vide it last year," and they would like to have the money. So it is a political matter. Also it is a realistic thing to those people who are going to benefit by the projects that our funds are going to be contributed to. Senator INOUYE. Would you say that your operational effectiveness, I cite this because it is one of the missions, depends upon the maintenance of good relations between our forces and the Ryukyuans?

General UNGER. Yes, sir. There is quite a direct relationship there. In the operation of an effective base the acquiescence of the people who are present is really necessary to run a good orderly base. You can run a base at the point of a bayonet, but we don't have to do that. And the work that the United States has done there through the years, through the medium of its direct aid and through other moneys has caused the Ryukyuan people to be generally not resentful of the base.

A lot of them depend on the base for their livelihood. So we do have now, and we have had the acquiescence of the people to our presence there, despite the fact that they sometime in the future would like to identify themselves with Japan and return to the administration of Japan. This is a natural emotional desire. I don't know if I have answered your question, Senator Inouye.

Senator In INOUYE. You have, sir. Would you go SO far as to say that it would be in the interests of our national security to authorize this amount?

General UNGER. Yes, sir. I believe it would. I believe you could categorize this as a premium on an insurance policy. We have quite an investment in the Ryukyus. I have heard various figures, and during the year I have been there I have tried to get it down to a specific as to what our investment is, and again you can get all sorts of figures, but the one I use is that we have between a $1 billion and a $2 billion investment there, just from the point of view of money. But over and above that, the presence of the United States in that part of the world has to do not only with Japan and the Ryukyus but it has an impact on the other nations-Taiwan, the Philippines, Korea, and so forth. So again, I think it is in support of it.

Senator INOUYE. Thank you very much. Thank you, Mr. Chairman. Chairman RUSSELL. It has relieved some of those nations of the necessity of heavy taxation to maintain large military establishments, hasn't it, General?

General UNGER. It certainly has. As far as Japan is concerned, our forces there certainly provide for the defense of Japan and the other free world nations of the western Pacific.

Chairman RuSSELL. Of course, appreciation is something that we hold in expectation of tomorrow's largess, but for a long period of years if we had not been there, it is very likely that the Communists would have taken over Japan lock, stock, and barrel, is it not?

General UNGER. That is certainly a possibility.

Chairman RuUSSELL. I assume that the United States is the largest employer in the Ryukyus, is it not?

General UNGER. It is the largest single employer, Mr. chairman. I am continually trying to find out the number of people whom the military services and associated activities of the services employ; the figure I currently use is about 60,000 Ryukyuans who gain their livelihood through the presence of U.S. forces and other activities associated with U.S. forces.

Chairman RuUSSELL. How does the pay scale of the United States and its civilian and military compare with the prevailing wage before we moved in?

General UNGER. There has been a terrific increase since we moved in, and we moved in there 22 years ago, sir. You could say that during the midthirties, the annual income of the average Ryukyuan was about $25. At that time the annual income per capita in Japan was about $60. Today 30 years later, for fiscal year 1966 the per capita income in Japan is a little over $700, 709 I believe, and for the Ryukyuans it is $426. There has been a terrific increase.

In the 5 years between fiscal years 1960 and 1965, there has been an average increase in the gross national product of about 14 percent. More particularly, between fiscal year 1965 and 1966 there has been aa 18-percent increase in the GNP of Ryukyu Islands. There has been a lot of progress made, Mr. Chairman.

Chairman RUSSELL. Senator Stennis.

Senator STENNIS. General, I am sorry I didn't get to hear your original statement. I was over in the Appropriations Committee. However, I picked up some of your main points. I was in this area about 10 years ago, and I was told then that every election they had. that every major candidate ran out on an anti-American or antiU.S.A. ticket. And speeches uniformly bore that out. Is that true now! General UNGER. Senator Stennis, I have been there 1 year, and

during that 1 year's time there has not been any election.
Senator STENNIS. Well, you have an idea about that.
General UNGER. Yes, sir; I am about to express an idea.
Senator STENNIS. Give us your idea.

General UNGER. In a situation such as that, the opposition naturally refers to ours as control by an alien race. Since the opposition parties are attempting to unseat the government party, this gives them considerable political ammunition. As a result even the government party, in order to stay in power, or in order to capture the appropriate number of votes from the electorate has to take, in a sense, an ameliorative somewhat anti-U.S. position.

Senator STENNIS. I was told all the major candidates of all the major parties took this position that I have described.

General UNGER. Yes, sir.

