Chairman HAYDEN. I assume that these same gentlemen have appeared before the House Committee on Appropriations; is that correct?

General GAILEY. Yes, sir, they were with me there.

Chairman HAYDEN. When did you have your hearing there?
General GAILEY. Last Wednesday.

Mr. Harbison was not there but Colonel Martin, who is also in his branch, was there.

Chairman HAYDEN. If any of them have any particular statements they would like to volunteer, I would be glad to listen.

General GAILEY. Do you have anything you would like to tell the committee?

Mr. GOTSCHALL. No, I do not think so.

Mr. BARON. I have nothing further.

JUSTIFICATIONS

Chairman HAYDEN. We will include the justifications in the record at this point.

(The justifications referred to follow :)

JUSTIFICATION OF ESTIMATES, FISCAL YEAR 1957, GOVERNMEnt and Relief in OCCUPIED AREAS

Comparative summary by projects of obligations by fiscal year

1 Fiscal year 1956 appropriation for this project was originally $275,000. Subsequently, the Michigan State University technical-assistance contract was set up as a separate project (No. 460) and $80,000 was transferred from project 450 to fund this contract. Conversion of the students' exchange contract with the Institute of International Education from an academic to a fiscal-year basis (see full explanation beginning last paragraph on p. 34) resulted in an additional reduction of $155,000 in fiscal year 1956 funding requirements of this project, leaving the $40,000 shown above.

The presence of United States personnel and facilities in the Ryukyu Islands accelerates and enlarges practically every phase of activity on the part of the local population. This has placed demands upon the Ryukyuan Government for corresponding increases in its operational and management functions. Among these are public health and sanitation, road maintenance, police, fire fighting, weather service, immigration and customs, etc. Since this overall increase is directly attributable to and for the benefit of the United States, it is proper that funds be granted under the appropriation to reimburse partially the Ryukyuan Government.

Although internal revenues have increased substantially as the result of the presence of our forces, the resources of the islands are inadequate to meet these extraordinary demands for services so far in excess of those which the local government otherwise would maintain. In particular, two areas of Ryukyuan governmental operations, in which increased demands have been most evident, were selected as warranting United States reimbursement for part of the cost, as follows:

(a) Public safety and immigration, $180,000.-Through the efficient work of the Ryukyuan police, thousands of dollars in United States military materiel are saved annually; friction between United States and Ryukyuan personnel is held to a minimum; the persons and property of United States citizens who do not pay tax to the Ryukyuan Government receive protection, and vehicular thoroughfares are regulated and made safe. The overwhelming proportion of vehicular traffic consists of United States military vehicles and conveyances privately owned by United States personnel. The customs and immigration program protects the islands at large against illegal entry and exit and passage of illicit cargo. Fire-fighting units protect places of public congregation frequented by United States personnel, as well as native homes and buildings. The Ryukyuan weather service develops valuable meteorological information made available to the United States military. In addition, such intelligence data is provided to the military by the concerned Ryukyuan agencies. The cost of operating these facilities and services will amount to $1,080,000 during fiscal year 1957. Of this amount, the United States Government is requested to provide $180,000.

(b) Public health and sanitation, $320,000.-Because of inadequate sewage and garbage disposal facilities, deficient drainage, and large areas of rice fields with standing water, diseases such as malaria and Japanese B encephalitis, hookworm, dysentery and hepatitis arising from filth conditions, and other maladies common in the Far East such as tuberculosis and leprosy, constitute continuous peril in the Ryukyu Islands. With large numbers of Ryukyuans working in close association with American personnel, especially in American households and as food handlers in troop messes and clubs, it is necessary that extensive corrective measures be taken. The United States insists that the Government of the Ryukyu Islands conduct comprehensive sanitation programs, including field and residual spraying, rodent and fumigation work. In addition, the operation of health centers and clinics, immunization services, venereal disease control, public health education programs, sanitaria, leprosaria, etc., must be conducted by the Ryukyuan Government on a much larger scale than would be performed if United States personnel were not present in the area. Of the $1,320,000 necessary to operate the health and sanitation programs of the Ryukyuan Government for fiscal year 1957, the United States is requested to provide $320,000.

2. Contribution to school construction

The havoc of war left the school system of the Ryukyus in a state of almost complete destruction. Added to the war damage, the annual wear and tear in this typhoon area and tropical climate has made maintenance and replacement a heavy drain on local revenues; construction of new buildings could not be accomplished without outside assistance. Accordingly, beginning with fiscal year 1954, the United States has assisted the Ryukyuan Government in the accomplishment of a 3-year emergency school construction program. This school construction program has been enthusiastically acclaimed by the Ryukyuan people and has generated trust in the United States at a time when agitators have tried to disaffect the populace by pointing to our limited prior performance in support of education.

