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it, and such other investigation, as the Secretary may find necessary.

"(2) The Secretary shall pay, from the allotment available therefor, the amount so estimated by him for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this subsection) by which he finds that his estimate of the amount to be paid the State for any prior period under such section was greater or less than the amount which should have been paid to the State for such prior period under such section. Such payments shall be made prior to audit or settlement by the General Accounting Office, shall be made through the disbursing facilities of the Treasury Department, and shall be made in such installments as the Secretary may determine.

"ADMINISTRATION

"SEC. 8. (a) In carrying out his duties under this Act, the Secretary shall

"(1) make studies, investigations, demonstrations, and reports with respect to abilities, aptitudes, and capacities of physically handicapped individuals, development of their potentialities, and their utilization in gainful and suitable employment;

"(2) cooperate with and render technical assistance to States in matters relating to the vocational rehabilitation of physically handicapped individuals;

"(3) provide, during the fiscal year ending June 30, 1955, and the fiscal year ending June 30, 1956, training and instruction in technical matters relating to vocational rehabilitation services, including the establishment and maintenance of such research fellowships and traineeships, with such stipends and allowances (including travel and subsistence expenses), as he may deem necessary, except that no such training or instruction (or fellowship or scholarship)

shall be provided any individual for a period

in excess of 12 months; and

“(4) disseminate information as to the studies, investigations, demonstrations, and reports referred to in paragraph (1) and other matters relating to vocational rehabilitation services, and otherwise promote the cause of rehabilitation of physically handicapped individuals and their greater utilization in gainful and suitable employ

ment.

"(b) The Secretary is authorized to make rules and regulations governing the administration of this act, and to delegate to any officer or employee of the United States such of his powers and duties, except the making of rules and regulations, as he finds necessary in carrying out the purposes of this act. "PROMOTION OF EMPLOYMENT OPPORTUNITIES

"SEC. 9. The Secretary of Labor and the Secretary of Health, Education, and Welfare shall cooperate in developing, and in recommending to the appropriate State agencies, policies and procedures which will facilitate the placement in employment of handicapped individuals who have received rehabilitation services under State vocational

rehabilitation programs, and, together with the Chairman of the President's Committee on Employment of the Physically Handicapped, shall develop and recommend methods which will assure maximum utilization of services which that Committee, and cooperating State and local organizations, are able to render in promoting job opportunities for such individuals.

"UNITED STATES EMPLOYMENT SERVICES "SEC. 10 (a) The first sentence of subsection (a) of section 3 of the act of June 6, 1933, as amended (29 U. S. C., 1946 edition, sec. 49-491), is hereby amended by inserting between the words 'gainful occupations' and the words 'to maintain', a comma, and the following: 'including employment counseling and placement services for handicapped persons.'

"(b) Section 8 of the act, as amended, is further amended by inserting after the first sentence thereof a new sentence to read as follows: 'Such plans shall include provision for the promotion and development of employment opportunities for handicapped persons and for job counseling and placement of such persons, and for the designation of at least one person in each State or Federal employment office, whose duties shall include the effectuation of such purposes.' "REPORTS

"SEC. 11. Annual reports shall be made to the Congress by the Secretary as to the administration of this act.

"AUTHORIZATION OF APPROPRIATION FOR

ADMINISTRATION

"SEC. 12. There are hereby authorized to be included for each fiscal year in the appropriations for the Department of Health, Education, and Welfare such sums as are necessary to administer the provisions of this

act.

"DEFINITIONS

"SEC. 13. For the purposes of this act

"(a) The term 'vocational rehabilitation services' means diagnostic and related services (including transportation) incidental to the determination of eligibility for and the nature and scope of services to be provided; training, guidance and placement services for physically handicapped individuals; and, in the case of any such individual found to require financial assistance with respect thereto, after full consideration of his eligibility for any similar benefit by way of pension, compensation, and insurance, any other goods and services necessary to render such individual fit to engage in a remunerative occupation, including remunerative homebound work, including the following physical restoration and other goods and services treatment necessary to correct or substantially modify a physical or mental condition

"(1) corrective surgery or therapeutic

which is stable or slowly progressive and constitutes a substantial handicap to employment, but is of such a nature that such be expected to eliminate or substantially recorrection or modification may reasonably length of time; duce such handicap within a reasonable length of time;

"(2) necessary hospitalization in connection with surgery or treatment specified in subparagraph (1);

to obtaining or retaining employment; "(3) such prosthetic devices as are essential "(4) maintenance, not exceeding the estimated cost of subsistence, during rehabilita

tion;

"(5) tools, equipment, initial stocks and supplies (including equipment and initial stocks and supplies for vending stands), books, and training materials, to any or all of which the State may retain legal title, and capital advances not to exceed $500 for vending stand operators licensed under the act of June 30, 1936, as amended (20 U. S. C., ch. 6A); and

"(6) transportation (except where necessary in connection with determination of eligibility or nature and scope of services) and occupational licenses. Such term also includes

"(7) the acquisition of vending stands or other equipment and initial stocks and supplies for use by severely handicapped individuals in any type of small business the operation of which will be improved through management and supervision by the State agency; and

"(8) the establishment of public and other nonprofit rehabilitation facilities to provide services for physically handicapped individuals and the establishment of public and other nonprofit workshops for the severely handicapped.

