocruisers, the first ANG four-engine
    transports. Five more squadrons were equipped with Century series
    aircraft, including F-lOO’s, F-102’s, and F-104’s. The 144th Air
    Transport Squadron in Alaska received ski-equipped C-123’s to replace
    its C-47’s. The AFRes expected to obtain replacements for
    MILITARY TRAINING 345
    some of its C-119’s as soon as suitable aircraft could be made available
    by the active establishment.
    During the year the ANG obligated $11.5 million of Federal funds
    to construct new facilities. These included six runways, two hangars,
    and a variety of other buildings, all made necessary by the acquisition
    of more modern equipment. The AFRes obligated $3.1 million
    for new facilities, including one hangar and the expansion of existing
    buildings and aircraft parking areas.
    V. Health and Welfare
    The Air Force continued its efforts to provide its officers and airmen
    with improved conditions and benefits. USAF welfare activities received
    $29 million from the Air Force Central Welfare Fund to
    supplement funds appropriated for recreational, educational, religious,
    and general welfare benefits to families living at USAF installations.
    There were 260 family-service centers in the Air Force
    with 14,000 volunteer helpers. The Air Force Aid Society continued
    to provide emergency financial assistance.
    Medical Service
    Medical Personnel
    During the year the number of USAF medical officers increased
    slightly from 10,429 to 10,699, including 435 residents and interns.
    This total included 3,354 physicians, 1,745 dentists, 322 veterinary
    officers, 2,063 medical service officers, 163 medical specialists, and
    3,052 nurses. By the end of June 1960 there were 22,851 Medical
    Service airmen, including 2,885 assigned to dental duties. The Medical
    Service had difficulty in obtaining qualified clinical laboratory
    officers and sanitary and industrial hygiene engineers. It added 233
    Regular officers during the year.
    The major source of active duty Air Force Reserve physicians, the
    residency deferment program (Berry Plan), enabled young physicians
    to secure reserve commissions with active duty during the year following
    their internship or, if selected, to delay their active duty until after
    completion of residency training in need specialties. Of 572
    physicians commissioned by the Air Force from the 1959 medical
    school graduates, 255 were deferred for residency training, bringing
    the total number in residence in June 1960 to 685. During fiscal year
    1960, 132 physicians completed their residency training and entered
    on active duty, and 209 were scheduled to do so during fiscal year 1961.
    The Air Force continued to sponsor four special career incentive
    programs to attract highly qualified young men interested in Medical
    Service careers. At the end of June 1960 about 230 senior medical
    students, military interns, civilian interns, and dental interns were
    being sponsored under these programs.
    An extensive medical education program for USAF medical officers,
    designed to meet the needs of the Air Force and to attract professional
    346
    HEALTH AND WELFARE 347
    personnel to the Medical Service, provided training for specialists,
    teachers, researchers, and administrators. The training embraced
    courses ranging from short seminars to several years of residency.
    On June 30, 1960, the number of sponsored Air Force residents
    totaled 356.
    Health in the Air Force
    The health of USAF military personnel improved markedly in fiscal
    year 1960. The admission rate to medical facilities for treatment
    decreased 7 percent to a low of only 252 (from 272 in fiscal year 1959)
    per year per 1,000 strength. The average daily number of noneffectives
    (for medical causes) also decreased from 9.8 per 1,000 military
    personnel in fiscal year 1959 to 9.6 in 1960.
    Improvement in health as well as the reduction in the number of
    military personnel resulted in an 8 percent decrease in the daily average
    number of hospital beds occupied by USAF personnel—from
    6,287 in fiscal year 1959 to 5,785 in 1960. Since some of the 5,785 were
    cared for in non-Air Force facilities, a daily average of only 4,610
    USAF personnel occupied beds in USAF facilities. The average
    daily number of USAF personnel hospitalized fell from 7.4 per 1,000
    to 7.0. The Air Force cared for a total daily average of 8,820 patients
    in its own facilities, of whom 3,834 were nonmilitary and 376 were
    military other than Air Force.
    Decreases in the military patient load were offset by increases in
    bed occupancy by dependent and retired personnel. The 68,000 babies
    born in USAF facilities during the year represented an increase of
    almost 20 percent over the previous year. The clinics, too, had far
    more patients, the number of immunizations increasing by 558,400 and
    the out-patient visits by 528,250.
    The death rate for fiscal year 1960 was 1.7 per 1,000 average strength
    compared to 1.9 for the previous year. This represented a reduced
    death rate from injuries—1.3—and an unchanged rate from disease—
    0.4. Of the 1.3 deaths per 1,000 from injuries, aircraft accidents
    accounted for only 0.3, while motor vehicle deaths remained the same
    as in 1959—0.6. Deaths from miscellaneous injuries accounted for
    the remaining 0.4.
    Air Force Hospitals
    Two new hospitals, five new dispensaries, four new dental clinics
    and six miscellaneous projects completed during the year helped
    broaden the scope of USAF health services. Under construction in
    June 1960 were nine more hospitals (three with dental facilities),
    four dispensaries, and a 500-bed addition to the USAF hospital at
    Lackland AFB.
    595308—61------23
    348 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    At the end of June 1960 the USAF Medical Service had 182 fixed
    in-patient facilities, containing 12,183 operating beds. Of these, 123
    facilities with 9,410 beds were in the United States including Alaska;
    98 were hospitals and 25 were Class A dispensaries. The remaining
    59 facilities, with 2,773 beds, were overseas. The Dental Service operated
    482 fixed dental facilities and 13 trailer-mounted dental clinics.
    During the year, 12 USAF hospitals became accredited, 8 in oversea
    areas. The total number accredited rose to 76, of which 60 were in
    the United States.
    Dependents’ Medical Care
    After a comprehensive review of the Medicare program under the
    changes made in October 1958, additional care of dependents from
    civilian medical sources was authorized on January 1, 1960. One
    major restriction continued: Dependents residing with their sponsors
    still had to obtain a statement of nonavailability of military medical
    care prior to seeking civilian medical care at Government expense.
    With this latter exception, the scope of the program in June 1960 was
    much the same as it was prior to October 1958.
    The Air Force had obligated almost $103 million under Medicare
    from its inception in December 1956 to June 30, 1960. This sum included
    a charge of 2.2 percent by the Department of the Army for
    administering the program. During fiscal year 1960, almost $24 million
    was obligated for the care of USAF dependents in civilian hospitals
    ; the average cost per physician’s claim was $80, and the average
    cost per hospital claim was $132.
    Medical Research
    The USAF Aerospace Medical Center opened at Brooks AFB,
    Tex., on November 14, 1959. This modern center for medical research
    brought into one organization under the Air Training Command the
    School of Aviation Medicine at Brooks; the USAF hospital and the
    USAF Epidemiological Laboratory, both at Lackland AFB, Tex.;
    and the Medical Service School, at Gunter AFB, Ala.
    The School of Aviation Medicine performed research in bioastronautics,
    aerospace medical problems of atomic energy, preventive medicine,
    clinical medicine, medical standards in aviation, aviation
    physiology, and visual problems of flight. Although the school did
    much of this research in its own laboratories, it also contracted with
    universities, medical schools, and industrial organizations to investigate
    specific subjects.
    Research projects included space-cabin simulation, planetary environments,
    weightlessness, algal systems, and requirements for constructing
    complete life-support systems for small animals. Cosmic
    HEALTH AND WELFARE 349
    radiation research attempted among other things to define the degree
    of hazard posed by the primary cosmic-ray particles first encountered
    above 90,000 feet.
    In studying the possibility of life on other planets, the school found
    that certain soil bacteria multiply under environmental conditions
    simulating those on Mars. Research indicated that an algal system
    weighing 131 pounds or less would permit a man to breathe in a
    sealed environment.
    ARDC’s Aerospace Medical Division, at Wright-Patterson AFB,
    Ohio, directed bioastronautic projects of great importance to the
    national effort in manned space flight. Stress tolerance studies concerned
    the physiology of prolonged acceleration and weightlessness;
    impact and abrupt acceleration stresses; thermal tolerance; and
    acoustical, nutritional, vibrational visual, and combined stresses. Capsule
    habitability studies centered on respiration and nutrition, waste
    collection and processing, sanitation and hygiene, space capsule design,
    space suits, abrupt deceleration protection, and other biological
    problems.
    The Arctic Aeromedical Laboratory at Ladd AFB, Alaska, carried
    out an extensive research and development program dealing with human
    factors in Arctic environment. The laboratory investigated environmental
    disease hazards, nutritional requirements, survival
    techniques, and protective clothing. It also provided facilities, logistic
    support, and technical assistance to visiting research teams.
    Chaplains
    Chaplains entering active duty during the year brought the total
    number at the end of June 1960 to 1,094, still 19 less than authorized.
    The Air Force called 104 reserve chaplains to active duty, but the loss
    of 51 from active duty resulted in only 53 additional chaplains.
    Missions, retreats, and conferences are held throughout the world
    wherever USAF personnel are assigned. Air Force chaplains conducted
    a series of missions for Catholic and Protestant personnel and
    their families at air bases in Iceland, Europe, the Azores, Bermuda,
    and the Caribbean. Torah convocations were conducted for Jewish
    personnel in Europe. The chaplaincy conducted the first Eastern
    Orthodox mission and retreat in the Far East at Tokyo and Lake
    Yamanoka, Japan.
    Spiritual life conferences for Protestant personnel and their
    families were sponsored for the seventh year. They were held at
    Estes Park, Colo.; Ridgecrest, N.C.; and Pacific Grove, Calif. Also,
    the Air Force sponsored Protestant religious education seminars in
    Oklahoma and California.
    350 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    A conference was held in Fuchu, Japan, for USAF chaplains in
    the Pacific area. Headquarters USAF and USAFE sent chaplain
    representatives to the annual conference for chaplains of the NATO
    air forces, held in Rome, Italy, with the Italian Air Force as host.
    Through the Armed Forces Chaplains Board, the Air Force sponsored
    spiritual retreats for Protestant and Catholic chaplains in the Alaskan
    and northeast Atlantic areas.
    In July 1959 the Air Force set up a Chaplain Writers Board at the
    Air University as a research, review, and educational agency of the
    Office of Chief of Air Force Chaplains. The Extension Course Institute
    introduced three new courses for chaplains.
    In June 1960 there were 740 religious facilities, including 431
    chapels and 309 chapel annexes, at USAF bases. During fiscal year
    1960, 24 new religious facilities were completed.
    Judge Advocate General
    The international activities of the Air Force are reflected in the
    work of its legal advisers. USAF judge advocates monitor the trials
    of Air Force personnel, military, civilian, and dependents, in foreign
    courts. New civil litigation in which the Air Force was the defendant
    arose in Turkey, Greece, England, France, Iceland, Canada, Japan,
    and the Philippines.
    The problem of retaining young lawyers on active duty in the Air
    Force remained critical. The Judge Advocate General’s department
    lost 199 officers during the fiscal year, adding only 183 new officers.
    Total strength at the end of June 1960 was 1,203 officers, 16 fewer than
    a year earlier.
    During the year the Boards of Review examined 1,606 court-martial
    cases, of which 329 were petitioned to the U.S. Court of Military Appeals
    and 8 were certified to the court by the Office of the Judge Advocate
    General. During this period, 46 petitions were granted, 283
    denied, and 9 withdrawn by the accused. By the end of June 1960,
    the court had reversed the Boards of Review in 22 cases, sustained
    them in 33, and reached no decision in 46.
    The Judge Advocate Genera] received or reopened 1,477 claims
    totaling almost $4 million and closed 1,514 claims amounting to $4.6
    million. There were 202 claims on hand as of June 30, 1960, in the
    amount of almost $3 mi]lion. The number of foreign claims processed
    continued low because international agreements apply in many areas
    and the field settlement authority covers claims to $15,000.
    The Tax and Litigation Division received a total of 436 cases and
    closed 310 cases. There were 1,100 cases on hand at the end of June
    1960.
    VI. Installations
    The rapid evolution of aerospace weapons has created a demand for
    new ground support facilities. Base facilities are a critical and integral
    part of missile and space vehicle weapon systems, as are the
    facilities housing the computers, displays, and control equipment for
    other new systems. At the same time, existing facilities must be
    modernized if manned aircraft are to remain effective. And the
    highly trained technicians needed to operate these modern weapons
    must be provided with adequate family housing if the Air Force
    expects to retain them.
    Programs
    The Air Force had available for military construction during fiscal
    year 1960 a total of $1.43 billion. This figure included $781 million in
    new appropriations by Congress, $634 million carried over from the
    previous year, and $19 million in transfers and reimbursements. Of
    the total, the Air Force could use $1.18 billion to award new contracts,
    the balance being reserved for various Government costs and the
    overhead on current construction.
    In September 1959 the Air Force requested a military construction
    authorization for fiscal year 1961 of $1.03 billion for the Regular Air
    Force and $9.7 million for the reserve forces. Before submission to
    Congress, the program was reduced to $675.8 million and $4.6 million,
    respectively. Congress actually authorized $727.3 million for the
    Regular Air Force, including $204.7 million for construction within
    the United States, $105 million for overseas, $408.6 million for missile
    sites, and $9 million for unforeseen contingencies. The authorization
    for reserve forces construction was $4.5 million. The appropriation
    for military construction for fiscal year 1961 was $613.5 million,
    including $609.5 million for the Regular Air Force and $4 million for
    the reserve forces.
    During the year the Air Force spent $4.7 million for 8,511 acres of
    land, including 1,457 acres in the public domain, on which new facilities
    could be built or existing ones expanded. In addition, new leases were
    acquired at a cost of about $62,000 per year.
    At the same time, the Air Force disposed of 425,781 square feet of
    building space and 23,987 acres of land which were no longer needed.
    351
    352 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Figure 12. United States Air Force Academy.
    It transferred Vincent AFB, Ariz., to the Navy, declared surplus part
    of Presque Isle AFB, Maine, halted construction at Richard Bong
    AFB, Wis., and inactivated five depots in the United States. Cancellation
    of 304 leases on building space and acreage cut expenditures by
    $797,600 per year. As of June 30,1960, there were 2,172 leases in effect
    at an annual cost of $3.1 million.
    Construction
    The Air Force did not begin construction of any new major bases
    during fiscal year 1960, but it did place under contract some missile
    sites in the vicinity of existing bases. During the year the Air
    Force placed contracts for new construction projects amounting to
    $776 million. This sum included about $400 million for ballistic
    missile and space projects. Awards for projects not related to missiles
    were slowed down to keep within established fiscal ceilings.
    Construction projects valued at $1.38 billion, exclusive of family
    housing, were completed during the year. This represented a monthly
    average of $115.4 million as compared with $81 million for the previous
    fiscal year. On June 30, 1960, projects worth $1.99 billion were
    under construction with the value of the work in place at these
    projects totaling $1.19 billion.
    INSTALLATIONS 353
    By the end of the year the Air Force had let $340.6 million in
    construction contracts at 13 ICBM sites and had completed 18 percent
    of the work. It awarded additional contracts amounting to $23.2
    million for ICBM testing and training facilities at Vandenberg AFB,
    Calif., and Patrick AFB, Fla.
    In the construction of ICBM sites, the Air Force adhered to the
    principles of dispersal and hardening. Individual launchers were
    separated by several miles. The first ATLAS units are scheduled to
    be placed above ground, but later squadrons, including TITAN and
    some MINUTEMAN, will be placed in underground silos for better
    protection. ICBM missile sites will be located in the vicinity of existing
    major USAF installations to make maximum use of their facilities.
    Almost $32.8 million in construction work at SAC bomber and
    tanker bases was 37 percent completed by the end of June 1960. Dispersal
    contracts valued at $1.7 million were 42 percent completed.
    Almost half of the work at SAC guided aircraft missile facilities,
    worth $6.9 million, was also finished.
    Of the BMEWS sites, construction was essentially completed at
    Thule AFB, Greenland, by June 1960 and 75 percent completed at
    Clear, Alaska. In February 1960 the United Kingdom agreed to pay
    for construction of a third BMEWS site at Fylingdales, Yorkshire,
    while the United States would furnish the equipment. All the rearward
    communication stations between the Thule and Clear sites were
    under contract. The total estimated cost of BMEWS construction
    as of June 30,1960, was $187 million.
    By the end of the year construction of the eastern extension of
    the DEW line was about 70 percent completed at a total cost of $61.2
    million. SAGE facilities were essentially completed. Changes in
    the air defense program in March 1960 required elimination of the
    hardened SAGE combat centers. Construction of ADC fighter-interceptor
    bases totaled about $25 million. Radar improvement work
    cost $9.4 million.
    Four IM-99A BOMARC sites were built at an estimated cost of
    $42.5 million. Work on shelters for the IM—99B at one of these
    sites was 90 percent completed at an estimated cost of $2.8 million.
    Revision of the air defense program in March 1960 caused the cancellation
    of four IM-99B sites and the designs for three additional
    sites. The Air Force expected to recoup about $3.5 million from these
    cancellations. The total remaining BOMARC program called for
    eight sites in the United States, costing about $75 million, and two
    in Canada.
    In August 1959 a contract for $3.2 million was awarded for construction
    of the last facility currently authorized for the Air Force
    Academy—the chapel. At that time the value of the completed
    354 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    work at the Academy had reached $135.3 million, or 97.9 percent of
    the total work under contract. Except for one parcel of land, all
    real estate acquisition had been completed.
    On June 30, 1960, the Air Force was using 253 major bases. These
    fell into six main types, including foreign bases and contract flying
    schools in which the Air Force had no real property interest:
    Active Major Installations
    Classification Total United States Overseas
    Operational_____________ ________________ 147 83 64
    Operational support:
    Flying--------------------------------------------- 16 8 8
    Nonflying__________________________ 12 3 9
    Training________________________________ 43 43 0
    Research and test_______________________ 7 7 0
    Logistical_______________________________ 16 14 2
    Non-USAF (no real property interest):
    Foreign Base________________________ 7 0 7
    Contract flying schools_______________ 5 5 0
    — —
    Total____________________________ 253 163 90
    Engineering
    The Air Force continued research on the effects of atomic weapons
    on structures, and gained greater knowledge of the strength of the
    soil and its response to shock. Analyses of structures designed to
    withstand 100 pounds of pressure per square inch revealed that they
    were actually capable of withstanding twice that pressure, making
    possible greater protection at less cost.
    The Air Force began to revise its drawings for new USAF buildings
    to provide basements that will serve as shelters also. At little
    or no additional cost in the construction of a standard facility, the
    basements will offer some f allout protection.
    Family Housing
    Housing construction for USAF families proceeded at a rapid rate.
    There were 24,111 housing units completed during fiscal year 1960,
    including 19,669 in the United States and 4,442 overseas. Under
    construction on June 30,1960, were 16,805 units.
    Most of the housing for USAF families during the past few years
    was constructed under the Capehart-Rains (Title VIII) program.
    During fiscal year 1960, there were 39,564 housing units completed
    under this program. Total acceptances for mortgage payments as of
    June 30, 1960, were 39,153 units with a total dollar value of $617
    million.
    During fiscal year 1960 the Air Force received $43.5 million from
    the Defense Department to acquire and improve Wherry housing
    INSTALLATIONS 355
    projects. It used $4.8 million to acquire new five projects, consisting
    of 2,304 units, and $36.6 million to rehabilitate acquired projects. A
    total of 24,409 units in 36 projects have received funds for rehabilitation
    and improvement under the Wherry program.
    The following table shows the total number of existing family units
    according to each type of funding:
    Type Existing
    Appropriated funds______________________________________________ 35, 295
    Title VIII (Capehart-Rains)______________________________________ 39,496
    Wherry------------------------------------------------------------------------------------ 37, 84o
    Rental guaranty________________________________________________ 3, 386
    Surplus commodity______________________________________________ 5,164
    Leased________________________________________________________ 267
    *Total ----------------------------------------------------------------------------- 121,448
    ♦Excludes 11,873 inadequate units and 2,571 trailers.
    Base Maintenance
    During the year the Air Force added new facilities to its real estate
    inventory valued at about $2 billion, making the total initial cost of
    the inventory to the Government about $13 billion. The increased
    workload resulting from these added facilities, plus rising costs, taxed
    the USAF capacity for day-to-day maintenance at bases. To meet
    this problem, the Air Force improved its training program, equipment,
    conservation program, and management procedures. It contracted
    for about $75 million of maintenance work where it was to the obvious
    advantage of the Government. The Air Force also contracted for
    about $85 million of major repairs and improvements during the year.
    A total of $753 million was spent during the fiscal year for operation
    and maintenance of real property.
    USAF engineers paid increased attention to preventive maintenance
    and placed continued emphasis on utility rates and usage. Plans
    were formulated to modernize some of the large heat- and powerplants
    to permit more efficient operation.
    There were 1,565 fires at USAF bases during fiscal year 1960, resulting
    in losses of $29.9 million. These large losses were caused primarily
    by one of the worst fires in Air Force history, at Walker AFB,
    N. Mex. This fire, caused by an aircraft accident, resulted in an estimated
    loss of aircraft valued at $11 million, a hangar worth $175,000,
    plus contents of the hangar estimated at $10.2 million, or a total loss
    of more than $21 million.
    VII. Research and Development
    The USAF research and development program is in an evolutionary
    transition to weapons and vehicles for aerospace operations. While
    continuing to develop weapons for the near future, the Air Force conducts
    advanced projects for the long-range needs of space warfare.
    The development cycle for advanced projects is long and costly.
    The Air Force therefore must be highly selective in its new weapons.
    A complete operational weapon system involves many tasks other
    than development of the weapon itself—provision of operational and
    framing facilities, ground support equipment, and spare parts. To
    pursue all of these tasks concurrently with development in all cases
    would be expensive and inefficient and would limit the number of
    possible projects. On the other hand, to defer all operational aspects
    until the technical system is completely demonstrated would delay
    new weapons too long, limiting their military utility. There must
    be a balanced approach that takes into account the importance of the
    requirements, the technical risks involved, and the associated costs.
    The Air Force, therefore, carefully tests the feasibility of proposed
    weapon systems before expending large sums to develop them.
    Congress appropriated $1.16 billion for USAF research and development,
    an increase of $416 million over the previous fiscal year.
    This increase resulted mostly from a realignment of effort, whereby the
    research, development, test, and evaluation appropriation absorbed
    about $380 million formerly included under the procurement appropriation
    and $20 million of former operation and maintenance money.
    The Air Force administered 35 foreign development projects supported
    by the Mutual Weapons Development program. This program
    permitted member nations of the North Atlantic Treaty Organization
    to join in efforts leading to joint production to meet NATO requirements.
    The Air Force was responsible for technical assistance in 14
    of the 20 areas initially selected, including air-to-air missiles and
    medium-range ballistic missiles.
    Astronautics
    USAF participation in military astronautics, which had been
    largely in support of other agencies, expanded greatly on September
    23, 1959, when the Secretary of Defense assigned to the Air Force
    356
    RESEARCH AND DEVELOPMENT 357
    Figure 13. DISCOVERER launching at Vandenberg Air Force Base.
    responsibility for the development, production, and launching of all
    boosters and integration of related systems. He also approved the
    transfer of the DISCOVERER, MIDAS, and SAMOS projects from
    the Advanced Research Projects Agency (ARPA) to the Air Force.
    The DISCOVERER project, consisting of the THOR missile, the
    AGENA satellite as a second stage, and ground locations, was designed
    to provide basic components and techniques from which a
    diversified group of military satellite systems could be developed. It
    was intended to demonstrate orbital capability and obtain biomedical
    and engineering data from recoverable capsules. Five of the eight
    DISCOVERER research vehicles launched during the year went into
    orbit successfully.
    On February 1, 1960, the 6549th Test Wing (Satellite), ARDC, the
    first of its kind, took over control of project DISCOVERER. The
    space wing included a squadron at Vandenberg AFB that would
    launch satellites under this program.
    MIDAS, a system for detection and warning of missile attack, will
    include a network of satellites in polar orbit. Each vehicle will contain
    358 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    infrared devices to detect ballistic missiles just after launching. A
    MIDAS flight test in May 1960 attained an almost perfect orbital
    path, but the data-link telemetry ceased functioning 2 days after
    launching.
    The SAMOS reconnaissance system is designed to view the entire
    surface of the earth from a vehicle placed in a polar orbit. The Air
    Force gave top priority to this project. Progress was good, and the
    program was essentially on schedule.
    The Air Force worked closely with the Navy on navigation satellites
    and with ARPA and the Army on communication satellites,
    supplying boosters and integrating the payloads into the over-all
    systems.
    On June 22, 1960, a THOR-ABLE-STAR booster placed the first
    two-pack satellite into orbit, including the Navy’s TRANSIT II-A
    navigation satellite, and a “piggyback” aluminum basketball-like research
    sphere.
    The Air Force continued to support major NASA projects, providing
    boosters for the TIROS I weather satellite, the EXPLORER VI
    paddlewheel earth satellite, and the PIONEER V paddlewheel sun
    satellite. All these vehicles obtained much new and significant scientific
    data. PIONEER V succeeded in communicating with earth
    from areas of space never before traversed. For NASA’s MERCURY
    (man-in-space) project, the Air Force furnished 14 ATLAS
    boosters, launching facilities, and technical assistance. In addition,
    the Air Force conducted balloon tests for NASA and provided various
    types of training equipment for the MERCURY astronauts.
