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won't be any. It used to be you couldn't get them, but now you can which means there is many a slip betwixt the cup and the lip.

Page 10 also indicates that the anticipated unexpended balance at the end of fiscal year 1967, assuming Congress approves the full budget estimate of $917 million, will be $1,911,400,000. However, that figure does not include unexpended funds to the credit of the Vietnamese and other free world forces in Vietnam?

Admiral HEINZ. It does not include Vietnam.

Mr. PASSMAN. Those costs will be funded out of the funds for South Vietnam that are contained in the Defense appropriation bill? Admiral HEINZ. Yes.

Mr. PASSMAN. That, too, will have to be added to get the total of unexpended funds on a comparable basis to what we got in the past. Is that correct?

Admiral HEINZ. Yes.

Mr. PASSMAN. Admiral, what is your June 30 estimate of unexpended funds that will be to the credit of the Vietnamese and other free world forces in Vietnam?

Admiral HEINZ. I would like to insert that for the record, sir.
Mr. PASSMAN. All right.

(The information follows:)

UNEXPENDED VIETNAM FUNDS, JUNE 30

The estimated unexpended Military Assistance Program balances as of June 30, 1966 amounting to $2,144.4 million includes $270.0 million of unexpended Vietnam and Free World Military Assistance Forces programs.

The estimated unexpended Military Assistance Program balance as of June 30, 1967 amounting to $1,911.4 million includes $120.0 million of unexpended Vietnam and Free World Military Assistance Forces programs.

UNEXPENDED DOD FUNDS FOR VIETNAM

Mr. PASSMAN. Would it be also possible for you to give us an estimate of how much of the $633 million contained in the DOD estimate will be in an unexpended status at the end of fiscal year 1967? Admiral HEINZ. We will be happy to, but we do not handle the $633 million.

That is in the Defense budget.

Mr. PASSMAN. Can you not get it?

Admiral HEINZ. We will get it for you. (The information follows:)

UNEXPENDED DEFENSE DEPARTMENT FUNDS

The $633 million will be included in the military functions appropriations for financing the consolidated requirements of the military departments, and will therefore lose its separate identity. Based on the normal spending patterns of the military functions appropriations receiving the $633 million, it is estimated that expenditures of $273 million will be made in FY 1967, leaving an unexpended balance of $360 million to complete the liquidation of obligations incurred in FY 1967.

CIVIC ACTION PROGRAMS

Mr. PASSMAN. Last year General Wood submitted for printing in the record on page 394 a table showing the civic action program, by country, for fiscal years 1962 through 1965. Would you submit for the record a similar table but include the program for fiscal year 1966 as well as the total estimate for fiscal 1967?

Admiral HEINZ. Yes, sir.

(The information follows:)

U.S. military assistance funds for civic action programs, fiscal year 1962 through fiscal

year 1966 1

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1 Fiscal year 1962 was the 1st year that civic action assistance was so identified in MAP. Fiscal year 1967 is estimated to have a worldwide total of $11,810,000.

? Less than $500.

DEPARTMENT OF DEFENSE CIVIC ACTION COSTS

Mr. PASSMAN. Is there an estimate that is readily available as to how much the Department of Defense appropriations for the various services contain for "civic action" projects in Vietnam for fiscal years 1965-66, inclusive, and your estimate for fiscal year 1967?

Admiral HEINZ. You asked for the services. I don't have the services, sir.

Mr. PASSMAN. It would come under Defense. You don't have to break it down for the services. I should have said for the services you render, not the component parts of the Defense Department. Admiral HEINZ. In other words, a breakdown of the civic action

costs.

Mr. PASSMAN. By type of projects.

Admiral HEINZ. Yes.

Colonel RETTGERS. I am not sure they are identified that way, but we will pursue it.

Mr. PASSMAN. If they are not, they should be.

Admiral HEINZ. We can get the figures and work them up for you. (The information follows:)

DOD CIVIC ACTION IN VIETNAM

Department of Defense civic action in Vietnam has increased sharply as U.S. Forces have come into increasing contact with the Vietnamese people. In 1965, U.S. Forces in Vietnam:

1. Treated more than 4.5 million Vietnamese civilians,

2. Helped distribute 100,000 tons of food,

3. Engaged in 2,400 civic action construction projects.

There are difficulties, however, in attempting to delineate man-hours or supplies as to their end-use during U.S. Forces' operations in Vietnam. Rough estimates for costs associated with civic action by U.S. Forces are as follows ($ millions):

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The preferable emphasis on civic action in Vietnam remains with activities performed by the Vietnamese armed forces themselves, in close cooperation with the civilian populace.

Mr. PASSMAN. I can see where there would be more justification for civic action projects in Vietnam than in other places, but certain projects are actually serving the civilian economy, but because these countries have armed forces, we say it is necessary to do this for various reasons. You can build some pretty good roads under civic action, I believe, and you can build some pretty good bridges, schools, and so forth.

Admiral HEINZ. In any service civic action program, the material is not military assistance program material.

