Secretary, President Truman is here. Would you like to speak to him?” I said, 'Isn't it a bit early? and the answer was, 'No,' he has been up over an hour; I'll see if he's available to take the call.' “In a moment President Truman's voice came on the phone and he said, 'What's the news, Bob? I gave him the reassuring report from General Marshall about our delegation and included a report on the request for supplies. The President asked what I was doing about getting them down to him promptly. I told him that I was having a little trouble digging out someone early on Sunday morning who could issue the necessary authority to the commanding general in the Panama Canal Zone to make delivery of the requested supplies. He said. 'Well, Bob, you've found him.' Rather startled, I said, 'I beg your pardon, sir'—and heard laughter from the other end of the line, followed by the question. 'Have you forgotten that the President is also the Commander in Chief?' I said I was sorry that I had for the moment, and the President said that a heck of a lot of other people around town had, too, with less excuse than I had. He then asked me to tell him what General Marshall had requested. I read him the list and said, 'Mr. President, have I your authority to send a message to General Crittenberger and tell him that you have approved the shipment of these items immediately?' He said, 'No, I'll call him on the phone myself and tell him that I want them shipped at once and to have those troop carriers warmed up and ready to go on General Marshall's call.' The President called back in about 20 minutes and said that he had talked to General Crittenberger and that everything was being taken care of. "My embarrassment at the episode with the President was eased by two things: the President never told on me and our people got home safely. But my curiosity about the ponchos almost killed me until I got the story from Carter and George. It appears that the Colombian troops came up from the jungle heat to the high altitude of Bogotá, with the temperature about 50, in thin cotton uniforms and the general realized that standing around in the drizzle and cold would make them miserable and, therefore, not as reliable in facing a mob as if they could be dry and warm. The ponchos were issued, the troops were enthusiastic about them, and the delegations got on with the business as soon as they knew they could be airlifted out if necessary. “If you will reflect on this incident a moment, you will recognize that calm, steadfastness, instinct about a soldier's needs and concern for them, in addition to ability to inspire confidence turned something that might have been a shameful disaster into a minor, irritating event. "I mentioned earlier that one of General Marshall's most unusual attributes— and one, I think, which added a great deal to his stature was his recognition of the fact that Nature never stands still and that change is, indeed, one of the primary laws of life. His receptiveness to new ideas, which you have seen, for example, in the use of airpower and in the Marshall plan, was made easier by this philosophy, for he was not burdened with the attitude of mind which regards any change as a threat to the established order—or vested rights, if you choose— which must, therefore, be automatically, even blindly resisted. "About 6 months ago I testified before a Senate committee regarding policymaking machinery in the special field of the Department of Defense. I expressed the opinion that the essential military attribute of close relationship between planning and operational responsibility existed and that proved operations machinery was currently in being; and, finally, that the departments were staffed, for the most part, with competent, specially trained officers whom we were fortunate to have in good supply. I suggested, however, that it seemed to be increasingly difficult to fit new feet into old boots; that there was, I thought, excessive staff layering and, obviously, far too many committees with the resultant trend toward a reduction in the authority of the individual which I greatly deplored. "It may be that I place too much importance on men and not enough on the machine. I do not think so. But it is of no consequence anyway because events in the world are building up forces which will inevitably raise again the question of the proper organization of the services to meet the new situations which face The world is full of dangers, and the attitude toward change will be even more important than in the past. us. "Whenever you look in the world today you find one great common denominator the increasing role Government is playing in every aspect of every man's life, everywhere. We do not like to admit it, but Government is getting bigger all the time partly because big government is necessary to deal with big labor 60935-60- -8 and big business; partly because our people are asking the Government to do more for them each year; and, partly because Government by its very nature is a glandular grower. "Now, to oversimplify things a bit, this means more Government expenses. More Government expenditures mean more taxes; or more economy and efficiency; or a mixture of both. Looking at the