    Nuclear Systems
    The Department of Defense deferred a proposed USAF program
    to build and test a nuclear-powered airplane. However, the Air
    Force and the Atomic Energy Commission are cooperating in the
    development of a propulsion system for an aircraft to fly at speeds
    of more than Mach 0.8, reach an altitude of 35,000 feet, and have a
    potential reactor life of about 1,000 hours.
    Project PLUTO is a joint Air Force-Atomic Energy Commission
    effort to demonstrate the feasibility of a nuclear ramjet propulsion
    system for a supersonic low-altitude missile (SLAM). The Air
    Force provided engineering support as its portion of Project PLUTO
    and conducted research and studies on long leadtime components
    and subsystems for SLAM.
    Research Aircraft
    The first powered flight of the X-15 research aircraft took place
    in September 1959, followed by five more before the end of June
    RESEARCH AND DEVELOPMENT 359
    1960. The purpose of these flights was to reach ever higher speeds
    and altitudes, and by June 30, 1960, the X-15 had attained a speed
    of Mach 3 and an altitude of 107,000 feet. The X-15’s interim engine,
    the XLR-U with a 16,000-pound thrust, will be replaced by the
    XLR-99, designed to have a thrust of more than 50,000 pounds.
    The Air Force has used a variety of technical approaches to meet
    the need for an aircraft that could take off vertically. The tilt-wing
    turboprop X-18 made its first flight as a conventional aircraft in
    November 1959. Buffeting was encountered in the transition to a
    35-degree-angle flight, and the plane has been undergoing further
    ground testing.
    In June 1960 the Air Force decided to modify two B-66’s for use in
    a study of the boundary layer control principle. Equipment will be
    applied to the wings only to determine whether this technique can be
    used to improve range and endurance. A prime contractor has been
    selected and a 2-year applied research program is planned.
    Weapon Development
    Atrategic Weap ons
    By the end of June 1960 the SM-65 ATLAS ICBM had made 30
    completely successful research and development flights out of 47 attempted.
    On May 20, 1960, an ATLAS set a new’ long-distance record
    when it went 9,000 statute miles. By the end of June 1960, the SM-68
    TITAN had completed 12 successful flights in 18 attempts.
    Storable liquid propellants enabled the Air Force to proceed with
    development of an improved model of the SM-68, called TITAN II.
    These propellants will keep the missile fueled and in firing position
    for a long period at ordinary temperatures. The TITAN II will be
    launched directly from an underground silo almost immediately after
    the order to fire is given.
    By May 1960, 8 consecutive test launches from silos of a full-scale
    model of the SM-80 MINUTEMAN proved so successful that the
    basic configuration of the MINUTEMAN silo was determined and
    the remaining 10 launches in the program were canceled. Months of
    development time and approximately $10 million were thus saved.
    Ground tests of the inertial guidance system also proved satisfactory.
    In December 1959 the B-70 Valkyrie program was cut back from
    development of a complete weapon system to development of two prototype
    XB-70’s without combat capability. The revised program is
    on schedule and manufacture of the first prototype has begun. The
    Air Force believes that B-70 development is necessary to obtain a
    successor to the B—52. Unlike a missile, the B-70 could be recalled
    after takeoff. It could travel its full range at speeds up to Mach 3.
    360 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Figure Uh ATLAS takes off on 9,000-mile flight.
    From, an advanced position it could reach a target sooner than an
    ICBM launched from the United States. The Valkyrie could also
    launch ballistic missiles, serve as a first-stage booster for satellites,
    and provide a platform from which to intercept enemy satellites.
    In February 1960 the Department of Defense approved a USAF
    proposal for development of the GAM-87 SKYBOLT, an airlaunched
    ballistic missile using a two-stage, solid-propellant motor.
    A B-52 could launch a SKYBOLT to strike targets hundreds of
    RESEARCH AND DEVELOPMENT 361
    miles away and on the same mission, destroy targets directly with its
    own bomb load.
    The Dyna-Soar, a rocket-boosted manned glider, will be able to
    reenter the atmosphere, return to a base chosen by the pilot, and land
    on a normal runway as accurately as a conventional aircraft. By
    controlled reentry from near-orbital velocities at the fringes of the
    atmosphere, the Dyna-Soar will provide the technological basis for
    development of later reliable and economical manned space systems.
    In November 1959 the Air Force selected a contractor for the Dyna-
    Soar and chose the TITAN booster for initial use.
    Air Defense Weapons
    The IM-99B BOMARC interceptor missile, with a range of more
    than 400 miles, was the only active defense system under development
    by the Air Force. Propulsion problems hampered initial testing,
    but have been solved. A test program on the IM-99B is being conducted
    at Eglin AFB, Fla., including successful interception of the
    supersonic REGULUS missile.
    The F-108 long-range interceptor was canceled in September 1959
    because of fiscal limitations. Development of the ASG-18 firecontrol
    and the GAR-9 air-to-air missile subsystems for interceptors
    continued on a reduced scale. Because of the F—108 cancellation and
    a reduction in the BOMARC program, the Air Force initiated a
    modification program to improve current interceptors.
    Testing of the GAR-11, a nuclear air-to-air rocket that would be
    guided by radar after launching, proceeded on schedule. The missile
    proved highly successful in these tests and was scheduled as primary
    armament for the F-102.
    Tactical Air Weapons
    Manufacturers undertook feasibility studies of the dispersecl-sito
    fighter to be used for tactical air operations including close support
    of ground troops. This airplane would operate from forward areas
    without a typical air-base complement. The Air Force considered
    development of an aircraft for short-field landings and takeoffs if it
    could be available by 1966. If not, a vertical takeoff aircraft was to
    be developed for the 1970’s.
    The Air Force continued work on the airframe and guidance
    system of the BULLPUP, an adaptation of a Navy air-to-surface
    missile. The BULLPUP, with a highly accurate guidance system
    and an all-weather capability, was to be used with the F-100 and
    similar tactical aircraft.
    362 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Supporting Developments
    Transport and Training Aircraft
    In May 1960 the Air Force established a requirement for an advanced
    medium-cargo aircraft to meet the strategic airlift needs of
    MATS, TAC, and AMC. To insure that the plane would be suitable
    for commercial purposes and that all military needs would be met, the
    Federal Aviation Agency and the Department of the Army participated
    in determining specifications for it.
    In October 1959 the Air Force selected the Lockheed Jetstar as
    winner of the design competition for a jet utility-cargo transport to
    be used also for navigator and electronic countermeasure training.
    Five Jetstars, redesignated the C-140, were bought in May 1960 for
    use by the Airways and Air Communications Service in checking
    navigation aids.
    The first T-38A basic phot trainer, powered by the YJ-85-5 engine,
    flew in January 1960, and the production version of the engine completed
    its qualification test in June. The T-39 utility transporttrainer
    made its first flight in June. The Federal Aviation Agency
    expected to certify this aircraft for airworthiness at an early date.
    Command and Control Systems
    The Air Force uses all possible means of communications, including
    radio, microwave, teletype, and telephone. In March 1959 the Air
    Force selected an industrial team to modernize this global complex,
    known as AIRCOM. During the next 5 years, the Air Force will
    attempt to integrate the many types of equipment needed to meet the
    severe demands on AIRCOM in the 1965-70 period. Components
    and subsystems will be developed concurrently.
    The command control subsystems and an integrated system for the
    BMEWS installation at Thule passed their tests. For the second
    site—Clear, Alaska—design of technical and supporting facilities
    and of equipment was almost completed. Initial design work for
    the third site at Fylingdales in the United Kingdom began in April
    1960. In December 1959 the Air Force approved incorporation of
    a SAC display complex as part of BMEWS, to be ready when the
    Thule site and the NORAD central computer display facility become
    operational.
    Components are under development for an improved SAC control
    system that will provide its commander with immediate information
    on the disposition and status of his force. At the experimental
    test site for this system, located in Paramus, N.J., the installation of
    a traffic control center was half completed, and the first development
    model of a remote control center was also being installed.
    RESEARCH AND DEVELOPMENT 363
    Propulsion
    In January 1960, the Air Force took over from ARPA management
    of a project to develop a small ion rocket engine. In another approach,
    an experimental dual plasmatron ion engine was demonstrated
    on a test stand during December 1959. Contracts were
    awarded for the study of a pulsed plasma engine and for design and
    test of an arc jet. Models of an electric wind-propulsion device were
    tested at high altitudes, pointing the way to further investigation
    of this possible means of propulsion. The Air Force also received
    from ARPA a project involving nuclear-pulse propulsion. The Air
    Research and Development Command submitted a research program
    for acquiring a theoretical understanding of this principle and the
    engineering requirements for its application.
    In July 1959 the Air Force canceled the use of high-energy fuel
    for the B—70, but did not terminate research and development on
    boron fuel. Some materials derived from this program, such as
    pentaborane and decaborane, are potential rocket propellants, and
    an evaluation of these materials promised future results.
    Lubricants and lubrication techniques were under development
    to withstand the severe temperatures, radiation, pressures, and speeds
    that will be encountered by future aerospace propulsion systems.
    The Air Force developed a solid film lubricant and two greases for
    use at very high temperatures.
    Electronic Equipment
    Significant progress has been made in the development of new
    techniques, materials, and components for electromagnetic warfare,
    including automatic jamming and deception transmitters and decoy
    devices. The number of electronic devices transmitting at the same
    time within a given geographic area has increased so rapidly that it
    has created an acute problem of interference among these devices.
    For several years the Air Force has made a major effort to develop
    techniques for better control of interference. Its proposals for improving
    spectrum usage received approval from the Office of the
    Secretary of Defense.
    I he performance of inertially guided ballistic missiles is proving
    comparable to that of radio-guided missiles. The Air Force continued
    to improve inertial guidance systems and reduce the size and
    weight of guidance subsystems. The importance of reliability has
    been especially emphasized in contracts for advanced guidance
    equipment. Sled tests at Holloman AFB, N. Mex., helped reveal
    deficiencies in guidance components, saving the large sums that would
    have been lost in test missiles.
    595308—61----- 24
    364 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Figure 15. TITAN launching at Cave Canaveral.
    Human Factors
    Manned flight for prolonged periods above 80,000 feet will require a
    duplication of the earth’s environment within a small space and with a
    minimum weight. The Air Research and Development Command developed
    a sealed, nonpressurized compartment simulating an ATLAS
    nose cone in order to test the equipment needed to enable a man to live
    for 7 days on recirculated oxygen, the latest space foods, and water
    reclaimed from body waste products. The compartment was designed
    to operate in the weightless and airless environment of space. On
    December 4, 1959, a monkey was fired 55 miles into space in a capsule
    RESEARCH AND DEVELOPMENT 365
    and recovered safely in the Atlantic Ocean. The capsule was identical
    to that intended for Project MERCURY’S human passengers. In
    April 1960, Project HERMES, a 7-day test of the compartment by a
    man, proved successful.
    To test means for bringing pilots down safely from extremely high
    altitudes in an emergency, Capt. Joseph W. Kittinger, Jr., parachuted
    from the open gondola of a balloon at altitudes of 76,400 feet
    and 74, <00 feet in November and December 1959. Captain Kittinger
    wore an MC-3A partial-pressure suit, a bailout survival kit, and
    Arctic winter flying gear.
    Basic Research
    Technical progress, both military and national, depends on the
    strength of basic scientific research programs. Neglect of basic research
    can create a gap that could not be bridged even by larger expenditures
    of money and effort in later years. USAF fundamental
    research, primarily a responsibility of the Air Research and Development
    Command, is separated into six broad areas: Propulsion, materials,
    electronics, geophysics, biosciences, and aeromechanics.
    In propulsion research, a workable laboratory plasma engine has
    obtained specific impulses for short periods of up to 1,000 seconds.
    There has also been an increased effort in electric propulsion, both
    ion and colloid. Basic research on ion propulsion has resulted in
    applied research on a 1/100-pound demonstrable ion engine.
    Metallic materials are being developed to withstand extremely high
    temperatures. A new instrument—the plasmatron—can maintain an
    absolute temperature of 10,000°. Single crystals of various materials
    that have been developed indicate the possibility of alloys with far
    greater strength than present materials. These “whiskers” showed
    fantastic tensile strength on the order of 3,000,000 pounds per square
    inch.
    In electronics, the principles of a virtually noise-free amplifieroscillator
    known as Maser were extended into the infrared and optical
    fields. This has produced a major impact on communications and
    detection where extreme sensitivity and multichannel capacity are
    important.
    In geophysics, additional emphasis was placed on projects to determine
    the water vapor content of the stratosphere. This information
    will be useful in employment of infrared above the tropopause.
    A series of rocket-borne magnetic-field investigations were undertaken
    to gather magnetic-field strength variations during auroral and solar
    prominences.
    In the field of bioscience, ionization chambers and biopacks were
    carried into high geomagnetic latitude regions to study the environ366
    ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    mental dangers of space flights. A number of studies were begun to
    find out the energy conversion processes in men and animals that
    would be useful in space flight.
    In aeromechanic research, the technical basis was established for
    the Mach 15, 9,000° Kelvin, gas dynamics facility. Research was also
    underway on thermochemical dynamics of gases under extreme environmental
    conditions. The principal areas of interest are ionization,
    molecular dissociation, and recombination phenomena.
    VIII. Procurement and Production of Materiel
    The Air Force is carrying out a realignment of the industrial complex
    supporting its programs as missile production grows in volume.
    Since it is neither economically sound nor in the national interest to
    retain production facilities operating at a fraction of their capacity,
    the Air Force is disposing of those Government-owned plants operating
    below marginal levels. Generally, these are plants designed and
    built during the World War II period for conventional aircraft and
    engines. The policy of utilizing Department of Defense plants and
    equipment where economically feasible has not changed, but the primary
    effort is to make maximum use of privately owned facilities.
    By encouraging Government contractors to provide their own facilities,
    the Air Force decreased its own industrial readiness expenditures.
    Industrial facility funding for fiscal year 1960 fell to $69.2 million
    from $94.4 million during the preceding year. The bulk of the money
    supported missile development and production. Industry could not
    be expected to finance fully capital equipment in every instance. This
    was particularly true during the development of a weapon system when
    specialized test facilities were needed or when the product had little
    commercial application and there was no assurance that production
    would continue. For example, the Air Force will finance construction
    at Saltville, Va., of the only plant in the country with the capacity to
    manufacture hydrazine for the TITAN II program in the quantity
    required. The decision to finance this project was one of the few exceptions
    to the policy that the USAF production base will be privately
    capitalized.
    The tax amortization program expired on December 31, 1959. This
    factor, together with USAF efforts to have contractors finance their
    own facility expansion, resulted in an unusually large number of
    tax amortization applications during the fiscal year. Of 156 applications
    reviewed, the Air Force approved 101 having a gross value of
    $92.6 million.
    As a result of intensive effort, by June 30, 1960, the Air Force had
    reduced its ownership of machine tools to 77,000, with a value of
    $928 million, as compared with 88,900 valued at $1.09 billion 1 year
    earlier. The number of machine tools in actual use remained about
    the same—65,000.
    367
    368 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    The development of new production processes continued at a cost
    of $20 million per year. Significant projects involved such areas as
    the continuous mixing of solid-rocket propellants, further high-energy
    fuel development, high-temperature structures, and molecular
    electronics.
    Supplies of raw materials proved adequate during the year except
    for temporary shortages resulting from the nationwide steel strike
    which began in July 1959 and lasted a total of 116 days. This strike
    affected missile base construction and delayed the construction of
    plants for the production of unsymmetrical dimethyl hydrazine and
    hydrazine to support the TITAN program.
    Procurement Policies
    USAF procurement experts sought to combat spiraling costs caused
    by technological changes and frequent changes in requirements. The
    Air Force launched a campaign to counteract these pressures. To
    improve contracting procedures, seminars and conferences with toplevel
    management were conducted; certificates were required as to
    accuracy, completeness, and timeliness of costs; surveillance was
    strengthened over contractors' purchasing systems and costestimating
    procedures; and increased guidance was provided USAF
    field representatives.
    | | TOTAL WITH BUSINESS FIRMS FOR WORK IN U.S.
    Figure 16
    PROCUREMENT AND PRODUCTION OF MATERIEL 369
    Industry cooperated in the effort to reduce costs. For example, by
    reducing the number of indirect employees from 529 to 441 per 1,000,
    one division of a major USAF contractor achieved a 6 percent reduction
    in indirect expenditures, amounting to approximately $6.5 million.
    Another company achieved a $1.7 million reduction in four
    subcontracting actions.
    The Air Force negotiated contracts for approximately 90 percent
    of its procurement funds on items not susceptible to the use of formal
    advertising. The Air Force continued efforts to increase the use of
    advertising for bids. For repair and maintenance, advertising was
    used whenever possible to solicit fixed prices for services. Two-step
    formal advertising introduced in fiscal year 1959 proved a sound and
    useful way of buying and was adopted throughout the Department of
    Defense.
    Prime contract awards to business concerns in the United States
    totaled $9.65 billion during fiscal year 1960, as compared with an
    average of $9.42 billion in the 9 previous years. Small business concerns
    received awards for $864 million, a decline from $920 million
    awarded in fiscal year 1959, but a percentage increase from 8.5 percent
    to 9 percent of the total prime contract awards. The numerical
    decline of $56 million in small business contracts awarded was caused
    by the reduction of $1.2 billion in total awards placed with industry
    during the year. The 9 percent awarded to small business in fiscal
    year 1960 compared favorably with the average of 7.5 percent awarded
    during the past 9 years.
    Aircraft and Missile Production
    During fiscal year 1960 the Air Force directed $8.05 billion for new
    procurement of materiel—38 percent for new aircraft and spares, 24
    percent for missiles, and 38 percent for modifications, industrial
    facilities, components, and other items. Program changes permitted
    the Air Force to recoup $441.1 million during the fiscal year.
    Aircraft deliveries for fiscal year 1960 totaled 70 percent of the
    1959 procurement. This represented a planned reduction and was
    100 percent of the final schedule. As the various missiles reached the
    production stage the greater cost of the newer weapons became more
    pronounced. During fiscal year 1959 the Air Force spent four times
    as much for manned aircraft as missiles; in fiscal year 1960 the ratio
    was less than 3 to 1.
    Production of the B-52G continued to decline gradually in anticipation
    of its discontinuance and the introduction of the B-52H early
    in calendar year 1961. The B-58 program was cut from 40 to 32 aircraft,
    and the B version of the B-58 was eliminated completely.
    370 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    The USAF F-100 and F-104 production programs were completed.
    The West German Government, however, purchased 30 twoplace
    F-104’s under a mutual security military sales arrangement. A
    peak production rate of 20 F-101B aircraft per month was maintained,
    and the F-106’s began arriving in the Air Defense Command.
    The last of 77 F-105B aircraft was delivered in December 1959, and
    deliveries of the all-weather F-105D began in February 1960.
    As of June 30, I960, the Air Force had received a total of 392
    KC-135 tankers. The production rate of 11 aircraft per month at the
    beginning of the year leveled off at 7 in accordance with adjustments
    made in the bomber program. C-133 production continued at 1 per
    month. The last C-133A was delivered in November 1959 and the
    first C-133B in December. C-130B production remained on schedule
    throughout the year.
    The procurement programs for the T-37 and T-38 remained much
    the same. A shortage of engines and the need for certain modifications
    slightly reduced the T-38 schedule. The last of 5,691 T-33’s—produced
    over an 11-year period—was accepted during the year. The
    procurement of H-43’s, helicopters used for local rescue missions, was
    completed.
    Increased production of ICBMs reflected the expanded force structure
    for the ATLAS and TITAN. The Air Force curtailed production
    of the GAM-72 QUAIL decoy missile after a reevaluation of
    requirements. GAM-77 HOUND DOG air-to-surface missile production
    was increased as a result of the assignment of more HOUND
    DOGs to designated B-52 squadrons to provide them with greater
    striking power.
    The BOMARC interceptor missile program was reappraised.
    Budgetary factors and a series of test failures, combined with the
    Soviet Union’s shift in emphasis from manned bombers to ballistic
    missiles, entered into this study. On March 24, 1960, the USAF
    proposed a cutback in the development of BOMARC-B from $420
    million to $50 million.
    The FALCON series of guided air-to-air, supersonic missiles play
    an important air defense role. Five basic versions plus a number
    of improved models have already been developed and produced. During
    fiscal year 1960, the Air Force took initial deliveries of the GAR-
    4A infrared homing SUPER FALCON and the GAR-11, the
    Nation’s first guided, nuclear-tipped air-to-air weapon. Procurement
    plans for fiscal year 1961 call for additional substantial deliveries
    of these missiles and of the GAR-3 radar-homing SUPER
    FALCON.
    The Air Force has adapted the Navy-developed GAM-83 BULLPUP
    air-to-surface guided missile for use by the F-100 and F-105
    PROCUREMENT AND PRODUCTION OF MATERIEL 371
    tactical fighters. Guidance is provided by radio signals from the
    pilot of the launch plane. A number of advanced versions of
    BULLPUP are being developed, including one for the USAF that
    will have a nuclear capability. During fiscal year 1960, the Air
    Force purchased BULLPUPs through the Navy.
    Among tactical air weapons, the TM-76B MACE program of the
    Air Force was further reduced, but production of additional quantities
    of this missile was scheduled for the West German Government.
    Engine production for aircraft and air-breathing missiles totaled
    2,702, including 1,990 turbojets, 368 ramjets, 322 turboprops, and 22
    turbofans. This total was 1,844 less than for fiscal year 1959—a 41
    percent reduction—caused primarily by the planned decline in air-
    Figure 17. Test models of SKYBOLT missiles.
    372 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    craft production and decreased procurement of aircraft engine spares.
    Engine production exceeded 97 percent of scheduled output. The
    value of aircraft engines in the USAF inventory approximated $6.5
    billion.
    Air Materiel Command received $794.4 million for the purchase
    of communication and electronic equipment during the year. Procurement
    for the BMEWS program made satisfactory progress, and
    the curtailed purchasing program for SAGE progressed according
    to revised schedules.
    Military Assistance Program
    The close of fiscal year 1960 marked the completion of 11 years of
    the Military Assistance Program. USAF aid to friendly countries
    transformed obsolescent air arms into modern and efficient air forces,
    some of which received missiles as well as aircraft. Additionally, the
    program facilitated access to oversea bases, without which the Air
    Force would have less over-all flexibility in its worldwide operations.
    Grant-aid and mutual security sales remained the major avenues
    of USAF military assistance. During the year 35 of the 37 countries
    eligible for grant-aid were receiving either equipment or training
    assistance. Discretionary use by the President of a determination
    clause in the Mutual Security Act enabled 12 of 16 additional eligible
    countries to obtain emergency grant-aid. Various international organizations,
    such as regional alliance groups and United Nations
    agencies, were also eligible for grant-aid assistance or were permitted
    to make mutual security military purchases.
    Of the $8.5 billion programed in the USAF MAP operation during
    the last 11 years, $7.7 billion, or 91 percent, was expended. More than
    $4.6 billion (60 percent) of all grant-aid materials went to NATO
    countries, and an additional $293.2 million (3.8 percent) was furnished
    to non-NATO European nations. Some $153.5 million (2 percent)
    was provided to non-NATO Middle East recipients; over $1.5
    billion (19.5 percent) was granted to countries in the Far East; and
    $143.7 million (1.9 percent) was received by Western Hemisphere
    nations. The remaining funds were expended on programs not specifically
    for a particular country.
    Approximately $4.6 billion of the $7.7 billion expended in the
    USAF Military Assistance Program was for aircraft. About $2
    billion went for other materiel, including missiles, and for support
    purposes. The balance of $1.1 billion represents services rendered, including
    training assistance.
    By the end of June 1960, aircraft shipments numbered 13,329—97
    percent of the aircraft programed for the 11-year period. About
    9,500 of the total were jets. Allied air forces were equipped with 246
    PROCUREMENT AND PRODUCTION OF MATERIEL 373
    squadrons provided under the USAF MAP. Of the 190 jet units,
    140 were designated combat ready—the highest level in MAP history’
    More than 40 of the 56 squadrons of conventional aircraft were also
    rated in this category. Approximately 1,034,500 hours were flown in
    MAI -supported aircraft during the fiscal year. Jet flying accounted
    for 69 percent of the total. As in the past, the bulk of the combat-
    Leady jet squadrons represented NATO forces, but units in other areas
    also made substantial progress.
    Training assistance provided MAP countries was directed toward
    the proper maintenance and utilization of equipment. Under grantaid
    and mutual security military sales arrangements during the 11-
    year period, the Air Force trained 3,791 pilots in the United States
    and 6,654 other flying specialists here and abroad. More than 49,000
    foreign nationals received technical training in USAF trainingcourses.
    IX. Logistical Services
    During fiscal year 1960, as the first ICBMs entered the inventory,
    the Air Force instituted a reflex logistical system for missile bases.
    This automatic resupply system required shipment of replacement
    parts as soon as consumption data was received, without the need for
    formal requisitions.
    The Air Force participated in the establishment of the NATO
    Maintenance Supply Service Agency, intended to provide member
    countries with centralized management of procurement, maintenance,
    and supply services and to furnish technical assistance in support of
    NATO equipment. The Secretary of Defense designated the Air
    Force to manage the operations of the new agency until July 1961,
    by which time it was expected to stand on its own feet.
