You can easily understand that a group of Nike batteries stationed in a circle around one of our cities require intricate coordination so that two missiles will not engage the same target. This formidable problem has been solved by development by the Army of an elaborate electronic system called the Missile Master which will produce information necessary for Army units to obtain the most efficient distribution of fire against the available targets. The Missile Master can operate independently or in conjunction with the Air Force SAGE system when that system becomes operational. The first Missile Master is now being installed at a key installation in the continental United States. The employment of Missile Masters will greatly increase the effectiveness of the Nike missile defenses.

Career incentives: The Army is forever seeking means of making a military career more attractive to both its officers and enlisted personnel. We will continue to do everything possible to encourage qualified men and women to stay with us and to recognize the value of their service to this country.

I am sure that you are interested in knowing whether or not the various career incentives which the 84th Congress enacted into law have produced the desired effect. Certain of these measures have not been in effect for a sufficient period of time to permit a complete evaluation. We believe, however, that the legislation providing additional medical care for dependents will have a pronounced and beneficial effect over a long period. We believe also that the servicemen's and veterans' survivors benefits will be viewed by the great majority of military personnel as an additional attraction of military service. The provisions of readjustment pay for members of Reserve components who may be involuntarily released from active duty cannot help but improve morale. We have high hopes for the ultimate effect of the Regular Army augmentation program which will reduce the high rate of turnover in the officer corps while increasing career security.

Other aspects of the career incentive program have been in effect long enough so that we are able to properly and fully evaluate their effect. We now know, for example, that legislation continuing authority for retirement in the highest temporary grade has had an extremely beneficial effect, encouraging a number of highly capable officers who otherwise would have left the service to stay on active duty and continue to offer their valuable services.

We also know that there has been a marked improvement in the situation with respect to medical and dental officers since the enactment of the doctors' incentive pay legislation. During the last 6 months of 1956, applications for appointment in the Regular Army from among doctors and dentists increased by 65 percent over the same period in 1955. While other factors may have contributed to this increase, we believe that the improvement is mostly due to increased pay which you provided.

No picture of incentives would be complete without mention of the family housing situation. Here, the Capehart Act has been extremely helpful. We hope to reduce our housing deficit by 23,000 units in fiscal year 1957 and 28,000 in fiscal year 1958. All but 6,000 of these units will be Capehart housing.

Some of the most appealing features of the service are intangibles which cannot be counted in dollars or measured in privileges. In

this connection we have initiated procedures to continue the lineage of our famous regiments, regardless of the forms which our future tactical organization may take. We shall institutionalize these regiments and, as our Army changes between peace and wartime, vary the number of their component units. By perpetuating the organizations associated with such names as Valley Forge, Gettysburg, San Juan Hill, Chateau Thierry, Normandy, the Pusan Bridgehead, we can make every man feel the link with the past, as well as his identity with progress.

. In recognition of the basic importance of "belonging to an outfit" we have revised our concepts for handling replacements.

Reserve forces: A vital and integral part of our Army team is its Ready Reserve, which stands ever ready in the event of emergency to put aside civilian pursuits and participate with the active forces. Our splendid National Guard, traditionally the backbone of our Reserve strength, is large and well equipped. At the same time we are building a dynamic Army Reserve under the provisions of the Reserve Forces Act of 1955. Since the passage of the act, a little over a year ago, 48,200 young men have entered the United States Army Reserve to take advantage of the 6-month active training program. The number enlisting the past week was 1,158. And that is up to January 25, Mr. Chairman. Those were the recent figures up to the moment.

To obtain these results the Army has conducted the greatest publicity campaign in its history to focus attention on the provisions of RFA 1955.

The quality and intensity of the publicity campaign was attested to by the award to the Army of the Silver Anvil trophy by the American Public Relations Association for the best public-relations program conducted by any governmental agency during the year. The Army worked closely with 370 national organizations in obtaining support for the Reserve programs, including the American Legion, the Veterans of Foreign Wars, the United States Chamber of Commerce, Boy Scouts of America, and numerous academic, industrial, and trade groups.

