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When the President tasked the Department of Defense in early November of last year to build up forces in Saudi Arabia to permit the utilization of an offensive operation as an option, one Army action that became necessary was the deployment from Germany of a major segment of the United States force structure that was stationed there.

Twenty thousand pieces of equipment had to be prepared. Stocks were withdrawn from POMCUS (Prepositioned Materiel Configured in Unit Sets) sites and war reserves. Supplies and spare parts were identified in warehouse after warehouse. Twenty and 40-foot shipping containers had to be spotted and loaded. Six hundred trains were eventually utilized to make the movement to Northern European ports. Ships then had to be identified and mobilized in those ports to take care of the shipment in the middle of the European winter.

The final stage involved the movement of more than 70,000 soldiers from Germany to achieve an arrival in theater that had to be coordinated with the arrival of all of that equipment. All of this was accomplished in less than 90 days in an almost uneventful performance.

The movement could not have taken place without the application of what Carl Vuono and I, and what Bill Dickinson has just mentioned, call the six imperatives that are the guiding principles of our Army-good doctrine imparted to quality soldiers using good equipment, and led by proficient and trained noncommissioned officers and soldiers. The trained Army that has resulted is also a ready Army and was thus ready in November of last year to carry out the President's orders.

Chairman Powell, in talking of enduring realities, spoke also of the basic military supporting capabilities needed by the armed services to operate in the world in which these realities endure. The most important of those capabilities, in my opinion, is for the armed forces to retain the superb quality that has been built into the forces during the last decade. Quality, in all of its aspects, is the hallmark of readiness and training, and is the fundamental ability to defend the country's interests.

I will conclude by commenting on two specific issues. First, modernization; and second, the Army's Reserve components. In discussing modernization, I will not introduce any specific program. I am sure that you will ask me and General Vuono about many of the Army's programs. So I will leave that discussion until later.

I will, however, mention at this juncture some figures that to me are stark in their clarity of meaning and grave in their implications for the Army. The Army's procurement account in the last few years has reflected the following numbers: in fiscal year 1990, the procurement account for the Army was $14.3 billion; in fiscal year 1991, this year, our account is $9 billion. In the budget that has just been submitted to you for fiscal year 1992, the procurement account figure is $8 billion. In 1993, the year after, the number goes down to $7.6 billion.

That trend line is alarming. Even though the trend needs minor adjustment to ensure comparability of numbers, the message is clear. The Army simply cannot bear its functional share of nation

al responsibilities and confront Chairman Powell's enduring realities if that trend continues.

I ask this committee, both today and in the ensuing budget cycle, to take into consideration the Army's need to maintain and enhance its technical prowess and to complete the current phases of the modernization program that still has many significant gaps.

As we all know, the concept of the citizen soldier is a part of our country's social fabric and has been so for well over 200 years, and it will continue to be. The embodiment of that concept is the National Guard and the reserves. Over 1000 units of the Army's Reserve components have been mobilized during the past 6 months and are serving, most of them in the Persian Gulf, with great distinction.

I believe that 1991 and probably 1992 as well are going to be important and difficult years for the Reserve components. In fact, the issues involved in the Army's management of its elements of the Reserve components are, in my opinion, going to be the most difficult problems that the Army will have to deal with in these next 2 years. The problems entail issues on the total force structure, the size, the organization within the total Army, and command and control.

Congress and the Pentagon have not always seen eye-to-eye on these issues, and we will have to join together to resolve them.

In conclusion, let me reiterate the theme of my last assertion. I look forward to working with the Congress and this committee in the resolution of the problems that I have briefly mentioned and those that I have not mentioned at all. Working together, I am confident that we can achieve such resolutions and preserve the strength and character of the Army that has served the United States so well during the past 18 months, and that the United States will doubtless need again in the future.

Congressman Dickinson and the Chairman have both mentioned my distinguished colleague, General Vuono. Nothing is sure in the world, but this may be the last time that we appear at this table together at a full hearing to defend our budget. I would like to say in front of all of the Congressmen present and the audience present what a privilege and an honor it has been for me to serve with this gentleman for the last 4 years and the last year and a half as Secretary of the Army.

Thank you, Mr. Chairman.
The CHAIRMAN. Thank you.

PREPARED Statement of HON. MICHAEL P.W. STONE

Mr. Chairman and Members of the Committee:

It is an honor to appear again before the Committee to report on the Army's achievements and to outline the Army's plans and challenges for the coming years. Although we have been challenged over the past year, we have met those challenges and have answered the nation's call both at home and abroad with distinction.