    USAF planners stressed the importance of incorporating realistic
    nuclear-damage factors in all logistical planning. The postattack
    condition of the military establishment and the national economy may
    well prove to be the final determinant in a general war. The Air
    Force considered it essential that our mobilization base be appraised
    in the light of what might actually be available and attainable after
    a nuclear exchange.
    Supply and Services
    The expanded use of electronic data-processing equipment, highspeed
    communication techniques, and an efficient airlift helped
    improve the USAF supply system and reduced the need for oversea
    depots. By the end of the year the Air Materiel Command in the
    United States had taken over almost completely the responsibility for
    oversea supply. Prior to their discontinuance, the two oversea depots
    at Chateauroux, France, and Tachikawa, Japan—were performing
    only residual functions. An unprecedented simultaneous count of
    supplies and equipment at all USAF facilities throughout the world
    furnished a test of the efficiency and capability of the USAF supply
    organization. This inventory provided data upon which to base
    distribution of current Air Force resources, as well as information to
    compute future requirements and budgets.
    Developing a satisfactory supply system for missiles had to contend
    with such problems as extreme compression of development time and
    374
    LOGISTICAL SERVICES 375
    early attainment of operational capability, both of them within a
    framework of rapid technological change. The MOCP (missile out
    of commission for parts) rate for the early ICBMs under the automatic
    supply system was encouraging, and the rate for the SM-75
    THOR continued to improve. Progress was also made in the MOCP
    rate for the MACE TM-76A, and the MATADOR TM-61C continued
    to maintain an average MOCP rate of less than 1 percent.
    The Air Force continued to reduce its expenditures for spare parts
    by programing procurement of initial spares for each weapon system
    individually. During the year 17 percent of the flyaway costs of
    aircraft went for initial spares as compared with 20 percent for the
    previous year. Fund shortages coupled with late or piecemeal fund
    releases, however, definitely impaired the orderly and economical
    replenishment of aircraft spares. To make the best use of available
    assets, a special distribution control plan assured support for the
    highest priority aircraft while avoiding the degradation of support
    for specific lower priority aircraft.
    During the year, the Air Force declared as excess to its needs
    property originally costing $2.9 billion and succeeded in disposing
    of $2.8 billion or 95 percent of this material. Disposal of the $2.8
    billion was accomplished as follows:
    $237 million withdrawn and utilized by the Air Force (includes
    reclamation)
    $105 million transferred to other Department of Defense and
    Federal Agencies
    $98 million donated to Department of Health, Education, and
    Welfare and Service Educational Activities
    $1,867 million expended to scrap
    $497 million sold as usable property
    $6 million other dispositions
    From the sale of $497 million of surplus property, the Air Force
    realized a return of $27.6 million, or 5.5 percent of original value.
    Revenue from the sale of 370,228 tons of scrap and waste amounted
    to $15.8 million. Although the number of tons of scrap and waste
    sold in fiscal year 1960 was 13,788 tons less than for the previous
    year, the revenue received was approximately $1.0 million greater.
    The higher prices resulted from better preparation and segregation
    of scrap and waste for sale.
    The Air Force saved money by permitting USAF bases to purchase
    directly from nearby business enterprises. The General Services
    Administration supplied 10 percent of the 164,000 items authorized
    for base procurement (formerly known as local purchase), at a cost
    to the Air Force of $286 million.
    376 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    Maintenance
    The USAF inventory in fiscal year 1960 contained approximately
    23,000 aircraft and ground-launched missiles valued at $24.6 billion
    and 90,000 engines valued at approximately $4.7 billion. Each year
    the Air Force overhauls more than 3 million aircraft and missile components
    made up of 95,000 different items. Additionally, the Air
    Force has to maintain some 200,000 major electronic items—ranging
    from radios to the huge computers of the SAGE system.
    The cost of depot maintenance and modification totaled slightly
    less than $1.1 billion during fiscal year 1960. A little more than half
    of this amount—approximately $543 million—was for depot maintenance
    and almost $514 million for modification projects. Depot maintenance
    and modification of aircraft alone—exclusive of missiles,
    communications, etc.—cost $685 million—$221 million for maintenance
    and $437 million for modification.
    Despite difficulties in maintaining and modifying modern weapon
    systems, the Air Force kept its combat forces in a high state of readiness.
    The operational readiness rate of USAF fighters rose significantly,
    with nearly all fighter aircraft showing substantial gains.
    Difficulty with the bomb-navigation system made the F-105B—-the
    newest fighter to enter the inventory—the one exception to this trend.
    In July 1959, MATS established for its fleet a new operational readiness
    objective of 70 percent, with individual objectives ranging between
    65 to 75 percent. By June 30, 1960, all MATS transport aircraft had
    met the stipulated degree of operational efficiency.
    A major maintenance problem, the presence of ice in the fuel of
    high-flying B-52 and KC-135 jet aircraft, was temporarily solved
    by installing fuel filters with bypass valves that allowed the fuel to
    circulate around any stoppage. The permanent remedy was the
    development of fuel heat exchangers to maintain fuel temperatures
    above 32°, and by the end of the year such heaters were placed on
    every B-52 and KC-135 engine in the inventory.
    Transportation
    Despite the closing of USAF oversea depots and the supply of
    oversea forces directly from the United States by air to a greater
    extent than ever before, the number of transport aircraft in the inventory
    was reduced according to plan during the year. This reduction—
    representing the deletion of older and less efficient aircraft—
    was offset by an increase in the number of C-133’s, whose greater
    load-carrying capacity maintained the airlift capacity at approximately
    the same level.
    The program to reduce petroleum transportation and storage costs
    through the use of commercial pipelines at USAF bases continued
    LOGISTICAL SERVICES 377
    to show good results during the year. Three more bases were connected
    to commercial facilities, raising to 21 the number of installations
    thus served. These pipelines saved an estimated $3.5 million in
    transportation costs per year and provided storage for 1,300,000 barrels
    of fuel free of charge to the Government. In addition to the
    commercial facilities, six bases were served by military pipelines.
    United States and Canadian commercial carriers supplying the
    DEW line sites increased their services during the year. U.S. carriers
    provided supplies for the Alaskan facilities, while Canadian
    commercial firms provisioned all Canadian sites. The commercial
    operation resulted in savings of several million dollars as compared
    with the former military operation. Canadian carriers agreed to
    resupply the Newfoundland and Labrador sites in fiscal year 1961.
    X. Management
    Comptroller Service to Management
    The comptroller organization continued to be a major instrument in
    the Air Force effort to attain maximum utilization of its financial,
    manpower, and materiel resources. In addition to the great improvement
    of recent years in speed and accuracy of reporting, accounting,
    and auditing, increased attention was given to techniques by which
    masses of data could be marshaled quickly for use in making decisions.
    Management Analysis
    The comptroller strengthened and improved procedures for analyzing
    management. A current status report, published monthly,
    presented concise statements of the major problems in each functional
    area of the Air Force, including the status of weapon and support
    systems in operational use or under development and the Air Staff
    action being taken in connection with each problem. In addition,
    USAF management analysts each month singled out one major mission
    or command of the Air Force for more intensive study. The results
    were presented directly to the top officers of the Air Staff as an objective
    picture of the command concerned, including plans, policies, status
    of resources, operational readiness, and major problems.
    Electronic data-processing procedures were developed for forecasting
    the calendar age of aircraft in the USAF air fleet as an aid in
    evaluating the degree of modernization of USAF existing and programed
    forces. A greatly expanded version of the general force
    structure costing model provided various summations of funds appropriated
    for USAF programs and forecast obligations and expenditures
    for any program year. Better integrated data systems permitted
    information produced in one program to be used in preparing
    related programs, thereby improving consistency among the many
    different elements of programs and plans. Further progress also
    occurred in the direct integration of electronic data processing between
    Headquarters USAF and AMC.
    378
    MANAGEMENT 379
    Financial Management
    The Air Force continued efforts to simplify and increase the effectiveness
    of its accounting system and to implement the provisions of
    Title IV of the National Security Act and Public Law 863 of 1956.
    During fiscal year 1960, studies were in progress in the following accounting
    areas: Budget accounts, air attache office, inventory (monetary),
    central procurement, expense and costs, military assistance
    program, report-of-survey processing, and stock fund. Publication
    of the new accounting and finance manual series concluded staff
    action to integrate the accounting and finance functions. The uniform
    systems described for the commands in these manuals have already
    brought about increased efficiency and considerable manpower savings.
    More than 10,000 individual audit reports were issued during the
    year to major air commanders, base commanders, or tenant unit commanders.
    Twenty-one reports of a broader type summarized audit
    findings at depots and installations. Covering appropriated, nonappropriated,
    materiel, and stock funds, they contained recommendations
    designed to promote economy and efficiency through improved
    management. Auditor advisory assistance during the worldwide inventory
    of Air Force materiel—project COUNT—helped produce
    more accurate data for use in computing materiel requirements and
    in budgeting.
    The audit workload increased greatly because of the requirement
    for contract auditors to participate in the review and evaluation of
    contractor estimates of future costs presented in support of price
    proposals. Since it was impossible to cope with this situation without
    seriously weakening the effort expended in auditing contractor
    historical costs, a special USAF study group recommended the allocation
    of 266 additional positions to the Auditor General.
    Contract Financing
    Air Force financing of defense production gave special attention
    to job accomplishment with minimum financial risk. Progress payments
    at a level of about $900 million for the fiscal year continued to
    serve as a principal means of financial assistance. No losses were
    experienced in fiscal year 1960.
    A second method of assistance, commercial bank loans under guarantee
    by the Air Force in the “V-loan” program, involved about $200
    million this year and about $1.5 billion for the past decade. During
    fiscal year 1960 the first loss, amounting to $27,000, was incurred. It
    was easily covered from a reserve fund of $13 million which has been
    595308—61------25
    380 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    built up from the Air Force share of the banks’ interest and committed
    fees on guaranteed loans.
    Advance payments, the third type of financing, are providing 21
    universities and other nonprofit research organizations with a means
    of carrying out research and development contracts.
    inspector General Activities
    During fiscal year 1960 the Inspector General discharged his
    traditional surveillance function through searching inspections to
    determine the general efficiency, economy, and adequacy of Air Force
    operations. The Inspector General also carried out his recently expanded
    responsibilities for aircraft, missile, nuclear, and ground
    safety activities.
    Inspection
    An over-all inspection of SAC, including the entire operational and
    logistic mission area, was conducted in the fall of 1959 with results
    that warranted application of the same concept to other mission areas.
    Inspection of the missile effort, begun in 1956, was refined by 1959 to
    enable it to keep pace with operational progress. Other important
    inspections were made into officer and airman personnel qualitycontrol
    measures taken by Headquarters USAF and by major commands.
    In all, during the year, the Inspector General carried out 122
    full-scale surveys, inspections, and special investigations. Corrective
    measures taken as a result of them improved combat effectiveness,
    saved men, or saved money.
    Safety
    Fiscal year 1960 was the first year during which all USAF safety
    functions operated under a Deputy Inspector General for Safety.
    This change gave greater emphasis to the new safety problems arising
    as the Air Force moved into the missile-nuclear weapon era.
    Accident prevention begins with the initial design of a weapon
    system and continues until it is phased out of the USAF inventory.
    Operational safety surveys, accident investigations, and safety education
    programs are the primary tools in the safety program. Safety
    surveys were the most effective means of preventing accidents. Teams
    of safety specialists visited USAF units throughout the world to
    identify every possible hazard to the safe maintenance and operation
    of a weapon system. The teams provided the commanders with reports
    requiring corrective action, to be followed up by checks to see
    that the hazards were eliminated.
    MANAGEMENT 381
    Every major aircraft accident was considered a failure in preventive
    effort. Each accident was followed by a detailed investigation to
    identify the cause, by prompt corrective measures, and by review to
    insure that the measures were effective.
    The number and rate of major aircraft accidents, as well as the
    number of fatalities, decreased. For fiscal year 1960 the major accident
    rate was 6.5 per 100,000 flying hours, a new alltime low, as compared
    with 9.7 for 1959. Of the 510 major accidents, 144 were fatal,
    as against 817 major accidents, including 222 fatal ones, during the
    preceding year. Aircraft accident fatalities dropped from 532 to 290
    from 1959 to 1960, or 45 percent, and destroyed aircraft declined from
    USAF
    MAJOR AIRCRAFT ACCIDENT RATE
    1954 - 1960
    541 to 356. The drop in the major accident rate embraced all types
    of aircraft except utility and helicopter, with the most noticeable improvement
    in bomber and trainer types.
    Operational missiles were still undergoing certain phases of development.
    These presented special safety problems because maintenance
    and service personnel were not completely familiar with them.
    Despite special measures taken by joint missile-nuclear safety teams
    382 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    which surveyed each new missile unit during the first month following
    activation, missile accidents increased during the year. Operational
    safety surveys stressing missile safety were undertaken to
    correct this trend.
    Nuclear safety represented a growing problem to the Air Force.
    All nuclear weapon installations were subjected to preoperational
    surveys by the Inspector General to insure that safety rules were
    being incorporated in their operational procedures. The Inspector
    General conducted postcompletion surveys to check compliance and
    adequacy.
    These most rigorous safety measures were subject to the close
    monitoring of USAF nuclear safety policies and programs by the
    Directorate of Nuclear Safety Research, based at Kirtland AFB,
    N. Mex. In addition, a separate group, including representatives
    from USAF commands, the Defense Atomic Support Agency, and
    the Atomic Energy Commission gave special attention to the application
    of nuclear safety policies at the earliest stage practicable in the
    development of a weapon system.
    A major accident involving nuclear weapons during the fiscal year
    took place on June 7 1960, when a nuclear-tipped BOMARC missile
    caught fire on its pad at McGuire AFB, N.J. The fire, believed to
    have been caused by a bursting helium bottle, provided an excellent
    test of the adequacy of USAF provisions and procedures for nuclear
    safety. Prompt and vigorous measures were taken and there were
    no casualties.
    Total USAF ground accidents dropped 11 percent during fiscal
    year 1960 to a record low of 15,800, and dollar losses were down more
    than $2 million, or 7 percent. Although the number of military
    fatalities from ground accidents decreased from 611 to 601, the fatality
    rate per 100,000 man-days edged slightly upward, as did the fatality
    rate for civilians. USAF motor vehicle accidents dropped 9 percent
    in number and 11 percent in rate during the year. For the tenth
    consecutive year the success of the Air Force’s ground safety program
    brought it the National Safety Council’s Award of Honor.
    Security
    To guard against sabotage the Air Force emphasized the more
    effective use of air police, extensive use of sentry dogs, improved
    ground communication equipment, and development of criteria for
    secure construction. Staff visits to the commands identified areas
    for further guidance and gave the commander an evaluation of the
    work of his provost marshal.
    MANAGEMENT 383
    Ill addition to the routine counterintelligence investigations identifying
    potential or actual espionage agents and security risks, the
    Directorate of Special Investigations made a special effort against
    enemy penetration by clandestine listening devices. Security studies
    also resulted in significant changes in procedures for the procurement
    of personnel. During fiscal year 1960 more than 315,000 personnel
    investigations were initiated, principally in connection with granting
    access to classified information, and the improved procedures permitted
    more expeditious action. All allegations of violations of public
    trust, irregularities connected with the procurement and disposal
    of USAF materiel, and major criminal actions were thoroughly investigated
    and called to the attention of commanders for necessary
    action.
    The Air Force has achieved national recognition for the management
    of natural resources on its installations by provost marshals.
    The USAF fish and wildlife conservation program has been applied
    with enthusiasm by the major commands, and a close liaison with
    national and State conservation officials has been maintained. During
    the past fiscal year a wildlife management plan was completed
    for the Air Force Academy grounds in cooperation with the U.S.
    Fish and Wildlife Service and the Colorado Fish and Game
    Department.
    Administrative Management
    The Air Force reduced its record holdings and saved storage space
    and equipment by changing the retention period of procurement
    records from 6 to 3 years after final payment. The destruction of
    37,000 cubic feet of World War II contract records stored at Wright-
    Patterson AFB, Ohio, released prime warehousing space valued at
    $96,000 in annual rental fees. Further savings in space and equipment
    resulted from a reduction of records in current files by 75,000
    cubic feet. Transfer of the Air Force Records Center, St. Louis,
    Mo., to the General Services Administration on July 1, 1960, relieved
    the Air Force of an annual budgetary responsibility of $850,000 for
    a function that made no direct contribution to national defense.
    The Air Force further improved its postal systems. Manpower
    savings resulted when the Post Office Department assumed responsibility
    for postal operations in Hawaii, Guam, Puerto Rico, and at
    the three main bases in Alaska.
    The entire management of USAF publications came under critical
    examination. The examination sought to reduce the number of pub384
    ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    lications, the frequency of revisions, and the quantity of personnel,
    facilities, and costs involved, as well as to identify and delete items
    that might subject the Air Force to censure or ridicule. The revised
    regulations established controls and safeguards to insure that each
    is carefully reviewed and approved at high level before publication.
    XI. Budget
    Air Force expenditures during the fiscal years 1955-60 ranged between
    $16 billion and $19 billion annually. Despite these substantial
    expenditures, the problems of making ends meet have intensified.
    Weapons and technical equipment have become more complex, and
    therefore, more costly. The personnel to operate and maintain them
    are harder to find, and when procured, need more training to discharge
    their duties. The Air Force has been squeezed between the unyielding
    national defense responsibility and the greater cost of discharging it.
    1960 Budget
    The 1960 budget itself reflects a changing emphasis to guided missile
    weapon systems upon which, in a few years, will rest the major burden
    for our national security. The Air Force budget request for fiscal
    year 1960 totaled $18,682 billion in new obligational authority, including
    $915 million for military construction. Congress appropriated
    more funds for certain items than requested, including $85 million
    for ATLAS and $87 million for MINUTEMAN. But these increases
    were more than offset by cutbacks in the MACE, BOMARC, and radar
    improvement programs, among others. The amount initially appropriated
    by Congress for fiscal year 1960 was $18,270 billion, or
    $412 million below the Presidential budget.
    In April 1960, Congress appropriated $6 million in supplemental
    funds. With $18,276 billion in new obligational authority, approximately
    $3,614 billion in unobligated funds from previous years, anticipated
    reimbursements of $1,095 billion, and fund transfers—-
    particularly of the space program from ARPA—the Air Force had
    $23,259 billion available for obligation in fiscal year 1960, as compared
    with $23,858 billion available for obligation in fiscal year 1959. The
    385
    386 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    HOW THE
    AF DOLLAR WAS SPENT
    * INCLUDES DIRECT HIRE AND CONTRACT PERSONNEL
    * * INCLUDES RESERVE AND AIR NATIONAL GUARD COSTS
    Figure 19
    BUDGET 587
    following table summarizes the amounts made available by direct
    appropriations and by fund transfers:
    Amount Available for Obligation by the Air Force During
    Fiscal Fear 1960 as of June 30, 1960
    In millions
    Department of Defense Appropriation Act, 1960, PL 86-166_________ $17, 472. 7
    Military Construction Appropriation Act, 1960, PL 86-275_________ 797. 3
    Second Supplemental Appropriation Act, 1960, PL 86-424___________ a 6. 0
    Total new obligational authority enacted__________________ b 18, 276. 0
    Unobligated balance of prior-year programs______________________ 3, 614. 0
    Transfer from AF Stock Fund to Military Personnel, AF__________ 50. 0
    Transfer from O&M, AF to O&M, Army_________________________ —1. 1
    Transfer from ARPA and DOD to R, D, T, and E__________________ 326. 0
    Transfer from ARPA to Military Construction, AF_______________ 7. 0
    Transfer from Missile Procurement to ARPA____________________ —75. 0
    Transfer from Aircraft, Missiles, and Related Proc to DOD________ —33. 0
    Anticipated reimbursements___________________________________ 1 095.1
    Total available for obligation during fiscal year 1960_________b23, 259. 0
    a For Military personnel.
    b Represents nearest rounded figure.
    Actual obligations for fiscal year 1960 amounted to $18,353 billion.
    Net expenditures came to $19,066 billion, a slight decrease from
    $19,084 billion in fiscal year 1959. The following table summarizes
    both accounts under principal fund categories:
    USAF Actual Obligations and Net Expenditures for Fiscal Year 1960
    Appropriation
    Military Personnel__________________
    Reserve Personnel___________________
    ---*». --
    (In millions)
    Actual Obligation Net Expenditure
    --------- $3, 993. 5
    ______ 51.3
    $3, 856. 5
    51.2
    National Guard Personnel____________ ______ 47.9 40.6
    Air National Guard (FY 1958 & 1959) __ 2.9
    O&M, AF___________________________ ______ 4, 430. 2 4,116. 4
    O&M, ANG_________________________ ______ 168.2 180.2
    Aircraft Procurement________________ ______ 3, 095.4 560. 3
    Missile Procurement_________________ ______ 2, 432. 2 1,149. 7
    Other Procurement__________________ ______ 797.2 175.6
    Aircraft, Missiles, and Related Proc___ ______ 602.9 5, 317. 8
    Procurement O/T Aircraft___________ ______ 437.2 1, 559. 2
    R, D, T, & E________________________ ______ 1, 480. 5 1, 089. 3
    Military Construction, AF_____________ ______ 802.5 999.1
    Military Construction, AF Reserve___ ______ 2.6 .2
    Military Construction, ANG__________ ______ 11.5 12. 3
    Miscellaneous ______________________ -45.3
    Total_________________________
    *Represents nearest rounded figure.
    ______ *18, 353.1 *19, 066. 2
    388 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    1961 Budget
    The President’s revised Air Force budget for fiscal year 1961
    totaled $17,579 billion, including $740 million for military construction.
    Expenditures were estimated at $18,614 billion. Congress
    appropriated $17,785 billion—an increase of $206 million over the
    President’s budget. Additional appropriation transfers amounting
    to approximately $25 million boosted the new obligating authority
    for fiscal year 1961 to $17,791 billion.
    The appropriation act made changes in the Presidential request.
    All major procurement appropriations received a 3 percent “across
    the board” decrease totaling $218 million. Military construction
    funds were decreased by $113 million and the BOMARC program by
    $50 million. At the same time $190 million added to the B-70 program
    brought appropriations for this Mach 3 bomber to $265 million,
    enabling the Air Force to plan full development of the airframe.
    An additional $100 million was to be made available if not used for
    fighter-interceptor procurement. The airborne alert program received
    an extra $85 million, and an additional $83.8 million was
    provided for the SAMOS, DISCOVERER, and MIDAS programs
    and the MINUTEMAN mobility program.
    New budget structures were established for the Aircraft, Missile,
    and Other Procurement appropriations effective July 1, 1960.
    Budget accounts for Aircraft and Missile appropriations were made
    directly identifiable with the individual weapon systems, thereby making
    it possible to associate all procurement costs with the appropriate
    weapon system. Budget accounts for Other Procurement identify
    by support systems the equipment and materials procured for support
    of the various weapon systems. These new budget structures will
    provide improved financial reporting, permit better estimating and
    forecasting of financial requirements, and improve management of
    major procurement appropriations.
    XII. Conclusion
    Strong as it is, the Air Force has not reached a plateau. We are
    in an endless cycle of research, development, refinement, and test.
    From a military standpoint, science and technology must continue
    their rapid advance as fast as our very best efforts and money can
    expedite them.
    Our haste must be deliberate, in a sense. Picking the right weapon
    system to invest money in is a most difficult and responsible task.
    Our success in it, however, will determine our future effectiveness.
    There are no positive indications that the problems we face with
    respect to the continuing belligerence and obstructionism of the Communist
    bloc can be marked “solved” at any time in the foreseeable
    future. Whether it is called “cold war,” “economic war,” “psychological
    war,” or “ideological war”—the basic task before us is still
    to prevent it from becoming a shooting war.
    The proportion of manned vehicles and missiles in our force
    depends on the nature of the threat and the means at our disposal
    to meet that threat. The proportion will change as circumstances
    warrant. For one thing, we are reaching out toward the B-70 cycle
    of strategic bombers, which represents a major breakthrough in
    aerodynamic design and which offers an enormous growth potential.
    But this is by no means the end of the line for maimed systems.
    Man has always been and will continue to be the essential element
    of any weapon system.
    In the direction of controlled aerospace flight the X-15 and followon
    Dyna-Soar programs are even more advanced moves. It is a
    reflection of the speed at which new concepts are being developed in
    this technological age that serious Air Force thought is being- riven
    to aerospace systems that can orbit, reenter, and operate in the atmosphere
    and return to an orbital path at the will of the pilot.
    There is much research to be conducted before such concepts can
    become Air Force programs, but efforts are definitely aimed in that
    direction.
    We have reached the end of an era. Eight years ago, on June 30,
    1952, the Air Force was composed of 95 wings. The organization
    was then in the midst of an expansion and modernization program
    designed to cope with the operational problems posed by the Korean
    389
    390 ANNUAL REPORT OF THE SECRETARY OF THE AIR FORCE
    war. In June 1952, it was announced that the United States planned
    to test a “true super bomb” with the fantastic explosive power equivalent
    to 2,000,000 tons of TNT, and the word “megaton” made its first
    impact upon the public consciousness.
