forces and their commanders appointed, designated or subsequently organized by the Commander in Chief, Southwest Pacific Area, or other competent authority in the Army of the United States, and who are discharged or released from such service under conditions other than dishonorable.

TITLE II-BURIAL BENEFITS

SEC. 201. Upon the death after separation from service of a person who performed service as provided in section 101, the Administrator of Veterans' Affairs, pursuant to regulations to be promulgated by him, is authorized to provide a United States flag to drape the casket (which flag shall thereafter become the property of decedent's next of kin), and to pay for burial and funeral expenses and transportation of the body (including preparation of the body)

(1) where death occurs in the Philippines, the sum of 100 Philippine pesos; or

(2) where death occurs at a place other than the Philippines, a sum equal to the reasonable cost of such burial and funeral and transportation expenses not, however, in excess of $100;

to such person or persons as may be prescribed by the Administrator.

TITLE III-EDUCATION

SEC. 301. In order to provide for the education of veterans who performed active service as specified in section 101, the President is authorized, subject to the provisions of this title, to furnish financial aid in the form of grants to the Republic of the Philippines (a) for the payment of subsistence allowances to such members of the mentioned class of veterans who are pursuing courses of institutional training in accordance with laws of the Republic of the Philippines and (b) for the payment of tuition charges incident to such courses.

SEC. 302. Grants for payment of subsistence allowances may be made to reimburse the Republic of the Philippines for moneys expended for the allowances: Provided, That such grants may only be made with respect to veterans who are pursuing courses of institutional training at a secondary school, college or university which has been approved in accordance with laws of the Republic of the Philippines: Provided further, That such grants shall not exceed 65 Philippine pesos per month per veteran actually enrolled in and pursuing a course of training, and shall not be made for a period in excess of thirty-six months in any case or with respect to more than an over-all total of fifty-thousand veterans.

SEC. 303. Grants for payment of tuition charges may be made to reimburse the Republic of the Philippines for moneys expended for the charges: Provided, That such grants may only be made with respect to veterans who are pursuing courses of institutional training at a college or university which has been approved in accordance with laws of the Republic of the Philippines Provided further, That such grants shall not exceed 200 Philippine pesos per school year per veteran actually enrolled in and pursuing a course of training, and shall not be made for a period in excess of three school years in any case or with respect to more than an over-all total of five thousand veterans.

TITLE IV-GENERAL ADMINISTRATIVE PROVISIONS

SEC. 401. The President may from time to time prescribe such rules and regulations and impose such conditions on the receipt of financial aid as may be necessary to carry out the provisions of this Act; and he may delegate in whole or in part the authority conferred upon him by this Act to any officer or officers of the United States.

[H. R. 8077, 81st Cong., 2d sess.]

A BILL To provide reimbursement of expenses incurred in connection with the burial of those who served in the military forces of the Commonwealth of the Philippines while such forces were in the armed forces of the United States pursuant to the military order of the President of the United States, dated July 26, 1941.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Administrator of Veterans' Affairs is authorized to furnish a flag to drape the casket and to pay a sum not exceeding 150 Philippine pesos for the burial and funeral expenses and transportation of the body (including preparation of the body) of any person who served in the organized military forces of the Commonwealth of the Philippines while such forces

were in the service of the armed forces of the United States pursuant to the military order of the President of the United States, dated July 26, 1941, and who dies, or has died, after separation from such service under conditions other than dishonorabie. Payments under this Act shall be subject to the applicable provisions of Veterans Regulation Numbered 9 (a), as amended, except that in case any such person has died heretofore, the time for filing claim for reimbursement of such expenses shall be extended until two years after the date of this enactment.

[H. R. 8104, 81st Cong., 2d sess.]