Senator STENNIS. That was about 10 years ago, and it was the military men there who told me that.

General UNGER. Yes sir; I wouldn't be a bit surprised.

Senator STENNIS. Is it that way now to the best of your knowledge and believe? That is what I want to know.

General UNGER. I am working toward the elections that are coming up next year, Senator Stennis, and I have been discussing this matter with all the parties in the Ryukyus. I would say that the government party which is the Okinawa Democratic Party will in their platform have certain anti-U.S. elements but they will not be quite as profound and as critical as will be the similar anti-U.S. platforms of the opposition party. That is about the best way I can answer it, sir.

Senator STENNIS. I know it is a little sensitive but I just wanted to get your idea. I believe though from your testimony that you think it has improved some, from what it was 10 years ago.

General UNGER. I think it has.

Senator STENNIS. I think it should have, and I hope it is true. Now someone sent me or something came across my desk at least not too long ago, strongly claiming that our position there was the position of oppression and imperialism in the Pacific. Did you hear anything like that or do you believe that that is true or that it has any segment of truth in it? I imagine not, but I would just like for you to comment on that report. That is very seriously argued here from time to time. General UNGER. The opposition parties, sir, such as the Socialist and Communist Parties, naturally take the line that you just described, that the United States really smacks of imperialism, that its presence there denies human rights to the Ryukyuans, all of this sort of antiapproach. These people do it, and they do it for many reasons, and some of them do it in the hopes of unseating the government party. But from the responsible echelons of say, the Okinawan Socialist Masses Party, which is the largest opposition party, we don't get that type of thing. We get a little of it from the labor circles, but it is not as rampant as the article you have referred to on your desk might indicate. Not at all.

Senator STENNIS. You feel then that basically the informed opinion is that the acts are to the contrary from what I have described in this article, is that right?

Generally UNGER. Generally speaking, yes. I don't believe the responsible people there consider us imperialists.

Sentaor STENNIS. And those conditions and that attitude at least in public relations are getting better, from our viewpoint, rather than worse, is that right?

General UNGER. Yes, sir.

Senator STENNIS. That is encouraging. Thank you, Mr. Chairman. Chairman RUSSELL. Any further questions? Senator Cannon. Senator CANNON. General, you said there were about 60,000 U.S.

employed or U.S. related employed.

General UNGER. Ryukyuans employed.

Senator CANNON Right. What does that relationship bear to the total work force.

General UNGER. The total work force is 420,000, Senator Cannon. The primary industry of course is agriculture and forestry, and the primary product there is sugarcane and pineapple.

Senator CANNON. What would be the approximate amount of the payroll for those 60,000?

General UNGER. I am afraid to give you that answer, I will provide it for you, Senator Cannon.

(The information requested follows:)

ESTIMATED RYUKYUAN PAYROLL

Wages paid to approximately 18,000 indigenous employees of the U.S. amounted to $20.6 million in FY 1966. It is estimated that there are approximately 41,000 other Ryukyuans employed in U.S. related activities. No specific data are available on which to determine the total wages paid that work force.

Senator CANNON. So roughly that is about 14 percent of the total workforce.

General UNGER. Yes. We figure that it is about 14 or 15 percent. Senator CANNON. And is the main revenue to the Government outside of the United States and the Japanese contribution income tax? General UNGER. Yes, sir; income tax.

Senator CANNON. What would the income tax payment be this year, roughly.

General UNGER. One second. I believe I have it here. If you will go on to your next question, Mr. Burns can find that.

Senator CANNON. Is this workforce one that is constantly growing up? My recollection is that last year the United States-Ryukyuan workforce there was roughly 53,000. Would that be about right, that type of an increase?

General UNGER. It has gone up in the last year, in the last 18 months, because of the increased activities of the base, Senator Cannon.

Senator CANNON. I think he has the figure now.

General UNGER. Income taxes show here, Senator Cannon, it is esti

mated for 1968 at $26 million in income tax.

Senator CANNON. $26 million?

General UNGER. Yes, sir.

Senator CANNON. That is a little down from the 1960-from the previous year's estimate. Is there some reason for that? Has there been a slowing up of the economic situation?

General UNGER. No, sir. I have here income taxes from the years fiscal 1960 through 1968, and I see it continually rising from fiscal 1960 on up, and it drops only between really fiscal 1966 and fiscal 1967, and the drop is about $1 million.

Senator CANNON. I was referring to Mr. Holt's testimony last year in June before this committee. He estimated that the fiscal 1967-he said "In round figures fiscal 1967 income taxes will amount to approximately $30 million."