    Eight years later, the Air Force has come back to almost the identical
    numerical strength we had in 1952, but there is a tremendous improvement
    in the quality of this strength. These years have brought
    new and revolutionary technological advances. Breakthroughs in the
    scientific and industrial processes have been accomplished. The
    military application of this knowledge has compressed time, distance,
    and destruction into compact, lethal packages which can reach even
    the remote areas of the world. We have transitioned from piston
    engines to jets, from visual operations to radar, from machine guns to
    rockets, from piloted aircraft to guided missiles, and from conventional
    explosives to nuclear warheads of varying sizes and yields.
    The continuing gravity of the international situation coupled with
    the technical advances behind the Iron Curtain provide concrete evidence
    that the United States must continue to invest a substantial
    portion of its national resources to maintain and even improve our
    military security.
    With no less resolution than we faced our problems at the beginning
    of this era just passed, we must look to the job ahead. Everything
    points to the fact that this Nation must be preeminent in
    aerospace if free world security is to be guaranteed. This places an
    awesome responsibility on the Air Force. Our staff and commanders
    are, as they have been over the years, deeply aware of this. They are
    dedicated to one forthright purpose—America’s national security.
    Dudley C. Sharp,
    Secretary of the Air Force.
    Appendix

    APPENDIX 393
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    T able 1. OBLIGATIONS AND 0BLIGATI0NAL AVAILABILITY OF CURRENT GENERAL AND SPECIAL FUND APPROPRIATIONS,
    BY APPROPRIATION TITLE (Excluding working, revolving and expired general and special fund appropriations)
    FISCAL YEAR 1960
    [Thousands of dollars]
    Amounts available for obligation fiscal year 1960 Unobligated balance as of 30 June 1960
    New obligational availability Total Balance Unobli-
    Unobli- _______________ _________ Re- obllga- appor- gated
    Appropriation title gated coveries Total tion for tion- Other Total balance
    balance Other Reim- of prior fiscal fiscal ment Re- unobh- pre- available
    brought Congres- trans- burse- year year year and serves gated closing in
    forward sional Trans- Total fers ments obliga- 1960 1960 funds balance balance fiscal
    1 July appro- fers tions other- year
    1959 priations wise 1961 available
    (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
    MILITARY PERSONNEL:
    Military Personnel, Army_____________ 3,233,063 252,125 3,485,188 ______ 171,236 --------- 3,656,424 3, 640,913 8,497 6, 577 437 15, 511 ----------
    Military Personnel, Navy_______ _______ 2,476,700 75,000 2,551,700 ---------- 26,361 --------- 2,578,061 2,575,639 8,361 ---------- 5,939 2,421 ----------
    Military Personnel, Marine Corps.. 51 620,600 12,000 632,600 ______ 7,301 --------- 639,952 604,684 1,759 32,700 809 35,268 5
    Military Personnel, Air Force____________ 3,918,000 50,000 3,968,000 ______ 28,399 --------- 3,996,399 3,993,455 2,944 ---------------------- 2,944 ----------
    Reserve Personnel, Army________ _______ 231,700 —4,000 227,700 ---------- 741 --------- 228,441 221,532 2,287 4,881 —259 6,910 ----------
    Reserve Personnel, Navy________________ 88,000 —3,000 85,000 ---------- 3 --------- 85,003 83,968 1,045 ----------- —10 1,035 -----------
    Reserve Personnel, Marine Corps_________ 24,300 ---------- 24,300 ---------- 277 .-------- 24,577 24,343 336 ---------- —102 234 ----------
    Reserve Personnel, Air Force_____________ 54,000 ---------- 54,000 ---------- 47 --------- 54,047 51,337 1,998 1,465 — 753 2,710 ----------
    National Guard Personnel, Army... ______ 234,961 ---------- 234,961 ---------- 1,191 --------- 236,152 232,266 2,035 1,500 351 3,886 ----------
    National Guard Personnel, Air
    Force____________________________ 48,000 ______ 48,000 ______ 135 --------- 48,135 47,890 246 ---------- -1 245 ----------
    Retired Pay, Department of Defense________ 715,000 ---------- 715,000 -------------------------------- 715,000 692,922 9,078 13,000 ---------- 22,078 ----------
    T O T A L—M IL IT A R Y P E R SO
    N N E L ____________________ 51 11,644,324 382,125 12,026,449 ________ 235,691 _______ 12,262,191 12,168,949 38,586 60,123 - 5,467 93,242 5
    See footnotes at end of table.
    MILITARY FUNCTIONS DEPARTMENT OF DEFENSE OBLIGATIONS
    T able 1. OBLIGATIONS AND OBLIGATIONAL AVAILABILITY OF CURRENT GENERAL AND SPECIAL FUND APPROPRIATIONS,
    BY APPROPRIATION TITLE—Continued
    FISCAL YEAR 1960—Continued
    [Thousands of dollars]
    Amounts available for obligation fiscal year 1960 Unobligated balance as of 30 June 1960
    New obligational availability Total Balance
    TTnnhii Re- appor- gated
    Annronriation title g a te d ---------------------- -------------- coveries Total 3on8for Appropi ration title balance Other tion’ Other Total balanf? Reim- of prior fiscal ment Re- unobh- pre- available
    brought Congres- trans- burse- year year and serves gated closing in
    forward sional Trans- Total fers ments obliga- 1960 M funds balance balance fiscal
    1 July appro- fers tions 1 w other- year
    1959 priations V1.8® , 1961 available
    (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
    OPERATION AND MAINTEo
    S o T a n d Maintenance, Army. 119,217 3,075,390 206 3,075,596 ---------- 436,507 --------- 3,631,320 3,535,115 18,083 66,816 11,307 96,205 74,243
    Operation and Maintenance, Navy. * 16,413 2,611,220 - 610 2,610,610 ----------- 180,461 --------- 2,807,484 2,761,191 42,157 6,210 -2,074 46,293 16,919
    Operation and Maintenance, „
    Marine Corps b______________ 7,517 175,850 ______ 175,850 ______ 17,261 --------- 200,627 190,117 2,525 4,500 3,485 10,511 4,366
    Operation and Maintenance, Air
    K()ree_______________________ 4,603 4,195,006 -1,074 4,193,932 ______ 283,463 ______ 4,481,998 4,430,249 34,976 41,000 - 24,226 51,749 4,755
    Operation and Maintenance, Army
    National Guard______________________ 151,700 ---------- 151,700 ---------- 198 --------- 151,898 150,964 796 ---------- 138 933 ----------
    Operation and Maintenance, Air
    National Guard______________________ 169,000 ______ 169,000 ---------- 333 --------- 169,333 168,232 768 ----------- 333 1,102 -----------
    Promotion of Rifle Practice, Army------------- 300 ---------- 300 -------------------------------- 300 298 2
    Operation and Maintenance, Alaska
    Communication System, Army..... 621 5,676 695 6,371 ---------- 4 -------- 6,996 6,923 21 22 30 73 ----------
    Salaries and Expenses, Secretary of n ..
    . Defense_____________________________ 20,500 ______ 20,500 --------------------------------- 20,500 20,454 46 ----------------------- 46 ----------
    Claims, Department of Defense___________ 16, 500 ---------- 16, 500 -------------------------------- 16, 500 16,382 118
    394 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    APPENDIX 395
    Contingencies, Department of Defense_____________________________
    15,000 ______ 15,000 _____________________ 15,000 1,818 3,182 10,000 ---------- 13,182 ----------
    Operation and Maintenance, Olympic
    Winter Games, Department
    of Defense___________________ ______ 800 ---------- 800 ---------- ---------------------- 800 800 ---------- --------------------------------- -----------
    Salaries and Expenses, Court of
    Military Appeals, Department of
    Defense____________________________ 425 ---------- 425 -------------------------------- 425 401 24 --------------------- 24 ----------
    Appropriated Receipts, Alaska
    Communication System, 1960-------------- 695 —695 -----------------------------------------------------------------------------------------------------------------------------------
    TOTAL—O P E R A T IO N AND
    M A IN T E N A N C E _________ 148,370 10,438,062 —1,478 10,436,584 ________ 918,226 _______ 11,503,181 11,282,941 102,699 128,548 —11,007 220,240 100,282
    PROCUREMENT:
    Procurement of Equipment and
    Missiles, Army_____________ 503,535 1,407,300 ______ 1,407,300 -10,000 539,264 ______ 2,440,099 1,790,870 299,266 217,280 132,683 649,229 649,229
    Aircraft and Related Procurement,
    Navy_____________________ 1,444.259 1,961,644 1,961,644 -120 105,326 3,511,109 2,084,342 916,899 492,344 17,525 1,426,767 1,426,767
    Shipbuilding and Conversion, Navy. 1,100,634 1,330,700 ---------- 1,330,700 49,191 2,480,525 1,674,709 264,791 532,060 8,964 805,815 805,815
    Procurement of Ordnance and Ammunition,
    Navy______________ 81,512 567,719 15,500 583,219 -4,433 62,277 722,576 616,759 67,292 33,946 4,578 105,816 105,816
    Procurement, Marine Corps______ 157,220 133,850 133,850 —448 290,622 173,698 63,487 53,342 95 116,924 116,924
    Aircraft Procurement, Air Force — 4,284, 600 ______ 4,284, 600 ______ 369,272 ______ 4,653,872 3,095,431 844, 569 1,042, 683 - 328,811 1, 558,441 1, 558,441
    Missile Procurement Air Force -- _____ 2,540,550 - 75,000 2,465,550 127,450 217,454 ______ 2,810,454 2,432,152 197,348 26,000 154,954 378,302 378,302
    Other Procurement, Air Force____________ 1,109,650 ______ 1,109,650 ______ 87,524 _____ 1,197,174 797,236 319,064 55,751 25,122 399,938 399,938
    Aircraft, Missiles and Related Procurement,
    Air Force__________ 2,182,323 _______________________ -172, 325 12, 937 ______ 2,022, 935 602,861 767, 752 148,422 503,900 1,420,074 1,420,074
    Procurement other than Aircraft
    and Missiles, Air Force________ 707,675 ------------------------------------ ----------- —39, 231 -------- 668, 445 437,181 229, 750 ---------- 1, 514 231,264 231, 264
    TO TA L—P R O C U R EM E N T 6,177,158 13,336,013 -59,500 13,276,513 -59,308 1,298,121 105,326 20,797,810 13,705,240 3,970,218 2,601,829 520,524 7,092,570 7,092,570
    RESEARCH, DEVELOPMENT,
    TEST AND EVALUATION:
    Research, Development, Test and
    Evaluation, Army__________ 57,442 1,035,715 38,413 1,074,128 10,000 4,068 4,051 1,149,689 1,048,239 98,192 5,561 -2,303 101,450 101,450
    Research, Development, Test and
    Evaluation, Navy__________ 44,975 1,015,920 50,604 1,066,524 4,433 26,831 --------- 1,142,764 1,059,905 82,982 --------- -123 82,859 82,859
    See footnotes at end of table.
    595308—61------26
    MILITARY FUNCTIONS DEPARTMENT OF DEFENSE OBLIGATIONS
    T able 1. OBLIGATIONS AND OBLIGATIONAL AVAILABILITY OF CURRENT GENERAL AND SPECIAL FUND APPROPRIATIONS,
    BY APPROPRIATION TITLE—Continued
    FISCAL YEAR 1960—Continued
    [Thousands of dollars]
    Amounts available for obligation fiscal year 1960 Unobligated balance as of 30 June 1960
    New obligational availability Total Balance Unobli- Unobli-_________________ _ Be- obliga- appor- gated
    Appropriation title gated coveries Total tion for tion- Other Total balance
    balance Other Reim- of prior fiscal fiscal ment Re- uncbli- pre- available
    brought Congres- trans- burse- year year year and serves gated closing in
    forward sional Trans- Total fers ments obliga- 1960 1960 funds balance balance fiscal
    1 July appro- fers tions other- year
    1959 priations wise 1961
    available
    (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
    RESEARCH, DEVELOPMENT,
    TEST AND EVALUATION—
    Continued
    Research, Development, Test and
    Evaluation, Air Force_________ 85, 532 1,159,900 288, 950 1,448,850 48,875 130,903 ______ 1, 714,160 1,480, 509 174,428 59, 700 -477 233, 651 233,651
    Salaries and Expenses, Advanced
    Research Projects Agency, Department
    of Defense___________ 112,146 455,000 -125,380 329,620 -4,000 800 -•_____ 438,566 315,825 87,741 10,000 25,000 122,741 122,741
    Emergency Fund, Department of
    Defense___________________________ 150,000 -144,712 5,288 _____________________ 5,288 _______ 5,288 ______________ 5,288 ______
    T O T A L—R E S E A R C H , D E V
    E L O P M E N T , T E S T &
    EV A LU A T IO N ______________ 300,095 3,816,535 107,875 3,924,410 59,308 162,602 4,051 4,450,467 3,904,478 448,631 75,261 22,097 545,988 540,700
    MILITARY CONSTRUCTION:
    Military Construction, Army_____ 105,064 263, 632 _______ 263, 632 ______ 2,238 ______ 370,934 232,489 125,183 20, 508 - 7,246 138,445 138, 445
    Military Construction, Navy_____ 109,685 204,112 _______ 204,112 ______ 7,908 4,000 325,705 237,240 87,558 _______ 908 88,466 88,466
    Military Construction, Air Force... 633,895 776,833 7,000 783,833 3,845 1,421,572 802,458 546,632 81,311 -8,830 619,114 619,114
    396 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    APPENDIX 397
    Military Construction, Advanced
    Research Projects Agency, Department
    of Defense___________ 15,968 23,545 -7,000 16,545 ______ ______________ 32,513 13,150 3,920 15,443 ______ 19,363 19,363
    Military Construction, Army Reserve_____________________
    12,066 20,000 ______ 20,000 -6,961 13 ______ 25,118 15,935 8,944 228 11 9,183 9,183
    Military Construction, Naval Reserve_____________________
    9,645 8,980 ______ 8,980 ______ 3 ______ 18,628 9,139 6,920 2,568 ______ 9,489 9,489
    Military Construction, Air Force
    Reserve____________________________ 4,000 ______ 4,000 ______ (*) ______ 4,000 2,637 1,363 ______ (*) 1,363 1,363
    Military Construction, Army National
    Guard_______________________ 23,219______ 23,219 6,961 _____________ 30,180 16,629 1,404 12,147 ______ 13,551 13,551
    Military Construction, Air National
    Guard_______________________ 16,440 ______ 16,440 ° 44 _____________ 16,484 11,455 4,986 ______ 44 5,030 5,030
    Loran Stations, Department of Defense_____________________________
    23,200 ______ 23,200 _____________________ 23,200 23,200 _____________________________________
    Construction, Alaska Communication
    System, Army__________ 615______________________________________________ 615 157 21 436 (*) 458 458
    TOTAL—C O N S T R U C T IO N .. 886,937 1,363,961 ______ 1,363,961 44 14,006 4,000 2,268,949 1,364,489 786,930 132,642 -15,112 904,460 904,460
    T O T A L —D E P A R T M E N T
    O F D E F E N S E ______________ 7,512,611 40,598,895 429,022 41,027,918 44 2,628,646 113,378 51,282,597 42,426,097 5,347,064 2,998,403 511,034 8,856,501 8,638,018
    RECAPITULATION BY SERVICE:
    Department of the Army________ 798,559 9,683,351 286,744 9,970,096 1,155,459 4,051 11,928,165 10,892,329 564,731 335,955 135,150 1,035,836 986,559
    Department of the Navy________ 2,971,911 11,219,595 149,494 11,369,089 _______ 377,305 109,326 14,827,632 12,095,736 1, 546,110 1,157, 672 28,115 2,731,897 2, 657,425
    Department of the Air Force_____ 3,614,028 18,275,979 269,876 18,545,855 4,044 1,095,082 ______ 23, 259,009 18,353,082 3,126,824 1, 456,333 322, 769 4,905,926 4,851, 931
    Office of the Secretary of Defense.... 128,113 1,419,970 -277,092 1,142,878 -4,000 800 1,267,791 1,084,950 109,398 48,443 25,000 182,841 142,104
    SOURCE: DD Form 1176
    NOTE: Amounts will not necessarily add to totals due to rounding.
    *Less than $500.
    » Comprised of anticipated reimbursements formerly carried under the following accounts:
    Navy Personnel, General Expenses...----------------$3,175 thousand
    Aircraft and Facilities, Navy_________________ 1,467 thousand
    Ships and Facilities, Navy___________________ 8,098 thousand
    Civil Engineering, Navy_____________________ 3,374 thousand
    Service-Wide Supply and Finance, Navy_______ 299 thousand
    6 Formerly “Marine Corps Troops and Facilities.”
    c Represents restoration from the appropriation “Air National Guard, 1959” to cover upward
    adjustments in unpaid obligations transferred from that account pursuant to Public Law 86 -275.
    398 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    MILITARY FUNCTIONS DEPARTMENT OF DEFENSE EXPENDITURES
    T able 2. EXPENDITURES AND EXPENDITURE AVAILABILITY, BY APPROPRIATION TITLE
    FISCAL YEAR 1960
    [Thousands of dollars]
    Amounts available for expenditure, fiscal year 1960
    ------------- - , U nobligated T ... . , . , .----------------------------------------------------balance Total un- . . . . . . . Gross TT , New obhgational availability Total ex- Preclosing withdrawn expended unpaid
    Appropriation title Unexpend- - -------------------------------------- .-- penditures unexpended (—) or re- balance obligations
    ed balance Other Total fiscal for fiscal balance 30 stored (+) carried into carried into
    carried into Congres- transfers year 1960 year 1960 June 1960 per Public fiscal year fiscal year
    fiscal year sional Transfers Total Law 798 1961 1961 *
    1960 appropriations
    (U (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
    MILITARY PERSONNEL:
    Military Personnel, Army-------------- 226,878 3,233,063 252,125 3,485,188 _______ 3,712,066 3,414,052 298,014 - 23,044 274,970 300,280
    Military Personnel, Navy--------------- 47,279 2,476,700 75,000 2,551,700 2,598,979 2,523,074 75,905 +11,276 87,182 87,182
    Military Personnel, Marine Corps----- 23,471 620,600 12,000 632,600 656,071 596,098 59,973 - 38,195 21,778 23,481
    Military Personnel, Air Force---------- 55,180 3,918,000 50,000 3,968,000 4,023,180 3,856,522 166,658 -7,046 159,612 218,516
    Reserve Personnel, Army---------------- 35,502 231,700 -4,000 227,700 263,202 220,109 43,092 -7,122 35,971 35,971
    Reserve Personnel, Navy---------------- 16,053 88,000 -3,000 85,000 101,053 82,334 18,719 -1,349 17,370 17,370
    Reserve Personnel, Marine Corps------ 3,279 24,300 24,300 27,580 24,363 3,217 +97 3,314 3,333
    Reserve Personnel, Air Force----------- 6,577 54,000 ------------- 54,000 _______ 60,577 51,190 9,387 -3,414 5,973 5,980
    National Guard Personnel, Army------ 56,986 234,961 _______ 234,961 -19,089 272,858 232,291 40,567 - 3,841 36,726 36,726
    National Guard Personnel, Air Force.. 53,700 48,000 48,000 -49,443 52,257 43,502 8,755 -947 7,808 8,011
    Retired Pay, Department of Defense... 10,614 715,000 _______ 715,000 _______ 725,614 694,241 31,373 - 22,085 9,289 9,289
    Total—Reported on DD Form 1176 535,519 11,644,324 382,125 12,026,449 -68,532 12,493,437 11,737,775 755,662 - 95,669 659,992 746,138
    Adjustment to Monthly Treasury Statement
    and Annual Combined Statement_________________ —430,000 —430,000 430,000 ___________________________________________________________
    TO TA L— M IL ITA R Y P E R S O N N
    E L -------------------------------------------- 535,159 11,644,324 -47,875 11,596,449 361,468 12,493,437 11,737,775 755,662 -95,669 659,992
    APPENDIX 399
    OPERATION AND MAINTENANCE:
    Operation and maintenance, Army---- 727,165 3,075,390 206 3,075,596 -15,000 3,787,761 3,093,356 694,405 - 62,719 631,686 778,242
    Operation and Maintenance, Navy------------------- 2,611,220 - 610 2,610,610 ________ 2,610,610 2,137,740 472,870 -29,374 443,496 499,939
    Aircraft and Facilities, Navy------------ 238,122 238,122 172,860 65,261 -11,474 53,787 53,991
    Civil Engineering, Navy----------------- 27,132 ________________ ____________________ 27,132 24,275 2,857 - 687 2,170 2,399
    Medical Care, Navy---------------------- 7,752 7,752 7,717 35 +569 603 9,200
    Navy Petroleum Reserve__________ 282 282 286 —4 +4
    Navy Personnel, General Expenses__ 11,208 11,208 10,372 836 —200 636 860
    Ordnance and Facilities, Navy--------- 52,343 52,343 33,657 18,686 -998 17,688 17,743
    Service-Wide Operations, Navy_____ 29,477 29,477 22,706 6,771 +1,765 8,537 8,564
    ServiceWide Supply and Finance, Navy. 21,350 _____________________________________ 21,350 20,004 1,346 (*) 1,346 1,397
    Ships and Facilities, Navy--------------- 199,783_____________________________________ 199,783 161,756 38,027 -3,810 34,217 35,229
    Operation and Maintenance, Marine
    Corps b------------------------------------ 35,685 175,850 _______ 175,850 _______ 211,535 168,658 42,877 -12,296 30,581 39,164
    Operation and Maintenance, Air Force 907,613 4,195,006 -1,074 4,193,932 -15,000 5,086,545 4,116,396 970,149 -105,291 864,858 908,314
    Operation and Maintenance, Army
    National Guard----------------------------------------- 151,700 _______ 151,700 19,089 170,789 148,657 22,132 -1,563 20,568 20,568
    Operation and Maintenance, Air National
    Guard--------------------------- 929 169,000 _______ 169,000 30,835 200,765 180,202 20,562 -2,113 18,450 18,583
    National Board for Promotion of Rifle
    Practice, Army-------------------------- 111 300 _______ 300 _______ 411 333 78 —9 69 69
    Operation and Maintenance, Alaska
    Communication System, Army____ 1,256 5,676 695 6,371 _______ 7,627 5,730 1,896 -220 1,677 1,677
    Appropriated Receipts, Alaska Communication
    System, Army________________ 695 —695 ______________________________________________________________________________
    Salaries and Expenses, Secretary of
    Defense_______________________ 3,426 20,500 _______ 20,500 3 23,929 19,636 4,293 -210 4,083 4,083
    Claims, Department of Defense______ 769 16,500 ________ 16,500 _______ 17,269 15,879 1,390 -207 1,183 1,183
    Contingencies, Department of Defense. 197 15,000 _______ 15,000 _______ 15,197 104 15,093 -13,223 1,870 1,870
    Operation and Maintenance, Olympic
    Winter Games, DOD______________________ 800 _______ 800 _______ 800 505 295 _________ 295 295
    Salaries and Expenses, Court of Military
    Appeals, DOD____________ 32 425 _______ 425 _______ 457 385 73 -27 46 46
    Office of Public Affairs, Salaries and
    Expenses______________________ 57 ____________________________ —3 55 50 5 —4 1 1
    Preparation for Sale or Salvage of Military
    Property, Army___________ 244 —151°_______ —151 _______ 93 59 34 _________ 34 34
    See footnotes at end of table.