Mr. PASSMAN. I am talking about Army, Navy, and Air Force civic action. The fact of the matter is you can build schools, streets, hospitals, jails, water tanks, and just about everything else that you can think of. If you want to do some research, you will find you are building these type of projects under this civic action program. Admiral HEINZ. In the Defense Department?

TOTAL FOREIGN AID COSTS

Mr. PASSMAN. It is in the Defense Department, but if we can get it, possibly we can more nearly establish the total cost of our foreign aid program. Heretofore we have never been able to get the total cost of the foreign aid program. I tried very hard last year to make a list of the several foreign aid bills and the amount in each bill in an effort to show the total amount of the President's request for foreign assistance. We are doing it again this year, and it now looks as if it is going to run over $9 billion. So far we have a cost of $8,048 million in pure foreign assistance. We are not including some military items because the administration came pretty near ruining the $7 billion recapitulation sheet of last year because I included the Ryukyu Islands estimate for $14 million.

ESTIMATED COSTS OF EXCESS STOCKS

Page 11 of the justifications indicates that in addition to the $35,604.100,000 that has been appropriated for the military assistance program since fiscal year 1950, there has also been made available $2,998,863,000 worth of excess military stocks that have been furnished to most of the recipients of the grant-aid program, also on a grant-aid basis, Is that correct?

Admiral HEINZ. Yes, sir.

Mr. PASSMAN. Admiral, what is the estimate for the excess Defense stocks that will be furnished to the military assistance program in fiscal 1967? We touched on that earlier, but we can be more specific. Admiral HEINZ. The figure is $66,275,000, the acquisition value of the excess stocks.

Mr. PASSMAN. And it could, in some instances, cost more today or it could cost less.

Admiral HEINZ. In most cases it would cost

MODIFICATION OF AIRCRAFT

Mr. PASSMAN. Would you comment briefly on the T-28 aircraft which are to be modified from A's to D's, which will result in a higher repair and rehabilitation cost than the orginal cost of the aircraft? Admiral HEINZ. The figure for the T-28D is the rehabilitation and major modification cost.

Mr. PASSMAN. How much per plane?

Admiral HEINZ. $169,000 is the cost of the major modification to the airplane to make it from an A model which it a trainer to a D model which is used for counterinsurgency purposes and has a combat capability for counterinsurgency and internal security.

Mr. PASSMAN. What was the original acquisition cost?

Admiral HEINZ. The original cost of the T-28 was $123,400 when it was built.

Mr. PASSMAN. So the rehabilitation cost plus the modifications will exceed the original acquisition cost by approximately $50,000? Admiral HEINZ. Yes, sir.

Mr. PASSMAN. Could you insert in the record at this point what those modifications are?

Admiral HEINZ. Right.

Mr. PASSMAN. And we would also like to have a list of the countries that will get the aircraft.

Admiral HEINZ. The T-28D?

Mr. PASSMAN. Yes.

(The information follows:)

MODIFICATION REQUIRED TO CONVERT T-28A TO T-28D AIRCRAFT AND COUNTRIES TO RECEIVE T-28D'S IN FISCAL YEAR 1967 PROGRAM

The modification required to convert the T-28A to a T-28D aircraft are: a larger engine and a three-bladed propeller, self-sealing fuel tanks, two 50 caliber 315 round gun pods (detachable packages), armor plate, and aerial direction finding (ADF) and very high frequency (VHF) communications equipment. Mr. PASSMAN. Was the rehabilitation contract on a bid basis? Admiral HEINZ. I believe the Air Force has let this contract on a bid basis. I will have to determine that.

Mr. PASSMAN. Would you also insert in the record the number of the companies who bid on this contract and the bid of each bidder? Admiral HEINZ. I am not certain that it was done on a bid basis. We had the Air Force do this for us.

Mr PASSMAN. If it is on a bid basis, the record will indicate it, and if not, the record will so indicate.

Admiral HEINZ. The record will indicate how the Air Force contract was placed.

Mr. PASSMAN. Could you give the committee a little memorandum on that as quickly as you get it?

Admiral HEINZ. Yes.

(The information follows:)

CONTRACT FOR CONVERSION OF T-28A TO T-28D AIRCRAFT

The conversion of the T-28A to the T-28D aircraft was performed by a private firm rather than by the Air Force in its own facilities. The Air Force contracted with North American for this work on a sole source fixed-price basis. Sole source procurement was authorized because the requirement for the aircraft was urgent. North American had the only set of tools available to perform the required modifications.

COUNTRIES TO RECEIVE T-28D AIRCRAFT

Mr. PASSMAN. Which of the Latin American countries are programed to receive this type of plane, and why is the modification necessary?

Admiral HEINZ. The T-28D?

Mr. PASSMAN. First, is it true that it will go to the Latin American countries?

Also

Admiral HEINZ. Latin American countries will get the T-28. you will find there are 10 shown here, 5 T-28A's and 5 T-28D's

Mr. PASSMAN. What is the total number to be rehabilitated?
Admiral HEINZ. Ten.

Mr. PASSMAN. How many will go to the Latin American countries, Admiral?

Admiral HEINZ. Ten.

Mr. PASSMAN. Are they getting ready for combat down in Latin America? If so, who are they going to fight with?

Mrs. HANSEN. Each other.

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