General UNGER. I don't have that figure here, sir. I have fiscal 1967 estimated income tax of $22 million, sir. We will check it. Senator CANNON. Thank you, Mr. Chairman.

Chairman RUSSELL. If there are no further questions we will proceed to the next bill.

(The information requested above follows:)

RYUKYUAN TAX REVENUES

While at the time of last year's hearings income taxes were expected to be the main source of government revenues, a restructuring of the tax system to more nearly approximate that of Japan has resulted in a marked increase in excise taxes, to $30.5 million in FY 1967, along with the reduction in income taxes described above.

(Subsequently, in executive session, the committee voted to report H.R. 4903, with an amendment, authorizing $17.5 million, as covered by S. Rept. 674.)

H.R. 5894

Chairman RUSSELL. The next bill is H.R. 5894, which would amend titles 30, 32, and 37 of the United States Code to remove the provisions that limit the promotion oppotrunity and restrict the career tenure of women officers in the Army, the Navy and the Air Force and the Marine Corps.

(The bill, H.R. 5894, referred to follows:)

[H.R. 5894, 90th Cong., first sess.]

AN ACT To amend titles 10, 32, and 37, United States Code, to remove restrictions on the careers of female officers in the Army, Navy, Air Force, and Marine Corps, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title 10, United States Code, is amended as follows:

(1) Section 123 (a) is amended by striking out "3391,".

(2) Section 510(c) is amended by striking out "for service in the Army Reserve, Naval Reserve, Air Force Reserve, Marine Corps Reserve, and Coast Guard Reserve".

(3) Section 591 (c) is amended by striking out "as nurses or medical specialists".

(4) Section 1006(e) is amended by striking out "3847," and "8847,".

(5) Section 1164 is amended by striking out "male" in subsection (a), all of subsection (b), and "or (b)" in subsection (c).

(6) Chapter 63 is amended by repealing section 1255, striking out the corresponding item in the analysis, and by striking out "1255 or" in section 1263 (a). (7) Section 1405 is amended by striking out "6399 (c) (2),”. (8) Chapter 307 is amended by

(A) amending section 3069 to read as follows:

"§3069. Army Nurse Corps: composition; Chief and assistant chief; appoint

ment.

"(a) The Army Nurse Corps consists of the Chief and assistant chief of that corps and other officers in grades prescribed by the Secretary of the Army.

"(b) The Secretary of the Army shall appoint the Chief from the officers of the Regular Army in that corps whose regular grade is above major and who are recommended by the Surgeon General. The Chief serves during the pleasure of the Secretary, but not for more than four years, and may not be reappointed.

"(c) The Surgeon General shall appoint the assistant chief from the officers of the Regular Army in that corps whose regular grade is above major. The assistant chief serves during the pleasure of the Surgeon General, but not for more than four years and may not be reappointed to the same position.";

(B) amending the text of section 3070 to read as follows:

"(a) The Army Medical Specialist Corps consists of the Chief and assistant chiefs of that corps, other officers in grades prescribed by the Secretary of the Army, and the following sections

"(1) the Dietitian Section;

"(2) the Physical Therapist Section; and

"(3) the Occupational Therapist Section.

"(b) The Secretary of the Army shall appoint the Chief from the officers of the Regular Army in that corps whose regular grade is above captain and who are recommended by the Surgeon General. The Chief serves during the pleasure of the Secretary, but not for more than four years, and may not be reappointed.

"(c) The Surgeon General shall appoint three assistant chiefs from officers of the Regular Army in that corps whose regular grade is above captain. Each assistant chief is the chief of a section of that corps. An assistant chief serves during the pleasure of the Surgeon General, but not for more than four years, and may not be reappointed to the same position.";

(C) amending the text of section 3071 to read as follows:

"(a) The Women's Army Corps consists of the Director and Deputy Director, other officers in grades prescribed by the Secretary of the Army, and enlisted members.

"(b) The Secretary of the Army shall appoint the Director from the officers of the Regular Army in that corps whose regular grade is above major. The Director is the adviser to the Secretary on Women's Army Corps matters and serves during his pleasure, but normally not more than four years.

"(c) The Secretary of the Army shall appoint the Deputy Director from the officers of the Regular Army in that corps whose regular grade is above major. She serves during the pleasure of the Secretary, but normally not for more than four years.

"(d) The Secretary of the Army shall designate the positions that he finds necessary for the training and administration of the Women's Army Corps. He