A BILL To provide reimbursement of expenses incurred in connection with the burial of those who served in the military forces of the Commonwealth of the Philippines while such forces were in the armed forces of the United States pursuant to the military order of the President of the United States, dated July 26, 1941

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Administrator of Veterans' Affairs is authorized to furnish a flag to drape the casket and to pay a sum not exceeding 150 Philippine pesos for the burial and funeral expenses and transportation of the body (including preparation of the body) of any person who served in the organized military forces of the Commonwealth of the Philippines while such forces were in the service of the armed forces of the United States pursuant to the military order of the President of the United States dated July 26, 1941, and who dies, or has died, after separation from such service under conditions other than dishonorable. Payments under this Act shall be subject to the applicable provisions of Veterans Regulation Numbered 9 (a), as amended, except that in case any such person has died heretofore, the time for filing claim for reimbursement of such expenses shall be extended until two years after the date of this enactment.

[No. 252]

COMMITTEE ON VETERANS' AFFAIRS, HOUSE OF REPRESENTATIVES

Hon. JOHN E. RANKIN,

VETERANS' ADMINISTRATION, Washington 25, D. C., April 28, 1950.

Chairman, Committee on Veterans' Affairs,

House of Representatives, Washington 25, D. C.

DEAR MR. RANKIN: Reference is made to your requests for reports on H. R. 4540, H. R. 4689, and H. R. 4761, identical bills of the Eighty-first Congress, each entitled, “A bill to provide a more satisfactory program of benefits relating to active service in the armed forces of the Commonwealth of the Philippines during World War II, and for other purposes."

The stated purpose of each bill is to provide a system of rehabilitation for veterans who served in the organized military forces of the Commonwealth of the Philippines while such forces were in the armed forces of the United States pursuant to the military order of the President of the United States, dated July 26, 1941. Such military forces would include organized guerrilla forces under commanders appointed, designated, or subsequently recognized by the commander in chief, Southwest Pacific area, or other competent authority in the Army of the United States, and who were discharged or released from such service under conditions other than dishonorable. This system of rehabilitation would provide educational and burial benefits for such veterans.

Attention is invited to apparent typographical errors in lines 10 and 11, page 2, of the bills. It is believed that the words "and their" and "organized" are intended to be "under" and "recognized", respectively.

Title II of the bills would authorize the Administrator of Veterans' Affairs, pursuant to regulations promulgated by him, to provide a United States flag and to pay burial and funeral expenses, including expenses for transportation and preparation of the body upon the death after discharge of an eligible veteran of such Philippine forces. The sum of 100 Philippine pesos would be provided in those cases where death occurs in the Philippines, and a sum equal to the reasonable cost of burial, funeral, and transportation expenses, not in excess of $100, would be authorized in those cases where death occurs at a place other than the Philippines.

Veterans Regulation No. 9 (a), as amended, which authorizes burial benefits for eligible veterans of the armed forces of the United States, provides that claims for

66429-502

reimbursement must be filed within 2 years subsequent to the date of burial of the veteran. In the event the claimant's application is not complete at the time of original submission, the Veterans' Administration advises the claimant of the evidence necessary to complete the application, and if such evidence is not received within 1 year from the date of the request therefor no allowance may be paid. It is noted that the bills do not contain any similar limitation upon the time within which claims for benefits under title II may be filed.

Title III would authorize the President of the United States to furnish financial. aid in the form of grants to the Republic of the Philippines (a) for the payment of subsistence allowances to eligible veterans who are pursuing courses of institutional training in accordance with the laws of the Republic of the Philippines, and (b) for the payment of tuition charges incident to such courses. Grants for payment of subsistence allowances would be made to reimburse the Republic of the Philippines for moneys expended for such allowances. However, the bills provide that such grants could not exceed 65 Philippine pesos per month for each veteran actually enrolled in and pursuing a course of training, and would not be made for a period in excess of 36 months in any case or with respect to more than an over-all total of 50,000 veterans. The bills limit the grants for payment of tuition charges thereunder to 200 Philippine pesos per school year for each veteran and provide that they cannot be made for a period in excess of three school years in any case or with respect to more than an over-all total of 5,000 veterans.

