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MISCELLANEOUS BILLS

THURSDAY, APRIL 6, 1950

UNITED STATES SENATE,
COMMITTEE ON ARMED SERVICES,

Washington, D. C. The committee met, pursuant to call, at 10:45 a. m., in room 212, Senate Office Building, Senator Harry Flood Byrd presiding.

Present: Senators Byrd, Chapman, Kefauver, Hunt, Bridges, Gurney, Saltonstall, Knowland, and Cain.

Also present: Senator Kenneth S. Wherry; Frank C. Pace, Jr., Director, Bureau of the Budget; Walter L. Pope, on behalf of Senator McClellan; Gordon Gray, Secretary of the Army; Col. R. L. Waldron, Army Air Force; George Nelson, International Association of Machinists; Justice M. Chambers and Verne D. Mudge of the committee staff.

NOMINATION OF FRANK PACE, JR., TO BE SECRETARY OF THE ARMY

Senator BYRD. The meeting will come to order.

The committee this morning has the very pleasant duty of recommending the confirmation of two very able men. The first on the agenda is the nomination of Frank Pace, Jr., to be Secretary of the Army. I will say the nomination is very satisfactory to me. I have been intimately associated with him and regard him as a splendid and able public official.

Senator BRIDGES. Mr. Chairman, my experience with Mr. Pace is such that I think he will make a very able Secretary of the Army, and when the time comes I will be very glad to move his confirmation. Senator CAIN. Might I suggest that Mr. Pace might be inclined to say something for the record to the committee. Would that be proper, sir?

Senator BYRD. Entirely proper.

Senator SALTONSTALL. Might I ask a question? I would like to ask Mr. Pace why he wants to jump from the frying pan into the fire. Mr. PACE. Mr. Chairman, I would like to say for the benefit of the committee that I have full realization of the importance of the assignment which the President has recommended to the Congress that I be permitted to undertake; that in the course of the period of time that I served as Director of the Budget, I had an intimate opportunity to witness the operation of the Department of the Army, as well as the Department of National Defense; that I do not feel that opportunity for seeing it is adequate in any way to provide me with all of the bases that are required to do the kind of job that I conceive the country needs at this particular time, but I would certainly like to assure the committee and it is both my intention

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and hope that I carry it out-to address myself in such a fashion that I can render the kind of service that I am satisfied the country needs at this time.

Senator BRIDGES. Mr. Pace, I would like to ask you this. There is a good deal of talk about subversives and bad security risks around Washington at the present time, and I have no doubt in my own mind that 90 percent of the stuff is true.

If you take over the secretaryship of the Army, which is a vital factor in our national defense and the security of the country, are you prepared to deal with the people who would be classed as security risks promptly, effectively, and without any fear of pressure from any source to hold onto them?

Mr. PACE. Without any doubt, Senator. I will say that I am certain that the system my predecessor has set up in that area is one that I could very successfully follow, and you can certainly be assured that pressure in this area would have no effect on a decision that would be made in this particular instance.

Senator BRIDGES. Mr. Pace, may I ask you also: Do you recognize that this Communist movement is a world-wide conspiracy and that we have a problem in the Far East as well as in Europe?

Mr. PACE. I would say in general it is certainly true that we have a broad-scale and a definite problem. I, of course, Senator, would have to get more intimately into the particular assignment that is coming up to me before I would be fully qualified to comment on the Senator's question.

Senator BRIDGES. In other words, you are not starting this job blinded to what has been going on in China, for example? You are aware of the significance in world events?

Mr. PACE. I have a general familiarity with it; yes, sir.

Senator GURNEY. Mr. Pace, I think you would like the record to show your home State, your college, and the many years you have had of experience in different lines. Could you concisely and briefly outline it for the committee?

Mr. PACE. I will do that. Thank you for asking the question.

I was born and reared in Little Rock, Ark.; graduated from high school there, and attended Princeton University, graduated in 1933, and from Harvard Law School in 1936.

I went back to work with the prosecuting attorney and served for 3 years in the State of Arkansas as assistant prosecuting attorney. Senator SALTONSTALL. Will you please tell the committee what were your marks at Princeton and Harvard?