problem of national security with such calmness as I can muster, I cannot avoid the conclusion that world change has overtaken us and that, in a relatively few years, economic pressure alone will force us to reexamine our current organization and procedures. "When that time comes, and I think it will come sooner rather than later, we will need the detached approach to the problem of what is best for national security that General Marshall exemplified and which won him universal respect. National security seems to me to be more complex than ever. I feel it is a problem we will have with us for generations to come and it is not helped in an open society by either an open mouth or a closed mind. "It will most certainly not be solved by trotting out those tired old slogans of warnings about 'reduction of civilian control' and the 'man on horseback' that have been used to divert attention for generations. When you hear them just remember that the chiefs of the branches of the Army used the same ‘man on horseback' argument against Secretary Elihu Root's reorganization plan which established the position of Chief of Staff of the Army. "Nor is the problem likely to be solved by appointing several committees of distinguished citizens from remote walks of life. Such groups normally come to Washington ignorant of the problems and ways of Government and, by dint of concentration on committee procedures, remain in that happy state. Some may even be attracted by the title 'ad hoc committee' little realizing that it is merely a device used ad infinitum to obtain snap judgments ad nauseam. "The solution will be found, I suppose, when necessity or good judgment make it abundantly clear that in national security the whole is more important than its parts. occur. "Having spoken in behalf of receptiveness to good new ideas or changes for the better, let me identify an area in which I hope you will permit no change to Part of my inheritance from General Marshall is a feeling of real affection and admiration for the Army and the way it performs its manifold duties. The great traditions, which are handed down from generation to generation in the armed services, of duty, honor, loyalty, and dedication to the service of one's country are among the most admirable virtues of mankind. These have been kept alive by a dedicated and skilled group of officers who realize that selfdiscipline is one of the higher attributes of man. We simply cannot afford to lose these virtues. Our great schools and their standards must be nurtured and strengthened so that the code of excellence may be carried forward in a world which seems to have an increasing taste for the mediocre. "My strong conviction about this results from my experience with you, of which I am proud, and because it was these traditions, training, and discipline, which I have just mentioned, that produced the young Army officer who became one of the greatest generals and greatest men of his time. "Since I spoke at the outset of certain basic characteristics shared by General Marshall and Secretary Stimson, it is fitting and proper, I believe, that I should close my comments by letting the venerable and distinguished Secretary of War be heard again, through me, in his valedictory remarks made at a press conference in September 1945. "Hear Mr. Stimson's words: 'General Marshall's devotion to the Nation he served was a vital quality which infused everything he does. During the course of a long lifetime, much of it spent in positions of public trust, I have had considerable experience of men in government. General Marshall has given me a new gage of what such service should be. The destiny of America at the critical time of its national existence has been in the hands of a great and good citizen. Let no man forget it.'" APPENDIX 7 THE SECRETARY OF DEFENSE, Memorandum for the Secretary of the Air Force. Since your presentation of the problem to me last week, I have discussed the question of more adequate financing for the Air Force public works program for 1956 with the Director of the Bureau of the Budget. He recognizes that the urgent needs of the Air Force should be provided for, but indicates that new authority cannot be considered unless definite actions are taken to accomplish corresponding savings in procurement of stock fund type items along lines suggested in his letter, a copy of which is attached. Action taken by the House to rescind $300 million of the funds in the Air Force stock fund complicates the problem. I assume that unless the Senate restores a sufficient amount of capital for the fund, the $225 million would not be available for transfer to public works as previously discussed. Additional discussions with the Bureau of the Budget have indicated that the Director will concur with the request to increase Air Force public works appropriations for 1956 by $225 million from $975 million to $1,200 million, provided the Air Force agrees to take the actions outlined below: 1. Enlarge stock fund operations as of July 1, 1955, to include all comman use standard stock items. In view of the short time remaining to prepare for such expansion, the fund need not be projected to the station level until fiscal year 1957 unless it appears feasible to accomplish this sooner. 