Under the provisions of the First Supplemental Surplus Appropriation Rescission Act, 1946 (Public Law 301, 79th Cong., approved February 18, 1946), eligibility for benefits under our laws predicated on active military or naval service was taken from Philippine Army veterans who served pursuant to the military order of July 26, 1941, except as to those providing compensation for serviceconnected disability or death (which are paid on the basis of one Philippine peso for each dollar authorized), and benefits of the National Service Life Insurance Act of 1940, as amended, under contracts entered into prior to February 18, 1946. The Rescission Act was amended by the act of July 25, 1947 (Public Law 241, 80th Cong.), so as to restore benefits under the Missing Persons Act, as amended, for such veterans.

Upon approving the Recission Act, the President voiced exception to the restrictive language there in with respect to Philippine Army veterans and requested a study be undertaken. As a result of this study, remedial legislation (H. R. 6508 and S. 2235) was introduced in the Seventy-ninth Congress. S. 2235 was passed by the Senate but was not enacted prior to the adjournment of the Seventy-ninth Congress. Thereafter, further study of the matter was made by an Interdepartmental Committee appointed by the President consisting of the then Administrator of Veterans' Affairs as chairman, the Secretary of State, the Secretary of War, and the United States Ambassador to the Philippines. In accordance with the recommendation of the Interdepartmental Committee, the President on July 1, 1947, transmitted to the Congress proposed legislation which was introduced as H. R. 4073, Eightieth Congress.

In addition to provisions similar to those contained in the pending bills, H. R. 4073 contained provisions for other benefits, including aid in the form of grants to the Republic of the Philippines for the construction and equipping of hospitals in the Philippines, to be used exclusively for the medical care and treatment of eligible Philippine veterans who are in need of hospitalization for service-connected disabilities incurred while in the service of the armed forces of the United States, and for expenses incident to such medical care and treatment in either the hospitals so constructed and equipped or other hospitals in the Philippines. The bill, as reported by the Committee on Veterans' Affairs of the House of Representatives, retained only those provisions relative to hospitalization and medical treatment. However, this report (Rept. No. 2304) stated:

"There are other matters affecting veterans of this campaign which need attention, but the committee feels that adequate hospitalization is so necessary and pressing that it should receive immediate attention. The other matters will have to be delayed until more adequate study can be given them."

S. 2861, a bill similar to H. R. 4073, as reported, was passed by the Congress and became Public Law 865, Eightieth Congress, on July 1, 1948. That act authorizes the President to furnish financial aid to the Republic of the Philippines with respect to the medical care and treatment of the mentioned Philippine veterans in the form of grants for the construction and equipping of hospitals and also for expenses incidental to hospitalization. For the purpose of construction and equipping, the act provides that grants may not exceed $22,500,000 and for expenses incident to hospitalization a limitation of $3,285,000 for any fiscal

A

year is provided for a period not to exceed 5 years. By letter dated August 16, 1948, the President delegated to the Administrator of Veterans' Affairs his authority under Public Law 865 and requested that an agreement with respect to the authorized program be negotiated with the Philippine Government. formal agreement was thereupon entered into on June 7, 1949, between the United States Ambassador and the President of the Philippines. Subsequently, regulations to implement the law and agreement were promulgated by the Administrator of Veterans' Affairs, with the approval of the President, effective October 18, 1949. Progress is being made with plans and details of the construction program as well as reimbursement procedure for interim hospitalization in available existing hospital beds.

It is estimated that about 330,000 veterans with Philippine Army or organized guerrilla service survived the war. In view of certain indeterminate factors, it is not possible to determine accurately the cost of the burial benefits proposed by title II of the bills. However, if it be assumed that all deaths occur in the Philippines and that proper claim for the benefits is made in each case, the maximum cost of providing flags ($5.50 each) would be approximately $1,815,000 and the maximum cost of burial expenses would be 33,000,000 Philippine pesos. With reference to title III concerning educational benefits, with the limitations contained in such title the cost of subsistence allowances could not exceed an aggregate of 117,000,000 Philippine pesos, affecting a maximum of 50,000 veterans, and tuition grants could not exceed 3,000,000 Philippine pesos, affecting a maximum of 5,000 veterans. Under the current official rate of exchange the ratio of the peso to the dollar is approximately 2-1.