"(b) The term 'physically handicapped individual' means any individual who is under a physical or mental disability which con

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"(C) physical or occupational therapy; "(D) adjustment training; or

"(E) evaluation or control of special disabilities; or

"(2) through which is provided an integrated program of medical, psychological, social, and vocational evaluation and services under competent professional supervision: Provided, That the major portion of such evaluation and services is furnished within the facility and that all medical and related health services are prescribed by, or are under the formal supervision of, persons licensed to practice medicine or surgery in the State.

"(d) The term 'workshop' means a place where any manufacture or handiwork is carried on and which is operated for the primary purpose of providing remunerative employment to severely handicapped individuals who cannot be readily absorbed in the competitive labor market.

"(e) The term 'nonprofit', when used with respect to a rehabilitation facility or a workshop, means a rehabilitation facility and a workshop, respectively, owned and operated by a corporation or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private

shareholder or individual and the income of which is exempt from taxation under section 101 (6) of the Internal Revenue Code.

"(f) Establishment of a workshop or rehabilitation facility means—

"(1) in the case of a workshop, the expansion, remodeling, or alteration of existing buildings, necessary to adapt such buildings to workshop purposes or to increase the employment opportunities in workshops, and the acquisition of initial equipment necessary for new workshops or to increase the employment opportunities in workshops; and

"(2) in the case of a rehabilitation facility, the expansion, remodeling, or alteration of existing buildings, and initial equipment of such buildings, necessary to adapt such buildings to rehabilitation facility purposes or to increase their effectiveness for such purposes (subject, however, to such limitations as the Secretary may by regulations prescribe in order to prevent impairment of the objectives of, or duplication of, other Federal laws providing Federal assistance to States in the construction of such facilities) and initial staffing thereof (for a period not exceeding 1 year).

"(g) The term 'State' includes Alaska, the District of Columbia, Hawaii, the Virgin Islands, and Puerto Rico, and for purposes of section 4, includes also Guam.

"(h) (1) The 'allotment percentage' for any State shall be 100 percent less that percentage which bears the same ratio to 50 percent as the per capita income of such State bears to the per capita income of the continental United States (excluding Alaska), except that (A) the allotment percentage shall in no case be more than 75 percent or less than 333 percent, and (B) the allotment percentage for Hawaii shall be 50 percent, and the allotment percentage for Alaska, Puerto Rico, and the Virgin Islands shall be 75 percent.

"(2) The allotment percentages shall be promulgated by the Secretary between July 1 and August 31 of each even-numbered year,

on the basis of the average of the per capita incomes of the States and of the continental United States for the 3 most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the 2 fiscal years in the period beginning July 1 next succeeding such promulgation: Provided, That the Secretary shall promulgate such percentages as soon as possible after the enactment of the Vocational Rehabilitation Amendments of 1954, which promulgation shall be conclusive for the 3 fiscal years in the period ending June 30, 1957.

"(i). (1) The 'Federal share' for any State for any fiscal year (other than the fiscal year ending June 30, 1954) shall be 100 percent less that percentage which bears the same ratio to 38 percent as the per capita income of such State bears to the per capita income of the continental United States (excluding Alaska), except that (A) the Federal share shall in no case be more than 72 percent or less than 52 percent, and (B) the Federal share for Hawaii and Alaska shall be 64 percent, and the Federal share for Puerto Rico and the Virgin Islands shall be 72 percent. In computing the Federal share of a State for a year, the Secretary shall use the same figures for per capita incomes of the States and of the United States as he used in computing the allotment percentage of such State for such year.

"(j) The population of the several States shall be determined on the basis of the latest figures furnished by the Department of Com

merce.

"(k) The term 'Secretary,' except when the context otherwise requires, means the Secretary of Health, Education, and Welfare.

"TRANSITION PROVISIONS

"SEC. 14. (a) In the case of any State which, immediately prior to July 1, 1954, was carrying on a vocational-rehabilitation program under a State plan approved under this act. such State plan shall be deemed to be a State plan approved under section 5 of this act until (1) the Secretary finds, after reasonable notice and opportunity for a hearing to the State agency, that such plan has been so changed that it no longer complies with any provision required to be included in such plan under this act as in effect prior to the enactment of the Vocational Rehabilitation Amendments of 1954, or in the administration of such plan there is a failure to comply substantially with any such provisions, or (2) the plan is superseded by a plan approved under section 5 of this act, or (3) July 1, 1955, whichever occurs first.

