resulted in a manpower requirements reduction of approximately 500

spaces.

USAF release of Tokyo International Airport

During mid-1958 USAF activities vacated Tokyo International Airport. Major units affected were Military Air Transport Service activities which were moved from Tokyo International Airport to Tachikawa Air Base, Japan. This action resulted from a study to accommodate the expansion of civil aviation in Japan and to achieve more economical USAF operation. The move will result in recouping approximately 1,400 manpower spaces.

Establishment of Ground Electronics Engineering Installation Agency This organization will be responsible for all engineering, installation, and management functions incident to ground-electronics equipment, facilities, and systems within the U.S. Air Force. Consolidation in Ground Electronics Engineering Installation Agency of all resources presently engaged in this work throughout the Air Force will provide for central control and direction, resulting in improved effectiveness. Elimination of AF Personnel Training Research Center

The ARDC Center was discontinued effective April 15, 1958. Its functions were transferred to other centers within ARDC.

Elimination of Gadsden Air Force Depot, Ala.

The closing of Gadsden Air Force Depot is part of an AMC plan which is designed to provide continued effective logistic support and, at the same time, achieve personnel and supply economies.

Inactivation of Southern Air Materiel Area, Central Air Materiel Area, and Northern Air Materiel Area, Europe

The introduction of a new concept for providing depot support to European airbases permitted elimination of the organization listed above. The essence of this new concept is that the European bases now receive their supplies direct from a zone of interior depot, rather than from an intermediary storage location in the theater.

Establishment of the AMC Aeronautical Systems Center at WrightPatterson AFB and the AMC Ballistic Missiles Center, Inglewood, Calif.

The primary reason for establishing these organizations is to improve the effectiveness of the AMC command structure by removing certain operating functions from Headquarters AMC. Formerly, operating procurement functions and logistic support functions pertaining to ballistic missiles were officially a part of Headquarters AMC. Establishment of the two centers mentioned above and the separation of staff and operating functions is designed to improve the overall effectiveness of the AMC command structure.

U.S. Air Forces in Europe

Effective January 1, 1958, Headquarters 12th Air Force was discontinued as a U.S. Air Forces in Europe organization. This resulted in a saving of approximately 1,061 manpower spaces and annual operating cost of $4.5 million. As a result Headquarters USAFE was reorganized into rear and advanced echelons. All tactical units. located in central Europe are under direct operational control of Headquarters USAFE with no intervening echelon of command. To

retain the prestige associated with its combat record of the 12th Air Force in the USAF, the 18th Air Force of the Tactical Air Command was redesignated the 12th Air Force.

Discontinuance of 1st Air Force (CONAC)

Approval and implementation of a Headquarters USAF manpower working group recommendation resulted in discontinuance of 1st Air Force, one of Continental Air Command's four numbered Air Forces, on June 25, 1958. Organizational realinement, of the mission formerly performed by 1st Air Force, among the three remaining numbered Air Forces permitted discontinuance of the 1st Air Force headquarters with a manpower reduction of 384 manpower spaces, and an annual cost reduction of $2.2 million dollars.

Air Reserve technician plan

The Air Reserve technician plan is currently being implemented at 33 locations throughout the United States, and will be implemented at two additional locations prior to July 1, 1959. The first appointments to ART positions were made about January 1, 1958. To date, 2,388 ART positions have been authorized, and 1,618 filled by competitive and noncompetitive actions.

In view of the progress which has been made in filling these positions, it is projected that 94 percent of the ART positions in the 35 units under the program will be filled by June 30, 1959, and that 98 percent will be reached and maintained shortly thereafter.

In accordance with our earlier commitments to interested groups, employees occupying positions which are designated ART are being given the opportunity to joint the Air Force Reserve. Those who do not desire such membership, or are ineligible for it, are being retained in their positions until reassignments can be effected in the same geographic area without loss of pay.

Pacific Air Forces

As the result of inactivating five aircraft and warning squadrons, 475 manpower spaces were saved in PACAF. The manpower savings resulting from the inactivation of one fighter bomber wing were absorbed by the activation of one tactical fighter wing and a tactical missile group.

During 1958 USAF conducted a detailed analysis and manpower survey of the 13th Air Force and Clark Air Force Base. As a result of these studies, approximately 2,000 spaces were saved with no reduction in mission.

DEPARTMENT OF THE ARMY

During the past calendar year, as reported by the Department, there was an overall increase in the Department of the Army civilian strength of 2,622. During this period civilian personnel employment outside the continental United States decreased by 853 with an increase in continental United States of 3,475. The decrease in personnel outside continental United States can be generally related to the reductions in planned military strengths, and the phase-down of activities in Japan. The increase in civilian personnel employment in continental United States may be attributed to the accelerated hiring of scientific and engineering personnel during a period when recruiting by industry had slacked off for this type personnel; signifi

cant increases in guided missiles and special weapons programs, including research, development, testing, supply and procurement. In the past year the civil works activities of the Corps of Engineers have also experienced a sizable increase in workload and civilian employment. Also, December 31, 1957, represented a low point in Army civilian employment due to the limitation on new hires directed by the Office of the Secretary of Defense between August 1957 and January 1958. There has also been a net decrease of approximately 19,300 in overseas contractual employment during this period. This decrease can be attributed to closing of facilities in oversea commands and the phase-down in military strengths. A few organizational changes were effected in the Department during calendar year 1958, as follows:

The Office of Special Warfare was abolished as a separate office on June 1, 1958, and functions of this office were made a part of the Office of Deputy Chief of Staff for Military Operations; an Army Research Office was established on March 24, 1958, at Fort Belvoir, Va., to provide a focal point for supervision of Army research.