Mr. PACE. My marks at Princeton were what is known as a two average. They have a system of one, two, three, four, five. At Harvard my marks approximated 72.

I moved from that into the department of revenue, where I was general counsel, participated in the trial of many cases for the State of Arkansas in the supreme court of the State and in the Supreme Court of the United States, wrote certain of the revenue acts for the State of Arkansas; moved from that into partnership with my father in the private practice of law; from there into the Army Air Forces in the Air Transport Command, and served for 4 years in that capacity; became a Special Assistant to the Attorney General in the Taxation Division, tried a number of tax cases; became Executive Assistant to the Postmaster General in the Post Office Department for a period of

2 years; a year as Assistant Director of the Budget, and a year and a quarter as Director of the Budget.

I am married, have two children, and live here in Washington.
Senator GURNEY. Thank you very much.

Senator BYRD. Are there any further questions?

Senator SALTONSTALL. Mr. Chairman, one of the great problems this committee has had with Mr. Gray and his predecessor is the problem in the Army on the civil-liberties question, and all that goes with it.

Are you familiar with that problem as Mr. Gray has had it?
Mr. PACE. Only in a general way, Senator.

Senator SALTONSTALL. What I am getting at is: You would follow along with the general principles that Mr. Gray has established on that?

Mr. PACE. I think I can say that without reservation.

Senator SALTONSTALL. Gradually working to eliminate that problem?

Mr. PACE. I am satisfied that the actions Mr. Gray has taken in that direction will be something that I would certainly subscribe to. Senator SALTONSTALL. You have full sympathy with Mr. Louis Johnson?

Mr. PACE. I have; yes, sir.

Senator BYRD. Are there any further questions?

Senator CAIN. I would merely like to say I consider Mr. Pace to be a good and hard-working and very intelligent American, and I wish him luck.

Mr. PACE. Thank you.

Senator BYRD. Senator Knowland, do you have any questions to ask Mr. Pace?

Senator KNOWLAND. No, sir.

Senator KEFAUVER. I want to observe I have known Mr. Pace for a number of years, and I want to say, as I said on the floor of the Senate yesterday very briefly, that I think in regard to Mr. Pace and Mr. Symington and Mr. Finletter that we have three men of the very finest type for public servants, and I want to commend Mr. Pace for being willing to make the sacrifice that I know he is making to serve his country in his high and important position.

Senator BYRD. Thank you very much, Mr. Pace.

We have here this morning Mr. Pope, who is representing Senator McClellan. He is here and has asked to make a statement.

Mr. POPE. I am Walter L. Pope, and I am a citizen of Little Rock, Ark. I am at the present time in Senator McClellan's office. I have served as circuit judge of the State and attorney general of the State of Arkansas.

I have known Mr. Pace since he was a boy, have been associated with his father in the practice of law, and I want to commend him as highly as possible. I know that he is from a splendid family, both paternal and maternal. The State of Arkansas is proud of him, and we certainly ask that he get favorable action by this committee. Senator BYRD. Thank you very much, Mr. Pope.

Secretary Gray is present. Do you desire to make a statement? Secretary GRAY. Mr. Chairman, I asked Mr. Pace if I might have the privilege of accompanying him here to the committee.

I should only like to say that, to paraphrase some heroic MacArthur prose, I fully associate myself with Mr. Pace; and, as retiring Secretary of the Army, it is my earnest hope that this committee recommend his confirmation and without delay.

Senator BYRD. Thank you, sir. We are very sorry to see you retire. Senator BRIDGES. Mr. Chairman, I move you, if there is not question in anybody's mind about this, that Mr. Pace's nomination as Secretary of the Army be approved.

Senator GURNEY. I second the motion.

Senator BYRD. Is there any further discussion?

(The motion to approve the nomination of Mr. Pace was approved unanimously.)

NOMINATION OF W. STUART SYMINGTON TO BE CHAIRMAN OF THE NATIONAL SECURITY RESOURCES BOARD

Senator BYRD. The next nomination is Mr. W. Stuart Symington to be Chairman of the National Security Resources Board. Mr. Symington has been before the committee many times, and I know he has the respect and admiration of every member of the committee.