"(b) Sums appropriated for grants to States for the fiscal year ending June 30, 1955, pursuant to the Vocational Rehabilitation Act in effect prior to the enactment of the Vocational Rehabilitation Amendments of 1954 (including the portion of sums made available to the Secretary for rehabilitation services in the District of Columbia) shall be deemed to have been made available for grants to States under section 2 of this act. Payments made from such sums to a State (including payments made or obligated from such sums for vocational rehabilitation services in the District of Columbia) prior to the enactment of the Vocational Rehabilitation Amendments of 1954 shall be deemed to have been paid under this act from the State's allotment under such section 2.

"SHORT TITLE

"SEC. 15. This act may be cited as the 'Vocational Rehabilitation Act'." VOCATIONAL REHABILITATION PROGRAM IN THE DISTRICT OF COLUMBIA

SEC. 3. (a) The personnel, property, and records which the Director of the Bureau of the Budget determines relate primarily to the provision of vocational rehabilitation services in the District of Columbia or the

performance of functions of a State licensing agency under the act of June 20, 1936 (20 U. S. C., ch. 6A), shall be transferred, within 90 days after the enactment of this act, from the Department of Health, Education, and Welfare to the municipal government of the District of Columbia for use in providing such services and performing such functions in the District of Columbia.

(b) The Board of Commissioners of the District of Columbia is hereby authorized, within available appropriations and allotted funds, to take such action as may be necessary to secure for the District of Columbia the benefits of the Vocational Rehabilitation Act, as amended by this act, and the act of June 20, 1936 (20 U. S. C., ch. 6A).

(c) Notwithstanding anything to the contrary in section 2 or any other provision of this act, the Secretary of Health, Education, and Welfare is authorized to continue the performance of functions relating to the provisions of vocational rehabilitation services in the District of Columbia until comple

tion of the transfer provided in subsection (a) in like manner as such functions were being performed by such Secretary immediately prior to the enactment of this act. AMENDMENTS TO THE RANDOLPH-SHEPPARD VENDING STAND ACT

SEC. 4. (a) The first section of the act entitled "An act to authorize the operation of stands in Federal buildings by blind persons, to enlarge the economic opportunities of the blind, and for other purposes," approved June 20, 1936, as amended (20 U. S. C., sec. 107), is amended to read as follows: "That for the purpose of providing blind persons with remunerative employment, enlarging the economic opportunities of the blind, and stimulating the blind to greater efforts in striving to make themselves self-supporting, blind persons licensed under the provisions of this act shall be authorized to operate vending stands on any Federal property where such vending stands may be properly and satisfactorily operated by blind persons. In authorizing the operation of vending stands on Federal property, preference shall be given, so far as feasible, to blind persons licensed by a State agency as provided in this act; and the head of each department or agency in control of the maintenance, operation, and protection of Federal property shall, after consultation with the Secretary, and with the approval of the President, prescribe regulations designed to assure such preference (including assignment of vending machine income to achieve and protect such preference) for such licensed blind persons without unduly inconveniencing such departments and agencies or adversely affecting the interests of the United States."

(b) (1) Section 2 (a) of such act of June 20, 1936, as amended (20 U. S. C., sec. 107a), is amended by striking out "in Federal and other buildings" where it appears in paragraph (1) and inserting in lieu thereof "on Federal and other property," and by amending paragraph (4) to read as follows:

"(4) Designate as provided in section 3 of this act the State commission for the blind in each State, or, in any State in which there is no such commission, some other public agency to issue licenses to blind persons who are citizens of the United States and at least 21 years of age for the operating of vending stands on Federal and other property in such State for the vending of newspapers, periodicals, confections, tobacco products, articles dispensed automatically or in containers or wrapping in which they are placed before receipt by the vending stand, and such other articles as may be approved for each property by the department or agency in control of the maintenance, operation, and protection thereof and the State licensing agency in accordance with the regulations prescribed pursuant to the first section: Provided, That (A) effective 4 years after the enactment

of the Vocational Rehabilitation Amendments of 1954, in any State having an approved plan for vocational rehabilitation pursuant to the Vocational Rehabilitation Act, the licensing agency to be designated hereunder shall be the State agency designated pursuant to section 5 (a) (1) of such act as the sole State agency with respect to vocational rehabilitation of the blind; and (B) prior to such time, no license shall be granted except upon certification by a vocational rehabilitation agency that the individual is qualified to operate a vending stand."

(2) Paragraph (5) of such subsection is amended by inserting "including the issuance of rules and regulations," after "steps."

(c) Section 2 (b) of such act of June 20, 1936, as amended, is amended by striking out the third sentence thereof.

(d) Section 2 (c) of such act of June 20, 1936, as amended, is amended to read as follows:

by the Secretary is authorized, with the "(c) The State licensing agency designated

approval of the head of the department or agency in control of the maintenance, operation, and protection of the Federal property on which the stand is to be located but subject to regulations prescribed pursuant to the first section, to select a location for such stand and the type of stand to be provided."