    400 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    MILITARY FUNCTIONS DEPARTMENT OF DEFENSE EXPENDITURES
    T able 2. EXPENDITURES AND EXPENDITURE AVAILABILITY, BY APPROPRIATION TITLE—Continued
    FISCAL YEAR 1960—Continued
    [Thousands of dollars]
    Amounts available for expenditure, fiscal year 1960
    —.— ------- - ---------------------------- ---------------- ------------------------- Unobligated
    balance Total un- Gross
    New obligational availability Total ex- Preclosing withdrawn expended unpaid
    Appropriation title Unexpend- ____________________________ penditures unexpended (—) or re- balance obligations
    ed balance Other Total fiscal for fiscal balance 30 stored (+) carried into carried into
    carried into Congres- transfers year 1960 year 1960 June 1960 per Public fiscal year fiscal year
    fiscal year sional Transfers Total Law 798 1961 1961 11
    1960 appropriations
    6) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
    OPERATION AND MAINTENANCE—
    Continued
    Preparation for Sale or Salvage of Military
    Property, Navy----------------- 9 —I6_______ —1 _______ 9*9 _________ 9 9
    Preparation for Sale or Salvage of Military
    Property, Air Force------------ 675 —165c_______ -165 _______ 511 19 492 _________ 492 492
    Miscellaneous Expired Accounts,
    Army d------------------------------------ 989 ____________________________________ 989 1,467 -477 +855 377 377
    Miscellaneous Expired Accounts,
    Navy6------------------------------------ 5,890 ------------------------------------------------------- 5,890 1,491 4,399 -1,655 2,744 2,744
    Miscellaneous Expired Accounts,
    Air Force L------ ------------------------ 15 ____________________________________ 15 1 13 -13 ___________________
    Miscellaneous Expired Accounts,
    OSD s_____________________________________________________ ____________________________ 1 —1 1 ___________________
    Total—Reported on DD Form 1176. 2,272,511 10,437,746 -1,478 10,436,269 19,924 12,728,704 10,344,303 2,384,401 -242,899. 2,141,502 2,407,072
    Adjustment to Monthly Treasury
    Statement and Annual Combined
    Statement------------------------------------------------ 316 _______ 316 30,000 30,316 _________ 30,316 -30,316 ___________________
    TOTAL—O P E R A T IO N AND
    M A IN T E N A N C E ______________ 2,272,511 10,438,062 -1 ,4 7 8 10,436,584 49,924 12,759,020 10,344,303 2,414,716 -273,215 2,141,502 ___________
    APPENDIX 401
    PROCUREMENT:
    Procurement of Equipment and
    Missiles, Army-------------------------- 2,175,761 1,407,300 1,407,300 -10,000 3,573,061 1,604,886 1,968,175 1,968,175 2,322,823
    Aircraft and Related Procurement,
    Navy_______________________ 3,897,301 1,961,644 1,961,644 5,858,945 2,027,098 3,831,847 3,831,847 2,515,405
    Shipbuilding and Conversion, Navy.— 3,693,191 1,330,700 1,330,700 5,023,891 1,362,953 3,660,939 3,660,939 2,947,504
    Procurement of Ordnance and Ammunition,
    Navy___________________ 392,875 567,719 15,500 583,219 -4,433 971,661 290,342 681,319 _________ 681,319 708,374
    Procurement, Marine Corps........... 435,822 133,850 _______ 133,850 _______ 569,672 139,496 430,176 _________ 430,176 323,060
    Aircraft Procurement, Air Force_______________ 4,284,600 _______ 4,284, 600 _______ 4,284, 600 560,283 3,724,317 _________ 3, 724,317 2,394,404
    Missile Procurement, Air Force________________ 2,540,550 -75,000 2,465,550 127,450 2,593,000 1,149,745. 1,443,255 _________ 1,443,255 1,251,802
    Other Procurement, Air Force_________________ 1,109, 650 _______ 1,109,650 6,373 1,116,023 175, 616 940, 407 _________ 940, 407 626,252
    Aircraft, Missiles and Related Procurement,
    Air Force________________ 8,990,845 ____________________________-172,325 8,818,520 5,317,841 3,500,679 _________ 3,500,679 2,234,374
    Procurement other than Aircraft and
    Missiles, Air Force______________ 2,688,817 _______ ____________________________ 2,688,817 1,559,232 1,129,585 _________ 1,129,585 1,082,276
    Construction of Ships, MSTS, Department
    of Defense________________ 1,598 ____________________________________ 1,598 892 706 -599 108 108
    Total—Reported on DD Form 1176. 22,276,211 13,336,013. -59,500 13,276,513 -52,935 35,499,788 14,188,383 21,311,405 -599 21,310,807 16,406,383
    Adjustment to Monthly Treasury
    Statement___________________________________________________________ ______________________________________________________________________
    TOTAL—P R O C U R EM E N T _____ 22,276,211, 13,336,013 -59,500 13,276,513 -52,935 35,499,788 14,188,383 21,311,405 -599 21,310,807 _________
    RESEARCH, DEVELOPMENT,
    TEST AND EVALUATION:
    Research, Development, Test and
    Evaluation, Army______________ 360,390 1,035,715 38,413 1,074,128 10,000 1,444,518 705,079 739,439 +4 739,442 650,798
    Research, Development, Test and
    Evaluation, Navy_______________ 378, 990 1,015,920 50, 604 1, 066, 524 4,433. 1, 449, 947 766, 532 683,416 _________ 683,416 626,625
    Research, Development, Test and
    Evaluation, Air Force___________ 457,632 1,159,900 288,950 1,448,850 48,875 1,955,357 1,089,295 866,062 _________ 866,062 745,450
    Salaries and Expenses, Advanced
    Research Projects Agency, Department
    of Defense________________ 299,230 455,000 -125,380 329,620 -4,000 624,850 313,674 311,176 _________ 311,176 188,435
    Emergency Fund, Department of
    Defense_________________________________ 150,000 -144,712 5,288 _______ 5,288 _________ 5,288 -5,288 ___________________
    Total—Reported on DD Form 1176. 1,496,241 3,816,535 107,875 3,924,410 59,308 5,479,959 2,874,580 2,605,380 -5,284 2,600,096 2,211,308
    See footnotes at end of table.
    402 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    DITURES
    >d
    “5 2d auS tn 2 ©44 & «
    2 Q. C3 r-t co
    CSs-goS
    (12)
    202,308
    294,223
    751,339
    7,720
    14,050
    6,397
    EXPEN
    -Continue
    Total unexpended
    balance
    carried into
    fiscal year
    1961
    s
    2,600,096
    340, 753
    378,869
    1,369,966
    27,083
    23, 233
    15,885
    TITLEUnobligated
    balance
    withdrawn
    (—) or restored
    (+)
    per Public
    Law 798
    (01)
    -5 ,2 8 4
    +5
    £
    O
    s
    Preclosing
    unexnended
    balance 30
    June 1960
    §
    2,605,380
    340, 753
    378,869
    1, 369, 966
    27,083
    23,228
    15,885
    Ph
    O
    Ph
    Ph
    Ph
    Total expenditures
    for fiscal
    year 1960
    2,874,580
    247,041
    276,833
    999,132
    14, 624
    18, 562
    10,374
    TMENT OF DEFENSE
    RE AVAILABILITY, BY
    YEAR 1960—Continued
    Thousands of dollars]
    S
    Total fiscal
    year 1960
    s
    5,479,959
    587, 794
    655, 702
    2,369,099
    41, 707
    41,790
    26, 259
    >cal year 19
    Other
    transfers
    §
    59,308
    -24,095
    penditure, fis
    ailability
    Total
    s
    3,924,410
    263, 632
    204,112
    783,833
    16, 545
    20,000
    8,980
    DEPAR
    D EXPENDITU)
    FISCAL
    [
    able for ex
    gational av
    Transfers
    s
    107,875
    7,000
    -7,000
    mounts avail
    New obli
    Congressional
    appropriations
    s
    3,816,535
    263, 632
    204,112
    776,833
    23, 545
    20,000
    8,980
    MILITARY FUNCTIONS
    T able 2. EXPENDITURES AN
    Unexpended
    balance
    carried into
    fiscal year
    1960
    §
    1,496,241
    324,162
    451, 589
    1, 585,266
    25,162
    45,885
    17,279
    Appropriation title
    RESEARCH, D EV E LO PM EN T ,
    TEST AND EVALUATION—
    Contmued
    Adjustment to Monthly Treasury
    Statement___________________
    TO TA L—R E S E A R C H , D EV E L O
    PM E N T , T E S T , AND EVALU
    A T IO N _____________________
    MILITARY CONSTRUCTION:
    Military Construction, Army______
    Military Construction, Navy_______
    Military Construction, Air Force____
    Military Construction, Advanced Research
    Projects Agency, Department
    of Defense___________ ________
    Military Construction, Army Reserve.
    Military Construction, Naval Reserve.
    APPENDIX 403
    Military Construction, Air Force
    Reserve_________________________________ 4,000 _______ 4,000 _______ 4,000 230 3,770 _________ 3,770 2,407
    Military Construction, Army National
    Guard__________________________________ 23,219 _______ 23,219 24,095 47,314 14,884 32,430 ________ 32,430 18,879
    Military Construction, Air National
    Guard__________________________________ 16,440 _______ 16,440 12,235 28,675 12,294 16,380 <>44 16,425 11,395
    Loran Stations, Department of Defense__________ 23, 200 ----------- 23,200 ----------- 23,200 23,200 ------------------------------------------------------------
    Olympic Winter Games, Department
    of Defense____________________ 790 ------------------------------------------------------- 790 790 ------------------------------------------------------------
    Construction, Alaska Communication
    System, Army__________________ 615 ____________________________________ 615 7 608 _________ 608 150
    Military Construction, Foreign Countries,
    DOD___________________ 42,810 _____________________________ ____42,810 7,660 35,150 _________ 35,150 35,150
    Access Roads, Department of Defense- 1,690 ------------------------------------------------------- 1,690 892 798 —2 796 796
    Family Housing, Department of Defense_________________________
    139 ____________________________________ 139 3 136 -94 42 42
    Total—Reported on DD Form
    1176_______________________ 2,495,389 1,363,961 _______ 1,363,961 12,235 3,871,585 1,626,529 2,245,055 -47 2,245,008 1,344,855
    Adjustment to Monthly Treasury
    Statement------------------------------------------------ -----------------------------------------------------------------------------------------------------------------------------------------------------
    T O T A L—M IL IT A R Y C O N S
    T R U C T IO N ________________ 2,495,389 1,363,961 _______ 1,363,961 12,235 3,871,585 1,626,529 2,245,055 - 47 2,245,008 _________
    REVOLVING AND MANAGEMENT
    FUNDS:
    Acquisition, Rehabilitation and Rental
    of Wherry Act Housing, Department
    of Defense________________ 131,899 _________ 30,000 30,000 _______ 161,899 22,796 139,103 -------------- 139,103 42,264
    Defense Housing, Army___________ 430 ------------------------------------------ —450 —20 —137 117 --------------- 117 102
    Defense Housing, Navy____________ 426 ------------------------------------------ —150 276 —248 524 -------------- 524 139
    Laundry Service, Naval Academy___ 72 ------------------------------------------------------- 72 —31 103 -------------- 103 56
    Army Stock Fund________________ 526,820 ___________________________ -281,000 245,820 -314,254 560,074 -------------- 560,074 NA
    Navy Stock Fund________________ 234,936 ___________________________ -75,000 159,936 - 54,695 214,631 -------------- 214,631 NA
    Marine Corps Stock Fund__________ 42,937 ___________________________ -24,000 18,937 -4,210 23,147 --------------- 23,147 NA
    See footnotes at end of table.
    404 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    MILITARY FUNCTIONS DEPARTMENT OF DEFENSE EXPENDITURES
    T able 2. EXPENDITURES AND EXPENDITURE AVAILABILITY, BY APPROPRIATION TITLE—Continued
    FISCAL YEAR 1960—Continued
    [Thousands of dollars]
    Amounts available for expenditure fiscal year 1960
    _________________________________________________________ Unobligated
    balance Total un- Gross
    New obligational availability Total ex- Preclosing withdrawn expended unpaid
    Appropriation title Unexpend- ____________________________ penditures unexpended (—)orre- balance obligations
    ed balance Other Total fiscal for fiscal balance 30 stored (+) carried into carried into
    carried into Congres- transfers year 1960 year 1960 June 1960 per Public fiscal year fiscal year
    fiscal year sional Transfers Total Law 798 1961 1961 a
    1960 appropriations
    (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
    REVOLVING AND MANAGEMENT
    FUNDS—Continued
    Air Force Stock Fund_____________ 276,058 ___________________________ -50,000 226,058 - 35,373 261,431 _________ 261,431 NA
    Army Industrial Fund_____________ 186,620 ____________________________________ 186,620 7,130 179,490 _________ 179,490 NA
    Navy Industrial Fund_____________ 133,503 ____________________________________ 133,503 -14,473 147,976 -------------- 147,976 NA
    Air Force Industrial Fund__________ 42,726 ___________________________ -11,613 31,113 -10,443 41,557 --------------- 41,557 NA
    Army Management Fund__________ —3,134 ____________________________________ —3,134 —10,065 6,931 ---------------- 6,931 14,515
    Navy Management Fund__________ 960,587 ____________________________________ 960,587 855,015 105,572 —93 105,479 855,838
    Air Force Management Fund_______ 6,964 ____________________________________ 6,964 568 6,396 —1,189 5,207 3,916
    Naval Working Fund_____________ 12,088 ____________________________________ 12,088 -825 12,913 --------------- 12,913 6,306
    Consolidated Working Funds, Army., 5,905 ------------------------------------------ ‘3 5,908 2,517 3,391 —29 3,362 1,607
    Consolidated Working Funds, Air
    Force_________________________ 113 ____________________________________ 113 - 59 172 -26 146 131
    Total—Reported on DD Form
    1176_____________________ 2,558,951 _________ 30,000 30,000 - 442,209 2,146,741 443,212 1,703,529 -1,338 1,702,192 924,874
    APPENDIX 405
    Adjustment to Monthly Treasury
    Statement and Annual Combined
    Statement____________________________________________________________ 12,209 12,209 _________ 12,209 -12,209 ___________________
    TO TA L—R EV O LV IN G AND
    M A N A G EM E N T F U N D S ... 2,558,951 _________ 30,000 30,000 - 430,000 2,158,951 443,212 1,715,739 -13,548 1,702,192 _________
    TOTAL—DEPARTMENT OF DEFENSE:
    Reported on DD Form 1176_______ 31,634,822 40,598,579 459,022 41,057,602 -472,209 72,220,214 41,214,782 31,005,432 -345,836 30,659,596 24,040,629
    Adjustment to Monthly Treasury
    Statement and Annual Combined
    Statement______________________________ 316 -430,000 -429,684 472,209 42,525 _________ 42,525 -42,525 -----------------------------
    T O T A L—D E PA R TM E N T OF
    D E F E N S E _____________________ 31,634,822 40,598,895 29,022 40,627,918 _______ 72,262,739 41,214,782 31,047,957 -388,361 30,659,596 _________
    RECAPITULATION BY SERVICE:
    DEPARTMENT OF THE ARMY:
    Reported on DD Form 1176_______ 4,672,584 9,683,201 286,744 9,969,945 -296,447 14,346,082 9,391,704 4,954,378 - 97,684 4,856,694 4,399,177
    Adjustment to Monthly Treasury
    Statement and Annual Combined
    Statement_____________________________ 151 -281,000 -280,849 296,447 15,597 _________ 15,597 -15,597 -----------------------------
    TOTAL—D E PA R TM E N T OF
    T H E A RM Y ___________________ 4,672,584 9,683,351 5,744 9,689,096 _______ 14,361,679 9,391,704 4,969,975 -113,281 4,856,694 --------------
    DEPARTMENT OF THE NAVY:
    Reported on DD Form 1176_______ 11,370,713 11,219,595 149,494 11,369,089 -99,150 22,640,651 11,641,550 10,999,101 -86,420 10,912,681 9,086,531
    Adjustment to Monthly Treasury
    Statement and Annual Combined
    Statement___________________ __________ 1 —99,000 —98,999 99,150 151 -------------- 151 151 -----------------------------
    TOTAL—D E PA R TM E N T OF
    T H E NAVY___________________ 11,370,713 11,219,595 50,494 11,270,089 _______ 22,640,802 11,641,550 10,999,252 -86,571 10,912,681 -------------
    See footnotes at end of table.
    406 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    MILITARY FUNCTIONS DEPARTMENT OF DEFENSE EXPENDITURES
    T able 2. EXPENDITURES AND EXPENDITURE AVAILABILITY, BY APPROPRIATION TITLE—Continued
    FISCAL YEAR 1960—Continued
    [Thousands of dollars]
    Amounts available for expenditure fiscal year 1960
    _________________________________________________________ Unobligated
    balance Total un- Gross
    New obligational availability Total ex- Preclosing withdrawn expended unpaid
    Appropriation title Unexpend- ____________________________ penditures unexpended (—)orre- balance obligations
    ed balance Other Total fiscal for fiscal balance 30 stored (+) carried into carried into
    carried into Congres- transfers year 1960 year 1960 June 1960 per Public fiscal year fiscal year
    fiscal year sional Transfers Total Law 798 1961 1961 a
    1960 appropriations
    (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)
    RECAPITULATION BY SERVICE—
    Continued
    DEPARTMENT OF THE AIR
    FORCE:
    Reported on DD Form 1176_______ 15,073,110 18,275,814 269,876 18,545,690 - 72,613 33,546,187 19,066,194 14,479,993 -119,995 14,359,998 10,263,642
    Adjustment to Monthly Treasury
    Statement and Annual Combined
    Statement_____________________________ 165 -50,000 -49,835 76,613 26,777 _________ 26,777 -26,777 ___________________
    TOTAL—D E PA R TM E N T OF
    T H E AIR F O R C E _____________ 15,073,110 18,275,979 219,876 18,495,855 4,000 33,572,964 19,066,194 14,506,771 -146,772 14,359,998 _________
    OFFICE OF THE SECRETARY
    OF DEFENSE:
    Reported on DD Form 1176_______ 518,416 1,419,970 - 247,092 1,172,878 - 4,000 1,687,294 1,115,334 571,960 - 41,737 530,223 291,279
    APPENDIX 407
    Adjustment to Monthly Treasury
    Statement_________________
    TOTAL—O F F IC E OF T H E S E C R
    E TA RY OF D E F E N S E ____ 518,416 1,419,970 -247,092 1,172,878 -4 ,0 0 0 1,687,294 1,115,334 571,960 -41,737 530,223 ___________
    Source. DD Form 1176.
    Note. Amounts will not necessarily add to totals due to rounding.
    NA—Not Applicable.
    a Amounts in this column are gross, i.e., inclusive of reimbursements receivable and antitipated, and thus, may exceed cash unexpended balances in column (22).
    b Formerly “Marine Corps Troops and Facilities.”
    «Represents adjustments to prior year appropriations as follows: Army Navy Air Force
    Preparation for Sale or Salvage of Military Property, 1958____________ —67,997 —520 —114,649
    Preparation for Sale or Salvage of Military Property, Prior Years______ —82, 704 —1 —49,904
    Total__________________________________________________ -150,701 -521 -164,553
    d Signal Service; Department of the Air Force Prior Years; Ordnance Service and Supplies;
    Expediting Production; Expenses, Army of the Philippines.
    * Construction of Ships; Facilities; IRNV: Armor, Armament and Ammunition; IRNV:
    Construction and Machinery: Ordnance for New Construction; Public Works, Bureau
    of Yards and Docks; Research.
    1 Special Procurement; Replacement of Personal Property Sold,
    s Expenses of Liquidation, Office of Scientific Research and Development Function, OSD.
    b Restored from Air National Guard (5793870).
    ‘ Represents restoration of amount written off on 30 June 1959 in anticipation of reappropriation in FY 1960.
    CIVIL FUNCTIONS DEPARTMENT OF DEFENSE OBLIGATIONS
    T able 3. OBLIGATIONS AND OBLIGATIONAL AVAILABILITY OF CURRENT GENERAL APPROPRIATIONS, BY APPROPRIATION
    TITLE (Excluding working, revolving, and special funds and expired general appropriations)
    FISCAL YEAR 1960
    [Thousands of dollars]
    Amounts available for obligation fiscal year 1960 Unobligated balance as of 30 June
    ~ — 1960 T— * ~ — Obli. — - - - - - - - - - - -
    Appropriation title Unobli- New obligational availability____________________ gations Unobligated
    _____________ _____________ Reim- fiscal year Total Expired gated
    balance burse- Total 1960 pre- balance balance
    carried Congres- ments fiscal year closing withdrawn available
    into fiscal sional Trans- Total 1960 balance 30 June 1960 fiscal year
    year 1960 appro- fers 1961
    priations
    D E P A R TM E N T O F D E F E N S E—TO TA L _________________ 82,926 904,883 _______ 904,883 3,027 9,990,836 903,385 87,451 -155 87,29'
    DEPARTMENT OF THE ARMY:
    Corps of Engineers:
    Flood Control, Mississippi River and Tributaries______ 1,270 69,069 ------------ 69,069 399 70,738 70,089 648 -------------- 641
    General Investigations____________________________ 1,634 10,481 ------------ 10,481 1 12,116 10,683 1,434 --------------- 1,43-
    Construction, General____________________________ 62,402 661,356 ________ 661,356 1,039 724,798 674,956 49,842 --------------- 49,84:
    Operation and Maintenance, General________________ 3,877 117,685 ________ 117,685 1,557 123,119 118,817 4,302 --------------- 4,30:
    General Expenses__________________________________________ 12,324 _______ 12,324 14 12,338 12,316 22 -22 -------------
    Hydraulic Mining in California, Debris Fund_________ 15 18 18 (*) 33 22 10 II
    Niagara Remedial Works_________________________ 158 ----------------------------------------------------- 158 —177 335 -------------- 331
    Maintenance and Operation of Dams and Other Improvements
    of Navigable Waters__________________ 152 154 ----------- 154 ----------- 306 152 154 -------------- 15-
    United States Section, St. Lawrence River Joint Board
    of Engineers___________________________________________ 39 ----------- 39 ----------- 39 13 26 —26 -------------
    Payments to State Flood Control Act, 1954___________ 1,435 1,511 ----------- 1,511 ----------- 2,946 1,454 1,492 -------------- 1,491
    TO TA L , C O R P S O F E N G IN E E R S _________________ 70,943 872,637 _______ 872,637 3,011 946,591 888,326 58,265 -48 58,21'
    408 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    APPENDIX 409
    Salaries and Expenses, Cemeterial Expenses______________________ 8,964 _______ 8,964 8 8,972 8,888 84 —84 _________
    Payments to Claimants, Disaster at Texas City, Texas___ 11,450 __________________________________ 11,450 629 10,821 _________ 10,821
    Construction of Power Systems, Ryukyu Islands________ 180 18,000 _______ 18,000 _______ 18,180 150 18,030 _________ 18,030
    Construction of Water System, Ryukyu Islands_________ 354 __________________________________ 354 127 227 _________ 227
    Administration, Ryukyu Islands_______________________________ 5,282 _______ 5,282 8 5,290 5,266 23 —23 _________
    TOTAL—D E P A R TM E N T O F T H E ARM Y________ 82,926 904,883 _______ 904,883 3,027 990,836 903,385 87,451 -155 87,296
    DEPARTMENT OF THE NAVY______________________________________________________________________________________________________________
    DEPARTMENT OF THE AIR FORCE___________________________________________________________________________ ___________________________
    Note. Amounts will not necessarily add to totals due to rounding.
    *Less than $500.
    410 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    CIVIL FUNCTIONS DEPARTMENT OF DEFENSE EXPENDITURES
    T able 4. EXPENDITURES AND EXPENDITURE AVAILABILITY, BY APPROPRIATION TITLE
    FISCAL YEAR 1960
    [Thousands of dollars]
    Amounts available for expenditure fiscal year 1960
    _____________________________________________ Unobli- Total un- Gross un-
    Expend- Preclos- gated bal- expended paid obli-
    Unexpended New obligational availability itures ingunex- ance with- balance gations
    Appropriation title balance __________________________ Total fiscal year pended drawn (—) carried into carried into
    carried into fiscal year 1960 balance or re- fiscal year fiscal year
    fiscal year Congres- 1960 stored (+) 1961 1961
    1960 sional ap- Transfers Total per PL 798
    propriations
    P A R TM E N T O F D E F E N S E—TO TA L ______________ 285,797 904,910 _______ 904,910 1,190,706 879,981 310,726 -99 310,627 214,157
    PARTMENT OF THE ARMY:
    orps of Engineers:
    Flood Control, Mississippi River and Tributaries____ 13,116 69,069 ________ 69,069 82,185 69,882 12,303 __________ 12,303 11,654
    General Investigations__________________________ 2,709 10,481 10,481 13,191 10,818 2,373 2,373 918
    Construction, General__________________________ 191,132 661,356 ________ 661,356 852,489 658,533 193,956 __________ 193,956 144,155
    Operation and Maintenance, General______________ 18,005 117,685 117,685 135,690 113,484 22,206 22,206 17,990
    General Expenses______________________________ 714 12,324 _______ 12,324 13,038 12,390 649 -49 600 600
    Hydraulic Mining in California, Debris Fund_______ 15 18 18 33 21 12 12 2
    Niagara Remedial Works________________________ 155 __________________________ 155 —176 331 _________ 331 _________
    Maintenance and Operation of Dams and Other Improvements
    of Navigable Waters______________ 152 154 _______ 154 306 152 154 _________ 154 _________
    United States Section, St. Lawrence River Joint Board
    of Engineers_______________________________ 2 39 _______ 39 41 15 27 —26 1 1
    Payments to State Flood Control Act, 1954__________ 1, 435 1, 511 _______ 1,511 2, 946 1, 454 1,492 _________ 1,492 _________
    Revolving Fund_______________________________ 24,271 __________________________ 24,271 584 23,687 _________ 23,687 34,911
    TO TA L—C O R P S O F E N G IN E E R S _______________ 251,708 872,637 _______ 872,637 1,124,345 867,156 257,189 -75 257,114 210,231
    aa aa o
    APPENDIX 411
    Salaries and Expenses, Cemeterial Expenses__________ 844 8,964 _______ 8,964 9,809 8,386 1,423 —90 1,333 1,333
    Civil Relief in Korea_________________________ ____ 27 __________________________ 27 2 25 —20 5 5
    Payments to Claimants, Disaster at Texas City, Texas__ 11,450 __________________________ 11,450 607 10,843 _________ 10,843 22 g Defense Production Guarantees____________________ 2,787 __________________________ 2,787 58 2,729 _________ 2,729 _________ g Construction of Power Systems, Ryukyu Islands______ 314 18,000 _______ 18,000 18,314 216 18,098 _________ 18,098 67
    ® Construction of Water System, Ryukyu Islands_______ 593 ---------------------------------------- 593 248 315 _________ 345 118
    Administration, Ryukyu Islands___________________ 331 5,282 _______ 5,282 5,613 3,321 2,292 +87 2,379 2,379
    C5 ---------- ——.---------------------------------------------------------------------------------------------—____ __ __ ___ ________
    TO TA L—D E P A R TM E N T OF T H E A RM Y _____ 268,054 904,883 __________ 904,883 1,172,937 879,994 292,943 -9 9 292,845 214,155
    w DEPARTMENT OF THE NAVY:
    Defense Production Guarantees____________________ 9,062 __________________________ 9,062 937 8,126 _________ 8,126 _________
    DEPARTMENT OF THE AIR FORCE:
    Defense Production Guarantees____________________ 8,662 ---------------------------------------- 8,662 —973 9,635 -------------- 9,635 _________
    Wildlife Conservation, Eglin Field Reservation________ 19 26 ------------ 26 45 24 22 -------------- 22 2
    TO TA L—D E PA R TM E N T O F T H E AIR F O R C E .. 8,680 26 __________ 26 8,707 -9 5 0 9,656 ___________ 9,656 2
    Note. Amounts will not necessarily add to totals due to rounding.
