the increasing demands upon continental United States production to meet the augmented United States military requirements, as well as to provide for NATO commitments, is causing more and more reliance to be placed upon the European production potential for items which can be produced here. The increased use of Europe's production facilities is shown on this chart by comparing dollar procurements of this fiscal year with those of last year. In addition to the increase shown here, several potential procurement programs aprpoximating $300,000,000 have been assigned by the Department of the Army for implementation. These programs include many Ordnance, Signal, Engineer, and Quartermaster items. The dollar procurement figures shown here include the commitment of approximately $ of pilot items for military security program. In offshore procurement, many factors not a problem in the United States must be considered and evaluated. Some of these are: The price must be comparable to United States cost; the effect on the United States economy must be weighed; procurements must be integrated and coordinated with NATO plans; political and military security problems must be considered: European specifications must be acceptable; and the fiscal problem caused by national currencies and currency laws must be solved. Advance payments to suppliers are found to be necessary in more instances. This is particularly true in those cases where some retooling or plant expansion is necessary. In meeting our procurement requirements now, we are being faced with the same problems in all of Europe-not only Germany-that have already arisen in the United States. Lead time before delivery is increasing; many materials are becoming scarcer; a shortage of machine tools is delaying production expansions; and, of course, costs are rising. HEIDELBERG, GERMANY-EXHIBIT 1 EVENTS IN ESTABLISHMENT OF INTERSERVICE AGREEMENTS IN FRANCE 14 Jul 51 Cable.... CINCEUR to CINCUSAFE and CINCNELM CINCNELM to CINCEUR. CINCEUR to DA. CINCUSAFE to CINCEUR. DA to CINCEUR. CINCEUR request for clarification of DA 19 Conference Representatives of CINCEUR, CINCNELM, 30 Aug 51 Cable.. 5 Oct 25 Oct Agreements... and CINCUSAFE. First Meetings of Working Groups. DA clarification as requested by 14 July cable. Completion of draft agreements on 11 of 14 subjects. Agreements Review by all staff divisions and major subordinate commanders of CINCEUR, CINCNELM, and CINCUSAFE. 51 Letter.. Agreements... 25 Nov 51 15 Dec CINCEUR to ĈINCUSAFE. Re-editing and writing, based upon above comments. 51 Agreements Estimated date of signature by CINCEUR, CINCNELM, and CINCUSAFE. HEIDELBERG, GERMANY-EXHIBIT 2 LOGISTICS RESPONSIBILITIES IN FRANCE SERVICE SUPPORT Hospitalization and medical services: Army responsible in areas predominantly Army. Air Force responsible in areas predominantly Air Force (crossservicing where necessary). Construction: Army responsible, exclusive of designated Air Force and Navy base complexes. Air Force and Navy responsible within their respective base complexes. Transportation: Army responsible for overland transportation and water-port operations. Air Force responsible for air transportation and aerial-port operations. Navy responsible intertheater water transportation. Communications: Army responsible for establishment, operation, and maintenance of signal communications exclusive of Air Force and Navy base com. plexes. Air Force and Navy responsible within their respective base complexes. Maintenance (field depot): Each service responsible for own field maintenance. Each service will be responsible for depot maintenance of items within their depot (cross-servicing to maximum to reduce duplication). Miscellaneous services (examples: Commissaries, post exchanges, movies, dependent schools): Army responsible in areas predominantly Army or where Army strength is sufficient to justify. Air Force responsible in areas predominantly Air Force or where Air Force strength is sufficient to justify. Each service will support minority forces of other services in their area of responsibility. HEIDELBERG, GERMANY-EXHIBIT 3 INFORMATION FOR THE BONNER SUBCOMMITTEE NOVEMBER 23, 1951 Question. "How many administrative people are involved in operating the pipeline from the ZI to EUCOM depots?" Assumption. It was assumed that all personnel handling supplies were to be enumerated and not only those doing administrative work in order to give a relative idea of what a separate pipeline for the Air Force would entail. Answer. Military and civilian personnel involved in operating the pipeline from ZI to EUCOM depots as of October 31, 1951. Remarks. 1. Numbers quoted in the table include personnel in the EUCOM port areas, depot personnel, stock control personnel in headquarters, and movement personel. 2. Excluded from strength figures were personnel engaged in base maintenance shops repairing and rebuilding equipment. in Engineer Bridge Park, and an estimated number to exclude those engaged in preparing local procurement contracts and handling locally procured supplies because the same personnel handles all supplies in a depot whether received from ZI, from local procurement, or from rebuild. 3. Comz personnel includes not only people involved in handling supplies in the pipeline, but also all personnel engaged in support of ComZ. Due to relocation of stock and troop augmentation, it is anticipated that ComZ personnel will increase substantially during the coming year. FEDERAL SUPPLY MANAGEMENT (Overseas Survey) SATURDAY, NOVEMBER 24, 1951 HOUSE OF REPRESENTATIVES, INTERGOVERNMENTAL RELATIONS SUBCOMMITTEE OF THE COMMITTEE ON EXPENDITURES Paris, France. The subcommittee met Saturday, November 24, 1951, at the American Embassy, Paris, France, Hon. Herbert C. Bonner, chairman of the subcommittee, presiding. Members of Congress present: Herbert C. Bonner, chairman, Harold D. Donohue, W. J. Bryan Dorn, Bill Lantaff, Sidney A. Fine, Cecil M. Harden, Charles B. Brownson, and Thomas B. Curtis. Staff members present: Christine Ray Davis, chief clerk; Thomas A. Kennedy, general counsel; Herbert Roback, staff member; Annabell Zue, minority clerk; Ray Ward, Bureau of the Budget; Nathan Brodsky, consultant, Munitions Board; John Elliott, State Department escort officer; and Brig. Gen. Clarence C. Fenn, Department of the Army escort. Members of the embassy staff and military personnel present: Gen. Dwight D. Eisenhower, Commander in Chief, Supreme Headquarters, Allied Powers in Europe; Maj. Gen. Edmond H. Leavey, Assistant Chief of Staff, Logistics, SHAPE; Brig. Gen. Frank A. Henning, deputy director, Logistics, EUCOM; Brig. Gen. James F. Early, USAF, Assistant Chief, Logistics Division, SHAPE; and Mr. R. G. Cleveland, First Secretary, American Embassy, Paris, France. STATEMENT OF GEN. DWIGHT D. EISENHOWER, COMMANDER IN CHIEF, SUPREME HEADQUARTERS, ALLIED POWERS IN EUROPE, MARLY, FRANCE Mr. BONNER. General, we are interested in your views on how our military supply can be improved. We should like to discuss the subject initially, and then submit a memorandum with some subcommittee inquiries. After an opportunity for study, you may forward a written statement on the points developed. General EISENHOWER. Gentlemen, you have asked me what I had in mind, as far as common supplies are concerned, when General Spaatz and I made what you refer to as the Eisenhower-Spaatz agreement several years ago when I was Chief of Staff of the Army. That's a NOTE.-Asterisks denote classified material deleted for security reasons. |