(e) Section 3 of such act of June 20, 1936, as amended (20 U. S. C., sec. 107b), is amended to read as follows:

"SEC. 3. A State commission for the blind or other State agency desiring to be designated as the licensing agency shall, with the approval of the chief executive of the State, make application to the Secretary and agree

"(1) to cooperate with the Secretary in carrying out the purpose of this act;

"(2) to provide for each licensed blind person such vending stand, equipment, and adequate initial stock of suitable articles to be vended therefrom, as may be necessary: Provided, however, That such equipment and stock may be owned by the licensing agency for use of the blind, or by the blind individual to whom the license is issued: And provided further, That if ownership of such equipment is vested in the blind licensee, (A) the State licensing agency shall retain a first option to repurchase such equipment and (B) in the event such individual dies or for any other reason ceases to be a licensee or transfers to another vending stand, ownership of such equipment shall become vested in the State licensing agency (for transfer to a successor licensee) subject to an obligation on the part of the State licensing agency to pay to such individual (or to his estate) the fair value of his interest therein as later determined in accordance with regulations of the State licensing agency and after opportunity for a fair hearing.

"(3) that if any funds are set aside, or caused to be set aside, from the proceeds of the operation of the vending stands such funds shall be set aside, or caused to be set aside, only to the extent necessary for and may be used only for the purposes of (A) maintenance and replacement of equipment; (B) the purchase of new equipment; (C) management services; and (D) assuring a fair minimum return to operators of vending stands for a period of not to exceed 1 year following (i) the date of approval of the State's application submitted under this section, as amended by the Vocational Rehabilitation Amendments of 1954, or (ii) the initial establishment of the stand, whichever occurs later: Provided, however, That in no event shall the amount of such funds to be set aside from the proceeds of any vending stand exceed a reasonable amount which shall be determined by the Secretary;

"(4) to make such reports in such form and containing such information as the Secretary may from time to time require and to comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports;

"(5) to issue such regulations, consistent with the provisions of this act, as may be necessary for the operation of this program; "(6) to provide to any blind licensee dissatisfied with any action arising from the operation or administration of the vending stand program an opportunity for a fair hearing."

(f) Section 6 of such act of June 20, 1936, as amended (20 U. S. C., sec. 107e), is amended by adding at the end thereof the following new subsections:

"(d) The term 'Federal property' means any building, land, or other real property owned, leased, or occupied by any department or agency of the United States, or any instrumentality wholly owned by the United States, or by any department or agency of the District of Columbia or any Territory or possession of the United States.

"(e) The term 'Secretary' means the Secretary of Health, Education, and Welfare." (g) Such act of June 20, 1936, as amended is amended by renumbering section 7 as section 8, and by inserting immediately after section 6 the following new section:

"SEC. 7. In the case of any State which, immediately prior to July 1, 1954, was performing the functions of a State licensing agency pursuant to an application for designation approved under this act, such application shall be deemed to be an application approved under section 3 of this act, as amended by the Vocational Rehabilitation Amendments of 1954, until (1) the Secretary finds, after reasonable notice and opportunity for a hearing to the State licensing agency, that the provisions contained in such application have been changed so that it no longer complies with any provisions required

to be included in such application under this act, as in effect prior to July 1, 1954, or that in the administration of the program there is

a failure to comply substantially with any such provision, or (2) the application is superseded by an application approved under section 3 of this act after July 1, 1954, or (3) July 1, 1955, whichever first occurs."

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The following favorable reports of nominations were submitted:

By Mr. SALTONSTALL, from the Committee on Armed Services:

Maj. Gen. Earle Standlee, Army of the United States (brigadier general, Medical Corps, U. S. Army), to be major general, Medical Corps, in the Regular Army of the United States; and

Brig. Gen. Paul Irwin Robinson, Army of the United States (colonel, Medical Corps, U. S. Army), to be brigadier general, Medical Corps, in the Regular Army of the United States.

By Mr. SMITH of New Jersey, from the Committee on Labor and Public Welfare:

Charles R. Ferguson, of Pennsylvania, to be a member of the Federal Coal Mine Safety Board of Review.

NOTICE OF HEARING ON CERTAIN JUDICIAL NOMINATIONS Mr. LANGER. Mr. President, on behalf of the Committee on the Judiciary, I desire to give notice that a public hearing has been scheduled for Friday, July 16, 1954, at 10 a. m., in room 424, Senate Office Building, upon the nominations of Elbert Parr Tuttle, of Georgia, to be United States circuit judge, fifth circuit, to fill a new position; and David John Wilson, of Utah, to be judge of the United States Customs Court, vice William P. Cole, Jr., elevated. At

SEC. 5. The joint resolution entitled "Joint the indicated time and place all per

resolution authorizing an appropriation for the work of the President's Committee on National Employ the Physically Handicapped Week," approved July 11, 1949 (63 Stat. 409), is amended by striking out "$75,000" and inserting in lieu thereof "$225,000."

SEC. 6. The amendments made by this act shall become effective July 1, 1954.