    412 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Table 5. MILITARY ASSISTANCE PROGRAM
    OBLIGATIONS/RESERVATIONS
    BY BUDGET ACTIVITY
    [Millions of dollars]
    Obligations/Reservations
    Major classification
    Fiscal years
    1950-59
    Fiscal year
    1960
    Total as of
    June 30, 1960
    TOTAL_____________________________________________________ $25,296.9 $1,358. 4 $26,655.3
    Equipment and Supplies_________________________ j 20, 673. 2 878.1 21, 551. 3
    Accessorial Charges______________________________ 1,190. 3 114.9 1,305. 2
    Training.. _ _ _ _ __ ___ _____ 568. 6 81. 5 650.0
    Weapons Production Program________________ _____ 82.4 46.0 128.3
    Development of Advance Design Weapons____________ 181.6 35.5 217. 1
    Infrastructure _ __ _ _____________ 667. 5 102.0 769. 5
    Administrative Expenses__________________________ 275.9 24.1 300.0
    International Military Headquarters________________ 42.6 7.8 50.5
    Other Services__________________________________ 1, 614. 7 68.6 1, 683. 4
    Note. Includes “Common Use Item” appropriation administered by International Cooperation Administration.
    Includes $15.0 million allocated to MAP from the President’s Contingency Fund. Includes
    reimbursements of $82.1 million. Amounts will not necessarily add to totals due to rounding.
    [Millions of dollars]
    Table 6. MILITARY ASSISTANCE PROGRAM
    EXPENDITURES
    BY BUDGET ACTIVITY
    Major classification
    Expenditures
    Fiscal years
    1950-59
    Fiscal year
    1960
    Total as of
    June 30, 1960
    TOTAL ___________________________ $22,786.0 $1,638.2 $24,424.2
    Equipment and Supplies__________________________ 18, 699. 2 1,144.3 19, 843. 5
    Accessorial Charges ________ 1,160.1 129. 5 1, 289. 5
    Training _ _ _ _ _ _ _ _ _ 509. 7 82.2 592.0
    Weapons Production Program. ... _ . _ __ 55.0 8.9 63.9
    Research and Development.__ _ __ __ _____ __ 111. 1 41.9 153.0
    Infrastructure. ___ _ ... _ __ _ 506. 8 82.6 589.4
    Administrative Expenses__________________________ 269.4 23.7 293.1
    International Military Headquarters________________ 38.0 7.3 45.3
    Other Services___________________________________ 1,436. 7 117.9 1, 554. 6
    Note. Includes “Common Use Item” appropriation administered by International Cooperation Administration.
    Includes $2.9 million expended against $15.0 million allocated to MAP from the President’s
    Contingency Fund. Includes reimbursements of $82.1 million. Amounts will not necessarily add to totals
    due to rounding.
    APPENDIX 413
    [Millions of dollars]
    Table 7. MILITARY ASSISTANCE PROGRAM
    OBLIGATIONS/RESERVATIONS AND EXPENDITURES
    BY DEPARTMENT OF DEFENSE AGENCY AND OTHER AGENCIES
    Obligated or reserved Expended
    Total as of
    June 30, 1959
    Total as of
    June 30, 1960
    Total as of
    June 30, 1959
    Total as of
    June 30, 1960
    TOTAL_______________________________________ $25,296.9 $26,655.3 $22,786.0 $24,424.2
    Army . _ ___ _ 12, 796. 2 13,360.0 11,711. 5 12.467. 3
    Navy .. ______ 2,921. 2 3,062.1 2,441. 6 2, 660. 9
    Air Force___ ___ __ ___ 7,469. 8 7,979. 8 6, 773. 5 7,306. 4
    OSD______ 988.9 1,124. 2 753. 5 870.9
    Other Agencies____■__________________ 1,120.8 1,129.3 1,105. 9 1,118.8
    414 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Table 8. ACTIVE DUTY MILITARY PERSONNEL
    Date
    Total, Department
    of
    Defense
    Army Navy Marine
    Corps
    Air Force
    TOTALS
    June 30,1959. ___________ _ ____ 2, 504,310 861, 964 626,340 175,571 840, 435
    July 31__ _ ________________ 2,505,829 863,192 629,184 174,751 838, 702
    Aug. 31 .... ... 2,499,876 861,288 627,901 174, 580 836,107
    Sep. 30___ 2,492, 449 867,437 618,191 173,654 833,167
    Oct. 31 2,494, 893 872, 485 616, 658 173,169 832 581
    Nov. 30 2,500, 567 878,811 616,306 172, 665 832, 785
    Dec. 31 2,487,096 876,258 610,644 170,772 829,422
    Jan. 31,1960 __ 2,491,284 880,341 612, 075 171,618 827, 250
    Feb. 29 _________________________ 2,487,366 877,177 613,228 171,904 825,057
    Mar. 31__ _ _ _ 2,478, 466 873,977 612,130 171,853 820,506
    Apr. 30______ ____ _ 2,472,119 870,244 613,058 171, 593 817,224
    May 31__________________________ 2,465,065 868,116 611,500 171,296 814,153
    June 30__ _ ______ _ _ __ 2,476,435 873,078 617,984 170,621 814, 752
    OFFICERS
    June 30,1959 ______ 319,152 101, 690 69, 795 16,065 131,602
    July 31__ ____ __ _ _ 318,455 101,878 69,332 15,876 131,369
    Aug. 31 _________________________ 317, 689 101,147 69,101 15, 994 131,447
    Sep. 30____ ____ 317, 235 100,995 68, 710 16,093 131,437
    Oct. 31_ _ _ . 317,460 101,192 68, 581 16,045 131, 642
    Nov. 30 _ __ _ _ __ 316, 690 100,966 68,213 15,941 131, 570
    Dec. 31 _____ __ __ __ _ . __ 315,992 100, 564 68,056 16,041 131,331
    Jan. 31,1960_______________________ 316,152 100, 753 68,368 15,971 131,060
    Feb. 29 _ _____ 315, 947 100,805 68, 731 15, 941 130,470
    Mar. 31 __ 314, 550 100, 744 68,219 15,802 129, 785
    Apr. 30 _____ __________________ 314, 878 101, 085 68, 299 15,931 129, 563
    May 31. 314,065 100, 840 67,804 16,116 129,305
    June 30__________________________ 316, 687 101,236 69, 559 16, 203 129, 689
    ENLISTED
    June 30,1959______________________ 2,174, 728 758,458 552,221 159, 506 704, 543
    July 31___________________________ 2,174, 482 758, 769 553,817 158,852 703,044
    Aug. 31__________________________ 2,169,310 757, 588 552,788 158, 537 700,397
    Sep. 30__________________ ________ 2,161, 995 763,921 543, 017 157,482 697, 575
    Oct. 31___________________________ 2,164,239 768,800 541, 705 157,023 696, 711
    Nov. 30__________________________ 2,171,092 775,361 541,984 156, 592 697,155
    Dec. 31__________________________ 2,158, 442 773,218 536, 715 154,588 693,921
    Jan. 31,1960_______________________ 2,162,344 777,122 537,825 155, 509 691, 888
    Feb. 29___________________________ 2,159,336 774,018 539,167 155,805 690,346
    Mar. 31__________________________ 2,152,303 770,883 538, 699 155,894 686,827
    Apr. 30 ______ 2,145,879 766,812 539, 772 155,491 683,804
    May 31__________________________ 2,139, 617 764,932 538, 781 155,001 680,903
    June 30__________________________ 2,149,033 770,112 544.040 154,242 680,639
    APPENDIX 415
    Table 8. ACTIVE DUTY MILITARY PERSONNEL—Continued
    Date
    Total, Department
    of
    Defense
    Army Navy
    Marine
    Corps Air Force
    OFFICER CANDIDATES 1
    June 30,1959______ . 10,430 1,816 4,324 4,290
    July 31___ ...... 12,892 2, 545 6,035 23 4,289
    Aug. 31._ . . 12,877 2, 553 6,012 49 4,263
    Sep.30.. . 13,219 2,521 6, 464 79 4,155
    Oct. 31___ 13,194 2,493 6,372 101 4,228
    Nov. 30___ 12, 785 2,484 6,109 132 4,060
    Dec. 31. ... 12, 662 2,476 5,873 143 4,170
    Jan. 31,1960_______________ ___ 12,788 2,466 5,882 138 4,302
    Feb. 29______ . ___ ._ 12,083 2,354 5,330 158 4,241
    Mar. 31___ . ____ ___ ._ ___ 11,613 2,350 5,212 157 3,894
    Apr. 30__________________________ 11,362 2,347 4,987 171 3,857
    May 31__________________________ 11,383 2,344 4,915 179 3,945
    June 30__________________________ 10, 715 1,730 4,385 176 4,424
    1 Consists of cadets, U.S. Military Academy (Army); midshipmen, U.S. Naval Academy, aviation
    cadets, and enlisted officer candidates (Navy); marine aviation cadets (Marine Corps); and cadets, U.S.
    Air Force Academy and aviation cadets, including enlisted aviation students (Air Force).
    595308—61------28
    416 ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    Table 9. RESERVE COMPONENTS PERSONNEL
    [Excludes personnel on extended active duty]
    June 30, 1959 June 30, 1960
    Total enrollment
    Drill pay
    and 3-6
    months
    trainees a
    Total enrollment
    Drill pay
    and 3-6
    months
    trainees a
    TOTAL—DEPARTMENT OF DEFENSE__________ 4,354,005 1,006,588 4,147,294 997,162
    DEPARTMENT OF THE ARMY__________________ 2,686,586 713,600 2,625,021 702,846
    National Guard____________________________ b 404,036 399,427 b 407, 549 401,765 w
    Officers_______ ________ ____ ___ _____ 40,156
    363, 880
    37, 884
    361, 543
    39,484
    368,065
    37,142
    Enlisted____________________________________ 364, 623
    Army Reserve_____________________________ 2,282, 550 314,173 2,217, 472 301,081
    Officers____________ 244,809
    2,037, 741
    50, 945
    263,228
    254,047
    1, 963,425
    50,462
    Enlisted____________________________________ 250,619
    DEPARTMENT OF THE NAVY__________________ 1,043,657 165,230 930,704 165,126
    Naval Reserve_____________________________ 727, 727 120,371 672, 227 120, 294
    Officers.__________ __ ___-___ ___ 181,454
    « 546, 273
    25,454
    94, 917
    173, 873
    o 498,354
    26,092
    Enlisted____________________________________ 94,202
    Marine Corps Reserve_______________________ 315, 930 44, 859 258,477 44,832
    Officers_ . ... . 23,845
    292,085
    3, 537
    41,322
    23,710
    234, 767
    3, 568
    Enlisted____________________________________ 41,264
    DEPARTMENT OF THE AIR FORCE____________ 623,762 127,758 591,569 129,190
    Air National Guard_________________________ 70, 994 70, 994 70, 820 70,820
    Officers___ ___ _ ____ _______ . __ 8,473
    62, 521
    8, 473
    62, 521
    8,570
    62,250
    8,570
    Enlisted____________________________________ 62,250 «
    Air Force Reserve__________________________ 552, 768 56, 764 520, 749 58,370
    Officers .. ________ . . __ __ 134,389
    418,379
    21,209
    35, 555
    140,077
    380, 672
    21,621
    Enlisted____________________________________ 36, 749
    a Reserves authorized drill pay for inactive duty training, plus reserves undergoing 3 to 6 months’ active
    duty for training.
    b Includes Inactive National Guard.
    ° Includes Regular NROTC and Merchant Marine midshipmen.
    APPENDIX 417
    Table 10. CIVILIAN PERSONNEL
    Date
    Total,
    Department
    of Defense
    Department
    of the Army
    Department
    of the Navy
    Department
    of the
    Air Force
    Other
    Department
    of Defense
    Activities
    A. DIRECT HIRE EMPLOYEES *
    1959
    June 30 1,078,178 405,848 357,108 313, 466 1, 756
    July 31___________________ 1,077, 928 405,242 356, 815 314,109 1, 762
    Aug. 31—---. . _ _ 1,070, 505 396,820 356, 710 315,205 1,770
    Sep. 30- -- -_______ ___ 1,063, 700 392, 610 354,089 315,263 1,738
    Oct. 31____________________ 1,059, 674 389, 888 352,387 315, 614 1, 785
    Nov. 30________________ - 1,056,374 387, 618 350, 690 316,302 1, 764
    Dec. 31 _ __ 1,052,262 385, 905 348,304 316,294 1,759
    1960
    1,048,239 385,218 346,120 315,137 1,764
    Feb. 29____________________ 1,047,103 385, 737 345,063 314, 529 1, 774
    Mar. 31____________________ 1,045, 632 385, 744 344, 890 313,232 1,766
    Apr. 30____________________ 1,043, 358 386, 988 344, 923 309, 704 1,743
    May 31____________________ 1,044,307 388,364 345,471 308, 690 1,782
    June 30____________________ 1,047,120 390,046 347, 760 307,449 1,865
    B. INDIRECT HIRE PERSONNEL b
    1959
    188,472 120,452 17,392 50, 628
    July 31 __________________ 185,222 116,433 18,397 50,392
    Aug. 31____________________ 184,369 115,125 18, 533 50, 711
    Sep. 30 183,052 114,234 18,391 50,427
    Oct. 31 __________________ 182, 588 113,861 18,207 50, 520
    Nov. 30____________________ 181, 729 113, 988 17, 934 49,807
    Dec. 31 180, 734 113,184 17, 941 49,609
    1960
    179,286 112, 994 17, 509 48,783
    Feb. 29 __________________ 179,479 113,041 17,463 48,975
    Mar. 31____________________ 179,191 113,322 17, 482 48,387
    Apr. 30-- _________ ______ 177, 876 112, 883 17, 526 47,467
    May 31_______________ ____ 178,299 113,429 17,617 47,253
    June 30 __________________ 177,884 112, 963 17,442 47,479
    » Total paid employees (full-time, part-time, and intermittent) as reported officially to the Civil Service
    Commission. Includes employment charged to the Military Assistance Program and to Civil Functions.
    b Foreign nationals supporting the armed forces in certain oversea areas under contracts or agreements
    with foreign governments.
    ANNUAL REPORT OF THE SECRETARY OF DEFENSE
    T able 11. PERSONNEL
    OFFICE OF THE SECRETARY OF DEFENSE AND JOINT CHIEFS OF STAFF
    June 30,1959 Aug. 31 Oct. 31 Dec. 31 Feb. 29,1960 April 30 June 30
    Civil- Mill- Civil- Mill- Civil- Mill- Civil- Mill- Civil- Mill- Civil- Mill- Civil- Millian
    tary ian tary ian tary ian tary ian tary ian tary ian tary
    TO TA L , O F F IC E OF T H E S E C R E TARY
    OF D E F E N S E _____________ 1,262 393 1,283 394 1,259 386 1,259 393 1,269 402 1,277 410 1,344 404
    Office of the Secretary ■____________ 144 46 144 43 144 43 145 45 143 43 145 45 145 45
    Director of Defense Research and Engineering______________________
    203 80 215 84 219 82 227 83 234 85 235 90 242 91
    Assistant Secretary (Comptroller)___ 165 3 165 3 162 3 165 3 167 3 167 3 172 2
    Assistant Secretary (Health and Medical)____________________________
    11 8 11 9 11 9 11 9 11 9 11 9 11 8
    Assistant Secretary (International Security
    Affairs)__________________ 206 97 209 94 204 88 201 90 200 94 204 94 213 95
    Assistant Secretary (Manpower, Personnel,
    and Reserve)_____________ 84 46 82 47 79 46 80 46 81 49 81 49 85 45
    Assistant Secretary (Properties and
    Installations)___________________ 61 ---------- 61 ---------- 62 ---------- 61 ---------- 61 ---------- 63 ---------- 62 ----------
    Assistant Secretary (Public Affairs)... 78 57 78 57 77 57 75 57 74 57 77 58 77 58
    Assistant Secretary (Supply and Logistics)__________________________
    186 14 190 15 188 14 185 15 186 15 185 15 184 14
    General Counsel__________________ 58 ______ 59 ---------- 58 ---------- 58 ---------- 57 ---------- 55 ---------- 58 ----------
    Assistant to the Secretary (Atomic
    Energy)______ 1________________ 13 16 13 18 13 17 12 17 12 19 12 18 11 17
    Assistant to the Secretary (Legislative
    Affairs)_______________________ 9 7 10 8 9 7 10 8 10 8 8 8 7 8
    Assistant to the Secretary (Special
    Operations)____________________ 13 6 14 6 16 6 13 6 16 6 16 7 18 7
    Special Programs_________________ 31 13 32 14 17 14 16 14 17 14 18 14 59 14
    I
    APPENDIX 419
    IO
    co

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    157
    o 1
    21
    70
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    1,143
    m 'i
    a Includes Offices of the Deputy Secretary and Administrative Secretary, and the Administrative Office of the Secretary,
    t Includes activities receiving administrative support from the Office of the Secretary of Defense.
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    TO TA L , JO IN T C H IE F S OF STA F F
    ORGANIZATION_____________
    g
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    Other Joint Chiefs of Staff Activities..
    cc
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    EC
    •«
    EC
    EAdvanced
    Research Projects Agency-
    Standing Group, North Atlantic
    Treatv Organization __________
    ■
    U .o . V U U lb U1 iv iu iL U iiy A p y c a io -----------------
    Interdepartmental Activities________
    TO TA L , FU L L -T IM E P E R S O N N E L ..
    a5
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    5 B
    3 a
    8 i-
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    EINDEX
    Accounting. (See Fiscal matters.) Page
    Advanced Research Projects Agency (ARPA)__ 17,36,273,357,363,385,419
    AEC (Atomic Energy Commission)_________________________________ 21,22
    Aerospace Medical Center_________________________________________ 348
    AFROTC________________________________________________________ 341
    Air Crew Equipment Laboratory___________________________________ 283
    Air Defense School_______________________________________________ 124
    Air Force Academy_____________________________________ 333, 340, 353, 383
    Air Force, Department of the. (For tables see Appendix p. 393.) (See
    also Reserve Forces Policy Board.)
    Budget______________________________________________________ 385
    1960 budget___________________________________________ 385,393
    Amount available for obligation by Air Force during fiscal
    year 1960 as of June 30, 1960 (table)________________ 387
    USAF actual obligations and net expendtiures for fiscal year
    1960 (table)_______________________________________ 387
    1961 budget______________________________________________ 388
    Combat forces________________________________________________ 319
    Air defense______________________________________________ 326
    Air Defense Command_________________________________ 327
    Forces modified_______________________________________ 326
    Missile warning systems_______________________________ 326
    Programs reoriented____________ 326
    Air transport____________________________________________ 327
    Air Weather Service__________________________________ 329
    Exercise BIG SLAM/PUERTO PINE__________________ 328
    MATS fleet__________________________________________ 327
    Mercy flights_________________________________________ 329
    Deployment (fig. 2)______________________________________ 320
    Strategic air______________________________________________ 321
    Tactical air______________________________________________ 324
    Exercise BANYAN TREE II___________ 326
    Operation SPEARHEAD_______________________________ 325
    Wing strength (fig. 4)_____________________________________ 328
    Conclusion___________________________________________________ 389
    Health and welfare_________________ _________________________ 346
    Chaplains________________________________________________ 349
    Judge Advocate General___________________________________ 350
    Medical service__________________________________________ 346
    Air Force hospitals___________________________________ 347
    Dependents’ medical care_______________________________ 348
    Medicare program_________________________________ 348
    421
    422 INDEX
    Air Force, Department of the—Continued
    Health and welfare—Continued
    Medical service—Continued Page
    Health in the Air Force_______________________________ 347
    Death rate_______________________________________ 347
    Non effective rate_________________________________ 347
    Medical personnel____________________________________ 346
    Medical research_____________________________________ 348
    Aerospace Medical Center__________________________ 348
    Arctic Aeromedical Laboratory_____________________ 349
    ARDC Aerospace Medical Division__________________ 349
    School of Aviation Medicine________________________ 348
    Installations _________________________________________________ 351
    Base maintenance________________________________________ 355
    Losses by fire________________________________________ 355
    Construction ____________________________________________ 352
    Active major installations of Air Force (table)___________ 354
    Engineering _____________________________________________ 354
    Family housing__________________________________________ 354
    Capehart-Rains program_______________________________ 354
    Family units according to type of finding (table)__________ 355
    Wherry program_____________________________________ 355
    Programs _______________________________________________ 351
    Introduction _________________________________________________ 315
    Logistical services____________________________________________ 374
    Maintenance _____________________________________________ 376
    Supply and services______________________________________ 374
    Transportation___________________________________________ 376
    Management_________________________________________________ 378
    Administrative management________________________________ 383
    Comptroller service_______________________________________ 378
    Contract financing_______________________________________ 379
    Financial management____________________________________ 379
    Inspector General activities________________________________ 380
    Inspection ___________________________________________ 380
    Major aircraft accident rate 1954-60 (fig. 18)_____________ 381
    Safety ______________________________________________ 380
    Security_____________________________________________ 382
    Management analysis_____________________________________ 378
    Manpower _________________________________________________331, 414
    Changes in enlisted personnel system_______________________ 332
    Changes in utilization of manpower (table)--------------------------- 331
    Civilian personnel______________________________________ 334, 417
    Foreign nationals____________________________________ 335
    Incentive awards program____________________________ 335
    Physically handicapped________________________________ 336
    Total civilian personnel, FY 1956-60 (fig. 7)_____________ 335
    Turnover rate_______________________________________ 335
    Decorations _____________________________________________ 332
    Military personnel overseas (fig. 6)__________________________ 332
    Officer corps---------------------------------------------------------------------- 333
    Women in the Air Force___________________________________ 334
    INDEX 423
    Air Force, Department of the—Continued Page
    Military training_____________________________________________ 337
    Flying----------------------------------------------------------------------------- 337
    Flying training graduates FY 1956-60 (fig. 8)_______________ 338
    Professional education____________________________________ 340
    AFROTC ____________________________________________ 341
    Air Force Academy___________________________________ 340
    Air Training Command________________________________ 340
    Air University_______________________________________ 340
    Officer Training School________________________________ 341
    Reserve forces______________________________________ 99 342 416
    Reserve forces FY 1956-60 (fig. 10)_________________________ 342
    Technical________________________________________________ 338
    Technical training graduates FY 1956-60 (fig. 9)______________ 339
    Procurement and production of materiel_________________________ 367
    Aircraft and missile production_____________________________ 369
    Military Assistance Program (MAP)_______________________ 372
    Net value of USAF procurement actions (fig. 16)_____________ 368
    Procurement policies______________________________________ 368
    Research and development_____________________________________ 356
    Astronautics______________________________________________ 356
    Basic research____________________________________________ 365
    Aeromechanics________________________________________ 366
    Bioscience____________________________________________ 365
    Geophysics------------------------------------------------------------------ 365
    Maser amplifier-oscillator______________________________ 365
    Materials_____________________________________________ 365
    Propulsion systems___________________________________ 365
    Human factors___________________________________________ 364
    Nuclear systems__________________________________________ 358
    Nuclear-powered airplane______________________________ 358
    Project PLUTO______________________________________ 358
    Research aircraft_________________________________________ 358
    Study of boundary-layer-control principle________________ 359
    Vertical take-off______________________________________ 359
    X-15 aircraft_________________________________________ 358
    Supporting developments__________________________________ 362
    Command and control systems__________________________ 362
    AIRCOM_________________________________________ 362
    BMEWS installation_______________________________ 362
    SAC system______________________________________ 362
    Electronic equipment__________________________________ 363
    Propulsion____________________________________________ 363
    Fuel development_________________________________ 363
    Ion rocket engine_________________________________ 363
    Lubrication developments__________________________ 363
    Nuclear-pulse propulsion___________________________ 363
    Pulsed plasma engine_______________________________ 363
    Transport and training aircraft________________________ 362
    Advanced medium-cargo aircraft____________________ 362
    Lockheed Jetstar (C-140)__________________________ 362
    T-38A basic pilot trainer___________________________ 362
    T-39 utility transport-trainer_______________________ 362
    424 INDEX
    Air Force, Department of the—Continued
    Research and Development—Continued Page
    Weapon development------------------------------------------------------------ 359
    Air defense weapons____________________________________ 361
    BOMARC__________________________________________ 361
    F-108 long-range interceptor_________________________ 361
    GAR-11 rocket_____________________________________ 361
    Strategic weapons______________________________________ 359
    ATLAS____________________________________________ 359
    Dyna-Soar_________________________________________ 361
    MINUTEMAN______________________________________ 359
    SKYBOLT_________________________________________ 360
    Valkyrie program__________________________________ 359
    Tactical air weapons___________________________________ 361
    BULLPUP ________________________________________ 361
    Dispersed-site fighter_______________________________ 361
    Air Force Reserve___________________________________________ 99, 342, 416
    Air National Guard_________________________________________ 99, 342, 416
    Air Photographic and Charting Service____________________________ 329
    Air Rescue Service_______________________________________________ 329
    Air University___________________________________________________ 340
    Airways and Air Communications Service_________________________ 329, 362
    Air Weather Service___________________ ' _________________________ 329
    ANZUS ________________________________________________________ 95
    Arctic Aeromedical Laboratory___________________________________ 349
    ARDC Aerospace Medical Division_________________________________ 349
    Armed Forces Chaplains Board____________________________________ 350
    Armed Forces Institute of Pathology_______________________________ 284
    Armed Forces Radiobiology Research Institute______________________ 21
    Armed Forces Supply Support Center____________________________ 68,74,76
    Army Ballistic Missile Agency____________________________________ 19, 201
    Army, Department of the. (For tables see Appendix p. 393.) (See also
    Reserve Forces Policy Board.)
