bra Zapata, Ipari ane te Army, West reton, DC

MY DEAR COLONEL ELLERY: Reference is made to your letter of Angost 25, 2 informatiot concerning the Department of the Army sati pated saue for United States dillars of foreign excess property tõested in daran, bidders to include miscellaneous desiers in Japan, and the United States, and deserited as foje wst

324 motor veldes sedans, 1941 and 1942 models, Fords. Pamouths and Chevrolets, uneconomically repairable for Arny use, total acquisition cost $372,924

The information was forwarded so that this Department might examine the proposed disposa, in reistior to the foreign policy of the United States and to make any comment which might be appropriate in view of this Department's respons shity under Public Law 152, Sist Congress,

Col. JACK H. WESKE, GSC,

DEPARTMENT OF STATE,
Washington, July 20, 1951.

Acting Chief, Distribution Branch, Supply Division,

Department of the Army, Washington 25, D. C.

MY DEAR COLONEL WESKE: Reference is made to your letter of June 27, 1951, transmitting information concerning the Department of the Army's anticipated sale of foreign excess property located on Guam. The property is stated as having an estimated acquisition cost of $3 million and is likewise stated to have been determined salvage by a board of officers. The property is further described as consisting of 8,000 long tons of mixed light and heavy iron and steel; 350 long tons of lumber; 700 long tons of rubber tires and 200 long tons of roofing paper. Your letter states that bids will be solicited from scrap dealers and construction firms in the United States, Hawaii, Japan, and the Philippines. It further states that the iron and steel scrap is being reported for allocation in accordance with National Production Authority regulations. The information was forwarded so that this Department might examine the proposed disposal in relation to the foreign policy of the United States and make any comment which might be appropriate in view of this Department's responsibility under section 401 (a), Public Law 152, Eightyfirst Congress.

This Department concurs in the proposal for disposition of the foreign excess property as outlined in your letter under reference subject to National Production Authority allocation of the iron and steel scrap and on the understanding that the sale of the balance of the property, particularly the rubber tires, will be made to a responsible customer under adequate guaranties and controls to insure that the property will be utilized in the manner consistent with the best interests of the United States.

It is assumed that the currency to be received will be United States dollars or that, in the event that payment is contemplated in other than United States dollars, this Department and the Treasury Department will be consulted prior to the completion of disposal action as required by NAC Action No. 357, October 4, 1949.

Very truly yours,

F. T. MURPHY, Chief, Lend-Lease and Surplus Property Staff.

DEPARTMENT OF STATE, Washington, January 17, 1951.

Brig. Gen. PATRICK H. TANSEY, GSC,

Chief, Supply Division, Office of the Assistant Chief of Staff, G-4 Logistics,
Department of the Army, Washington 25, D. C.

MY DEAR GENERAL TANSEY: Reference is made to your letter of January 8, 1951, transmitting information concerning the Department of the Army's anticipated sale of foreign excess property in Guam, The property in question is a vessel, OS-12, having a length of 104 feet, beam 18 feet and displacement of 119 long tons. The estimated acquisition cost is given as $250,000. It was stated that a technical inspection and a board of officers' action revealed the vessel to be in salvage condition. Prospective bidders are noted as miscellaneous dealers in the United States and local areas. The information was forwarded so that this Department might examine the proposed disposal in relation to the foreign policy of the United States and make any comment which might be appropriate in view of this Department's responsibility under section 401 (a), Public Law 152, Eighty-first Congress.

This Department concurs in the proposal for disposition of the foreign excess property as outlined in your letter under reference subject, however, to the inclusion in the contract of sale of a provision either (1) requiring the scrapping of the vessels and the disposal of the resulting scrap in markets where it will not fall into the hands of those whose interests are inimical to the interests of the United States or (2) governing the resale and ultimate disposition of the vessels under like restrictions.

Sincerely yours,

F. T. MURPHY, Chief, Lend-Lease and Surplus Property Staff.

Brig. Gen. PATRICK H. TANSEY,
Chief, Supply Group, Logistics Division,

DEPARTMENT OF STATE, Washington, September 24, 1950.