Mr. SMITH of New Jersey. Mr. President, I move that the Senate disagree to the amendment of the House, agree to the request of the House for a conference with the Senate on the disagreeing votes of the two Houses thereon, and that the Chair appoint the conferees on the part of the Senate.

The motion was agreed to; and the Presiding Officer appointed Mr. SMITH of New Jersey, Mr. PURTELL, Mr. GOLDWATER, Mr. HILL, and Mr. LEHMAN conferees on the part of the Senate.

EXECUTIVE SESSION

Mr. KNOWLAND. Mr. President, I move that the Senate proceed to consider executive business for action on nomina

tions which appear on the Executive Calendar under the heading "New Reports." The motion was agreed to; and the Senate proceeded to the consideration of executive business.

sons interested in the nominations may make such representations as may be pertinent. The subcommittee consists of myself, chairman, the Senator from New Jersey [Mr. HENDRICKSON], and the Senator from Missouri [Mr. HENNINGS].

THE CALENDAR-NEW REPORTS

The PRESIDING OFFICER. If there be no further reports of committees, the clerk will state the nominations under the heading "New Reports."

FEDERAL POWER COMMISSION The Chief Clerk read the nomination of Frederick Stueck, of Missouri, to be a member of the Federal Power Commission for the term of 5 years, expiring June 22, 1959.

The PRESIDING OFFICER. Without

The Chief Clerk read the nomination of Capt. William K. Kenner to have the permanent rank of read admiral, effective upon confirmation by the Senate.

The PRESIDING OFFICER. Without objection, the nomination is confirmed. Mr. KNOWLAND. Mr. President, I ask that the President be immediately notified of these confirmations.

The PRESIDING OFFICER. Without objection, the President will be notified forthwith.

LEGISLATIVE SESSION Mr. KNOWLAND. Mr. President, I move that the Senate resume the consideration of legislative business.

The motion was agreed to; and the Senate resumed the consideration of legislative business.

CONSTRUCTION AT MILITARY AND

NAVAL INSTALLATIONS

Mr. KNOWLAND. Mr. President, I move that the Senate proceed to the consideration of Calendar No. 1719, House bill 9242, authorizing construction at military and naval installations and for the Alaska communications system.

The motion was agreed to; and the Senate proceeded to consider the bill (H. R. 9242) to authorize certain construction at military and naval installations and for the Alaska communications system, and for other purposes, which had been reported from the Committee on Armed Services, with amendments. Mr. CASE obtained the floor.

Mr. LONG. Mr. President

The PRESIDING OFFICER. Does the

Senator from South Dakota yield to the Senator from Louisiana?

unanimous consent that the committee Mr. CASE. First, Mr. President, I ask amendments be considered and agreed to

en bloc, with the understanding that such action will not foreclose any Senator from offering amendments to them.

Mr. KNOWLAND. Mr. President, I believe I thoroughly understand what the Senator from South Dakota wishes to have done. In other words, it is his desire to have the committee amendments

adopted en bloc, so that the parliamentary situation then will be that the bill, including the committee amendments, will be treated as a new bill, and thus subject to amendment.

Mr. CASE. That is correct.

The PRESIDING OFFICER. The Chair understands that the request of the Senator from South Dakota is that the committee amendments be considered and agreed to en bloc, so that the bill as thus amended will be considered as the original text of the bill and will

objection, the nomination is confirmed. be open to further amendment. Is that

UNITED STATES COAST GUARD The Chief Clerk read the nomination of Capt. Frank A. Leamy to have the permanent rank of rear admiral, from November 1, 1954.

The PRESIDING OFFICER. Without objection, the nomination is confirmed.

correct?

Mr. CASE. That is correct.

The PRESIDING OFFICER. Is there

objection to the request of the Senator from South Dakota? Without objection, it is so ordered; and without objection, the committee amendments are agreed to, en bloc.

The committee amendments, as agreed to en bloc, are as follows:

On page 2, line 8, to strike out "$2,071,000" and insert "$1,579,000"; after line 12, to insert:

"Black Hills Ordnance Depot, S. Dak.: Post engineer facilities, ammunition maintenance facilities, utilities, $811,000."

On page 3, line 3, after the word "housing", to strike out "$1,967,000" and insert "$983,000"; in line 24, to strike out "$3,780,000" and insert "$2,290,000"; on page 4, line 5, after the word "housing", to strike out "$5,479,000" and insert "$2,739,000"; in line 8, to strike out "$1,835,000" and insert "$785,000"; in line 19, after the word "housing", to strike out "$2,297,000" and insert "$1,314,000"; on page 5, line 2, after the word "housing", to strike out "$2,028,000" and insert "$1,014,000"; in line 5, after the word housing", to strike out "$8,199,000" and insert "$4,264,000"; in line 9, after the word "facilities", to strike out "$6,259,000" and insert "$3,470,000"; in line 11, after the word "facilities", to strike out "$7,066,000" and insert "$3,623,000"; in line 13, after the word "housing", to strike out "$13,453,000" and insert "$7,875,000"; in line 17, after the word "facilities", to strike out "$10,182,000" and insert "$7,063,000"; in line 19, after the word "facilities", to strike out "$3,692,000" and insert "$2,216,000"; in line 22, after the word "facilities", to strike out "$7,491,000" and insert "$3,582,000"; in line 24, to strike out "$7,413,000" and insert "$4,036,000”; on page 6, line 3, to strike out "$11,744,000" and insert "$6,268,000"; on page 12, line 12, after the word "facilities", to strike out "$1,500,000” and insert "$1,254,000"; on page 13, line 10, after the word "acquisition", to strike out "$11,096,000" and insert "$10,060,000"; on page 16, line 6, after the word "utilities", to strike out "$4,245,000" and insert "$4,197,000"; on page 17, line 7, after the word "facilities", to strike out "and land acquisition, $412,000" and insert "$212,000"; after line 9, to insert: "Naval

