The Office of the Chief of Engineers made the following adjustments during 1963:

The U.S. Army Area Analysis Intelligence was transferred to the Defense Intelligence Agency in continuation of actions centralizing area analysis activities initiated during the Department of Army reorganization of 1962.

The U.S. Army Engineer District, Canaveral, was established to provide more effective handling of the large volume of construction of space vehicle and missile launching and control facilities for the National Aeronautics and Space Administration and the Air Force in the Cape Kennedy area.

Family Housing Division, Directorate of Military Construction, was established with responsibility for managing the Army family housing program which was transferred from the Deputy Chief of Staff for Logistics to the Chief of Engineers. This transfer was intended to provide more effective alinement of family housing with other construction activities.

Agency for International Development, Resources Inventory Center was established to provide technical assistance in preparing an inventory of the physical resources of Latin American countries as part of a long-range program of the Federal Government to aid the economic development of these countries.

DEPARTMENT OF THE NAVY

The Under Secretary of the Navy reported the following changes in organization during calendar year 1963, which resulted in a net reduction in personnel of 7,029.

Executive Office of the Secretary

Secretary of the Navy Instruction 5430.60 of July 25, 1963, disestablished the Office of Analysis and Review and established the Office of Program Appraisal. There was no appreciable change in civilian personnel connected with this action.

During this period three functions of the Office of the Navy Comptroller, together with 78 employees were transferred to the Navy Finance Center, Washington, D.C., a field activity. This transfer was in accordance with recommendation Nos. 33, 34, and 35 of Office of Secretary of Defense Project 39 (a).

In accordance with Secretary of the Navy Instruction 5430.51A of October 31, 1963, the Navy Publications and Printing Service was transferred to the Chief of Naval Material effective December 2, 1963. Office of Naval Material Instruction 5430.11 of December 2, 1963, assigned responsibility for maintaining a Navy Publications and Printing Service to the Bureau of Supplies and Accounts. Approximately 50 employees were involved in this transfer.

The increase in the number of employees listed with special assignments and details is due to temporary assignments of personnel to two groups, Deep Submergence Systems Review Group and Chief of Naval Material Implementing Group. It is understood that these will be disbanded early in 1964. The words "to other agencies" have been omitted from the designation because these assignments are now all within the Department of the Navy.

Office of the Chief of Naval Operations

During this period certain naval intelligence functions and related employees were transferred from the Office of the Assistant Chief of Naval Operations (Intelligence) as follows: 74 employees to the Defense Intelligence Agency, and 29 employees to the U.Š. Naval Counterintelligence Support Center, Washington, D.C.

Bureau of Naval Weapons

During this period the functions of the Structural Repair and Minor Improvements Division of the Office of the Assistant Chief for Field Support, together with approximately 20 employees, was transferred to the Bureau of Yards and Docks.

Also during this period a field activity, the Naval Ordnance Test Unit, Patrick Air Force Base, Fla., was consolidated with the Fleet Ballistic Missile Project Office at Patrick Air Force Base, and is now under the management control of the Director, Special Projects Office. In effect, four employees were transferred from field to departmental control.

The overall decrease in civilian personnel reflects the reduction in civilian personnel ceiling and was accomplished by attrition. Bureau of Ships

During this period the Inspector General function, together with two employees, was transferred from the Office of the Assistant Chief for Plans and Administration, and Inspector General to the Office of the Chief, Bureau of Ships. The omission of the words "and Inspector General" from the designation of the element of organization, Assistant Chief for Plans and Administration listed above indicates this transfer.

Also during this period the Sea Hawk Management Office, together with eight employees was transferred from the Office of the Assistant Chief for Design, Shipbuilding, and Fleet Maintenance to the Office of the Assistant Chief for Research and Development.

Bureau of Supplies and Accounts

During this period a new element of organization was added: Navy Publications and Printing Service. This function was transferred from Executive Office of the Secretary in accordance with Secretary of the Navy Instruction 5430.51A of October 31, 1963, and Office of Naval Material Instruction 5430.11 of December 2, 1963.

Bureau of Yards and Docks

During this period two of the recommendations contained in the "Review of the Management of the Department of the Navy" which involve operations of the Bureau of Yards and Docks were directed to be implemented. The first of these recommendations established the Chief, Bureau of Yards and Docks, as the single Executive for facilities maintenance and utilities operations Navy-wide with minor specific exclusions. The second made the Chief, Bureau of Yards and Docks, responsible for the construction of shore electronic facilities and the installation of related equipment.

These management changes necessitated the reorganization of the Bureau of Yards and Docks, effective April 15, 1963, to realine organizational components to divisions of functional responsibility. The broad outline of these changes in organization, especially with regard

to the elements of organization reported as of December 31, 1962, follows:

The Office of the Chief has been reorganized to include the former Office of the Inspector General and Assistant Chief for Administration and the industrial relations, office services, and publications functions which were under the former Assistant Chief for Management and Comptroller.

The Director of Programs and Comptroller is a new element of organization which includes the remaining functions of the former Assistant Chief for Management and Comptroller as well as the Policy Planning Office which was established during this period.

The Director of Facilities Engineering is a new element of organization. This element includes the former Assistant Chief for Engineering and Construction, the Facilities Planning Division of the former Assistant Chief for Real Property Management and the assistant chiefs for shore electronics and for research, development, test, and evaluation which were established during this period.

The Assistant Chief for Military Readiness is a new element of organization which includes the Advance Base Material Branch of the former Assistant Chief for Public Works Management, the Military Functions Office formerly under the Office of the Chief, and the Office of Mobilization and Emergency Planning which was under the former Assistant Chief for Real Property Management.