School enrollments for 1954 totaled 100,203 elementary, 54,019 junior high, and 16,938 senior high school students. Of the total (4,536) necessary classrooms, 4,229 will have been completed by the end of fiscal year 1956, leaving 237 rooms to be constructed during fiscal year 1957, ending the construction program to meet minimum essential requirements. The requested $250,000 in United States support will provide for 104 classrooms; the remaining 133 rooms will be constructed by the Government of the Ryukyus from its own resources. The construction proposed for United States financing consists only of essential classrooms and does not include provision for auxiliary offices, assembly rooms and lavatories.

This project provides for continuation of contracts with Michigan State University, initiated in 1951, under which Michigan State University affords training and instruction to aid in the development of the University of the Ryukyus, Okinawa, which was established under United States military government auspices in May 1950.

1 For fiscal years 1955 and 1956, the technical assistance contracts with the Michigan State University in amounts of $79.960 and $80,000, respectively, were carried under this project, but are now reflected under project 460-Education and advisory services.

2 The estimate for this project for fiscal year 1956 as originally submitted and approved amounted to $275,000. Subsequent changes in funding requirements permitted estimate to be reduced to $40,000 as explained in narrative statement which follows.

EXCHANGE OF PERSONS

Seventy-four students were provided for in fiscal year 1956, and sixty will study in the United States in fiscal year 1957 as the result of United States Government and other assistance. The per student cost of tuition and related institutional fees is computed on an average figure which has been adjusted to allow for the

fact that a limited number of full or partial scholarships provided by nongovernmental sources will be available each year for these students.

Of the students who have returned to their homeland after study in this country, one doctor is now the leader of his profession in the treatment of cancer, a number are on the faculty of the University of the Ryukyus; several home economics graduates are improving the general tone of living conditions; two engineers are employed by the government of the Ryukyus; teachers are giving the educational system a much needed impetus; and agriculturalists are showing results in food production.

This estimate requests funds for 25 new students and the extension in residence of 35 students who are presently in the United States, at an estimated expenditure of $165,470 for fiscal year 1957.

1 The budget request for pay of civilians employed by the U. S. Civil Administration in the Ryukyus during fiscal year 1956 was submitted and approved in an amount of $840,000. Subsequent action by the Congress to increase the pay of Federal employees required an increase in this amount of $63,000. In addi tion, it was required that 110 indigenous employees of the Civil Administration who were being paid from nonappropriated funds be transferred to appropriated funds payroll; this necessitated a further increase of $30,000, bringing total estimated obligations in fiscal year 1956 to $933,000.

The execution of duties and fulfillment of responsibilities entailed in the Civil Administration of the Ryukyu Islands delegated to the United States Civil Administration requires a competent staff of civilian employees, both United States citizens and Ryukyuans. The nature of these duties and responsibilities is such that technical and professional United States personnel of the highest caliber are necessary. These persons are in constant association with their counterparts including the highest officials among the Ryukyuan populace, and are required to handle matters of economic, social, and political significance. Aside from the necessity for proficiency and fidelity in their respective professions, local and international political considerations demand that they exercise the utmost diplomacy and discretion in order to protect the best interests of the United States in these strategically important islands. The foregoing requirements have been computed to represent the total salaries of the minimum essential number of employees, considering the scope and nature of the mission to be pursued.

Inclusion herein of indigenous employees who were previously paid from nonappropriated funds, together with the United States civilian pay increase granted by Public Law 94, accounts for the increase of fund requirements in fiscal year 1956 and 1957 over those of fiscal year 1955. The indigenous employees consist of typists, general clerks, laborers, janitor workers, drivers, etc. It is essential that their salaries now be paid from this appropriation inasmuch as nonappro

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priated funds, which were applied to such administrative requirements in past years, are no longer available.

Efforts have been exerted to effect all possible reductions in personnel strength. The number of United States civilian employees has been reduced by successive steps from a peak of 331 in December 1949 to 119 in December 1954. Moreover, military personnel assigned to this function decreased from 88 in December 1951 to 50 as of June 1955; these are to be reduced to only 24 in fiscal year 1956. In partial compensation for this loss of military personnel, USCAR has been authorized 9 civilian spaces thus bringing its net strength in fiscal year 1956 to 128 United States civilians and 24 military personnel.

Chairman HAYDEN. We thank you, gentlemen.
The commitee stands in recess, subject to call.

(Whereupon the committee recessed at 10:30 a. m., Wednesday, May 23, 1956, subject to call.)