ammunition depot, Fallbrook, Calif.: Ordnance facilities, $278,000."

In line 21, after the word "acquisition", to strike out "$519,000" and insert "$304,000"; on page 18, line 7, after the word "facilities", to strike out "$2,888,000" and insert "$1,444,000"; in line 9, after the word "facilities", to strike out "$5,564,000" and insert "$1,664,000"; on page 19, after line 3, to insert:

"Naval Petroleum Reserve No. 1, Elks Hill, Calif.: Pipeline facilities, including easements and land acquisition, $8,000,000."

In line 9, to strike out "$4,669,000" and insert "$3,384,000"; in line 19, after the word "facilities", to insert "site preparation for family housing"; in line 20, after the word "utilities", to strike out "$6,550,000" and insert "$9,976,000"; on page 20, line 19, after the word "facilities", to insert "site preparation for family housing, land acquisition"; in line 21, after the word "utilities", to strike out "$6,520,000" and insert "$8,791,000"; on page 25, line 17, after the word "facilities", to strike out "$3,558,000" and insert "$3,663,000"; on page 29, line 21, after the words "total of", to strike out "$12,565,000" and insert "$12,085,000"; in line 23, after the word "and", where it occurs the second time, to strike out "$12,338,000" and insert "$11,858,000"; on page 32, line 2, after the words "total of", to strike out "$19,835,000" and insert "$19,408,000"; in line 4, after the word "and", where it occurs the second time, to strike out "$19,145,000" and insert "$18,718,000"; in line 12, after the word "facilities", to strike out "$14,079,000" and insert "$13,785,000"; on page 35, line 2, after the word "facilities", to strike out "$7,588,000" and insert "$6,494,000"; on page 43, line 22, after the word "facilities", to strike out "$506,000" and insert "$502,000"; on page 54, line 10, after the word "of", to strike out "$10,542,000" and insert "$10,170,000"; in line

12, after the word "and", where it occurs the second time, to strike out "$8,305,000" and insert "$7,933,000"; on page 56, line 4, after the words "total of", to strike out "$16,565,000" and insert "$14,645,000"; in line 6, after the word "and", where it occurs the second time, to strike out "$10,138,000" and insert "$8,218,000"; on page 65, line 25, after "SEC. 302", to insert "(a)"; on page 66, line 1, after the word "authorized", to strike out the comma and "without regard to the provisions of section 407 of Public Law 534,"; in line 9, after the word "Law", to strike out "534" and insert "155"; after line 9, to insert:

"(b) Section 302 of the act approved September 28, 1951 (65 Stat. 336), is hereby amended by striking the figures '$1,071,638,000' and inserting in lieu thereof '$1,007,963,000"."

In line 18, after the word "and", to strike out "three-tenths" and insert "threehundredths"; on page 68, line 4, to strike out "SEC. 501."; in line 13, after "3 percent", to insert "per annum"; in line 15, after the word "options", to insert a colon and “Provided further, That for each semiannual period beginning July 1, 1954, during which a military department procures any option under the authority of this section, the Secretary of such military department shall render to the Armed Services Committees of the Senate and House of Representatives a report as to the options procured during such period"; on page 69, line 1, after the word "States", to strike out "$162,909,000" and insert "$121,865,000"; in line 4, after the word "of", to strike out "$269,873,000" and insert "$228,829,000"; in line 6, after the word "States", to strike out "$109,165,000" and insert "$109,069,000"; in line 7, after the word "States", to strike out "$30,796,000" and insert "$36,493,000"; in line 9, after the word "of", to strike out "$203,319,000" and insert "$208,920,000"; in line 11, after the word "States", to strike out "$393,607,000" and insert "$389,125,000"; in line 13, after the word "of", to strike out "$403,436,000" and insert "$398,954,000"; in line 19, after the word "by", to strike out "10 percent" and insert "5 percent in the case of projects within continental United States and 10 percent in the case of projects outside the continental United States"; at the top of page 71, to insert:

"SEC. 508. None of the authority contained in titles I, II, and III of this act shall be deemed to authorize any building construction project within the continental United States at a unit cost in excess of

"(a) $20 per square foot for cold-storage warehousing;

"(b) $6 per square foot for regular warehousing;

"(c) $1,700 per man for permanent barracks;

"(d) $1,400 per man for 10-year-life barracks; or

"(e) $5,000 per man for bachelor officer quarters,

unless the Secretary of Defense determines that, because of special circumstances, application to such project of the limitation on unit costs contained in this section is impracticable."