2. Operate the stock fund expanded to cover as many consumption-type items as possible in such a manner as to make every effort to reduce anticipated expenditures and to generate savings of $225 million by the time the last $225 million of the fiscal year 1956 public works program would be required. The additional funds for public works would be apportioned in such a manner as to assure that these savings would be generated prior to the time the additional $225 million of public works funds would be expended. 3. Make an immediate estimate of the amount of cash which should be retained in the stock fund in order to establish the fund as indicated above on July 1, 1955. This estimate would include an indication of the portion of the $300 million proposed for rescission by the House version of the appropriation bill, which should be appealed by the Department of Defense for restoration in the Senate. This estimate should be furnished immediately to the Assistant Secretary of Defense (Comptroller) and the Bureau of the Budget. In order to assure that the additional $225 million is added to the public works appropriation bill, it is necessary that the Air Force take immediate action to implement the above. (Signed) C. E. Wilson, EXECUTIVE OFFICE OF THE PRESIDENT, The Honorable the SECRETARY OF DEFENSE. BUREAU OF THE BUDGET, Washington, D.C., May 12, 1955. MY DEAR MR. SECRETARY: Consideration has been given to your verbal request to increase the amount estimated to be required for military public works appropriations for fiscal year 1956 by $225 million to provide for urgent needs of the Air Force. This would bring the estimated appropriations to be requested for public works to a total of $2,235 billion. The original proposal contemplated transferring $225 million from excess capital funds in the Air Force stock fund on the basis that immediate efforts to expand the use of the stock fund would generate sufficient excess capital to cover the transfer. Recent action by the House Appropriations Committee in proposing to rescind $300 million from the Air Force stock fund prevents, if adopted, transfer of funds for this purpose. This means that the increase would have to be provided by new obligational authority above that contemplated in the budget. It is recognized that the urgent needs of the Air Force should be provided for; however, new authority cannot be considered unless definite actions are taken to accomplish corresponding savings in procurement by better utilization of inventories such as might be accomplished by establishing stock fund control over a wider area. It is our understanding that the additional funds for public works would not be apportioned until these savings were generated and each project reviewed for critical need before being undertaken. Sincerely yours, ROWLAND HUGHES, Director. APPENDIX 8 TITLE II-PROPERTY MANAGEMENT PROCUREMENT, WAREHOUSING, AND RELATED ACTIVITIES SEC. 201. (a) The Administrator shall, in respect of executive agencies, and to the extent that he determines that so doing is advantageous to the Government in terms of economy, efficiency, or service, and with due regard to the program activities of the agencies concerned (1) prescribe policies and methods of procurement and supply of per sonal property and nonpersonal services, including related functions such as contracting, inspection, storage, issue, property identification and classification, transportation and traffic management, management of public utility services, and repairing and converting; and (2) operate, and, after consultation with the executive agencies affected, consolidate, take over, or arrange for the operation by any executive agency of warehouses, supply centers, repair shops, fuel yards, and other similar facilities; and (3) procure and supply personal property and nonpersonal services for the use of executive agencies in the proper discharge of their responsibilities, and perform functions related to procurement and supply such as those mentioned above in subparagraph (1): Provided, That contracts for public utility services may be made for periods not exceeding ten years; and (4) with respect to transportation and other public utility services for the use of executive agencies, represent such agencies in negotiations with carriers and other public utilities and in proceedings involving carriers or other public utilities before Federal and State regulatory bodies; Provided, That the Secretary of Defense may from time to time, and unless the President shall otherwise direct, exempt the National Military Establishment from action taken or which may be taken by the Administrator under clauses (1), (2), (3), and (4) above whenever he determines such exemption to be in the best interests of national security. THE WHITE HOUSE, Washington, June 8, 1954. To: The DIRECTOR OF THE BUREAU OF THE BUDGET, THE SECRETARY OF DEFENSE, the ADMINISTRATOR OF GENERAL SERVICES: By virtue of the authority vested in me by section 205 (a) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 481 (a)), there is hereby revoked the memorandum of the President dated July 1, 1949, and directed to the Director of the Bureau of the