An Assistant Chief of Staff for Reserve Components has been established as a part of the Army Staff here in Washington. A Deputy Commanding General for Reserve Components has been established at Headquarters CONARC-that means Continental Army, of course, of the United States, at Fort Monroe. Each of the six deputy continental army commanders has been designated to coordinate and supervise Reserve affairs.

By January 25, 111,834 men had enlisted under the various provisions of the act since its inauguration in August 1955. I am referring to your Reserve Forces Act of 1955. That is, in the programs 1, 2, and 3. And that includes the 48,200 in the program of the 6 months' active duty training for young men 17 to 1812. Over 10,000 personnel, 17 to 1812 years of age, have completed the 6 months' training program and approximately 20,000 are in training right now.

The fiscal year 1958 budget provides for a steady and important increase in the size of the Army Reserve. The number of Reserves in drill-pay status will increase from 256,000 at the end of fiscal year 1957 to 300,000 at the end of fiscal year 1958. That is the USAŘ, as it is familiarly called. The National Guard will continue on at 400,000.

We are emphasizing quality in the Reserves by a vigorous screening process. Although we may have some minor legislative proposals to make, we are generally satisfied with the act, referring now to your act, RFA 1955.

Our objective is to have a well-organized, highly trained, and effective mobilization-ready Reserve of moderate size rather than merely large numbers of partially trained, partially equipped units and individuals. The Army is going forward with the program that requires all enlistees to have 6 months' active-duty training. Since all personnel entering the United States Army Reserves already are required to have this training as a minimum, it is essential that our firstline Reserve forces, the National Guard, adhere to the same standard. We are confident that unit and organizational effectiveness of the National Guard will be greatly enhanced by such active-duty training. Management: The Army firmly believes that good management cannot be overemphasized. Any waste or inefficiency in the employment of money, materiel, or manpower is directly reflected in reduced combat power-and combat power is the root and branch of the Army's ability to carry out its historic responsibilities for national security. In this field we are continuing to make notable progress in managing our worldwide complex of commands and facilities.

The Army Command Management System integrates previously separate basic Army business management processes of programing, budgeting, accounting, performance analysis, and manpower control, so that they are fused into a single management system. This integration assists greatly in producing a cost-of-performance budget, which is not only a financial forecast, but is also an operating plan of performance and costs, against which progress can be measured and workload controlled. This system will be completely installed throughout the Army by January 1, 1958.

The use of electronic and other automatic data-processing systems has also been substantially increased during the year.

We are impressed with the advantages of the so-called single manager system which has been instituted under directives of the Department of Defense. Under this system, the Secretary of one military department becomes the single manager for a common service or for wholesale supply of a certain commodity to all of the military services. He receives gross requirements from each of the services, computes net Department of Defense requirements, and initiates procurement. He finances all wholesale stocks from a revolving fund, and each service purchases its needs from him.

The Army has been made the single manager for subsistence, clothing and textiles, and traffic management.

Since the system provides one manager for the computation of net requirements, procurement, distribution, inventory accounting, and so forth, and makes interservice supply virtually automatic, and since it provides for more effective utilization of transportation resources, it will undoubtedly result in increased effectiveness and economies.

Although we are happy with the progress which has been made in the past year, I want to assure you there is no tendency in the Army to rest on our oars. In the next year we will continue to work toward our goal of making Army units faster moving, harder hitting and more self-sufficient. We will complete the reorganization of our divisions into smaller, extremely mobile "pentomic" divisions-five

element units geared to atomic warfare, but also fully capable of fighting nonatomic battles. At the present time we are conducting intensive field tests of this new concept and expect to learn a great deal that will lead to further progress.

The Army visualizes continued progress in fiscal year 1958—progress that will make the United States Army an even greater power for peace and deterrent to aggression.

The CHAIRMAN. Now, Mr. Secretary, I want to compliment you on your very splendid statement, as it contains a great deal of very important information that will help the committee reach decisions in discharging its responsibility.

Members of the committee, before we go around the table and ask questions, I want to ask General Taylor, Chief of Staff of the United States Army, to make his statement right now so we will have an opportunity to address questions to both the Secretary and to General Taylor.

Now, General Taylor, if you care to stand any time you are entirely free to do so, in view of your discomfort.

Now go ahead, General.

General TAYLOR. Thank you, Mr. Chairman.