Department of the Army.

MY DEAR GENERAL TANSEY: Reference is made to your letter of January 6, 1950, transmitting information concerning the Department of the Army's anticipated sale of excess property in Japan which you listed as follows:

The information was forwarded so that this Department might examine the proposed disposal in the light of its possible effect on the foreign policy of the United States and make any comment which might be appropriate in view of this Department's responsibilities under section 401 (a), Public Law 152, Eighty-first Congress.

As a result of supplemental conversations with Lt. Col. C. O. Frake it is understood that instructions will be issued to consult with the appropriate political and economic officers on the Supreme Command and obtain concurrence in this proposed disposal if such consultation has not already taken place. It is further understood that instructions now in effect assure that adequate precautions will be taken when making an award to insure that the items listed will not find their way into uses which might adversely affect the interests of the United States.

If the disposal of the listed property results in the acquisition of foreign currency or dollar credits, as provided in section 402 (b) of Public Law 152, in amounts exceeding the equivalent of $50,000, this Department desires to be informed in order that consideration may be given to the possibility of using the benefits received for educational or building programs and other governmental expenses pursuant to section 401 (b).

Subject to the foregoing comments the Department of State concurs in the proposal for disposition of the subject foreign excess property as outlined in your letter under reference.

Sincerely yours,

F. T. MURPHY,

Chief, Lend-Lease and Surplus Property Staff.

Col. F. W. ELLERY,

DEPARTMENT OF STATE, Washington, September 7, 1951.

Executive Supply Division,

Office of the Assistant Chief of Staff,

G-4, Logistics, Department of the Army, Washington, D. C.

MY DEAR COLONEL ELLERY: Reference is made to your letter of August 25, 1951, transmitting information concerning the Department of the Army's anticipated sale for United States dollars of foreign excess property located in Japan, bidders to include miscellaneous dealers in Japan and the United States, and described as follows:

324 motor vehicles; sedans, 1941 and 1942 models, Fords, Plymouths and Chevrolets, uneconomically repairable for Army use, total acquisition cost$372,924.

The information was forwarded so that this Department might examine the proposed disposal in relation to the foreign policy of the United States and to make any comment which might be appropriate in view of this Department's responsibility under Public Law 152, 81st Congress.

Subject to appropriate precautions being taken to assure that this property does not fall into the hands of interests inimical to the United States and that sales of the property for use in Japan be in accordance with existing Japanese law and exchange control and import licensing regulations, this Department concurs in the disposition of the property as outlined in your letter under reference.

Sincerely yours,

WASHINGTON, D. C.-BRIEFING EXHIBIT 9

OFFICE MEMORANDUM-UNITED STATES GOVERNMENT

To: H-Mr. Moreland.

From: WE-Mr. Williamson.

OCTOBER 12, 1951.

Subject: Sources of Italian steel scrap imports.

Mr. Bonner asked for a breakdown of the figures for Italian steel scrap imports. In the first 5 months of 1951, Italy imported 306,000 tons of iron and steel scrap. The imports were obtained from the following areas:

WASHINGTON, D. C.-BRIEFING EXHIBIT 10

YOKOSUKA, HONSHU, JAPAN-BRIEF HISTORY OF NAVAL ACTIVITIES ComFle Act Yokosuka is located at the entrance to Tokyo Bay in what for all practical purposes is a continuation of the cities of Tokyo and Yokohama. The harbor is divided into two parts by Azuma Island. The northern portion (Nagaura) is open to commercial shipping while the southern part consisting of the major portion of the former Japanese naval base is under the control of the United States naval activity. Before the end of World War II the port was entirely military.

It is an extensive installation developed by the Japanese over a period of many years. The estimated current value of the plant account is approximately $250,000,000.

*

Upon the surrender of the Japanese, the United States Navy was assigned Yokosuka as its zone of authority. The initial landings were made on August 30, 1945. The base was piled high with junk and debris. Over 106,000 tons of iron scrap have since been removed. Thousands of tons of materials have been returned to local civil economy and local civil relief. The harbor was filled with wrecks and driftwood. Over 377 hulks have since been raised. Sanitary conditions presented a comparable problem.