Budget, the Secretary of Defense, and the Administrator of General Services, copy of which appears on page 108 of the pamphlet of the General Services Administration dated October 1952 and entitled "Federal Property and Administrative Services Act of 1949, as amended." To All Executive Agencies: DWIGHT D. EISENHOWER. THE WHITE HOUSE, Washington, July 1, 1949. By virtue of the authority vested in me by section 205 (a) of the act entitled "An act to simplify the procurement, utilization, and disposal of Government property, to reorganize certain agencies of the Government, and for other purposes," approved June 30, 1949 (the Federal Property and Administrative Services Act of 1949) it is hereby directed that: 1. In cooperation with other interested agencies, the Administrator of General Services shall institute studies and surveys to determine the extent to which existing policies, procedures, and directives heretofore promul gated and remaining in force under section 501 of the act, should be modified or revoked in the interest of promoting greater economy and efficiency in accomplishing the purposes of this act. Careful attention shall be given to determining the degree of centralization in the General Services Administration to be attained in the performance of the functions involved. When these studies and surveys have been completed and after consulting with the interested agencies, the Administrator shall prescribe such regulations as may be necessary to implement the determinations resulting from such studies and surveys. 2. After consultation with the Bureau of the Budget and other executive agencies, and also with the General Accounting Office in respect of such matters as may be appropriate, including matters affecting its functions under sections 205(b) and 206 (c) of the act, and at the earliest possible date, the Administrator of General Services shall establish such standards, prescribe such regulations, and prepare and issue such manuals and procedures as may be necessary to guide all executive agencies in ascertaining whether their operations in the field of property and records management are efficient and economical as well as consistent with established Government policies. 3. In accordance with directives to be issued by the Administrator of General Services, each executive agency shall promptly institute surveys to determine excess personal property and that portion of excess real property, including unimproved property, under their control which might be suitable for office, storage, and related facilities, and shall promptly report to the Administrator as soon as each survey is completed. 4. Each executive agency shall carefully plan and schedule its requirements for supplies, equipment, materials, and all other personal property in order that necessary stocks may be maintained at minimum levels and high-cost small-lot purchasing avoided. 5. Under section 201 (c) of the act, executive agencies are permitted to apply exchange allowances and proceeds of sale in payment of property acquired. The Administrator shall promptly prescribe regulations specifying the extent to which executive agencies may exercise this authority, and pending the issuance of such regulations, no executive agency shall exercise this authority except to the extent permitted by, and in accordance with the provisions of, statutes in force prior to the taking effect of this act. 6. Secion 502(d) of the act provides that certain programs and functions now being carried on by various executive agencies shall not be impaired or affected by the provisions of the act. However, the attention of these agencies is called specifically to the purposes of this legislation and they shall, insofar as practicable, procure, utilize and dispose of property in accordance with the provisions of the act and the regulations issued thereunder in order that the greatest overall efficiency and economy may be effected. These same agencies shall also cooperate with the Administrator of General Services in the making of surveys of property and property management practices and in the establishment of inventory levels as provided in section 206 (a) (1) and (2) of the act. HARRY S. TRUMAN. THE WHITE HOUSE, Washington, July 1, 1949. To the DIRECTOR OF THE BUREAU OF THE BUDGET, THE SECRETARY OF DEFENSE, AND THE ADMINISTRATOR OF GENERAL SERVICES: By virtue of the authority vested in me by section 205 (a) of the act entitled "An act to simplify the procurement, utilization and disposal of Government property, to reorganize certain agencies of the Government, and for other purposes," approved June 30, 1949 (the Federal Property and Administrative Services Act of 1949), it is hereby directed that: 1. Pending determinations made in the course of the studies hereinafter directed to be instituted, the several departments and agencies constituting the National Military Establishment shall continue to procure through the Administrator of General Services such supplies, materials, equipment, and other personal property, and have performed by the Administrator such related functions of the types specified in section 201(a)(1) of the Federal Property and Administrative Services Act of 1949 as were customarily |