The Director of Facilities Management is a new element of organization which includes the following: (1) The former Assistant Chief for Housing and Field Activities; (2) the former Assistant Chief for Public Works Management, except the Advance Base Material Branch which is under the Assistant Chief for Military Readiness; (3) the former Assistant Chief for Real Property Management except the Facilities Engineering Division which is now under the Director of Facilities Engineering, and the Office of Mobilization and Emergency Planning which is now under the Assistant Chief for Military Readiness; and (4) the function and employees transferred from the Bureau of Naval Weapons are included under the Director for Facilities Management.

Headquarters, U.S. Marine Corps

During this period the disbursing function, together with 160 employees, was transferred from the Supply Department to the Fiscal Division.

Military Sea Transportation Service

During this period the Office of Management Engineer was added as an element of organization.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

The Administrative Assistant Secretary reported an increase of 4,290 employees since January 1, 1963, and submitted the following report on organizational changes effected in calendar year 1963:

Office of the Secretary

The most significant organizational change was the transfer of the Special Staff on Aging and the Juvenile Delinquency Staff to the newly established Welfare Administration. Employment showed a net in

crease, however, because of the centralization of payroll functions for the Department in the Office of Financial Management, Central Payroll Division. This centralization resulted in the transfer from other units of the Department of 113 employees. Other increases amounted to 21.

Food and Drug Administration

On November 1, 1963, the Secretary approved the reorganization plan of the Food and Drug Administration. A detailed analysis of this reorganization is contained in section B of the recent "FDA Report to Senate Committee on Appropriations."

One of the most significant changes brought about by the reorganization was the creation of a separate Bureau of Education and Voluntary Compliance. This Bureau is a coequal to the Bureau of Regulatory Compliance and thereby achieves a better balanced program of consumer protection. Under the Bureau of Education and Voluntary Compliance there are two new divisions. The first is the Division of Consumer Education which coordinates a number of programs that were previously located in other organizational units such as the Division of Public Information and the consumer consultants program in the Office of the Commissioner. The second is the Division of Industry Advice which draws together all of the activities related to industry education that were in the former organization. This includes activities conducted by the Division of Public Information and the voluntary compliance responsibilities of the old Bureau of Enforcement. This general reorganization is being accomplished without an increase in overall personnel.

Office of Education

In October 1963, the Division of Handicapped Children and Youth was established in the Bureau of Educational Research and Development. This new division presently comprises the staff of the former Education for Exceptional Children Branch, Division of Elementary and Secondary Education. The Secretary approved on January 3, 1964, the establishment of the Bureau of Higher Education Facilities. It will include the Division of Undergraduate Facilities and the Division of Graduate Facilities.

Although there have been no increases in personnel from the organization changes mentioned above, there has been an increase for other reasons of 136 full-time positions. This increase is due to the staffing of positions to administer the newer programs of manpower development and training, educational television facilities, Cuban refugee assistance, foreign language training, and area studies and captioned films for the deaf. The increase of 36 part-time and WAE positions is due primarily to an increase in consultants.

Public Health Service

Office of the Surgeon General.-The Office of Personnel was reorganized to integrate the personnel functions of civil service and commissioned officer personnel. The new Division of Internal Audit was established and the Division of International Health was elevated to Office of International Health. The immediate Office of the Surgeon General was strengthened by appointment of a grants policy officer and the National Center for Health Statistics was reorganized into

five divisions. The employment increase of 69 persons occurred mainly in the National Center for Health Statistics and in the Division of Health Mobilization.

Bureau of Medical Services.-There were no organizational changes in the Bureau during 1963. The employment increase of 306 was concentrated at Freedmen's Hospital and the Division of Indian Health. Bureau of State Services-Community Health.-No significant organizational changes took place during 1963, but employment in community health programs continued to expand, but at a slower pace than in 1962. A major portion of the 469 increase in employment occurred in the Communicable Disease Center at Atlanta, Ga., and in the Division of Chronic Diseases.

Bureau of State Services-Environmental Health.-Programs designed to control the growing environmental health hazards continued to expand in 1963 with a total employment increase from 3,003 to 3,514. Principal increases were in the Division of Water Supply and Pollution Control, Division of Radiological Health, and the Division of Environmental Engineering and Food Protection.

National Institutes of Health. The principal organizational change at NIH was the establishment of the National Institute of General Medical Sciences and the National Institute of Child Health and Human Development and the resulting elimination of the Division of General Medical Sciences.

The increase in employment of 607 was distributed somewhat evenly among the Institutes. The only Institute showing an expansion of more than 10 percent were the National Institute of Mental Health with an increase of 127 persons, the National Institute of Neurological Diseases and Blindness with an increase of 88, and the newly established National Institute of Child Health and Human Development which had a staff of 83 as of December 31, 1963.

National Library of Medicine.-There was no significant change in organization or staffing at the National Library of Medicine. Employment increased from 236 to 250.

St. Elizabeths Hospital

The behavioral studies center was transferred from the division of medical services to the office of the superintendent. The new physical medicine and rehabilitation building became a part of the medicine and surgery branch within the division of medical services. The major increase in employment (177) occurred in the division of administration. Most of this increase was a result of additional positions in the dietary section to provide food services in the new physical medicine and rehabilitation building and to improve services in other parts of the hospital.

Social Security Administration

As a result of the reorganization creating the Welfare Administration, some major reorganization was required within the Social Security Administration. Principally involved were the following organizations: (1) Office of the Commissioner; (2) Office of the Actuary; (3) Division of Program Research; and (4) Former Bureau of Old-Age Survivors Insurance, Division of Program Analysis.

The Division of Program Analysis, as such, was abolished. The Actuarial Branch of that Division was merged with the Office of the