And after line 13, to insert:

"SEC. 509. (a) The first sentence of section 501 (b) of the act entitled 'An act to authorize certain construction at military and naval installations, and for other purposes,' approved September 28, 1951 (65 Ŝtat. 336), is amended to read as follows: The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force are respectively authorized, to the extent administratively determined by each to be fair and reasonable under regulations approved by the Secretary of Defense, to reimburse the owners and tenants of land, used by such owners and tenants for residential or agricultural purposes, acquired by their

departments pursuant to the provisions of this act for expenses and other losses and damages incurred by such owners and tenants, respectively, in the process and as a direct result of the moving of themselves and their families and possessions because of such acquisition of land, which reimbursement shall be in addition to, but not in duplication of, any payments in respect of such acquisition as may otherwise be authorized by law: Provided, That the total of such reimbursement to the owners and tenants of any parcel of land shall in no event exceed 25 percent of the fair value of such parcel of land as determined by the Secretary of the military department concerned. No payment in reimbursement shall be made unless application therefor, supported by an itemized statement of the expenses, losses, and damages so incurred, shall have been submitted to the Secretary of the military department concerned within 1 year following the date of such vacating.

"(b) The first sentence of section 401 (b) of the act entitled 'An act to authorize certain construction at military and naval installations, and for other purposes,' approved July 14, 1952 (66 Stat. 606), is amended to read as follows: "The Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force are respectively authorized, to the extent administratively determined by each to be fair and reasonable, under regulations approved by the Secretary of Defense, to reimburse the owners and tenants of land, used by such owners and tenants for residential or agricultural purposes, to be acquired for any public-works project of the military department concerned for expenses and other losses and damages incurred by such owners and tenants, respectively, in the process and as a direct result of the moving of themselves and their families and possessions because of such acquisition of land, which reimbursement shall be in addition to, but not in duplication of, any payments in respect of such acquisition as may otherwise be authorized by law: Provided, That the total of such reimbursement to the owners and tenants of any parcel of land shall in no event exceed 25 percent of the fair value of such parcel of land as determined by the Secretary of the military dcpartment concerned.'

"(c) The amendments made by this section shall apply only with respect to land acquired subsequent to the date of enactment of this act."

Mr. CASE. Mr. President, let me state that the clerk of the committee is preparing several amendments which are more or less technical in nature; they relate to corrections in totals. As soon as those amendments are ready, I shall make a request regarding them.

Mr. President, in addressing myself to the bill as reported to the Senate, let me say that I believe almost all Members of the Senate are familiar with this military and naval installations authorization bill and its purpose and the way in which the corresponding bills have been presented to the Senate in recent years.

This bill provides for the development of Army camps, Air Force fields, and Navy shore establishments.

The total amount of the authorizations recommended by the Senate committee is $837,165,600. That amount is to be compared with the amount of $896,976,600 recommended by the Department of Defense, and the amount of $877,090,600, as approved by the House of Representatives.

Mr. President, I ask unanimous consent to have printed at this point in the

RECORD a table illustrating the totals by military departments, as the bill was recommended by the Department of Defense, and as the bill passed the House of Representatives, and as the bill is recommended by the Senate committee. There being no objection, the table was ordered to be printed in the RECORD, as follows:

[blocks in formation]

In the same manner, reductions made by the Senate Committee on Armed Services have been offset to some extent by additions of a few significant items that the House had omitted or that the Department of Defense requested subsequent to House action. Among the items in this category are a pipeline that would be necessary to accommodate increased production from the Naval Petroleum Reserve No. 1 pursuant to a joint resolution of the Congress during a national emergency, two items for site preparation for family quarters in the Philippine Islands, and some construction at the Naval Ammunition Depot at Fallbrook, Calif., that were deferred by the House because of some question of 896, 976, 600 877,090, 600 837, 165, 600 water rights that was unresolved at the time the House acted on the bill.

Recommended by Department

Approved by House

Recommended by Senate committee

$256, 773, 000 $269, 873, 000 $228, 829, 000

207, 239, 000 203, 319, 000 208, 920,000 432, 502,000 403, 436, 000 398, 954, 000 462, 600 462, 600

462, 600

Mr. CASE. Mr. President, from the table it is to be noted that the House of Representatives reduced the departmental request by approximately $19 million, and that the Senate committee has voted reductions totaling almost $40 million. Actually, the reductions made by the House of Representatives amounted to substantially more than $19 million; but certain other desirable changes offset to some extent those reductions. For example, the House found that the Air Force authorization for aircraft control and warning systems could be obtained from unused existing authorization, instead of by making a new authorization. That reduction of approximately $110 million was largely offset, however, by the addition of an authorization totaling $73,500,000 for the Arnold Engineering_Development Center, at Tullahoma, Tenn.

