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The $109 million requested for Thailand includes $10 million for cost overruns on previously approved projects (i.e., 5 percent of the original estimate), $10 million for port facilities, $19 million for roads from the Port of Sattahip to various military installations in Thailand, $10 million for utilities, $7 million for personnel facilities and $53 million for other operational, supply and support facilities.

The $32 million requested for other Pacific areas includes $5.4 million for ship repair facilities, $9 million for airfield facilities (including a cost overrun of $3 million for previously approved projects in Taiwan), $3 million for POL storage, $2.3 million for hospital improvements (primarily air conditioning in Japan) and $12 million for maintenance, communications utilities, and other support facilities.

The $75 million requested for projects in the United States includes $51 million for training facilities (Navy aviation, Army and Marine helicopter training, and SEABEE training), $5 million for Military Airlift Command (MAC) facilities, $7.3 million for personnel facilities (primarily for the Marine Corps), and the balance for a large number of relatively small facility improvements throughout the country.

REVOLVING FUNDS

Last year we had estimated that total stock fund inventories at the end of FY 1967 would amount to about $5.2 billion, based on net sales during the fiscal year of about $9.9 billion. Because of the increased effort in Southeast Asia, we now estimate stock fund sales at about $12.7 billion, $2.8 billion more than previously estimated. To support this higher volume of sales, inventories will have to be increased to about $6.6 billion at the end of FY 1967, about $1.4 billion more than previously estimated. All but $535 million of this increase in inventories can be financed from the cash balances already available in the stock funds. The $535 million will have to be provided by new appropriations and is included in our FY 1967 Supplemental request.

ADDITIONAL AUTHORIZATIONS

The additional amounts requested to be authorized for aircraft, missiles, naval vessels, tracked combat vehicles, and RDT&E are shown in Tables 4, 5 and 6.

TABLE 1.-Recapitulation of military and civilian personnel strength, fiscal year 1967

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Direct hire civilian personnel:

Active duty military personnel:

Army......
Navy....
Marine Corps.

Air Force...

Total.....

1,159, 043
723, 723
250, 079

1, 233, 693
727,873
278, 184

854, 498

853, 359

1,206, 574
724,151
272,596
855, 419

1,199,046
744,469
261,687
886, 350

1, 454, 200
753, 394
280, 624
898,600

1, 368, 233

+40,003

748,938

+20,746

+220,507
+25,521

+161,659
+24,787

277,545

+11,608

+2,440

+4,949

900, 136

+31,852

+45,241

+44,717

2,987, 343

3,093, 109

3,058,740

3,091, 552

3,386, 818

3, 294, 852

+104, 209

+293,709

+236,112

Army..

359, 632

357,923

Navy (including USMC).

357, 601

362,893

Air Force.

301, 378

308,717

Defense agencies..

68,505

63,848

360,066
359, 394
308,986
63, 561

371, 121
356,744
306, 911

426,164
398,608

393, 998

+11,489

+68,241

+33,932

381,189

-857

+35,715

+21,795

319,462

319, 349

+5,533

+10,745

+10,363

68,923

72, 361

71, 256

+418

+8,513

+7,695

Total..

1,087, 116

1,093, 381

1,092,007

1, 103, 699

1, 216, 595

1, 165, 792

+16,583

+123,214

+73,785

TABLE 2. Financial summary of fiscal year 1967 budget including the proposed supplemental for southeast Asia

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[In thousands of dollars]

New obliga-
tional
authority
enacted

(1)

Military personnel:

Military personnel, Army-

Military personnel, Navy--
Military personnel, Marine Corps.-
Military personnel, Air Force-...

Reserve personnel, Army -
Reserve personnel, Navy
Reserve personnel, Marine Corps..
Reserve personnel, Air Force.
National Guard personnel, Army...
National Guard personnel, Air Force.
Retired pay, Defense...

Total, military personnel.

Operation and maintenance:

6, 164, 400
3, 652, 100
1,183, 200
5,015,800

36,500
69,700

346, 533
82,000
1,780,000

18, 731, 044

Operation and maintenance, Army.
Operation and maintenance, Navy...
Operation and maintenance, Marine Corps.

5, 122, 427
3,980, 300

325,600

Operation and maintenance, Air Force...

4, 943, 100

Operation and maintenance, Defense Agencies.

806, 500

Operation and maintenance, Army National Guard.

Operation and maintenance, Air National Guard..

National Board for Promotion of Rifle Practice, Army.

Claims, Defense.

Contingencies, Defense

Court of Military Appeals, Defense

231,000
253, 300

25,000
15,000
600

Total, operation and maintenance....

15, 703, 321

TABLE 2.-Financial summary of fiscal year 1967 budget including the proposed supplemental for southeast Asia-Continued

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Research, development, test, and evaluation:

Research, development, test, and evaluation, Army.
Research, development, test, and evaluation, Navy.
Research, development, test, and evaluation, Air Force..

Research, development, test, and evaluation, Defense agencies.

Emergency fund, Defense..

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Family housing:

Family housing, Defense.....
Homeowners Assistance, Defense...

Civil defense:

Operation and maintenance, civil defense.
Research, shelter survey and marking, civil defense.
Construction of facilities, civil defense..

Total, civil defense..

Special foreign currency program..

Revolving funds:

Army stock fund.
Navy stock fund....
Defense stock fund.

Total, revolving funds..

Department of Defense totals:
Department of the Army.
Department of the Navy.....
Department of the Air Force.
Defense agencies___
Civil defense...

Total, military functions..

Military assistance....

Total new obligational authority, Department of Defense..

Total expenditures, Department of Defense....

507, 196

66, 100
35,000

101, 100
7,348

17, 279, 079

16,959,018

21, 024, 395

3, 784, 550

101, 100

59, 148, 142

792,000

59, 940, 142 58,300,000

74-035-67-3

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