Senator GURNEY. The only thing I want to say is we are losing him out of a position where he has done a whale of a job, and I am sorry to see him go.

Senator BRIDGES. That expresses my feelings.

Senator CHAPMAN. And he is assuming a responsibility that has a great opportunity for still greater public service.

Senator SALTONSTALL. And what will be his attitude toward the Air Force now that he is in the Resources Board?

Senator HUNT. Mr. Chairman, I should like to say it has been my pleasure and privilege to know Mr. Symington for several years prior to the time I came down to the Senate and prior to the time that he was Secretary of War for Air.

As Governor, in the work he was doing at that time, I found him most cooperative and helpful and had nothing but the greatest of appreciation of his work as Secretary of War for Air.

I do not know exactly that I would say this new position is a promotion. Perhaps it is, because I hate to lose him as Secretary of War for Air. I am only too pleased to have the opportunity as a member of this committee to vote favorably on his nomination.

Senator KNOWLAND. Mr. Chairman, I would like to say that for the period of time I have been in the Senate I have had the opportunity of knowing Mr. Symington, I have a high regard for his integrity, his administrative ability, and it is my own judgment that he will give to the new job that he is undertaking and I think it is one of the most important jobs in the Government today, with the possible exception of the Presidency or the United States-to give the leadership and the drive that is needed in that regard. I know, without in any way being detrimental to other men who have been suggested or named, I know of no appointment that will command more respect and confidence on both sides of the aisle than the nomination of Mr. Symington. Secretary SYMINGTON. Thank you, Senator.

Senator SALTONSTALL. May I ask this? In justice to Mr. Symington, I think we ought to ask the same questions that we asked the other people. I will ask this one:

Have you any financial interests, business interests, or any other interests in the stockholdings or in directorships or in any other way that will handicap you in doing a perfectly impartial job of purchase or recommendations for purchases by the Government of any raw materials or other products that will be needed?

Secretary SYMINGTON. No, Senator. At the advice of my counsel and friend, Gov. Max Gardner, in the summer of 1945, I sold all interests of any kind whatever in everything that I had and put it into a trust of the Mississippi Valley Trust Co. in St. Louis.

The only business connection I have today is I am director of that trust company.

Senator SALTONSTALL. That trust company handles all your investments and all your affairs?

Secretary SYMINGTON. That is correct, sir. In the case of the Air Force, I asked them to be careful that I had no business relationship with any company. That may be more difficult in this position, because it embraces more lines of work; but, whatever their suggestions are in buying and selling, I shall follow them and do my best to follow the general policy which I made when I came into the Government 5 years ago.

Senator CAIN. Mr. Chairman, I am anxious to vote the confirmation of Mr. Symington with considered enthusiasm; but, with your permission, sir, in order I hope to be just a trifle helpful to Mr. Symington and to keep the record straight, I should like to make an observation or two.

The National Security Resources Board was created by the National Security Act of 1947. That is quite a long time ago. The hopes of the Congress for the achievement of that Board ran very high, and I think they continue to run very high.

Senator Knowland, on my right, a couple of minutes ago congratulated you for attaining a new job. I merely want to state to you, sir, and for the benefit of the record, I consider it to be a new job in every respect.

On March 2, 1950, not long ago, Dr. John R. Steelman and selected members of his staff appeared for the first time before this committee to report on the progress they had made.

In introducing him, Chairman Tydings of this committee said this: Dr. John R. Steelman, Assistant to the President, has been acting more or less as the Chairman of the National Security Resources Board pending its reorganization and the appointment of a Chairman.

During the course of that visit, all of us asked a number of questions, none of which were designed to be antagonistic or detrimental, but in search for knowledge. I will not at the moment refer to those questions.

However, the NSRB appeared before the subcommittee of Appropriations Committee with its request only a few days ago. I had an opportunity to go to that meeting. I had to leave it before the NSRB had been called to testify, but Senator Thomas of Oklahoma was kind enough to ask just five questions for me. I would like to read the questions and submit the answers for the record and for your information, sir.

Mr. Kendall was the one who was testifying. Mr. Kendall is the general counsel of the National Security Resources Board, a vitally important position.

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