Last year at this time, we spoke of Operation "Just Cause" and its impact on the Army and the nation. While clearly a challenge that was met head-on with dispatch and professionalism, that operation is dwarfed by the ongoing conflict in Southwest Asia. Operation "Desert Storm", the largest deployment of United States soldiers since Vietnam, clearly demonstrates that the Army is a strategic force fully capable of meeting a wide range of contingencies on short notice, of performing in the Joint and Combined arena, and of providing highly capable forces to the warfighting commanders in chief (CINCs).

My concluding remarks to you last year included the statement, "We are ready to face the challenges of the future." The events that have occurred in Saudi Arabia over the past six months and your Army's response to them validates that statement. Our response is a reaffirmation and validation of the six fundamental imperatives that have guided and will continue to guide the Army's development--quality soldiers and civilians, forward-looking warfighting doctrine, an appropriate mix of forces, tough and realistic training, necessary focused modernization, and competent, confident leaders.

CSA Legacy--The Six Imperatives

The trained and ready Army that you see deployed around the world today is a result of the cooperation, sacrifices, and hard work of many persons in and out of uniform. No one has been more instrumental in shaping that force than our Army Chief of Staff, General Carl E. Vuono. As you know, he completes his fourth year as Chief this summer after orchestrating some of the most dramatic changes in our Army's history. Those changes reflect and embody the six imperatives mentioned earlier. Each of them requires

Quality

The quality of our men and women is the sine qua non that is the cornerstone of the Army. This single intangible characteristic enables us to fulfill our worldwide strategic roles. During the past four years, the percentage of high school graduates accessed in the Army has risen from about 90 percent to over 95 percent. Other considerations help attract and retain a quality force. The establishment of the Army Communities of Excellence program is an example. So is the program to construct 59 Child Development Centers and 28 Physical Fitness Training Centers and to modernize or construct over 25,100 barracks spaces during the past four years. Recruiting and retaining talented men and women--the best that our nation has to offer--must continue to be the Army's top priority.

Doctrine

The twin doctrines of AirLand Battle and AirLand Battle-Future form the basic rationale for leader development, force design, material requirements, and training focus. General Vuono has put his personal stamp on the development and revalidation of much of the Army's doctrine particularly in the area of Training and of Low Intensity Conflict.

Force Mix

In an effort to maintain the appropriate mix of armored, light and special operations forces in the Active and Reserve Components, significant restructuring of the force has been accomplished under General Vuono's direction. Faced with the need to reduce the force due to a changing international environment and diminishing resources for defense, the Army has begun to shape the force of the future. Brigades from the 9th and 4th Infantry Divisions and the 2nd Armored Division have been inactivated, and the 194th Separate Armored Brigade has been reorganized into an armored battalion task force. Current Army plans call for further reductions toward a smaller, yet capable force.

Training

Training prepares soldiers, leaders, and units to fight and win in combat--our basic mission. General Vuono's unrelenting challenge to the Army has been to demand tough and realistic training for our

soldiers. The successes of Operations Just Cause and Desert Storm to date demonstrate that his challenge has been met. The Army also has shown the excellence of its training standard in numerous international competitions over the past four years. In events ranging from individual marksmanship to tank gunnery, the Army has excelled. Significant team results have included: the Boeselager Cup (a gunnery event for cavalry units), first place '87, '88, and '90; World Helicopter Championship, first place '90; and the Australian Army Skill at Arms Meeting, second place '88, first place 90. Central to the Army's strategy of maintaining highly trained leaders and soldiers are the combat training centers: the National Training Center at Fort Irwin, California; the Joint Readiness Training Center currently at Fort Chaffee, Arkansas; the Combat Maneuver Training Center at Hohenfels, Germany; and the Battle Command Training Program operating from Fort Leavenworth, Kansas. These programs have made a great contribution to improving and sustaining the professionalism and warfighting ability of the Total Army.

Modernization

We are witnessing daily, as we follow the progress of Desert Storm, the payoff of the Army's modernization investments made over the past years. Key battlefield systems fielded during the 1980's and proving their worth today in the test of combat include: the Apache helicopter, the Abrams tank, the Bradley fighting vehicle, the Multiple Launched Rocket System, Army Tactical Missile System, and the Patriot air defense system.

Leader Development

There is no substitute for leaders who are competent in their profession, responsible for their soldiers, and committed to the defense of their nation. Leader development involves the Total Army--officers, noncommissioned officers, and civilians of both the Active and Reserve Components. Over the past four years, almost 20,000 students have graduated from the Army's top professional development schools. Additionally, the other programs continue to provide the Reserve Component and our civilian leaders the same type of quality education provided to our soldiers.

Operation Desert Storm and its precursor, Desert Shield, represent your Army at its best--from the initial deployment of the 82nd Airborne Division's Ready Brigade within 31 hours of the nation's call, to the current commitment of over 275,000 young men

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