Advice has not as yet been received from the Bureau of the Budget as to the relationship of this legislation to the program of the President. A supplemental letter on this matter will be furnished your committee when such information is received.

Sincerely yours,

CARL R. GRAY, Jr., Administrator. Mr. DONOHUE. The first witness we shall hear will be Representative Kearney, who, I understand, has another meeting to attend. STATEMENT OF HON. BERNARD W. KEARNEY, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NEW YORK

Mr. KEARNEY. Mr. Chairman, this has reference to H. R. 4540. This bill was introduced by myself on May 5, 1949, to provide a more satisfactory program of benefits relating to active service in the armed forces of the Commonwealth of the Philippines during World War II, and for other purposes. The bill provides

That this Act shall constitute a system of rehabilitation for veterans who served in the organized military forces of the government of the Commonwealth of the Philippines * * pursuant to the military order of the President of the United States, dated July 26, 1941.

*

Briefly, title I concerns the general eligibility requirements; as indicated heretofore, those who served pursuant to the military order of the President of the United States, dated July 26, 1941, including among such military forces organized guerrilla forces and their commanders appointed, designated, or subsequently organized by the commander in chief, Southwest Pacific Area, or other competent authority in the Army of the United States, and who are discharged or released from such service under conditions other than dishonorable. Title II provides for burial benefits, which I believe practically coincides with the benefits provided by our Government for our own deceased veterans within the continental limits of the United States or those forces which came from the continental limits of the United States, and is to provide for the reasonable cost of such burial, funeral, and transportation expenses not to exceed $100.

Title III is the education title, and it provides for the payment of subsistence allowances to such members of the mentioned class of veterans who are pursuing courses of institutional training in accordance with laws of the Republic of the Philippines, and for the payment of tuition charges incident to such courses.

Further, that the grants of subsistence allowances may be made to reimburse the Republic of the Philippines for moneys expended for the allowances

Provided, That such grants may only be made with respect to veterans who are pursuing courses of institutional training at a secondary school, college, or university which has been approved in accordance with laws of the Republic of the Philippines

and that such grants shall not exceed 65 Philippine pesos per month per veteran actually enrolled and pursuing such courses of training and shall not be made for a period in excess of 36 months in any case or with respect to more than an over-all total of 50,000 veterans.

These grants may be made only with respect to these veterans, as I have said, who are pursuing such courses of study and shall not exceed 200 Philippine pesos per school year per veteran.

Title IV, which is the general administrative provisions, provides

that

The President may from time to time prescribe such rules and regulations and impose such conditions on the receipt of financial aid as may be necessary to carry out the provisions of this Act.

In this connection, Mr. Chairman and members of the committee, this morning I was in receipt of a letter from the Administrator of Veterans' Affairs, General Gray, calling attention to typographical errors in lines 10 and 11, page 2, where it is thought that the words "and there" and "organized" are intended to be "under" and "recognized."

There has also been some thought in the letter that the bill should contain what I call a date of expiration. In other words, the bill does not contain any limitation of time, and under Veterans Regulation No. 9, as amended, which authorizes burial benefits for eligible veterans of the armed forces of the United States, it is provided that claims for reimbursement must be filed within 2 years subsequent to the date of burial of the veteran and, in the event the claimant's application is not complete at the time of original submission, the Veterans' Administration advises the claimant of the evidence necessary to complete the application and, if such evidence is not received within 1 year from the date of the request therefor, no allowance may be paid. It has been called to the attention of the authors of the bills that they do not contain any time limit, but I am advised by Mr. Patterson that the gentleman from Texas, Mr. Teague, and myself, who introduced separate bills under date of April 18 and 19, I believe, of this year, that his bill, which calls simply for burial benefits, does contain that limitation.

Mr. Chairman, in speaking on this bill-and I do not want to take the time of the committee unnecessarily, due to the fact that there are other witnesses who will appear here on behalf of this bill-I want to call the attention of the committee, although it might be a little outside these particular bills, to the fact that in the Eightieth Congress we passed legislation which granted to the Philippines the sum of $22,500000, I believe the figure was, for hospitals, and we understand the plans