The Department of Defense had not completed its study of the new authorization needed at the Arnold Engineering Development Center when the draft of the military public-works bill was forwarded to the Congress, but in the course of House consideration of the pending bill, the Department recommended $73,,500,000 for this purpose. That authorization, however, has subsequently been considered, and it is incorporated in the bill as reported.

Furthermore, the House recommended that at four bases construction be accomplished on a 25-year-life basis instead of on the basis of 10-year construction. To put it in layman's language, it means that these four bases would be built henceforth with a so-called permanent type of construction, rather than a temporary type.

Mr. LONG. Mr. President, will the Senator yield?

Mr. CASE. I yield.

Mr. LONG. Can the Senator tell us where those four bases are?

Mr. CASE. Those four bases are: The Myrtle Beach Airport in South Carolina; the base at Alderson, Okla.; the base at Columbus, Miss., and the base at Charleston, S. C.

The difference in authorization for giving these four bases the characters of permanent construction is not substantial and the Senate committee has been inclined to concur in this recommendation in the thought that permanent construction may represent a saving in the long run.

a

In connection with the naval petroleum reserve, it was the feeling of the committee that the time to build pipelines is when pipe is available, and not during a national emergency. If we were to wait to build the pipeline for Naval Petroleum Reserve No. 1 in California until we had an emergency, we would then be confronted with high priorities on material, and would no doubt be operating under a controlled-materials plan. Therefore, the committee thought that we should create the authorization for building the pipeline at this time. It is obvious that if we were ever to use the reserve, we would want the pipeline in being. Therefore, we thought we ought to have the authorization established at this time, so that the installation could be accomplished when the pipe was available, without competing for such a critical material as pipe during the existence of a national emer

gency.

I believe it is fair to state that this bill has been more soundly conceived and better presented by Defense representatives than some which have been presented to the Congress in prior years. This observation is substantiated by comments from the Bureau of the Budget and the House Committee on Armed Services that are mentioned in the committee report.

That was mentioned in the committee report. At this time I suggest that Members of the Senate who are interested in the details of the bill will find the report quite useful. The staff, headed by Mr. William Darden, has been most helpful to the committee, and has prepared an excellent report. The report embraces considerable detailed in

formation which would be helpful in analyzing the bill.

Among the tables in the report which are useful is one which appears at the end of the report, beginning with page 19. 19. There Senators will find a list of the projects by States, and, under each State, the classification-whether it is Army, Air Force, or Navy. Opposite the line item for the particular installation will be found figures indicating whether it is a reauthorization or an authorization for new funds. The total for each State is shown. So it is possible to determine at once, with respect to any particular project in which Senators are interested, whether or not an authorization is carried in this bill, and its character.

The report also contains tables showing a breakdown as to the amounts inside continental United States, outside continental United States, and classified installations. stallations. It shows, on page 7, the reductions in the Navy title, and the additions to the Navy title.

On page 9, it shows the distribution of the program under the several commands of the continental United States Air Force, and also overseas, as to the program proposed for the fiscal year 1955, both for prior authorizations and for new authorizations.

As I stated earlier in the colloquy with the Senator from Louisiana [Mr. LONG], the committee has very carefully distinguished between new authorizations and prior authorizations. Prior authorizations for the Air Force, which are reprogramed in the language of the bill, total $435 million. I should not say that that $435 million represents a complete saving, but it does represent sounder programing, and it represents substantial savings. The $435 million will be used from prior authorizations and prior fundings by appropriations, and will be applied to projects of high priority, as proposed in the bill, whereas without such action the $435 million might have been applied to projects of lesser priority, or to projects which are outdated by the present concept of the missions of the several branches at particular installations.

Notwithstanding a realization that this bill is merely an authorization and that there will be further review of the items by the Appropriations Committee, the committee has felt a responsibility of attempting to find items that might be deferred or slowed down without impairing the national defense. This action was motivated by the realization that the national debt is closely approaching the legal limitation and by the realization that taxes have been substantially reduced in a series of bills over the past few months and years.

That is why the bill is presented to the Senate with a reduction of some $40 million below the House figure, notwith

standing the fact that we restored to the authorizations the sum of $8 million in projects for the Navy, largely covering the pipeline item to which I have previously alluded, and also the initial work for some housing at strategic installations in the Philippine Islands.

In applying these reductions the committee has been governed by a group of so-called ground rules, or priority list, appearing on page 2 of the committee report. The categories are listed in descending order of priority. No reductions have been made in

First. Research and development. Second. Tacan, a new navigational aid.

Possibly a little later I shall say something about what Tacan means.

Third. Strategic weapons. Fourth. Strategic defenses, including NIKE and A. C. and W., that is, airways control and warning systems.

Fifth. Operational shortages, including runway extensions, control towers, fuel storage, and fire-fighting equipment.

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