In accordance with sections 3012, c, d, and e, of Public Law 1028, 84th Congress, section 302, National Security Act of 1947, as amended, the Office of the Assistant Secretary of the Army (Civil-Military Affairs) was abolished. The functions of this office were redistributed to the Office of the Under Secretary of the Army, and the Offices of the Assistant Secretary of the Army (Financial Management), Assistant Secretary of the Army (Manpower, Personnel, and Reserve Forces) and the Assistant Secretary of the Army (Logistics). The personnel changes will be incorporated in the next report.

DEPARTMENT OF THE NAVY

The Department of the Navy reported that civilian employment in the departmental headquarters decreased 1,012 since December 31, 1957. The net reduction for the Department of the Navy as a whole is 4,986. These reductions reflect the Department's compliance with expenditure objectives and effective manpower utilization policies of the Department of Defense.

Changes in organization and civilian personnel for calendar year 1958, as reported to the committee, are set forth below:

Executive Office of the Secretary

During the period January 1, 1958, to December 31, 1958, the accounting function, formerly under the Bureau of Supplies and Accounts, Office of Assistant Chief for Accounting and Disbursing, together with 82 civilian personnel, was transferred to the Office of the Comptroller. Also during this period the Naval Retiring Review Board and the Naval Physical Disability Appeal Board were combined and redesignated the Naval Physical Disability Review Board. Office of the Chief of Naval Operations

The DCNO (Fleet Operations, Readiness, Research and Development) was redesignated DCNO (Fleet Operations and Readiness). Bureau of Aeronautics

The Assistant Chief for Field Activities was redesignated Assistant Chief for Maintenance and Support. Also a new element of organization was added: Assistant Chief for Pacific Missile Range.

Bureau of Naval Personnel

During this period 82 billets were transferred to field activities. Of these, approximately half were taken from the Personnel Research Division and one-fourth from each of the following organizational units:

Assistant Chief for Education and Training

Assistant Chief for Personnel Control

Also, in addition to the above, the following organizational changes occurred during calendar year 1958:

The Office of Liaison and Technical Information was formerly included in the Office of the Chief.

The Assistant Chief for Finance and Property Management was reorganized to form the following organizational units:

Assistant Chief for Finance

Assistant Chief for Property Management

Bureau of Ordnance

During the year 1948, 43 civilian billets were transferred from the Quality Control Division to the Office of Naval Inspector of Ordnance, Washington, D.C. The civilian personnel ceiling of the Bureau was increased 33, 14 in support of the Special Projects Office and 19 in support of the Contract Division.

Bureau of Ships

The Office of the Assistant Chief for Electronics and the Hull, Machinery, and Material Divisions of the Office of the Assistant Chief for Shipbuilding and Fleet Maintenance were reorganized and redesignated as the Office of the Assistant Chief for Technical Logistics. In connection with this reorganization there was a net reduction of 285 civilian positions.

Bureau of Supplies and Accounts

The accounting function, together with 82 civilian personnel, was transferred to the Executive Office of the Secretary, Office of the Comptroller.

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE

The Acting Secretary of Health, Education, and Welfare reported that the total number of employees in the Department on January 1, 1959, was 57,153, an increase of 3,862 over the previous year. About 75 percent (2,860) of this increase was in the Social Security Administration, principally to meet unprecedentedly heavy claims workloads resulting from the expansion of old-age, survivors, and disability insurance program. Another 18 percent (704) of the increase was

for new or expanded programs of the Public Health Service, principally for medical research at the National Institutes of Health. The remaining 7 percent (255) of the increase occurred in the other operating agencies. The largest element of this was an increase of 120 in the Office of Education, mainly to administer the National Defense Education Act of 1958.

Office of the General Counsel

No organizational changes were reported. The increase (eight) in employment was the result of greater demands for legal services under new legislation affecting the Social Security Administration and the Office of Education.

Office of Field Administration

There were no organizational changes during 1958. The increase (51) occurred in the regional offices where greatly increased demands for services were required for the Bureau of Old-Age and Survivors Insurance, Social Security Administration, and to a lesser degree in the Division of Grant-in-Aid Audits, Office of Field Administration, for auditing State programs in medical care and surplus property. Food and Drug Administration

The Division of Administrative Management was reorganized, resulting in the abolition of one branch and the transfer of its functions and personnel to other units. There were no increases or decreases in the number of personnel as a result of the reorganization.

A new district office is being established in Detroit in order to provide added consumer protection for foods, drugs, and cosmetics. Operations will begin early in calendar 1959 with a staff of about 15 to be increased to about 60 by end of fiscal 1959. The new office will serve the State of Michigan and the northern judicial districts of Ohio and Indiana. An additional district office is planned in fiscal 1959 to be located in Dallas.

The increase (66) in employment was predominantly for increased enforcement activities and a few positions for added workload in the certification of coal-tar colors and antibiotics.

Office of Education

A reorganization of the Office eliminated an intervening level of organization between the Commissioner and the operating divisions. Three Offices of Assistant Commissioners were abolished: Educational Research, Educational Services, and Fiscal Administration of Grants. The reorganization also provided for the addition of one new operating division-the Division of Statistics and Research Services-to administer the Office's expanded responsibilities in this area.

The increase (120) in employment was due to new laws for the improvement of practical nurse training: the extension of public library services in rural areas; and, principally, to administer the National Defense Education Act.

Office of Vocational Rehabilitation

A reorganization reduced the number of Assistant Directors from 4 to 3, and the number of divisions from 11 to 8. The changes will facilitate the planning and coordination of program activities by the regrouping of closely related functions into three principal areas: State program operations; research and training; and management