    Budget____________________________________________________218, 393
    Direct obligations________________________________________ 219
    Table _______________________________________________ 220
    Effect of budget on Army programs_________________________ 217
    Materiel modernization________________________________ 217
    Military construction_________________________________ 217
    Operations and maintenance____________________________ 218
    Expenditures_____________________________________________ 219
    Management of__________________________________________ 218
    New obligational availability_______________________________ 219
    Trends __________________________________________________ 216
    Civil works__________________________________________________ 204
    Appropriations, fiscal year 1960 (table)______________________ 205
    Beach erosion control and hurricane protection----------------------- 208
    Experimental studies in water resource development__________ 209
    Flood control____________________________________________ 206
    Local protection projects (table)________________________ 208
    Reservoir projects (table)_____________________________ 207
    Navigation ______________________________________________ 206
    Power __________________________________________________ 208
    INDEX 425
    Army, Department of the—Continued
    Civil works—Continued Page
    Progress in fiscal year 1960________________________________ 204
    Recreation_______________________________________________ 209
    Water resource development for the future____________________ 210
    Water supply____________________________________________ 208
    Conclusion__________________________________________________ 221
    Introduction __________________________________________________ 115
    Logistics ___________________________________________________ 157
    Installations _____________________________________________ 169
    Construction_________________________________________ 169
    Family housing____________________________________ 170
    For the Air Force_________________________________ 172
    Interservice support______________________________________ 167
    Joint working group for interservice support_______________ 168
    Single manager activities_______________________________ 168
    Maintenance of equipment_________________________________ 165
    Product improvement program__________________________ 166
    Management and maintenance of facilities___________________ 171
    Medicine__________________________________________________ 173
    Army hospitals_______________________________________ 177
    Completed _______________________________________ 177
    Dependents’ medical care_______________________________ 176
    Health of the Army (fig. 15)____________________________ 174
    Medical personnel____________________________________ 176
    Modernization for combat operations____________________ 175
    Neuropsychiatric program______________________________ 175
    Noneffective rate lower_________________________________ 173
    Military Assistance Program________________________________ 167
    Grant aid military assistance___________________________ 167
    Mutual security military sales___________________________ 167
    Procurement_____________________________________________ 158
    Comparison of procurement for fiscal year 1959 and fiscal year
    1960 (fig. 12)_____________________________________ 160
    Procedures_____________________________________________ 159
    Property disposal_________________________________________ 166
    Requirements ____________________________________________ 157
    Storage and distribution________________________:__________ 162
    Distribution of certain items simplified _________________ 165
    Monetary accounting procedures__________________________ 164
    Net reduction of items_________________________________ 163
    Punch card requisitioning_______________________________ 164
    Stockage of certain repair parts reduced_________________ 164
    Supply management (fig. 13)________________________________ 164
    Management_________________________________________________ 211
    Improvement______________________________________________ 211
    Cost-based budgets at all levels_________________________ 213
    Improved budgets and reports__________________________ 213
    Integrated account structure used in programming, budgeting,
    etc------------------------------------------------------------------------ 213
    Integrated, accrual accounting system____________________ 213
    Integration and coordination of programming and budgeting
    --------------------------------------------------------------------- 213
    426 INDEX
    Army, Department of the—Continued
    Management—Continued
    Improvement—Continued paRe
    Programs_____________________________________________ 214
    Operation OVERDRIVE____________________________ 214
    Operational analysis_______________________________ 214
    Relating budget justifications to operating programs______ 213
    Work simplification______________________________________ 215
    Operations and training_______________________________________ 119
    Air defense_______________________________________________ 122
    Army National Guard participation in active air defense
    program__________________________________________ 126
    Development of NIKE-ZEUS___________________________ 125
    Employment of HAWK in air defense___________________ 124
    Installation of MISSILE MASTER and MISSILE MONITOR
    _____________________________________________ 124
    Organization of continental U.S. air defense system_______ 122
    Program for conversion to NIKE-HERCULES____________ 123
    Readiness of air defense systems________________________ 123
    Army attache systems_____________________________________ 123
    Army aviation____________________________________________ 131
    Civil defense role_________________________________________ 133
    Combat intelligence____________________________ 140
    Deployment of forces______________________________________ 120
    Army in Europe______________________________________ 120
    Army in the Pacific___________________________________ 121
    Other Army oversea forces______________________________ 121
    Strategic Army Force (STRAF)________________________ 121
    Disaster aid______________________________________________ 126
    Mapping and geodesy_____________________________________ 141
    Inter-American Geodetic Survey________________________ 141
    SECOR (Sequential Collation of Range)_________________ 142
    Military assistance to allies_________________________________ 132
    Reserve components_____________________________________ 134, 416
    Army Intelligence Reserve______________________________ 139
    Exercises_____________________________________________ 137
    Organization and strength______________________________ 135
    Readiness____________________________________________ 136
    ROTC________________________________________________ 138
    School training_______________________________________ 137
    Training in the United States_______________________________ 128
    Army schools_________________________________________ 130
    Exercise BANYAN TREE II____________________________ 128
    Exercise LITTLE BEAR_______________________________ 129
    Exercise PUERTO PINE/BIG SLAM____________________ 129
    Replacement training__________________________________ 128
    Personnel, civilian__________________________________________ 153, 417
    Career programs__________________________________________ 154
    Civilian employment world wide (fig. 11)____________________ 154
    Health benefits program___________________________________ 155
    Incentive awards_________________________________________ 156
    Oversea work force_______________________________________ 155
    Strength_________________________________________________ 153
    INDEX 427
    Army, Department of the—Continued Page
    Personnel, military_________________________________________ 143, 414
    Personnel management program____________________________ 145
    Discipline improved___________________________________ 145
    Enlisted evaluation system_____________________________ 149
    Enlisted strength (fig. 10)______________________________ 150
    Enlistments and reenlistments__________________________ 149
    General educational development________________________ 145
    Morale indicators (fig. 8)_______________________________ 146
    Personnel characteristics (fig. 9)________________________ 147
    Proficiency pay_______________________________________ 150
    Personnel movement______________________________________ 151
    Safety------------------------------------------------------------------------------- 156
    Strength and distribution_________________________________ 143
    Allocation of military personnel by function (fig. 7)_______ 144
    Women’s Army Corps_____________________________________ 152
    Research and development_____________________________________ 179
    Accomplishments of outstanding value______________________ 179
    Arctic research___________________________________________ 197
    Camp Century under construction______________________ 197
    Army Scientific Advisory Panel____________________________ 180
    Chemical and biological weapons___________________________ 198
    Communications__________________________________________ 194
    Electronic ear Ruby Maser_____________________________ 197
    Micromodules_________________________________________ 197
    Firepower________________________________________________ 182
    40-mm. grenade launcher______________________________ 190
    Artillery_____________________________________________ 189
    Automatic computer for field artillery fire direction
    centers_______________________________________ 189
    Claymore_____________________________________________ 190
    DAVY CROCKETT___________________________________ 190
    Missiles and rockets----------------------------------------------------- 183
    Hawk____________________________________________ 187
    Lacrosse_________________________________________ 186
    Little John_______________________________________ 186
    Mauler___________________________________________ 188
    Missiles A and B_________________________________ 186
    Nike-Hercules____________________________________ 186
    Nike-Zeus________________________________________ 188
    Pershing_________________________________________ 183
    Redeye___________________________________________ 188
    Sergeant_________________________________________ 184
    Shillelagh________________________________________ 186
    Recoilless rifle_______________________________________ 189
    Human factors------------------------------------------------------------------ 202
    Medical research_________________________________________ 199
    Acclimatization studies------------------------------------------------ 199
    Antibiotics___________________________________________ 199
    Chemicals for protection against radiation------------------------ 199
    Drug combating effects of carbon dioxide on humans----------- 199
    428 INDEX
    Army, Department of the—Continued
    Research and Development—Continued
    Medical research—Continued Page
    Fluorescent antibody techniques________________________ 199
    Frozen red blood cells________________________________ 200
    Identification of communicable diseases________________ 200
    Lightweight, battery-operated X-ray machine------------------- 199
    Malaria tablet________________________________________ 199
    Tissue transplants____________________________________ 200
    Viral vaccines________________________________________ 199
    Mobility_________________________________________________ 191
    Aircraft______________________________________________ 193
    Armor_______________________________________________ 192
    Shillelagh used in________________________________ 192
    Goer-------------------------------------------------------------------------- 192
    Trucks and amphibians________________________________ 193
    Night vision devices______________________________________ 191
    Pneumatic techniques_____________________________________ 200
    Emergency funds allocated_____________________________ 200
    Simplifying procedures___________________________________ 180
    Leadtime problems____________________________________ 180
    Space____________________________________________________ 201
    ADVENT ____________________________________________ 201
    COURIER___________________________________________ 201
    EXPLORER VII______________________________________ 201
    SATURN ____________________________________________ 202
    SECOR _____________________________________________ 201
    TIROS_______________________________________________ 201
    Army Map Service_______________________________________________ 141
    Army Mobility Research Center___________________________________ 191
    Army National Guard___________________________________________ 99, 416
    Army Reserve___________________________________________________99, 416
    Army Scientific Advisory Panel___________________________________ 180
    Army Signal Training Center_____________________________________ 137
    Atomic Energy Commission_______________________________ 21, 273, 358, 382
    Aviation Medicine Acceleration Laboratory_________________________ 282
    BMEWS (Ballistic Missile Early Warning System) _ 14, 81, 316, 326, 353, 362, 372
    Bureau of Naval Weapons________________________________________ 36
    Bureau of Ships__________________________________________________ 269
    Bureau of the Budget_____________________________________________ 36
    CADIN (Canadian Air Defense, North)___________________________ 326
    Canada-United States Ministerial Committee on Joint Defense_______ 96
    CENTO (Central Treaty, Organization)_______________________ 91,233,325
    Civilian components:
    Air Force__________________________________________________ 334, 417
    Army ______________________________________________________153, 417
    Defense _____________________________________________________63, 417
    Navy_______________________________________________________301,417
    Civil Service Commission_________________________________________ 155
    CONAC (Continental Air Command)_______________________________ 342
    CONAD (Continental Air Defense Command)_______________________ 14
    Cornell Aeronautical Laboratory___________________________________ 296
    INDEX 429
    Page
    David Taylor Model Basin_________________________________________ 300
    Defense Advisory Committee on Women in the Services (DACOWITS)_ 54
    Defense Atomic Support Agency_________________________________ 21, 284
    Defense Communications Agency_______________________________ 30, 48, 78
    Defense, Department of. (For tables see Appendix p. 393.) (See also
    Reserve Forces Policy Board.)
    Armed forces________________________________________________ 3
    Air Force_______________________________________________ 10
    Strength (fig. 4)______________________________________ 11
    Army___________________________________________________ 5
    Structure of (fig. 2)_________________________________ 6
    Major missions and deployment____________________________ 12
    Continental air defense_______________________________ 14
    Strategic forces______________________________________ 13
    Tactical forces________________________________________ 15
    Unified and specified commands (fig. 5)________________ 13
    Marine Corps____________________________________________ 7,10
    Strength (fig. 3)______________________________________ 9
    Military personnel (fig. 1)_________________________________ 4
    Navy ___________________________________________________ 7
    Strength (fig. 3)______________________________________ 9
    Budget -------------------------------------------------------------------------------- 32, 393
    Department of Defense expenditures 1953-61 (fig. 11)________ 34
    Financial management____________________________________ 39
    Fiscal year 1960__________________________________________ 32
    Fiscal year 1961_________________________________________ 35
    Collective security___________________________________________ 85
    Asia and the Pacific_______________________________________ 93
    ANZUS _____________________________________________ 95
    Bilateral agreements__________________________________ 94
    Revised treaty with Japan_____________________________ 94
    SEATO _____________________________________________ 93
    Exercise SEA LION_______________________________ 93
    Exercise TEAMWORK II__________________________ 93
    Collective security arrangements (fig. 18)___________________ 84
    Europe __________________________________________________ 89
    NATO_______________________________________________ 89
    20 Projects Exercise______________________________ 90
    Antisubmarine Research Center at La Spezia, Italy___ 90
    Construction of military installations_______________ 90
    Exercise SIDESTEP______________________________ 91
    Exercise WINTERSHIELD________________________ 91
    Mutual Weapons Development Program (MWDP)___ 90
    NATO Maintenance Supply Service Agency___________ 91
    Spain _______________________________________________ 91
    Weapons production program___________________________ 90
    Yugoslavia___________________________________________ 91
    Middle East and Africa____________________ 1______________ 91
    Bilateral agreements__________________________________ 92
    Central Treaty Organization (CENTO)________________ 91
    Military assistance_______________________________________ 86
    Funds available______________________________________ 86
    Office of International Security Affairs__________________ 86
    430 INDEX
    Defense, Department of—Continued
    Collective security—Continued
    Military assistance—Continued Page
    President’s Committee To Study the U.S. Military Assistance
    Program (Draper Committee)______________________ 86
    Training of foreign personnel___________ ._____________ 88
    Unexpended MAP funds (fig. 19)_______________________ 87
    Western Hemisphere_____________________________________ 95
    Canada-United States Ministerial Committee on Joint
    Defense _________________________________________ 96
    Inter-American Treaty for Reciprocal Assistance_________ 95
    Management_________________________________________________ 42
    Allocation of resources___________________________________ 47
    Direction of the armed forces______________________________ 45
    Management of resources_________________________________ 48
    Organizational concepts__________________________________ 43
    Organization chart (fig. 12)_______________________________ 44
    Organization of the armed forces___________________________ 49
    Secretary of Defense_____________________________________ 43
    Limitations of power defined____________________________ 43
    Manpower ___________________________________________________ 51
    Active forces____________________________________________ 51, 414
    Dependents’ medical care______________________________ 57
    Medicare (fig. 14)------------------- 58
    Enlisted personnel___________________________________ 51, 53
    Enlistments______________________________________ 53
    Promotions and awards------------------------------------------- 54
    Reenlistments____________________________________ 54
    Family housing______________________________________ 55
    Capehart program (fig. 13)-------------------------------------- 56
    Oversea units____________________________________ 57
    Wherry units____________________________________ 55
    Health_______________________________________________ 59
    Hospital admission rates___________________________ 59
    Medical education for national defense program----------- 61
    Medical personnel_________________________________ 59
    Noneffectiveness rate______________________________ 59
    Information and education_____________________________ 58
    Office of Armed Forces Information and Education____ 59
    U.S. Armed Forces Institute (USAFI)______________ 58
    Officers----------------------------------------------------------------------- 51
    Women in the military services_________________________ 54
    Civilian personnel________________________________________ 63, 417
    Civilian employment (fig. 15)___________________________ 64
    Composition of_______________________________________ 63
    Foreign nationals hired_________________________ 63
    Incentive programs------------------------------------------------------ 65
    Teachers overseas____________________________________ 65
    Reserve forces, composition of______________________________ 61, 416
    Expenditures ________________________________________ 63
    Security policy___________________________________________ 66
    Automatic downgrading of classified material_____________ 67
    Executive Order 10865 _________________________________ 66
    Security requirements check list________________________ 67
    INDEX 431
    Defense, Department of—Continued Page
    Research and development____________________________________ 17
    Aircraft_________________________________________________ 28
    Guided missiles__________________________________________ 22
    Air defense missiles (fig. 9)____________________________ 25
    Strategic missiles (fig. 8)______________________________ 24
    Tactical missiles (fig. 10)______________________________ 27
    Military satellites (fig. 7)_________________________________ 20
    Military space technology_________________________________ 18
    ADVENT ____________________________________________ 19
    COURIER____________________________________________ 19
    DISCOVERER_______________________________________ 18
    Dyna-Soar___________________________________________ 21
    MERCURY __________________________________________ 21
    MIDAS______________________________________________ 18
    SAMOS______________________________________________ 18
    SATURN ____________________________________________ 19
    SPACETRACK_______________________________________ 19
    SPASUR_____________________________________________ 19
    TRANSIT ___________________________________________ 19
    X-15 manned aircraft________________________________ 21
    Nuclear developments_____________________________________ 21
    Obligations of funds for (fig. 6)____________________________ 18
    Other research activities__________________________________ 29
    Rockets__________________________________________________ 27
    Weapons, equipment, and facilities-------------------------------------------- 68
    Cataloging and standardization-------------------------------------------- 74
    Accelerated item reduction program_____________________ 75
    Armed Forces Supply Support Center___________________ 74
    Federal Supply Catalog system_________________________ 75
    Communications _________________________________________ 78
    Defense Communications Agency________________________ 78
    Contract policies__________________________________________ 71
    Armed services procurement regulation revised___________ 71
    Consolidated purchasing assignments------------------------------- 72
    Procurement expenditures______________________________ 72
    Procurement trends (fig. 16)____________________________ 73
    Small business contracts_______________________________ 74
    Subcontracting_______________________________________ 71
    Inventory control, storage, maintenance, and disposal_________ 76
    Value of excess and surplus property____________________ 77
    Mobilization planning_____________________________________ 79
    Civil and Defense Mobilization Boards__________________ 79
    Department of Defense Damage Assessment Center_______ 79
    National Industrial Equipment Reserve (NIER)_________ 80
    National Industrial Plant Reserve (NIPR)_______________ 80
    National priorities and allocation system________________ 79
    National Resources Evaluation Center__________________ 79
    Office of Civil and Defense Mobilization (OCDM)_________ 79
    Properties and installations________________________________ 80
    Real property holdings (fig. 17)________________________ 82
    Value of_____________________________________________ 81
    595308—61------29
    432 INDEX
    Defense, Department of—Continued
    Weapons, equipment, and facilities—Continued Page
    Single manager system-------------------------------------------------------- 68
    Military Air Transport Service (MATS)------------------------- 70
    Military Construction Supply Agency------------------------------ 69
    Military General Supply Agency----------------------------------- 69
    Military Industrial Supply Agency______________________ 69
    Military Sea Transportation Service (MSTS)------------------- 70
    Military Traffic Management Agency (MTMA)___________ 70
    Ordnance Tank Automotive Command---------------------------- 69
    Departmental Industrial Plant Reserve______________________________ 305
    Department of Defense Damage Assessment Center__________________ 79
    DEW (Distant Early Warning) line_______________________ 14, 172, 324, 353
    Directorate of Nuclear Safety Research_____________________________ 382
    Draper Committee______________________________________________86, 167
    Exercises:
    BANYAN TREE II________________________________________ 119, 326
    BIG DEAL II________________________________________________ 233
    BLUE STAR_________________________________________________ 254
    CRESCENT MACE___________________________________________ 233
    LANTPHIBEX 1-60__________________________________________ 254
    MIDLINK II_________________________________________________ 234
    PUERTO PINE/BIG SLAM__________________________ 119,129,137, 328
    READY FREDDY______________________________________________ 104, 137
    SEA LION_____________________________________________________ 93, 234
    SIDESTEP__________________________________________________ 91
    TEAMWORK II______________________________________________ 93
    UNITAS____________________________________________________ 243
    WINTERSHIELD____________________________________________ 91
    Federal Aviation Agency____________________________________ 327, 338, 362
    Fiscal matters (see Tables in Appendix p. 391)----------------------------------- 393
    Air Force___________________________________________________ 385
    Army_______________________________________________________ 216
    Defense_____________________________________________________ 32
    Navy__________________________________________________________ 306
    General Services Administration_____________________ 69, 72, 76, 296, 375, 383
    Institute for Defense Analysis (IDA)_______________________________ 31
    Inter-American Defense Board_____________________________________ 95
    Inter-American Geodetic Survey_____________________________________ 141
    Joint Chiefs of Staff_________________________ 31, 35, 45, 46, 236, 319, 328, 418
    Joint Commission on Accreditation of Hospitals------------------------------------ 177
    Legislative references:
    1958 Reorganization Act______________________________ 17, 42, 45, 47, 49
    Department of Defense Appropriation Act----------------------------------- 32
    Dependents’ Medical Care Act__________________________________ 177
    Federal Employees Health Benefits Act---------------------------------------- 155
    Government Employees Training Act of 1958___________________ 65, 302
    Hawaiian Statehood Act_________________________________________ S3
    Medical and Dental Officers Career Incentive Act of 1956 ---------------- 60
    Military Appropriation Act for 1961-------------------------------------------- 122
    Military Construction Appropriation Act________________________ 33, 292
    Military Pay Act______________________________________________ 332
    INDEX 433
    Legislative references—Continued Page
    Mutual Security Act__________________________________________ 372
    National Defense Facilities Act of 1950____________________________ 103
    National Security Act________________________________________ 43, 379
    Officer Grade Limitation Act of 1954____________________________ 333
    Officers Personnel Act of 1947__________________________________ 53
    Overseas Differentials and Allowances Act_______________________ 65
    Overseas Teachers Pay and Personnel Practices Act______________ 65
    Public Law 86-155_______________________________________ 52, 256, 260
    Public Law 86-166____________________________________________ 387
    Public Law 86-275____________________________________________ 387
    Public Law 86-355____________________________________________ 52
    Public Law 86-424____________________________________________ 387
    Public Law 216_______________________________________________ 218
    Public Law 783_______________________________________________ 105
    Public Law 863 _______________________________________________ 379
    Reserve Forces Act of 1955_____________________________51, 61,100,135
    Reserve Officers Personnel Act (P.L. 86-559)_____________________ 101
    Management Development Institute________________________________ 309
    Marine Corps, the U.S. (See under Navy Department of the) (For
    tables see Appendix, p. 393.) (See also Reserve Forces Policy Board.)