Mr. Chairman, and members of the committee, at the outset

The CHAIRMAN. Let there be order in the committee room. General TAYLOR. I would like to echo the thanks which Secreary Brucker has expressed to this committee for the constant attention which you pay to the needs of the Army. I am very happy to have the opportunity to speak to you briefly this morning.

Secretary Brucker has already discussed some of the important programs upon which the growth and the progress of the Army depend.

I should like to extend his discussion and develop in some detail the characteristics of the Army which we will have by the end of fiscal year 1958 with the recommended budget of $9.721 billion. I hope to demonstrate that fiscal year 1958 will be a most important period in which the Army expects to effect major changes in organization, tactics, and weapons. The change in weapons will occasion a major shift to surface-to-surface and surface-to-air missiles, both with atomic warheads of great destructive capacity.

The Army budget for fiscal year 1958 will procure an Army of a million men consisting of 17 reorganized divisions, 9 regiments or regimental combat teams, several atomic support commands, and an increased number of missile antiaircraft battalions. This force has been developed in consistence with the view that the Army's primary purpose is to provide deterrent strength for the prevention of war.

Every element has been scrutinized to determine that it does, in fact, contribute to the Army's ability to prevent war, either large or small, in conjunction with our sister services.

I would like to relate proposed Army forces to the overall deterrent role of the Army. The Army deterrent forces are divided into five categories. The first of these is our overseas deployments consisting of eight divisions, supporting antiaircraft battalions, and surface-tosurface missile battalions equipped with atomic-capable weapons.

The second category of forces are those of the Army Strategic Reserve in the United States. These are the forces earmarked for prompt response to local aggression anywhere in the world or to reinforce

our overseas deployments in case of general war. They amount to nine divisions with atomic-capable supporting units.

The third category of our deterrent Army forces are those antiaircraft units assigned to the air defense of the continental United States. By the end of fiscal 1958 they will total 87 battalions, most of which will be surface-to-air missile battalions.

The fourth category of forces are those of the National Guard and Army Reserve. The present budget is predicated upon a strength of about 400,000 for the National Guard and 300,000 for the Army Reserve. Next August, as you know, Selective Service men upon completion of their active duty will be required by law to join the Army Reserve or the National Guard. Likewise, as the Secretary has pointed out, beginning April 1, 1957, all volunteers for the National Guard will be required to take 6 months' active duty training. Both of these factors should in time add materially to the effectiveness of our Reserve forces.

The fifth category is the Army's contribution to deterrence through our assistance in the training of Allied forces. Although the number of personnal in this category is not large, approximately 6,000, the end result, namely, the improved readiness of over 200 Allied divisions, represents a signifigcant contribution to the deterrence of war in areas where otherwise military weakness might encourage aggression. The total of these forces contributing directly to deterrencethat is, these 5 categories that I have enumerated-represents approximately 67 percent of the Army's uniformed personnel and approximately 58 percent of its dollar budget.

We must have behind these forces a strong support base in the continental United States represented by activities in such diversified fields as logistics, research and development, command and administration. Without attempting to break out these many heterogeneous activities, I would point out that their requirements represent about 33 percent of our military manpower and approximately 42 percent of our dollars.

I would now like to say a few words about some steps we are taking to improve the Army. The first and perhaps most important is the major reorganization of the Army's main combat forces-the infantry, airborne, and to a lesser extent, the armored divisions.

The purpose of the reorganization is to improve our ability to fight effectively under conditions of atomic warfare without loss of capability to conduct so-called conventional warfare.

I visualize that the atomic battlefield of the future will have much greater breadth and depth than battlefields of the past. There will probably be a checkerboard disposition of units with considerable gaps between combat elements. Consequently, all Army units must be trained for all-around combat in the same way we trained and fought our airborne divisions in World War II.

The problem of the ground commander will be to find the enemy, to determine his configuration, and then to destroy him by directing atomic fire upon him, using his own organic weapons or calling down the fire of distant missiles deployed to the rear. Therefore, the commander will need instant mobility to exploit the effects of this destructive fire.

The new divisions are designed to facilitate the accomplishment of these arduous tasks insofar as organizational patterns can assist.