A year after the surrender, the Yokosuka base was drydocking and repairing ships supporting the occupation. The base in conjunction with other facilities furnishes logistics for the United States Navy ashore and afloat in Japan.

The United States Naval Fleet activities Yokosuka consist of the following major activities:

Ship repair facility

Naval ordnance facility

Naval hospital

Harbor defense unit

Naval air facility

Naval communication facility

WASHINGTON, D. C.-BRIEFING EXHIBIT 11

OKINAWA, RYUKYU Islands—Brief History of Naval ACTIVITIES

In 1940 the population of Okinawa was about 443,000-slightly more than half that of the entire Nansei Shoto. The largest towns were Naha, an important harbor on the west coast with 68,000 inhabitants, and Shuri, about 4 miles inland from Naha, with 17,500. Other leading settlements were Yonabaru, just east of Shuri, and Itoman, south of Naha, with populations of 5,000 and 7,000 respectively. While most of Okinawa is agricultural, there was some manufacturing, principally in the city of Naha.

In 1879 the Ryukyu Islands had been completely incorporated as an integral part of the Japanese State. By the terms of the Washington Treaty of 1922 Japan bound herself to construct no new fortifications in the Ryukyus, but after 1935 this agreement became a dead letter.

On April 1, 1945, Okinawa was occupied by United States troops. It was secured on June 21, 1945, after a campaign of 82 days, and a naval advanced base established. Other than air facilities were disestablished May 31, 1947; the Naval Air Facility, Naha, was established October 1, 1947, inactivated June 18, 1949, reactivated February 5, 1951, and commissioned April 18, 1951.

The Naval Air Facility, Naha, is located 2 miles south of Naha, Okinawa. It occupies approximately 10 acres of government-owned land which is a part of the Air Force Base, Naha. The base was originally occupied in April 1945 and has been used by the Air Force since that time. * * During World War II this facility supported carrier type and antisubmarine warfare aircraft operations. * * This facility is being developed because existing facilities operated by the Air Force provide economical joint usage.

* *

The consolidated MSTS/NCSO office was established effective October 1, 1950, under the title MSTS Representative Okinawa/NCSO Buckner Bay; the title was changed March 15, 1951, to MSTS Representative/NCSO Okinawa.

WASHINGTON, D. C.-BRIEFING EXHIBIT 12

UNITED STATES AIR FORCE SUPPLY SYSTEM

As Presented to the Management Committee, Office of the Secretary of Defense by Maj. E. H. Steelnack, USAF, Management Branch, Programs Control Group, Directorate of Supply and Services DCS/Matériel, Hq. USAF, September 1951

I. INTRODUCTION

The Air Force supply system is basically the same supply system that is used by civilian industry to get its manufactured products into the hands of the ultimate user or consumer.

Its evolution parallels the development and employment of the airplane as a combat weapon and as a transportation vehicle for men and matériel. As the airplane came into its own, the responsibility for supply and maintenance of "parts peculiar to aircraft," was gradually transferred to Air Force Commanders, until full and complete responsibility for the duties relating to the management of "parts peculiar" were an integral part of Command responsibility.

Under the Chief, Air Corps, and later Commanding General, Army Air Force, the parts peculiar concept matured. Air Depots were constructed for the storage and distribution of parts peculiar to aircraft and at base level Air Corps warehouses appeared side by side with Army Technical Service Warehouses.

World War II proved the soundness of the centrally controlled matériel system for aircraft and related property and supplies which had been years in the embryonic stage of development.

In 1944 the Air Force published TM 38-410, Army Air Force Base Supply Procedure, which was the counterpart of TM 38-403, the Army's Station Supply Procedure Manual. One base supply system for all supplies, both Air and Army came into being. Centralized control of all supplies at base level for both Air Force and Army matériel was established under the direction of one supply officer. In 1948 Air Force Manual 67-1, the USAF Supply Manual was published completing the establishment of an integrated supply system for the Department of the Air Force, at base and depot level, world-wide.