    Marine Corps Reserve_______________________________________ 99, 256, 416
    Medicare__________________________________________________ 58, 177, 348
    Mental Hygiene Consultation Services______________________________ 175
    MIDAS (Missile Defense Alarm System)____________________________ 316
    Mid-Canada line_________________________________________________ 316
    Military Air Transport Service____________________________ 70, 327, 362, 376
    Military Assistance Program_________________________ 85, 167, 372, 412, 413
    Military Construction Supply Agency_______________________________ 69
    Military General Supply Agency__________________________________ 69
    Military Industrial Supply Agency_________________________________ 69
    Military Medical Supply Agency__________________________________ 61
    Military Petroleum Supply Agency________________________________ 309
    Military Sea Transportation Service________________________________ 70
    Military Traffic Management Agency_______________________________ 70
    MISSILE MASTER_________________________________________ 15,124,170
    MISSILE MONITOR________________________ _____________________ 124
    Missiles:
    ASROC_____________________________________________________ 27
    ATLAS_______ 3, 10, 13, 23, 37, 81, 172, 315, 319, 322, 353, 358, 359, 370, 385
    ATLAS-E___________________________________________________ 23
    BOMARC-A__________________ 12, 14, 15, 25, 317, 327, 353, 370, 385, 388
    BOMARC-B___________________________________ 25, 317, 326, 361, 370
    BULLPUP_____________________________ 8, 10, 27, 240, 275, 325, 361, 370
    COBRA_____________________________________________________ 26
    CORPORAL___________________________________ 5, 15, 26, 90, 158, 179
    CORVUS____________________________________________________ 23
    EAGLE______________________________________________________ 26
    FALCON________________________________________________ 12, 26, 370
    GAR-11_____________________________________________________ 370
    HAWK_________________ 7, 10, 25, 90, 124, 161, 170, 179, 187, 253, 255, 258
    434 INDEX
    Missiles—Continued Page
    HOUND DOG_______________________________________ 10, 315, 321, 370
    JUPITER_______________________________________ 27, 90, 179, 181, 323
    LACROSSE__________________________________ 5, 15, 26, 121, 161, 183
    MACE-A_______________________________________________ 12, 27, 385
    MACE-B________________________________________________ 27,325,371
    MATADOR__________________________________________ 12, 23, 325, 375
    MAULER_______________________________________________25, 161, 188
    MINUTEMAN____________________ 10, 23, 37, 315, 322, 353, 359, 385, 388
    MISSILE A____________________________________________26, 161, 186
    MISSILE B________________________________________________ 27, 186
    NIKE-AJAX_________________________________ 7, 23, 102, 122, 158, 170
    NIKE-HERCULES_____________ 7, 15, 23, 102, 122, 158, 161, 170, 179, 183
    NIKE-ZEUS_________________________ 24, 81, 125, 161, 170, 179, 188, 273
    PERSHING________________________________________ 26, 161, 179, 183
    POLARIS---------------------------------------------------------------------- 3, 7, 14, 23,
    24, 37, 81, 228, 238, 245, 262, 265, 276, 282, 291, 293, 296, 306, 311
    QUAIL_________________________________________________ 24, 322, 370
    REDEYE__________________________________________ 25, 161, 188, 255
    REDSTONE______________________________________ 5, 15, 158, 179, 181
    REGULUS I_____________________________________ 8,230,266,276,361
    SERGEANT _____________________________________________ 27,161,184
    SHILLELAGH__________________________________________ 26,186,192
    SIDEWINDER_________________________________ 10, 26, 90, 94, 240, 275
    SKYBOLT___________________________________________ 24, 90, 315, 360
    SLAM______________________________________________________ 358
    SNARK _______________________________________ J____________ 12,13
    SPARROW III________________________________________ 8, 26, 242, 275
    SS-10 ______________________________________________________ 26
    SS-11 ______________________________________________________ 26
    SS-12 ______________________________________________________ 26
    SUBROC ____________________________________________________ 27
    SUPER FALCON_______________________________________________ 370
    TALOS_______________________________________________ 8.26,265,276
    TARTAR __________________________________________________ 26,276
    TERRIER ____________________________________ 8,10,26,242,265,276
    THOR___________________________________________ 27, 89, 322, 357, 375
    THOR-ABLE-STAR booster___________________________________ 358
    TITAN_________________________ 10,23,37,81,172,315,322,353,361,370
    TYPHON___________________________________________________ 26, 242
    NASA (National Aeronautics and Space Agency)--------------------------------- 21,
    179, 201, 238, 245, 273, 282, 358
    National Industrial Plant Reserve------------------------------------------------ 80, 305
    National Resources Evaluation Center--------------------------------------------- 79
    National Safety Council__________________________________________ 156
    National Security Council_______________________________________ 36, 322
    National Space Surveillance Control Center (SPACETRACK)--------------- 19
    NATO _______________________________ 15,89,240,278,305,321,356,372,419
    NATO Maintenance Supply Service Agency--------------------------------------- 91
    Naval Academy_________________________________________________ 262
    Naval Dental School____________________________________________ 284
    Naval Electronics Laboratory_____________________________________ 246
    INDEX 435
    Page
    Naval Medical Center_____________________________ 284
    Naval Medical School____________________________________________ 283
    Naval Missile Center_____________________________________________ 283
    Naval Officer Candidate School____________________________________ 262
    Naval Photographic Interpretation Center___________________________ 245
    Naval Postgraduate School_____________________________________ 263, 309
    Naval Research Laboratory________________________________ 294, 295, 298
    Naval Reserve______________________________________________ 99, 263, 416
    Naval ships. (See also Nuclear submarines and surface ships and under
    Department of the Navy, Design and construction of ships.)
    Abraham Lincoln__________________________________________ 245
    Arneb ___________________________________________________ 234
    Atka ____________________________________________________ 234
    Blueback _________________________________________________ 245
    Burton Island____________________________________________ 237
    Catamount________________________________________________ 239
    Catoctin __________________________________________________ 238
    Dalton Victory____________________________________________ 273
    Dewey___________________________________________________ 242
    Essex ___________________________________________________ 244
    Glacier___________________________________________________ 239
    Haiti Victory_____________________________________________ 273
    Haven___________________________________________________ 281
    Independence _____________________________________________ 241
    Joe E. Mann______________________________________________ 273
    John S. McCain___________________________________________ 239
    Jonas Ingram_____________________________________________ 238
    Kearsarge ________________________________________________ 239
    King County______________________________________________ 273
    Knox Victory_____________________________________________ 273
    Marine Fiddler____________________________________________ 250
    Maury___________________________________________________ 238
    Newport News____________________________________________ 239
    Niantic Victory___________________________________________ 273
    Norfolk __________________________________________________ 274
    Observation Island_________________________________________ 238
    Patrick Henry____________________________________________ 245
    Perry ____________________________________________________ 274
    Preble___________________________ ,________________________ 242
    Proteus___________________________________________________ 245
    Range Recoverer___________________________________________ 273
    Range Tracker____________________________________________ 273
    Robert E. Lee_____________________________________________ 245
    Theodore Roosevelt_________________________________________ 245
    Trieste ______________________________________________________ 228
    Valor ____________________________________________________ 238
    Yorktown ________________________________________________ 239
    Navy, Department of, the. (For tables see Appendix p. 393.) (See also
    Reserve Forces Policy Board.)
    Business management____________________________________________ 304
    Expenditures and balances________________________________ 307
    Expenditures and balances, fiscal year 1960 (table)---------- 307
    436 INDEX
    Business management—Continued page
    Financial management__________________________________ 306, 393
    Expenditures by budget category, fiscal year 1960 (table)__ 306
    Improvement in management______________________________ 308
    Common Business-Oriented Language (COBOL) for programming
    digital computers________________________ 310
    Industrial preparedness___________________________________ 305
    Legal services------------------------------------------------------------------- 308
    Procurement and contracting policies and programs___________ 304
    Quality control_______________________________________ 304
    Small business participation___________________________ 304
    Conclusion___________________________________________________ 311
    Implications of POLARIS_________________________________ 311
    International prospect____________________________________ 312
    Design and construction of ships________________________________ 265
    Albacore (AGSS 569)_____________________________________ 267
    Blueback (SS 581)_______________________________________ 266
    Bonefish (SS 582)________________________________________ 266
    Claud Jones (DE 1033)________________________ 2__________ 268
    Constellation (CVA 64)___________________________________ 266
    Coral Sea (CVA 43)______________________________________ 266
    Dewey (DLG 14)_________________________________________ 266
    Enterprise (CVAN 65)__________________________________ 266,269
    Farragut (DLG 6)________________________________________ 266
    Galveston (CLG 3)_______________________________________ 265
    George Washington (SSBN-598)____________________________ 265
    Haleakala (AE 25)_______________________________________ 268
    Halibut (SSGN 587)______________________________________ 265
    Kw(OLGlO)___________________________________________ 269
    Kittyhawk (CVA 63)_____________________________________ 266
    Leahy (DLG 16)__________________________________________ 266
    Little Rock (CLG 4)______________________________________ 265
    Long Beach (CGN 9)_____________________________________ 269
    Mahan (DLG 11)_________________________________________ 269
    Oriskany (CVA 34)_______________________________________ 269
    Parsons (DD 949)________________________________________ 266
    Patrick Henry (SSBN-599)_________________________________ 265
    Perry (DD 844)__________________________________________ 266
    Preble (DLG 15)_________________________________________ 266
    Providence (CLG 6)______________________________________ 265
    Pyro (AE 24)____________________________________________ 268
    Randolph (CVS 15)_______________________________________ 269
    Sargo (SSN 583)_________________________________________ 267
    Seadragon (SSN 584)_____________________________________ 267
    Thresher (SSN 593)______________________________________ 267
    Topeka (CLG 8)__________________________________________ 265
    Turner Joy (DD 951)_____________________________________ 266
    Introduction---------------------------------------------------------------------------- 227
    Marine Corps_________________________________________________ 251
    Employment of forces_____________________________________ 251
    Landing force research and development_____________________ 255
    Logistics_________________________________________________ 257
    Improvements________________________________________ 257
    INDEX 437
    Business management—Continued
    Marine Corps—Continued page
    Operations________________________________________________ 253
    Organization ______________________________________________ 252
    Personnel plans, policies, and programs_______________________ 255
    Enlisted programs______________________________________ 257
    Officer programs------------------------------------------------------------ 256
    Strength___________________________________________ 255, 428
    Requirements and objectives_________________________________ 251
    Reserve_____________________________________________ 99, 254, 430
    Training-------------------------------------------------------------------------- 254
    Medical and dental service_____________________________________ 280
    Plealth of personnel_______________________________________ 280
    Dependents’ care______________________________________ 281
    Sick and accident rates________________________________ 280
    Hospitals and hospital administration_______________________ 281
    Dental care__________________________________________ 281
    Military medical specialties________________________________ 282
    Astronautical medicine________________________________ 282
    Aviation_____________________________________________ 282
    Dentistry_____________________________________________ 283
    Submarine___________________________________________ 282
    Research ________________________________________________ 285
    Abnormal hemoglobin determination____________________ 286
    Frozen blood_________________________________________ 286
    Kala azar____________________________________________ 286
    Night vision_________________________________________ 286
    Radiobiology_________________________________________ 285
    Surgical techniques___________________________________ 285
    Toxicity studies______________________________________ 285
    Trachoma vaccine____________________________________ 286
    Training_________________________________________________ 283
    Dental Corps_________________________________________ 284
    Hospital Corps_______________________________________ 285
    Medical Corps________________________________________ 283
    Medical Service Corps_________________________________ 284
    Nurse Corps__________________________________________ 285
    Naval Fleet__________________________________________________ 230
    Air training and safety___________________________________ 240
    Changing concepts of naval warfare________________________ 231
    Implementation of national policy__________________________ 230
    Material condition of Fleet_________________________________ 249
    Military assistance to other nations_________________________ 239
    Military Sea Transportation Service (MSTS)________________ 250
    Mission of_______________________________________________ 230
    Naval Communications Service______________________________ 249
    Operational developments__________________________________ 245
    Command and control_____ ,____________________________ 246
    Electromagnetic devices TEPEE and MUSIC-MADRE-------- 246
    Fleet ballistic missile program__________________________ 245
    Ships and vehicles____________________________________ 246
    Space technology_____________________________________ 245
    438 INDEX
    Business management—Continued
    Naval Fleet—Continued Page
    Operations and training_____________________________________ 233
    Exercises, large scale___________________________________ 233
    BIG DEAL II______________________________________ 233
    CRESCENT MACE_________________________________ 233
    MIDLINK II_______________________________________ 234
    SEA LION_________________________________________ 234
    UNITAS__________________________________________ 234
    Special operations______________________________________ 234
    Antarctica_________________________________________ 234
    Arctic operations___________________________________ 234
    Humanitarian operations____________________________ 238
    POLARIS_________________________________________ 238
    Project MERCURY_________________________________ 237
    Submerged record___________________________________ 234
    Visits to foreign ports_____________________________ 238
    Readiness and capability__________________________________ 241
    Air strike warfare____________________________________ 241
    Amphibious warfare____________________________________ 242
    Antiair warfare______________________________________ 241
    Antisubmarine warfare_________________________________ 243
    Mine warfare________________________________________ 243
    Submarine warfare_____________________________________ 244
    Technological challenges__________________________________ 232
    Air warfare___________________________________________ 232
    Antisubmarine warfare_________________________________ 232
    Command and control___________________________________ 232
    Electromagnetic devices________________________________ 232
    Ships and vehicles______________________________________ 232
    Space technology_____________________________________ 232
    Surface warfare________________________________________ 232
    Undersea warfare____________________________________ 232
    Personnel, civilian__________________________________________ 301, 417
    Career development_______________________________________ 303
    Rosters of executive, scientific, and engineering personnel
    established_______________________________________ 303
    Training of replacements for the executive level___________ 303
    Employment methods_____________________________________ 301
    Graded and ungraded employees (table)_____________________ 301
    Position classification and wage administration_______________ 303
    Training_________________________________________________ 302
    Awards made to employees______________________________ 302
    Cooperative education and work-study programs__________ 302
    In-service____________________________________________ 302
    Personnel, naval________________________________________________ 259, 414
    Enlisted__________________________________________________ 260
    Morale and welfare_______________________________________ 264
    Officer___________________________________________________ 259
    Procurement of personnel__________________________________ 262
    Reserves____________________________________________ 99, 263, 416
    Strength, active duty (table)_______________________________ 259
    Training and education___________________________________ 262
    INDEX 439
    Personnel, naval—Continued Page
    Research ___________________________________________________ 293
    Biological sciences________________________________________ 296
    Acrylic acid used against staphylococcus aureus___________ 297
    Biosynthesis of nucleic acid____________________________ 297
    Marine fungi and destruction of cordage_________________ 296
    Chemical sciences______ 1_________________________________ 294
    New analogs of siloxanes----------------------------------------------- 294
    Nitrochemistry_______________________________________ 294
    Radiation dosimeter----------------------------------------------------- 294
    Earth sciences------------------------------------------------------------------ 296
    Bathyscaph Trieste_________________________________ 296
    Elevated transoceanic atmosphere duct__________________ 296
    Oceanographic research in Arctic regions________________ 296
    World’s largest movable radiotelescope__________________ 296
    Electronic sciences_______________________________________ 299
    Microwave polarization techniques_____________________ 299
    Energy conversion________________________________________ 299
    Fuel cell_____________________________________________ 299
    Nuclear reactor thermonuclear power unit_______________ 299
    Engineering mechanics____________________________________ 299
    Boat with super-cavitating hydrofoils__________________ 299
    Structural feasability of deep-opererating submarines_____ 299
    General science___________________________________________ 299
    Dynamics of underwater nuclear bursts_________________ 300
    Ground effect phenomena______________________________ 299
    Propellant grain burning______________________________ 300
    Studies of hydrodynamic drag of marine animals_________ 300
    Material sciences_________________________________________ 298
    Austenite-martensite transformation for hardening steel___ 298
    Ceramic studies______________________________________ 298
    Electron microprobe analyzer__________________________ 298
    Special protective coating in metallurgy_________________ 298
    Mathematical sciences____________________________________ 295
    Information systems studies____________________________ 295
    Statistical analysis program___________________________ 295
    Physical sciences_______________________________________ 294
    Controlled thermonuclear power production_______________ 295
    Microcircuitry developments____________________________ 295
    Stratospheric balloon flight____________________________ 295
    Techniques for understanding interaction of gases with
    radiation ________________________________________ 294
    Psychological sciences____________________________________ 297
    Noise protection device________________________________ 297
    Studies of dynamic visual acuity_______________________ 298
    Reserves _______________________________________________ 99, 263, 416
    Shore facilities_______________________________________________ 289
    Construction _____________________________________________ 289
    Housing _________________________________________________ 290
    Capehart Act_________________________________________ 290
    Wherry Act__________________________________________ 291
    Maintenance _____________________________________________ 291
    Long Beach Naval Shipyard, subsidence at______________ 292
    440 INDEX
    Personnel, naval—Continued
    Shore facilities—Continued Page
    Planning__________________________________________________ 289
    Real estate________________________________________________ 290
    Utilities __________________________________________________ 291
    Mobile power reserve unit shipped to Guam________________ 291
    Supply _______________________________________________________ 287
    Aviation__________________________________________________ 287
    Cataloging________________________________________________ 287
    Fleet supply procedures_____________________________________ 288
    Material disposal___________________________________________ 287
    Shipping procedures________________________________________ 288
    Weapons and aircraft__________________________________________ 272
    Aircraft:
    Aeronautical equipment and materials____________________ 278
    Attack aircraft weapons________________________________ 275
    BULLPUP_________________________________________ 275
    ZUNI_____________________________________________ 275
    Fighter aircraft weapons_______________________________ 275
    SIDEWINDER ____________________________________ 275
    SIDEWINDER 1A________________________________ 275
    SPARROW ________________________________________ 275
    Other aircraft__________________________________________ 277
    Helicopters ________________________________________ 278
    NATO antisubmarine aircraft development____________ 278
    Patrol planes_______________________________________ 277
    Search planes______________________________________ 277
    Strike aircraft_________________________________________ 276
    Antisubmarine weapons_____________________________________ 274
    ASROC_______________________________________________ 274
    ASTOR torpedo________________________________________ 274
    DASH system__________________________________________ 274
    MARK 37 torpedo____________________________________ 274
    SUBROC _____________________________________________ 274
    Astronautics ______________________________________________ 272
    Navigational satellites__________________________________ 272
    Pacific missile range__________________________________ 273
    Bureau of Naval Weapons established_______________________ 272
    Missile systems__________________________________________ 276
    REGULUS I_________________________________________ 276
    TALOS______________________________________________ 276
    TARTAR_____________________________________________ 276
    TERRIER_____________________________________________ 276
    NORAD (North American Air Defense Command)___________ 14, 21, 123, 362
    Nuclear submarines and surface ships:
    Bainbridge________________________________________________ 22
    Enterprise___________________________________________________ 22, 266
    George Washington__________________________________________ 245
    Halibut_________________________________________________ 245, 276
    Long Beach_______________________________________________ 22
    Nautilus___________________________________________________ 234
    Bar go______________________________________________________ 234, 267
    INDEX 441
    Nuclear submarines and surface ships—Continued Page
    Scorpion_________________________________________________ 245
    Sculpin---------------------------------------------------------------------------- 245
    Seadragon______________________________________________ 245, 267
    Seawolf --------------------------------------------------------------------------- 22
    Shark ___________________________________________________ 245
    Skate ___________________________________________________ 234
    Thresher _________________________________________________ 267
    Triton_________________________________________________ 234, 245
    Tullibee _________________________________________________ 245
    Office of Armed Forces Information and Education__________________ 59
    Office of Civil and Defense Mobilization_____________________________ 79
    Office of International Security Affairs______________________________ 86
    Office of the Secretary of Defense_______________________ 43, 45, 49, 363, 418
    Operations:
    DEEP FREEZE____________________________________________ 234, 329
    LIGHT PACK_______________________________________________ 288
    OVERDRIVE________________________________________________ 214
    SEARCHLIGHT _____________________________________________ 156
    SPEARHEAD________________________________________________ 325
    Ordnance Guided Missiles School___________________________________ 124
    Pinetree line_____________________________________________________ 316
    Polar Research and Development Center_____________________________ 121
    President’s Committee To Study the U.S. Military Assistance Program.
    (See Draper Committee.)
    Projects:
    ANP (Aircraft Nuclear Propulsion)_____________________________ 22
    CORVUS____________________________________________________ 23
    COUNT______________________________________________________ 379
    DEFENDER_________________________________________________ 25
    DISCOVERER_______________________________________________ 18,357
    HERMES____________________________________________________ 365
    MAULER____________________________________________________ 25
    MERCURY______________________________________________ 21, 237, 365
    MIDAS______________________________________________________ 18
    MISSILE A__________________________________________________ 26
    OPEN ROAD_________________________________________________ 323
    ORION______________________________________________________ 22
    PLUTO_____________________________________________________ 22, 358
    REDEYE____________________________________________________ 25
    SAMOS______________________________________ ’_______________ 18
    SATURN____________________________________________________ 19
    SCORE_______________________________________________________ 201
    Radiological Defense Laboratory_____________________________________ 300
    Reserve Forces Policy Board_______________________________________ 99
    Air Force Reserve____________________________________________ 110
    Equipment_______________________________________________ 111
    Facilities_________________________________________________ 111
    Joint utilization of flying facilities (table)______________ 111
    Aii- National Guard___________________________________________ 108
    Equipment_______________________________________________ 109
    Facilities_________________________________________________ 109
    442 INDEX
    Reserve Forces Policy Board—Continued Page
    Army National Guard--------------------------------------------------------------- 102
    Equipment------------------------------------------------------------------------ 103
    Facilities________________________________________________ 103
    Army Reserve------------------------------------------------------------------------- 103
    Equipment_______________________________________________ 104
    Facilities________________________________________________ 105
    General______________________________________________________ 99
    Marine Corps Reserve_________________________________________ 106
    Equipment_______________________________________________ 107
    Facilities________________________________________________ 107
    Naval Reserve________________________________________________ 105
    Equipment_______________________________________________ 106
    Facilities________________________________________________ 106
    Personnel___________________________________________________ 99, 416
    Ready Reserve not on active duty (fig. 1)------------------------------- 100
    Summary of 3 to 6 month active duty Reserve training program,
    fiscal year 1960 (fig. 2)------------------------------------------------- 101
    Reserve Officers Personnel Act (P.L. 86-559)-------------------------------- 101
    Reserve Officers Training Corps Program-------------------------------------- 111
    Rockets:
    DAVY CROCKETT____________________________________________ 28
    GAR-11_____________________________________________________ 361
    GENIE________________________________________________________ 12
    HONEST JOHN___________________________________ 10, 28, 90, 92, 179
    LITTLE JOHN_____________________________________ 27, 179, 181, 186
    ZUNI_______________________________________________________ 275
    ROTC_________________________________________________________ 51, 138
    SAC (Strategic Air Command)________________ 13, 81, 321, 323, 353, 362, 380
    SAGE (Semi-Automatic Ground Environment system) — 14, 81,316, 326, 353, 372
    Satellites:
    ADVENT_________________________________________ _________ 19, 201
    AGENA_____________________________________________________ 357
    COURIER__________________________________________________19, 201
    DISCOVERER______________________________ 18, 273, 317, 329, 357, 388
    ECHO_______________________________________________________ 317
    EXPLORER I_______________________________________________ 179
    EXPLORER VI______________________________________________ 358
    MERCURY____________________________________ 273, 282, 283, 329, 358
    MIDAS____________________________________________ 18, 326, 357, 388
    PIONEER____________________________________________________ 317
    PIONEER V________________________________________________ 358
    PIONEER VI_______________________________________________ 358
    SAMOS__________________________________ 18, 39, 317, 326, 357, 358, 388
    SATURN_____________________________________________________ 202
    SPUTNIK____________________________________________________ 246
    TIROS I__________________________________ 179, 201, 245, 317, 329, 358
    TRANSIT__________________________________ 19, 142, 201, 246, 272, 317
    TRANSIT 2A______________________________________________ 273, 358
    VANGUARD Beta______________________________________________ 142, 273
    School of Aviation Medicine--------------------------------------------------------------- 283, 348
    SEATO (Southeast Asia Treaty Organization)--------------------------- 93, 233, 325
    Selective Service System---------------------------------------------------------------- 53
    Small Business Administration-------------------------------------------------------- 304
    INDEX 443
    Page
    STRAC (Strategic Army Corps)___________ __________ 15, 122, 130, 163, 211
    STRAF (Strategic Army Force)__________ ______________________121,128
    Tables:
    Active duty military personnel________________________________ 414
    Active duty strength of Navy__________________________________ 259
    Active major installations of Air Force_________________________ 354
    Air Force family housing according to type of funding_____________ 355
    Amount available for obligation by Air Force during fiscal year 1960
    as of June 30, 1960_______________________________________ 387
    Army direct obligations_______________________________________ 220
    Changes in utilization of manpower in Air Force_________________ 331
    V Civilian personnel____________________________________________ 417
    Department of Navy civilian employees, graded and ungraded_____ 301
    Distribution of Army personnel by type of function_______________ 143
    Expenditures and balances, fiscal year 1960, Department of the Navy_ 307
    Expenditures and expenditure availability, by appropriation title
    FY 1960 (military functions)________________________________ 398
    Expenditures and expenditure availability FY 1960 (civil functions)- 410
    Expenditures by budget category, fiscal year 1960, Department of
    the Navy-------------------------------------------------------------------------- 306
    Flood control projects valued at more than $1 million each________ 207
    Funds appropriated to U.S. Army Corps of Engineers for civil works
    in fiscal year 1960_______________________________________ 205
    Joint utilization of flying facilities_____________________________ 111
    Military assistance program expenditures by budget activity______ 412
    Military assistance program obligations/reservations and expenditures
    by Department of Defense Agency and other agencies___ 413
    Military assistance program obligations/reservations by budget
    activity _________________________________________________ 412
    Nurses of Navy in full-time out-Service training_________________ 285
    Obligations and obligational availability of current general and
    special fund appropriations FY 1960 (military functions)________ 393
    Obligations and obligational availability of current general appro-
    * priations FY 1960 (civil functions)___________________________ 408
    Personnel in Ready Reserve (not on active duty)________________ 100
    Personnel, Office of the Secretary of Defense and Joint Chiefs of Staff _ 418
    r Reserve components personnel_________________________________ 416
    Summary of 3 to 6 month active duty reserve training programs,
    fiscal year 1960__________________________________________ 101
    USAF actual obligations and net expenditures for fiscal year 1960__ 387
    TAG ---------------------------------------------------------------------------------------- 325,362
    USAF Aerospace Medical Center___________________________________ 348
    USAFE ----------------------------------------------------------------------------------- 325,326
    U.S. Armed Forces Institute (USAFI)______________________________ 58,148
    U.S. Court of Military Appeals____________________________________ 418
    U.S. Military Academy___________________________________________ 131
    WAC __________________________ 152,334
    WAF ----------------------------------------------------------------------------------------- 334
    Walter Reed Army Institute of Research_____________________________ 175
    WAVE ----------------------------------------- 2___________________________ 262,285
    Weapons Systems Evaluation Groups (WSEG)______________________ 31
    WHITE ALICE___________________________________________________ 316
    O